Adjusting and Others (AO) reserves are often provided for by using the calendar year paid-to-paid method rather than the accident year paid-to-paid method used for Inflation in Defense & Cost Containment (DCC) reserves.

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AO reserves are typically calculated using the calendar year paid-to-paid method, which aligns with the timing of payments, whereas DCC reserves often use the accident year paid-to-paid method to match expenses with the related claims.

Adjusting and Others (AO) Reserves Are Often Provided for by Using