Exam DISC-DA Practice Question 7
Study guide: Exam DISC-DA
A homeowners claim occurs on December 2, 2024 and is reported on December 10, 2024, when a case reserve of $20,000 is set. On February 1, 2025 the insurer pays $5,000 and lowers the reserve to $12,000. On August 15, 2025 it pays $14,000 and closes the claim. By how much does this claim change calendar year 2025 reported losses, which are the payments made in 2025 plus the change in case reserves during 2025?
- A) A decrease of $1,000
- B) An increase of $19,000
- C) An increase of $31,000
- D) An increase of $39,000
Answer this question and see the worked solution