I'm working on a accounting discussion question and need an explanation and answer to help me learn.

1- Explain how three of the following elements can affect the estimate of loss reserve.  

üThe claims-handling process

üPolicy and exposure forms

üInflation

üLegal trends

üEnvironmental factors 

üMix of claimants

üTimeliness of claim reporting by claimants

2- Explain the key features of fair value defined by FASB ASC