Final answer:
Direct Losses Incurred and Direct Losses Unpaid are reported on the Schedule T of the Property and Casualty (P&C) annual statement for insurance companies. These terms reflect amounts related to claims that have occurred or are pending, indicative of the insurer's liabilities.
Step-by-step explanation:
The terms Direct Losses Incurred and Direct Losses Unpaid typically relate to the insurance industry, specifically to the annual statement reports that insurance companies must file. For insurance companies, the 'Schedule T' is a component of their annual statement that requires detailed information on operations in different jurisdictions. However, the reporting of Direct Losses Incurred and Direct Losses Unpaid on the Schedule T is required for the Property and Casualty (P&C) annual statement, not the Life or Health Insurance statements. These terms refer to the amounts the insurer expects to pay for claims related to direct losses that have occurred and those that have been incurred but not yet paid, respectively. These figures are important for assessing the financial health and claims liabilities of P&C insurers.