Another advantage that the prospective buyer should toss into the negotiating picture is the possibility of creative financing. For example, the seller may be willing to hold a second mortgage; this can reduce or eliminate the need for a down payment. The seller also may more readily agree to take responsibility for closing costs. For [...]
Closed claim count development method. Closed claim counts are projected to ultimate values based on historical development patterns. Historical count development factors are reviewed and forecasted factors are selected. The selected factors are used to project ultimate claim counts. This method is most reliable when claims closing patterns are stable over time. The closed claim [...]
Loss adjustment expenses are a significant part of medical malpractice rates. Direct claim defense costs (attorneys, expert witness and court costs) are called Allocated Loss Adjustment Expenses (ALAE) and exclude insurance company home office claims administration expenses. Because ALAE is not usually subject to policy limits, they are not capped in this analysis. The following [...]