Explain how latent liabilities such as mass torts work their way onto a property and casualty insurer's balance sheet and results.

Free CAS Exam 6-U.S. (Regulation and Financial Reporting) lesson in United States Laws and Regulations. 8 min read, ~1,232 words.

Latent liabilities (asbestos, pollution, mass torts) have long latency: injury manifests years or decades after exposure. Occurrence-based commercial general liability policies are triggered by injury during the policy period, so old policies get exposed long after they expire. Trigger theories decide which policy years respond: exposure, manifestation, injury-in-fact, and continuous...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• A7

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