What expenses fall under the Allocated and Unallocated categories?
A30: Typically, Allocated Loss Adjustment Expenses are those that can be directly assigned to the settlement of a particular claim. One example is an insurance company hiring outside legal counsel to handle a particular claim. Unallocated Loss Adjustment Expenses are those costs indirectly involved in the settlement of a claim. Such expenses include overhead costs of the claims department and the use of staff attorneys. C. Provisional Financial Transaction Questions 1.
