Insurance
First Notification of Loss (FNOL) — Initial Reserve
Setting an initial reserve immediately when a new claim is reported by telephone or online.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Claims Expense (FNOL Initial Reserve) | Expense (+) | 5,000.00 | - |
| Outstanding Claims Reserve (FNOL) | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
At FNOL, limited information is available. A 'system default reserve' or initial estimate is set based on the coverage and minimal facts. This is refined as the loss adjuster investigates. Speed of FNOL capture is critical for reserve adequacy.
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