Question

The amount of provision made for all claims in the books of the insurer based on the status of the claims is known as ________.

a.

Pooling

b.

Accounting

c.

Reserving

d.

Investing

Answer: (c).Reserving Explanation:In the context of insurance, "reserving" refers to the amount of provision made for all claims in the books of the insurer based on the status of the claims. It involves setting aside funds to cover expected claim payments and is an important financial aspect of insurance operations.

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Q. The amount of provision made for all claims in the books of the insurer based on the status of the claims is known as ________.

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