One item that appears on an insurance company's financial statements is a liability that represents an estimate of the claims reported and adjusted but not yet paid,claims reported and filed but not yet adjusted,and claims incurred but not yet reported to the company.This liability is called the insurer's

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Loss reserves represent the estimated amount of claims that have been reported or incurred but have not yet been paid out by the insurance company. It is a liability because the company is slated to pay out these claims in the future. The other options - net income, admitted assets, and unearned premium reserve - do not represent this type of liability.

One Item That Appears on an Insurance Company's Financial Statements