How does LF develop losses for a period which is closed (fully paid)?

If both methods of development (Incurred and Paid) are utilized, LF will recognize that all claims are closed through identifying the user-input reported incurred losses are equal to user-input reported paid losses for the period.  When this is the case, LF will automatically adjust the period’s incurred and paid loss development factors (LDF) to 1.00 to not allow for any further development.  However, if the user is only using one method of development (either Incurred or Paid), then the user will need to manually input a LDF of 1 for any closed periods.