AIAF 114 2.0
An estimate of the amount of money the insurer expects to pay in the future for losses
that have already occurred and been reported, but are not yet settled. - answer Loss
reserve
The expense that an insurer incurs to investigate, defends, and settles claims according
to the terms specified in the insurance policy. - answer Loss adjustment expense (LAE)
The expense an insurer incurs to investigate, defend, and settle claims that are
associated with a specific claim. - answer Allocated loss adjustment expense (ALAE)
Loss adjustment expense that cannot be readily associated with a specific claim. -
answer Unallocated loss adjustment expense (ULAE)
Estimates of the future expense that an insurer expects to incur to investigate, defend,
and settle claims for losses that have already occurred. - answer Loss adjustment
expense reserves
Losses that have been paid to, or on behalf of, insureds during a given period. -
answerPaid losses
The losses that have occurred during a specific period, no matter when claims resulting
from the losses are paid. - answerIncurred losses
A reserve established for losses that reasonably can be assumed to have been incurred
but not yet reported. - answerIncurred but not reported (IBNR) reserves
A method of organizing ratemaking statistics that uses incurred losses for an accident
year, which consist of all losses related to claims arising from accidents that occur
during the year, and that estimates earned premiums by formulas from accounting
records. - answerAccident-year method
The final paid amount for all losses in an accident year. - answerUltimate loss
The increase or decrease of incurred losses over time. - answerLoss development
A loss reserve assigned to an individual claim. - answerCase reserve
Reserves established for the settlement of an entire group of claims. - answerBulk
reserves
