C. Calendar Year 1. Any accounting action on a file in calendar year Z gets recorded in the“ calendar year” z fille. 2. Calendar year Z is complete and mature as at Dec. 31, Z 3. Incurred losses(z)=paid losses(z)+A Reserve(z) Paid losses(z)+ Loss reserve 12/31/z - Loss reserve 12/31/Z-1. 4. This system is not widely used as one cannot allocate calendar year"action to any defined exposure period Note: Again, The REPORT YEAR, used for claims-made liability policies, is not discussed in the text.12 C. Calendar Year 1. Any accounting action on a file in calendar year Z gets recorded in the “calendar year” Z file. 2. Calendar year Z is complete and mature as at Dec. 31, Z. 3. Incurred losses (Z) = Paid losses (Z) +  Reserve (Z) = Paid losses (Z) + Loss Reserve 12/31/Z - Loss Reserve 12/31/Z-1. 4. This system is not widely used as one cannot allocate “calendar year” action to any defined exposure period. Note: Again, The REPORT YEAR, used for claims-made liability policies, is not discussed in the text