Allocated Loss Adjustment Expenses (ALAE)

Expenses incurred in investigations and settling claims that are assigned to specific claim or groups of claims as prescribed in statistical data reporting plans or financial accounting rules.

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Loss adjustment expenses that are assignable or allocable to specific claims. Fees paid to outside attorneys, experts, and investigators used to defend claims are examples of ALAE.

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Expenses directly attributable to specific claims. Includes payments for defense attorneys, medical evaluation of patients, expert medical reviews and witnesses, investigation, and record copying.

 

 

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