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Foundations of Casualty Actuarial Science
a. Case reserves assigned to specific claims,
b. A provision for future development on known claims,
c. A provision for claims that re-open after they have
been closed,
d. A provision for claims that have occurred but have
not yet been reported to the insurer, and
e. A provision for claims that have been reported to
the insurer but have not yet been recorded.
106. A loss reserve can be divided into two categories: known
claims vs. unknown claims. The reserve for known
claims represents the amount that will be required for
future payments of claims that have already been
reported to the insurer.
107. The reserve for unknown claims is the amount for claims
that have been incurred but not reported to the insurer.
The reserve for unknown claims is commonly called an
IBNR reserve.
108. Dates become very important in the data organization
and loss reserve estimation process. The list below
defines the five key dates.
a. Accident Date - the date on which the loss
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