Liability items on an insurer's balance sheet that reflect obligations that must be met in the future are called

Question

Quizplus · Accepted Answer

Reserves are allocated by the insurer to pay for potential claims or losses in the future. This represents a liability as the insurer has a financial obligation to meet these potential claims. Pre-paid expenses are assets, surplus is the difference between assets and liabilities, and nonadmitted assets are assets that are not allowed to be included on the insurer's balance sheet.

Liability Items on an Insurer's Balance Sheet That Reflect Obligations