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Unresolved Issues in Allocation of Loss to Insurance

Charles H. Mullin, Karl N. Snow, and Noah B. Wallace
January 2011
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The methodology applicable to the allocation of long-tailed losses to insurance coverage has been heavily litigated, and the resultant rules vary significantly across jurisdictions. Despite this substantial variation, a common two-step structure has emerged: First, losses are assigned to policy periods; and, second, the losses assigned to a particular policy period are allocated to the applicable policies within each period.

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