Future Liabilities on the Self-Insurers Annual Report are estimated as follows:

• A. Paid to date
• B. Total Reserves less paid to date
• C. Incurred less paid to date
• D. The probable total future cost of compensation for the injury or disease

Answer: (D)

Future Liabilities are the total expected payouts to settle all claims that have occurred, covering both medical and indemnity payments over the life of those claims. It’s a forward-looking estimate of the entire cost to compensate for the injury or disease, not just money already paid or the amount currently reserved. That’s why the best answer is the probable total future cost of compensation for the injury or disease—it captures the full anticipated cost, including what will be paid in the future as claims mature. The other options describe amounts already paid, or only the remaining unpaid portions of current reserves, or an estimate limited to amounts incurred but not yet paid, which don’t reflect the full future obligation.