Reported But Not Settled (RBNS)

A rabid badger (not from U Wisconsin) gets into your house. He doesn’t bite anyone, but he does trash the place. You file a claim with your insurance company on March 25. The paperwork is still processing when the first quarter ends on March 31.

Even though it hasn't made payment yet, the company has to include something about the claim on its quarterly accounting. As such, it falls under the category "reported but not settled." These RBNS claims have been filed with the company, but, as of the end of the quarter, the check has not been issued.

Because the actual amount hasn't been determined, the company doesn't have a settled sum for the claim. Therefore, it uses an estimate based off what it knows about the situation. The average cost of badger attacks, the extent of the damage, etc. This projection is then used as an estimate as part of its quarter-end calculations.