Section 5 - Glossary

Question 1

Describe the difference between claim liabilities and premium liabilities.

Answer 1

Claim liabilities relate to claims that occurred on or before the
accounting/valuation date, regardless of whether it has been reported or not.

Premium liabilities relate to claims that occurred after the accounting/valuation
date and are associated with the unexpired portion of policies effective on or
before the accounting/valuation date