What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?

Name: What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?
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Question

Quizplus · Accepted Answer

A structured settlement allows an entity to eliminate the reserve recorded for a claim by spreading the settlement payments over time, potentially reducing the immediate financial impact.

What Allows an Entity to Eliminate the Reserve That Was