Setting a claim 'reserve' means the insurer

Multiple choice — select the best answer

APays the claimant immediately
BEstimates and sets aside funds for the expected ultimate cost of the claim
CRefers the claim to law enforcement
DCancels the policy

✓ Correct answer: B. Estimates and sets aside funds for the expected ultimate cost of the claim A reserve is the insurer's good-faith estimate of the total amount it expects to pay on a claim, set aside on its financial statements.

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Topic: Claims Handling Process

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Setting a claim 'reserve' means the insurer:

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