Contingent claims are assets and liabilities that will come into existence at a future time often due to a customer's action...

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Contingent claims refer to assets or liabilities that will be activated at a later point due to a future event, such as a customer's actions or an uncertain outcome. Examples include warranty claims or insurance claims, which will not materialize until a certain condition is met.

Contingent Claims Are Assets and Liabilities That Will Come into Existence