Insurance
Loss Adjustment Expense (LAE)
Recording the cost of claims investigation, legal fees, and loss adjusters.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loss Adjustment Expense (LAE) | Expense (+) | 12,000.00 | - |
| Cash / Accounts Payable (Loss Adjusters) | Asset/Liability (-) | - | 12,000.00 |
💡 Accountant's Note
LAE covers all costs to investigate, settle, and administer claims — independent loss adjusters, lawyers, expert witnesses, and claims staff time. It is separated from claims payments to measure total claims cost.
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