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Cards In This Set
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RESERVE
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The amount the insurer estimates and sets aside to pay on an existing claim that has not been settled.
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INDIVIDUAL CASE METHOD
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A method of setting reserves based on the claim's circumstances and the claim representative's experience in handling similar claims.
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ROUDTABLE METHOD
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A method of setting reserves by using the consensus of two or more claim personnel who have independently evaluated the claim file.
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AVERAGE VALUE METHOD
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A method of setting claim reserves by using a predetermined dollar amount that is set aside for a particular type of claim when it is reported.
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FORMULA METHOD
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A method of setting claim reserves by using a mathematical formula.
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