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loss adjustment expense

The administrative costs incurred by an insurance company during an investigation of an insurance claim, which depends on the capacity of the insurance company's employees to conduct the investigation themselves. If the workforce is inadequate in the scale of the investigation, outside help may be hired. The expense may include items such as accident, injury or theft reports acquired from the police department.

Related information about loss adjustment expense:
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    loss adjustment expense (LAE) - The cost of investigating and adjusting losses.
     
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    Definition of loss adjustment expense: The total expenses associated with adjusting a claim. The actual amount of the loss is not included in this amount.
     
  8. unallocated loss adjustment expense reserves in an inflationary
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