ALAE are loss adjustment expenses that can be attributed to a specific claim. (see Loss Adjustment Expenses, Unallocated Loss Expenses)
Expenses within the terms of the insured's policy that are directly allocable to a specific claim. This includes designated lawyer's fees for the investigation of and/or defense of the insured policyholder for the specific claim. It also includes other expenses incurred in the investigation and settlement of claims or suits, the insured's proportion of court costs, prejudgment interest and interest on any judgment or awards. It excludes office expenses and payments to any salaried employee of the insured, subsidiary, or any related or wholly-owned company, as well as any costs incurred in a declaratory judgment action related to the claim.