A General Insurer Should Usually Record as Liabilities at the End

question 16

Multiple Choice

A general insurer should usually record as liabilities at the end of each reporting period the estimated amounts of:

• A) claims not yet lodged but arising from events occurring before the end of the reporting period
• B) claims lodged but not yet paid
• C) claims lodged but the amount of the liability is uncertain
• D) all of the above

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect at least 50% of the time, which varies from one individual to another and for different senses.

Reliable Detection

The ability to consistently and accurately identify or recognize the presence of a specific condition, substance, or pattern.

Rare Condition

A health condition or disease that affects a small percentage of the population, often with limited research and treatment options.

Warning Signals

Indicators or alerts that signify potential danger or the need for caution.