Term Of The Day – Allocated Loss Adjustment Expenses
The Loss Adjustment expenses (ALAE) can be allocated to the adjustment of a certain claim. Often, you will see this on Workers Compensation claims in the Expense Total Incurred figure. There has been much debate concerning what to include in the ALAE figure. Attorneys, PI’s, and expert witnesses can all be attributed to ALAE.
The one area that is so confusing is the rehabilitation nurses. Some carriers and TPA’s include their expenses as ALAE. Others include it as medical expenses.

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