Which of the following is an expense for a life insurance company?

Question

Quizplus · Accepted Answer

Death benefits paid to a beneficiary are an expense for a life insurance company, as they represent the payout of the policy's benefits to the policyholder's beneficiaries. Loss reserves (A) represent the estimated amount of money an insurance company will need to pay out in claims, but they are not technically an expense until the claims are actually paid. Unrealized (C) and realized (D) capital gains are not expenses, as they represent increases in the value of the company's investment portfolio.

Which of the Following Is an Expense for a Life