LIC Only for In-Force Policies
The wiki states "All you need to know for now is that LIC (Liability for Incurred Claims) is just the "normal" reserve amount related to claims that have been incurred on in-force policies." I would have thought LIC would include incurred claims on in-force and expired policies. Unless I am missing something this would mean there wouldnt be a risk charge for an unpaid claim associated with an expired policy?
Comments
In-force here probably means all in-force and previously in-force policies. Although I do agree with you that the wording should be changed to clear up the ambiguity