POLICY LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2013

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	2013		2012		Year of Issue		In 20 Years
Health insurance:
Japan:	2002 - 2013	$	3,370	$	2,518	1.25 - 2.5	%	1.25 - 2.5	%
	1974 - 2013	3,889		4,624		2.7 - 2.75		2.25 - 2.75
	1998 - 2013	11,763		13,685		3.0		3.0
	1997 - 1999	2,842		3,482		3.5		3.5
	1994 - 1996	3,483		4,261		4.0 - 4.5		4.0 - 4.5
	1987 - 1994	16,727		20,635		5.5		5.5
	1985 - 1991	2,262		2,824		5.25 - 6.75		5.25 - 5.5
	1978 - 1984	2,699		3,416		6.5		5.5

U.S.:	2013	124		0		3.0 - 3.5		3.0 - 3.5
	2012	221		127		3.75		3.75
	2011	243		202		4.75		4.75
	2005 - 2010	2,897		2,775		5.5		5.5
	1988 - 2004	725		748		8.0		6.0
	1986 - 2004	1,301		1,317		6.0		6.0
	1981 - 1986	190		198		6.5 - 7.0		5.5 - 6.5
	1998 - 2004	1,237		1,200		7.0		7.0
	Other	22		23

Life insurance:
Japan:	2013	59		0		1.5 - 1.75		1.5 - 1.75
	2001 - 2013	3,009		2,238		1.65 - 1.85		1.65 - 1.85
	2011 - 2013	1,584		733		2.0		2.0
	2009 - 2011	1,648		1,374		2.25		2.25
	2005 - 2011	1,211		1,231		2.5		2.5
	1985 - 2006	2,303		2,791		2.7		2.25
	2007 - 2011	1,025		1,049		2.75		2.75
	1999 - 2011	2,164		2,547		3.0		3.0
	1996 - 2009	721		872		3.5		3.5
	1994 - 1996	1,021		1,250		4.0 - 4.5		4.0 - 4.5

U.S.:	1956 - 2013	396		343		4.0 - 6.0		4.0 - 6.0
Total		$	69,136	$	76,463

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)	2013				2012				2011
Unpaid supplemental health claims, beginning of year		$	3,781			$	3,749			$	3,524
Less reinsurance recoverables		10				0				0
Net balance, beginning of year		3,771				3,749				3,524
Add claims incurred during the year related to:
Current year		7,215				8,013				7,703
Prior years		(236		)		(173		)		(256		)
Total incurred		6,979				7,840				7,447
Less claims paid during the year on claims incurred during:
Current year		4,834				5,453				5,401
Prior years		1,931				2,082				1,944
Total paid		6,765				7,535				7,345
Effect of foreign exchange rate changes on unpaid claims		(457		)		(283		)		123
Net balance, end of year		3,528				3,771				3,749
Add reinsurance recoverables		9				10				0
Unpaid supplemental health claims, end of year		3,537				3,781				3,749
Unpaid life claims, end of year		226				253				232
Total liability for unpaid policy claims		$	3,763			$	4,034			$	3,981

- 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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