Which one of the following statements is true regarding the accident$-$year method of estimating losses?

Available answer options

Select only one option

A

An accident year's accounts may be kept open until all losses that occurred in that year are fully paid.

B

As loss payments are made during the accident year, incurred losses decrease.

C

As loss payments are made during the accident year, incurred losses increase.

D

As reserves are increased or decreased due to new information on claims, incurred losses remain unchanged.