Economics & ClaimsAppliedMembers
ALAE & ULAE
Allocated vs unallocated claims expense
The two categories of claims-handling expense — allocated costs tied to one specific claim, and unallocated general overhead — and how a treaty decides whether they count toward the limit.
The full write-up is free for members
Create a free account (or sign in) to read the complete definition, worked example, scenario, quiz and word problem for ALAE & ULAE.
- Full definition & key points
- Worked example, in USD
- Scenario, quiz and word problem
Related terms
Part of the Treaty Reinsurance guide, where this term is explained alongside every other treaty metric.