Within these policyholder categories:
All Tier 1 & 2 accounts and Tier 3 & 4 accounts with Chubb incurred
losses of at least $3M or judged to have high potential exposure
evaluated individually. Claimant information and available coverage
were reviewed for each defendant policyholder, including terms of
coverage, policy limits and aggregate limits.
Tier 3 & 4 accounts not individually evaluated were analyzed in the
aggregate using statistical techniques. Factors considered include
available coverage, claimant count, report year, bankruptcy, coverage
dispute and case reserve amount.
Future claims from unknown defendant policyholders were estimated
based on claim reporting patterns and projected claim severities.