Part $1$: Please answer the following $3$ questions: Question $1$: Why are property and casualty insurance companies required to maintain loss reserves? Question $2$: Briefly explain the following methods for determining loss reserves: a$)$ judgment method b$)$ average value method c$)$ tabular method Question $3$: What is the incurred$-$but$-$not$-$reported $($IBNR$)$ loss reserve? Part $2$: Please research about the State Guaranty Fund which is a state$-$established fund that provides a system for the payment of some of the unpaid claims of insolvent insurers licensed in that state. It is usually administered by the state to protect policyholders in the event that an insurance company defaults on benefit payments or becomes insolvent. The fund only protects beneficiaries of insurance companies that are licensed to sell insurance products in that state.$$The guarantee fund is usually funded by assessments collected from all insurers licensed in the state.$$Please investigate more about how a State Guaranty Fund works and answer the following questions: $1.$ Do guaranty funds have caps $($or is there a limit to the amount they pay compared to the amount of coverage provided by the policy$)?2.$ Are there any differences in caps between property$-$liability insurance policies and life$-$health insurance policies? $3.$ What about annuities, are they protected by the State Guaranty Fund?$4.$ Are there states that have larger cap limits than others? If yes, which are the states with highest caps and what is the cap?