Amount paid to the insured or claimant as compensation for a covered loss.

Legal costs paid to defend the insured in a claim or lawsuit.

It’s a broad term that generally refers to the total costs associated with adjusting and handling claims.

ALAE (Allocated Loss Adjustment Expenses)

Specific expenses related to handling a particular claim. This includes adjuster’s fees, surveillance costs, independent adjusters, legal expenses related to a specific claim, and expert evaluations.

ULAE (Unallocated Loss Adjustment Expenses)

General expenses related to handling claims. These are overhead or administrative costs related to all claims, not just one.

Funds recovered from third parties or other sources after a claim has been paid. Recoveries may include subrogation, salvage, or amounts collected from reinsurance.

It’s the specified amount that the insured must pay out of pocket before the insurer begins to pay on a covered claim.

The remaining value of damaged property after a loss that the insurer can sell to recoup part of the claim payout.

Broad term that refers to the amount of loss the insured agrees to pay before insurance kicks in. It can refer to a deductible, an SIR, or a layer of risk in a large insurance program.

SIR (Self-Insured Retention)

Form of retention where the insured is responsible for paying and managing claims up to a specified dollar amount before the insurer responds.

The total amount of reserves set aside for a claim that has not yet been paid. This includes estimated future indemnity, defense costs, and expenses.

The legal insurer's right to pursue a third party responsible for a loss after the insurer has paid the claim. This allows the insurer to recover part or all the claim amount from the at-fault party.

Help

Options

focusNode

Didn't know it?
click below

Knew it?
click below

Don't Know

Remaining cards (0)

Know

retry

shuffle

restart

0:00

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

Accounting Concepts

Term	Definition
Indemnity	Amount paid to the insured or claimant as compensation for a covered loss.
DEF (Defense Costs)	Legal costs paid to defend the insured in a claim or lawsuit.
Expenses	It’s a broad term that generally refers to the total costs associated with adjusting and handling claims.
ALAE (Allocated Loss Adjustment Expenses)	Specific expenses related to handling a particular claim. This includes adjuster’s fees, surveillance costs, independent adjusters, legal expenses related to a specific claim, and expert evaluations.
ULAE (Unallocated Loss Adjustment Expenses)	General expenses related to handling claims. These are overhead or administrative costs related to all claims, not just one.
Recoveries	Funds recovered from third parties or other sources after a claim has been paid. Recoveries may include subrogation, salvage, or amounts collected from reinsurance.
Deductible	It’s the specified amount that the insured must pay out of pocket before the insurer begins to pay on a covered claim.
Salvage	The remaining value of damaged property after a loss that the insurer can sell to recoup part of the claim payout.
Retention	Broad term that refers to the amount of loss the insured agrees to pay before insurance kicks in. It can refer to a deductible, an SIR, or a layer of risk in a large insurance program.
SIR (Self-Insured Retention)	Form of retention where the insured is responsible for paying and managing claims up to a specified dollar amount before the insurer responds.
Outstanding	The total amount of reserves set aside for a claim that has not yet been paid. This includes estimated future indemnity, defense costs, and expenses.
Subrogation	The legal insurer's right to pursue a third party responsible for a loss after the insurer has paid the claim. This allows the insurer to recover part or all the claim amount from the at-fault party.

Created by: RisingLeo

"Know" box contains:
Time elapsed:
Retries: