ALLOCATED LOSS ADJUSTMENT EXPENSE. This term shall mean expenditures by the Company within the terms of its policies in the direct defense of claims and in connection with Losses in Excess of Policy Limits and Extra Contractual Obligations and as allocated to an individual claim or loss (other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company) made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses; court costs; prejudgment interest which does not erode the policy limit; and prejudgment interest. This term shall also be deemed to include any Declaratory Judgment Expenses incurred by the Company. The date on which a Declaratory Judgment Expense is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence.
ALLOCATED LOSS ADJUSTMENT EXPENSE. In the course of providing Claim Services, ERS may incur expenses on behalf of Client ("Allocated Loss Adjustment Expense(s)"), including, but not limited to, the following items or services:
(a) Fees of attorneys or other authorized representatives, where permitted, for legal services, whether by outside or staff hearing representatives.
(b) Court costs, alternate dispute resolution costs, and other specific items of expense, including but not limited to:
(1) Medical examinations of a claimant to determine the extent of liability, degree of permanency, or length of disability;
(2) Expert medical or other testimony;
