The largest liability on property-casualty insurers' balance sheet as of 2015 was

Question

Quizplus · Accepted Answer

Loss reserve and loss adjustment expenses are the estimated amount of future claims that have been incurred but not yet reported to the insurer or settled. This liability represents a potential cost to the insurer and is the largest liability on their balance sheet. Unearned premiums represent premiums that have been collected but have not yet been earned as the policy period has not yet ended. Cash and policyholder surplus are not liabilities but rather assets and equity, respectively.

The Largest Liability on Property-Casualty Insurers' Balance Sheet as of 2015