Our reported rescission and denial activity in any given period is subject to challenge by our lender customers. Recent  trends in insurance rescission and claim denial activity reflect a shift towards more claim denials, resulting primarily from the  failure of our lender customers to provide the documentation required to perfect a claim submission. In many cases, lenders  have been asked to produce the additional required information for a significant portion of previously denied claims.  We expect  that a portion of previously rescinded policies will be reinstated and a lar ge portion of previously denied claims will be  resubmitted with the required documentation and ultimately paid; therefore, we have considered this expectation in developing  our IBNR reserve estimate. This IBNR estimate was $323.0 million, $170.6 million and $39.5 million at December 31, 2012,  2011 and 2010, respectively. For 2012, our IBNR estimate of $323.0 million includes our estimate of future reinstatements of  previously rescinded policies and denied claims of  $87.7 million and $215.3 million, respectively. These reserves relate to $0.6  billion of claims that were denied within the preceding 12 months and  $1.0 billion related to rescinded policies within the  preceding 24 months.  We estimate our claim liability related to the potential future reinstatement of these previously rescinded policies and  denied claims by estimating an initial gross reinstatement rate at the time of denial or rescission, which then declines over a 12  or 24 month timeframe as certain denials and rescissions are reinstated.  As of December 31, 2012, for previously denied claims,  this initial gross reinstatement assumption begins at approximately  60% and declines to 0% after 12 months, while for  previously rescinded policies, the initial assumed reinstatement rate begins at approximately  16% and declines to 0% after 24  months. Our IBNR reserve estimate also includes projected impacts from future estimated rescissions (with respect to reinstated  denials) and future claim curtailments (with respect to both reinstated denials and rescissions).  Therefore, at any particular point  in time, our IBNR reserve estimate with respect to previously rescinded policies or denied claims is af fected by not only our  initial reinstatement assumption, but by the length of time since the denial or rescission, our estimated likelihood of such  reinstatements resulting in a paid claim, expected claim curtailments on such paid claims, as well as potential settlement  discussions with our lender customers. The following table shows the projected net cumulative denial and rescission rates in our first-lien portfolio, net of both  actual and expected reinstatements, as of  December 31, 2012, with respect to claims received in each quarter indicated below: Claim Received Quarter Cumulative Rescission/Denial Rate for Each Quarter (1) Percentage of Claims Resolved (2) Q1 2010 18.5% 100% Q2 2010 17.6% 100% Q3 2010 16.0% 100% Q4 2010 17.4% 100% Q1 2011 20.8% 99% Q2 2011 24.6% 99% Q3 2011 28.1% 97% Q4 2011 23.2% 94% Q1 2012 21.3% 84% Q2 2012 19.4% 59% (1)  Projected net cumulative rescission/denial rates represent the ratio of claims rescinded or denied to claims received (by  claim count). Rescissions and denials are net of actual reinstatements, plus our current estimate for expected  reinstatements of previously rescinded or denied claims.  These amounts represent the cumulative rates for each quarter as  of December 31, 2012. Until all of the claims received during the periods shown have been internally resolved, the  rescission/denial rates for each quarter will be subject to change.  As discussed in footnote (2) below, these rates also will  remain subject to change based on dif ferences between estimated and actual reinstatements of previously rescinded  policies or denied claims. (2)  The percentage of claims resolved for each quarter presented represents the number of claims that have been internally  resolved as a percentage of the total number of claims received for that specific quarter . A claim is considered internally  resolved when it is either paid or it is concluded that the claim should be denied or rescinded, though such denials or  rescissions could be challenged and potentially reinstated or overturned. For the third and fourth quarters of  2012, a  significant portion of claims received for those quarters have not been internally resolved; therefore, we do not believe the  cumulative rescission rates for those periods are presently meaningful and, therefore, they are not presented. 111