mediumConceptScenarioEntryMidSenior
Walk me through a claim from first notification to closure, and tell me what the reserve is doing at each stage.
5 min readUpdated 2026-08-15
Answer
Short answer
A claim moves from notification through coverage verification, adjudication, payment and closure, carrying a case reserve that is the handler's current estimate of what remains to be paid.
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Likely follow-ups
- Why must the terms in force at the date of loss govern the claim rather than the terms in force today?
- What is the difference between a case reserve and IBNR, and which one does a claims system hold?
- How would you handle a claim that exceeds the policy limit, and what does the handler see when it does?
- Where does the deductible or excess get applied, and what changes if the insured has already paid a repairer directly?
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