The total amount of funds that potentially could be paid out by an insurance company is the:
A)sum of all premiums collected.
B)sum of all deductibles received from claims.
C)capital at risk.
D)company's liabilities.

Question

Quizplus · Accepted Answer

Capital at risk refers to the total amount of funds that an insurance company could potentially have to pay out in claims. This is distinct from premiums collected, deductibles, or the company's broader liabilities.

The Total Amount of Funds That Potentially Could Be Paid