POLICY LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Liability for Future Policy Benefits by Product Segment

The liability for future policy benefits as of December 31 consisted of the following:



		Liability Amounts				Interest Rates
(In millions)	Policy Issue Year	2012		2011		Year of Issue		In 20 Years
Health insurance:
Japan:	1974 - 2012	$	7,142	$	2,441	1.5 - 2.75	%	1.5 - 2.75	%
	1998 - 2012	13,685		18,777		3.0		3.0
	1997 - 1999	3,482		3,885		3.5		3.5
	1994 - 1996	4,261		4,749		4.0 - 4.5		4.0 - 4.5
	1987 - 1994	21,866		24,607		5.25 - 5.5		5.25 - 5.5
	1978 - 1986	5,009		5,761		6.5 - 6.75		5.5

U.S.:	2012	127		0		3.75		3.8
	2005 - 2011	2,977		2,713		4.75 - 5.5		4.75 - 5.5
	1998 - 2004	1,200		1,148		7.0		7.0
	1988 - 2004	748		777		8.0		6.0
	1986 - 2004	1,317		1,328		6.0		6.0
	1985 - 1986	23		23		6.5		6.5
	1981 - 1986	175		181		7.0		5.5
	Other	23		24

Life insurance:
Japan:	2001 - 2012	2,238		1,501		1.65 - 1.85		1.65 - 1.85
	2011 - 2012	733		122		2.0		2.0
	2009 - 2011	1,374		823		2.25		2.25
	2005 - 2011	1,231		1,079		2.5		2.5
	1985 - 2006	2,791		0		2.7		2.25
	2007 - 2011	1,049		896		2.75		2.75
	1999 - 2011	2,547		5,795		3.0		3.0
	1996 - 2009	872		962		3.5		3.5
	1994 - 1996	1,250		1,395		4.0 - 4.5		4.0 - 4.5

U.S.:	1956 - 2012	343		291		4.0 - 6.0		4.0 - 6.0
Total		76,463		79,278

Schedule of Liability for Unpaid Claims Adjustment Expense

Changes in the liability for unpaid policy claims were as follows for the years ended December 31:



(In millions)	2012				2011				2010
Unpaid supplemental health claims, beginning of year		$	3,749			$	3,524			$	3,105
Add claims incurred during the year related to:
Current year		8,013				7,703				7,262
Prior years		(173		)		(256		)		(332		)
Total incurred		7,840				7,447				6,930
Less claims paid during the year on claims incurred during:
Current year		5,453				5,401				5,003
Prior years		2,082				1,944				1,787
Total paid		7,535				7,345				6,790
Effect of foreign exchange rate changes on unpaid claims		(283		)		123				279
Reinsurance recoverables		10				0				0
Unpaid supplemental health claims, end of year		3,781				3,749				3,524
Unpaid life claims, end of year		253				232				195
Total liability for unpaid policy claims		$	4,034			$	3,981			$	3,719

- Definition

The entire disclosure for the present values of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums using assumptions such as estimates of expected investment yields, mortality, morbidity, terminations and expenses, applicable at the time the insurance contracts are made and unpaid claim costs relating to insurance contracts including estimates of costs relating to incurred but not reported claims based on the estimated ultimate cost of settling the claims (including effects of inflation and other societal and economic factors), using past experience adjusted for current trends and any other factors that would modify past experience by element such as business segment, country and interest rate range.

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- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

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