Under the Order of Credit rules, estimates of future liability may:

• A. Never reduced by the amount of third party recoveries.
• B. Always reduced by the amount of third party recoveries.
• C. Always reduced by the amount of third party recoveries up to $10,000.
• D. Reduced but only by the sums deposited in the Trust Account in the reporting year.

Answer: (A)

Estimates of future liability are kept intact and not reduced by third-party recoveries under the Order of Credit. This rule avoids tying reserve estimates to recoveries that may or may not occur or be collectible in the future, ensuring the reserve remains sufficient to cover anticipated claims. Third-party recoveries are considered separately when they materialize, rather than used to lower the stated future liability estimate. The other options would imply a guaranteed or capped reduction from the estimate, which the rule does not allow.