The Unearned Premium Reserve of an Insurer Is

question 47

Multiple Choice

The unearned premium reserve of an insurer is

• A)an asset representing the investments made with premium income.
• B)a liability representing the unearned portion of gross premiums on outstanding policies.
• C)a liability representing claims that have been filed,but not yet paid.
• D)the portion of the insurer's net worth belonging to policyowners.

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Definitions:

Radius

The distance from the center of a circle to any point on its circumference, or from the center of a sphere to any point on its surface.

Center

A key point that is often the midpoint or origin in geometric figures, such as circles or ellipses, around which symmetry or rotation occurs.

Radius

In geometry, the distance from the center of a circle to any point on its circumference, also half the diameter of the circle.

Center

The middle point of a shape or object, equidistant from all outer edges.