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INSURANCE LIABILITIES AND ANNUITY BENEFITS
 6 Months Ended
Jun. 30, 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.
June 30, 2020 (In millions)
Long-term care insurance contracts
Structured settlement annuities & life insurance contracts
Other
contracts
Other adjustments(a)
Total
Future policy benefit reserves
$
16,794

$
9,385

$
179

$
6,873

$
33,231

Claim reserves
4,330

282

1,087

—

5,699

Investment contracts
—

1,085

1,044

—

2,129

Unearned premiums and other
27

187

143

—

357


21,151

10,939

2,453

6,873

41,416

Eliminations
—

—

(462
)
—

(462
)
Total
$
21,151

$
10,939

$
1,991

$
6,873

$
40,954

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) (AOCI) in our consolidated Statement of Earnings (Loss).

The increase in insurance liabilities and annuity benefits of $1,128 million from December 31, 2019 to June 30, 2020, is primarily due to an adjustment of $1,218 million resulting from an increase in unrealized gains on investment securities that would result in a premium deficiency should those gains be realized.

Claim reserves included incurred claims of $945 million and $981 million, of which insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation for the six months ended June 30, 2020 and 2019, respectively. Paid claims were $888 million and $824 million in the six months ended June 30, 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 $1,430 million and $1,355 million, are included in Other GE Capital receivables in our consolidated Statement of Financial Position and amounted to $2,465 million and $2,416 million at June 30, 2020 and December 31, 2019, respectively.