All of the Following Statements About the Claims Handling Function

question 72

Multiple Choice

All of the following statements about the claims handling function are true except:

• A) overly liberal claims settlement procedures may be as bad as stingy claims settlement procedures
• B) claims settlement problems are generally more complex in property and liability insurance than in life insurance
• C) independent adjusters only work for small insurance companies
• D) negotiation with the claims adjuster is often the only contact the insurance buyer has with the insurer, besides the selling agent

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house.

Core Competency

A set of knowledges and skills that make the organization superior to competitors and create value for customers.

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating resources to pursue this strategy.

Propensity Analysis

The use of statistical techniques to predict the likelihood of a specific event or behavior occurring.