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<br />H. Payment Accuracy/Promptness <br />George Hills Percentile: 100% <br />In-House Percentile: 100% <br /> <br />Best practices require payments be calculated accurately and issued within 30 days of <br />payment request or as per agreement. <br /> <br />We find payment-processing practices In-House and at George Hills are in compliance <br />with no exceptions. Performance is assessed as superior. <br /> <br />I. Case Reserving Practices <br />George Hills Percentile: 96% <br />In-House Percentile: 100% <br /> <br />Best practices require setting an initial reserve at time of set-up with reevaluation of <br />reserves as discovery of the liability and damage assessment factors are determined. <br />Reserve evaluation based upon Most Probable illtimate Outcome (.MPUO) produces the <br />best results for maintaining program solvency while avoiding over funding reserves. The <br />Most Probable Ultimate Outcome methodology includes evaluating liability and applying <br />the assessment to the damage assessment, considering probable ultimate outcome at trial. <br /> <br />Calculation of MPUO may be described as follows: <br /> <br />· 75% or greater chance for favorable outcome, reserve for favorable <br />outcome plus 25% of probable adverse outcome. <br /> <br />· 51 % to 75% chance for favorable outcome, reserve for favorable outcome <br />plus 50% of probable adverse outcome. <br /> <br />· 25 % to 50% or chance for favorable outcome, reserve for 75 % of probable <br />adverse outcome. <br /> <br />· Less than 25% chance for favorable outcome, reserve for 100% of <br />probable adverse outcome. <br /> <br />The Risk Management Analyst meets best practices by selecting claims to handle In- <br />House within authority granted by the Finance Director and achieving prompt resolution. <br />George Hills' procedures meet the best practice factors above. <br /> <br />23 <br /> <br />ARM <br /> <br />Tee h <br />