One Liability on a Property and Liability Insurance Company's Balance

question 28

Multiple Choice

One liability on a property and liability insurance company's balance sheet is for the costs associated with settling and paying reserved claims.This liability is the

• A)pre-paid expense reserve.
• B)loss reserve.
• C)unearned premium reserve.
• D)loss adjustment expense reserve.

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Definitions:

Noncontrolling Interest

Refers to the ownership stake in a corporation that is less than the majority control, often represented by shareholders who do not have a significant influence over the company's operations.

Goodwill

Goodwill represents the intangible value of a business that exceeds its physical assets' value, often arising after the acquisition of one company by another.

Consolidated Net Income

The combined net income of a parent company and its subsidiaries, after adjustments for intercompany transactions.