Expenses related to the settlement of an insurer's claims, including legal and other fees and expenses, and the portion of an insurer's general expenses allocated to claim settlement costs. Subdivided into Allocated (ALAE) and Unallocated (ULAE). Allocated LAE are expenses that relate directly to a particular claim; Unallocated LAE are general, or overhead, expenses that cannot be assigned directly to a claim.
LAE means all expenditures of an insurer associated with the adjustment, recording and settlement of claims other than the indemnity itself. There are two types of LAE. Allocated Loss Adjustment Expense (ALAE) is identified by the claim file in the insurers record, such as attorneyâ€(tm)s fees. (ULAE) Unallocated Loss Adjustment Expense is the fixed cost an insurer bears to be able to process claims irregardless of the individual claims.
expenses incurred in the process of evaluating, defending and paying claims.
The cost of adjusting losses, excluding the amount of the loss itself.
Fees incurred for utilizing a vendor to provide a service to reduce or maintain a stop loss claim (i.e., claim negotiation, case management, bill audit, medical necessity review.)
The cost assessed to a particular claim for investigating and adjusting that claim.
All expenditures of an insurer associated with its adjustment, recording, and settlement of claims, other than the claim payment itself. The term encompasses both allocated loss adjustment expenses (ALAE) which are loss adjustment expenses identified by a claim file in the insurer's records, such as attorney's fees; and unallocated loss adjustment expenses (ULAE), which are operating expenses not identified by claim file, but functionally associated with settling losses, such as salaries of claims department.