Adjustments are made to the reserve amount over time. The reserve amount minus the amount of payments made equals the reserve balance. There are multiple reserve types including legal reserves to pay legal expense and settlement reserves to pay settlements or judgments. Claimants, attorneys defending the case, and others, all receive payments. The system must compute the amount of money available to pay claims before it can make payments.
Many layers compose an insurance policy.
Each layer contains limits of liability that are contractually predetermined. Three types of limits exist. The maximum paid to a single claimant is the claimant limit. The maximum paid on a single claim is the claim limit. Typical information in a class diagram includes classes, associations, and inheritance.