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Foundations of Casualty Actuarial Science

 insurer expenses such as acquiring and servicing
the insured's account;

 risk control services, premium audit, and general
administration of the insurance;

 a net charge for limiting the retrospective premium
between the minimum and maximum retrospective
premiums; and

 an allowance for the insurer's possible profit or for
contingencies.

92. The financial condition of an insurance company can
not be adequately assessed without sound loss reserve
estimates. A loss reserve is a provision for an insurer's
liability for claims. Loss reserving is the term used to
describe the actuarial process of estimating the amount
of an insurance company's liabilities for loss and loss
adjustment expenses.

93. The Balance Sheet - the balance sheet reports on the
financial position of the firm at a specific point in time.
It shows the levels of assets and liabilities, and the status
of the shareholders' equity, or surplus, for the insurer.

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