Estimate what will come back through salvage, subrogation, and reinsurance recoveries in an unpaid claim analysis.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Estimating Claim Liabilities. 18 min read, ~2,764 words.
Salvage is money recovered by selling damaged property the insurer takes title to; subrogation is money recovered from a responsible third party; reinsurance recovery is loss ceded to a reinsurer. All three are recoveries that reduce gross claims to net claims; net unpaid equals gross unpaid minus unpaid recoveries. Two...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
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- Check Your Understanding
- Exam Shortcuts
Learning objectives
- B13
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