Question

What does the liability for outstanding claims include?

a.

Only future payments in relation to unpaid reported claims

b.

Only Claims Incurred But Not Reported (IBNR)

c.

Both future payments in relation to unpaid reported claims and Claims Incurred But Not Reported (IBNR)

d.

Neither future payments nor Claims Incurred But Not Reported (IBNR)

Posted under IC 14 Regulations of Insurance Business

Answer: (c).Both future payments in relation to unpaid reported claims and Claims Incurred But Not Reported (IBNR) Explanation:The liability for outstanding claims includes both future payments in relation to unpaid reported claims and Claims Incurred But Not Reported (IBNR), among other factors, according to insurance accounting standards.

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Q. What does the liability for outstanding claims include?
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