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This excerpt taken from the WEN 10-K filed Mar 1, 2007. Casualty Insurance The Company self-insures certain of its casualty insurance. The Company provides for its estimated cost to settle both known claims and claims incurred but not yet reported based on calculations provided by an independent consulting actuary. Liabilities associated with these claims are estimated, in part, by considering the frequency and severity of historical claims, both specific to the Company as well as industrywide loss experience, and other actuarial assumptions. |
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