Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2026 - Free CPHRM Practice Questions and Study Guide

In the context of health care insurance, IBNR stands for "Incurred but Not Reported." This term refers to the estimated liabilities for claims that have been incurred by policyholders but have not yet been formally reported to the insurance company. Incurred claims include those that have occurred during the policy period, even if the claim has not yet been filed.

Understanding IBNR is important for health care risk management as it helps insurers and providers accurately assess their financial reserves necessary to cover future claim obligations. This calculation is essential for maintaining adequate funding and ensuring that the company can meet its future payout obligations.

The other options described do not reflect established terminology used in the industry. Terms like "Insurance Benefits Not Required," "Informed by New Regulations," and "Indemnity Balance Not Required" are not recognized concepts in the context of health care insurance and do not pertain to how insurers assess their liabilities. This makes the understanding of IBNR particularly vital for accurate financial reporting and risk assessment in health care management.