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INSURANCE LIABILITIES AND ANNUITY BENEFITS
3 Months Ended
Mar. 31, 2020
Insurance [Abstract]  
INSURANCE LIABILITIES AND ANNUITY BENEFITS
NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS
Insurance liabilities and annuity benefits comprise mainly obligations to annuitants and insureds in our run-off insurance activities.
March 31, 2020 (In millions)
Long-term care insurance contracts
Structured settlement annuities & life insurance contracts
Other
contracts
Other adjustments(a)
Total






Future policy benefit reserves
$
16,785

$
9,491

$
181

$
4,051

$
30,508

Claim reserves
4,314

253

1,099


5,666

Investment contracts

1,112

1,057


2,169

Unearned premiums and other
26

194

165


385


21,125

11,050

2,502

4,051

38,729

Eliminations


(488
)

(488
)
Total
$
21,125

$
11,050

$
2,014

$
4,051

$
38,241

December 31, 2019 (In millions)











Future policy benefit reserves
$
16,755

$
9,511

$
183

$
5,655

$
32,104

Claim reserves
4,238

252

1,125


5,615

Investment contracts

1,136

1,055


2,191

Unearned premiums and other
30

196

96


322


21,023

11,095

2,459

5,655

40,232

Eliminations


(406
)

(406
)
Total
$
21,023

$
11,095

$
2,053

$
5,655

$
39,826

(a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through Accumulated other comprehensive income (loss) in our consolidated Statement of Earnings (Loss).

The decrease in insurance liabilities and annuity benefits of $1,586 million from December 31, 2019 to March 31, 2020, is primarily due to an adjustment of $1,604 million resulting from a decrease in unrealized gains on investment securities that would result in a premium deficiency should those gains be realized.

Claim reserves included incurred claims of $507 million and $473 million, of which insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation for the three months ended March 31, 2020 and 2019, respectively. Paid claims were $405 million and $421 million in the three months ended March 31, 2020 and 2019, respectively.

Reinsurance recoverables are recorded when we cede insurance risk to third parties but are not relieved from our primary obligation to policyholders and cedents. These amounts, net of allowances of $1,374 million and $1,355 million, are included in Other GE Capital receivables in our consolidated Statement of Financial Position and amounted to $2,463 million and $2,416 million at March 31, 2020 and December 31, 2019, respectively.