CIP C112 Practical Issues In Claims Management Exam All Possible Questions and Answers with complete solution What does the term claims management encompass? - Correct Answers Handling individual claims.Departmental claims processes and procedures.Identify broader departmental activities needed for a claims department within claims management.
- Correct Answers - establish procedures for the day to day administrative transaction for claims files
- providing admin support
- establishing a system of record keeping
- ensuring budget compliance
- aligning operations to overall corporate vision and strategy
- ensuiring compliance with regulatory and contractual obligations
- staffing and educating the claims department
- values
- culture
- choice of word inspires a certain feeling or attitude
What is a core function of an insurance company relating to claims? - Correct Answers claims handling What 3 qualities must an insurance company preserve when it delivers its claim obligations? - Correct Answers - core strengths
When creating a mission statement, why is the choice of word important? - Correct Answers - principles a company holds dear are tied to its mission statement
Give an example of a general corporate mission statement on claims service for a company that has built its reputation of excellence. - Correct Answers - we strive for excellence in providing claims service to our policyholder What is a limitation factor common to any company strategy? - Correct Answers - the need to manage expenses 1 / 2
What principle of law sets the standard for conduct in the contractual relationship between the insurer and insured? - Correct Answers - utmost good faith
- proposed claims handling activities must meet the test of utmost good faith
- comprising of honesty, fairness, integrity, and respect for the insured
- vindictive
- reprehensible
- oppressive
- malicious
- be challenging
- be capable of being measured
- / 2
What adjectives have courts used to describe behavior of the insurer` that would warrant judicial punishment in a bad faith action? - Correct Answers - harsh
What 3 principle ensure that goals are effective? - Correct Answers - be specific
What would cause a company to modify its goals? - Correct Answers - its pursuit might cause an undesirable effect on the quality of work produced Give an example of a loss adjuster's quantitative goal that resulted in serious qualitative goal that results in serious qualitative issues for a claims department - Correct Answers What can claims processing reports demonstrate graphically? - Correct Answers - what the department is doing and how well Why must the claims manager understand the company's growth strategy? - Correct Answers - to ensure that the necessary infrastructure is in place to deal with anticipate incoming claims Give an example of an overall company strategy that would probably not affect the claims department staffing requirements. - Correct Answers - to increase the level of premium income by raising rates