The Policy Reserves on the Liability Side of the Balance

question 62

True/False

The policy reserves on the liability side of the balance sheet of a life insurance company are estimated based on actuarial assumptions of expected future liability commitments on currently existing contracts.

---

Definitions:

Observed Behavior

The actions or responses of an individual that can be seen and measured by others or oneself.

Vicarious Reinforcement

Learning that occurs by observing the consequences (rewards or punishments) of another person’s behavior.

Physiological Drives

Basic bodily needs that drive behavior, such as hunger, thirst, sleep, and sex.

Bandura

Albert Bandura, a renowned psychologist known for his work on social learning theory, which emphasizes the role of observational learning, imitation, and modeling in behavior.