Without an Order of Credit, 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 up to 10,000
• C. Reduced but only by the sums deposited in the Trust Account in the reporting year
• D. Always reduced by the amount of third party recoveries

Answer: (A)

Credit against future liabilities from third-party recoveries requires a formal Order of Credit. Without that order, those recoveries aren’t allowed to reduce the estimated future costs in the plan. So the estimate may not be reduced by third-party recoveries simply on the basis that a recovery might occur; the liability estimate remains as if no such credit exists until an order is issued.

This is why third-party recoveries don’t automatically lower the projected liability unless an authorized credit is granted. The other options imply automatic or capped reductions or reliance on specific deposits, which aren’t permitted without that official credit directive.