[L122]

loss adjustment expense (LAE, ULAE, ALAE)

The expenses associated with settling claims include salaries of adjusters, legal fees, court costs, expert witnesses and investigation costs. ULAE are unallocated loss adjustment expenses which are not claim-file specific but are calculated en mass, usually for a line of insurance. ALAE are allocated loss adjustment expenses. Here the expenses associated with a particular claim are allocated to that claim.