NAIC.SSAP-55

This statement establishes statutory accounting principles for recording liabilities for unpaid losses and loss adjustment expenses for property and casualty insurance contracts.

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Study Tips

Spend 5 minutes max on this reading.

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• this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.

reference	part (a)	part (b)	part (c)	part (d)
no prior questions

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In Plain English!

Loss Adjustment Expenses (LAE) are classified into 2 categories:

• DCC (Defense & Cost Containment): covers defense, litigation, and medical cost containment expenses, whether internal or external
• Examples:

   - litigation management

   - rehab nurses

• A&O (Adjusting & Other): expenses other than DCC
• Examples:

   - adjuster fees

   - attorney fees

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