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 the fact that 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 so as 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.