Question

What is the life insurance reserve?

a.

The reserve a life insurer has to meet his short-term liabilities

b.

The reserve a life insurer has to meet his long-term liabilities

c.

The reserve a life insurer has to meet his daily expenses

d.

The reserve a life insurer has to meet his overhead costs

Posted under IC85 Reinsurance Management

Answer: (b).The reserve a life insurer has to meet his long-term liabilities Explanation:The life insurance reserve is an actuarially calculated reserve designed to ensure that the insurer has sufficient reserves to meet his long-term liabilities.

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