Which of the Following Statements Is True

question 23

Multiple Choice

Which of the following statements is true?

• A) Policy reserves are a liability item for insurers that reflects their worst-case payment commitments on existing policy contracts.
• B) Policy reserves are an asset item for insurers that reflects their best-case payment inflows on existing policy contracts.
• C) Policy reserves are an asset item for insurers that reflects their expected payment inflows on existing policy contracts.
• D) Policy reserves are a liability item for insurers that reflects their expected payment commitments on existing policy contracts.

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Definitions:

Offensive Touching

An intentional contact with another person in a harmful or offensive manner without the person's consent.

Consent

This refers to the agreement or permission given by a person for something to happen or for someone to do something, typically requiring full understanding and willingness.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious conduct.

Defendant

The person, party, or entity against whom a civil or criminal lawsuit is filed in a court of law.