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Chapter 1

Horizontales
__ Losses = Paid Losses + Case Reserves
Amount of compensation paid or payable to the claimant under the terms of the insurance policy
The determination of what rates, or premiums, to charge for insurance.
Price the insurance consumer pays
An amount recorded in financial statements in order to reflect potential obligations.
Verticales
Claim-related expenses that are directly assigned to a specific claim
Basic unit of risk that underlies the insurance premium
Individual making the demand for indemnity
___ loss = Amount of money required to close and settle all claims for a defined group of policies
Claims not currently known by the insurer