Loss And Loss Adjustment Expense Reserves
Definition of "Loss and loss adjustment expense reserves"
Amount of the insurance company's liabilities for claims that have not been settled. If this reserve increases significantly in relation to the company's surplus, the risk is greater for potential deficiencies in the reserves; that is, the reserves could prove to be inadequate to meet future claim payments.
Popular Insurance Terms
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Termination of coverage in insurance. ...
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Rule that concerns the distribution of the aggregate surplus among the policies in the same proportion as each respective policy has contributed to the surplus. ...
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