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The NAIC Requires Life Insurers to Keep Two Different Types

question 8

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The NAIC requires life insurers to keep two different types of reserve accounts. These reserve accounts are designed to protect insureds from poor investment results the insurer may suffer. What are these two reserves called?

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Definitions:

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

Pure Sociology

A theoretical approach in sociology that seeks to explain social phenomena in objective, universal terms, focusing on social structures and their functions.

Relationships

Connections or interactions between individuals or entities based on social, emotional, or professional ties.

Provide Aid

To offer assistance, support, or relief to individuals or groups in need.

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