Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) Rescission and denial rates in 2011 and 2012 have been affected by an increase in the number of claims received that we  are reviewing for potential violations of our insurance policies.  The following table shows the projected net cumulative denial  and rescission rates in our total 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: We considered the sensitivity of first-lien loss reserve estimates at  December 31, 2012 by assessing the potential changes  resulting from a parallel shift in severity and default to claim rate. For example, assuming all other factors remain constant, for  every one percentage point change in primary claim severity (which we estimate to be  27% of unpaid principal balance at  December 31, 2012), we estimated that our loss reserves would change by approximately  $87 million at December 31, 2012.  For every one percentage point change in pool claim severity (which we estimate to be  45% of unpaid principal balance at  December 31, 2012), we estimated that our loss reserves would change by approximately  $5 million at December 31, 2012. For  every one percentage point change in our overall default to claim rate (which we estimate to be  47% at December 31, 2012,  including our assumptions related to rescissions and denials), we estimated a  $55 million change in our loss reserves at  December 31, 2012. (1)  Projected net cumulative rescission/denial rates represent the ratio of claims rescinded or denied to claims received (by  claim count).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and denials are net of actual reinstatements, plus our current estimate for expected  reinstatements of previously rescinded or denied claims.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also will  remain subject to change based on dif ferences between estimated and actual reinstatements of previously rescinded  policies or denied claims.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 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, respectively . 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/denial rates for those periods are presently meaningful and, therefore, they are not presented.  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% 226