Chapter 6 CPCU 520 Exam Questions and Answers| New Update with 100% Correct Answers
Which one of the following statements is correct with regard to the various users of claim
information? Individual underwriters are interested in claim information for the specific
accounts they have underwritten.
Which one of the following statements is true concerning claim information users?
Producers must have policyholder loss information to prepare renewal policies properly.
In the claim function, supporting the insurer's profit goal is accomplished through
Controlling expenses.
Which one of the following statements is correct regarding the claim function of an insurer?
The claim function helps insurers achieve underwriting profit through control of expenses.
Most insurers give some producers the authority to pay claims up to a certain amount. In this
role, producers function much like An inside claim representative.
People who handle claims may be staff claim representatives, independent adjusters,
employees of third-party administrators, or Producers who sell policies to insureds.
People who handle claims fall into a number of categories. Those who handle claims, keep
claim records, and perform statistical analysis on behalf of self-insureds are called Third-
party administrators.
An employee of an insurance company who performs some or all of the insurer's claim-handling
activities is called A staff claim representative.
Which one of the following statements regarding authority levels is true Claim information
systems might allow different authority levels for different types of employees.
, State insurance regulators conduct claim audits to ensure Understanding of reserving
practices.
Claim audits are a review of claim files to ensure that claims are being handled properly, and
Can be conducted by an individual other than an insurer's internal personnel.
Soon after a loss has been assigned and initial reserves have been established, a claim
representative contacts the insured or the insured's representative. Which one of the following
statements is correct with respect to that contact? Claim representatives must be careful
not to give the impression that a claim will be paid if potential grounds exist to deny the claim.
An important aspect of acknowledging a claimant's liability claim, upon first contact, is To
try to obtain information on the nature and extent of the injury.
Claim representatives are responsible for determining the cause of loss, liability, and the loss
amount. Which one of the following statements is correct with respect to this process? The
claim representative reviews all component parts of the policy and applies them to the facts of
the case.
The question "Is the location of the loss covered?" is a part of the framework for coverage
analysis because the location where the loss occurred must be within the policy's territorial
limits. The PAP includes which one of the following locations in the definition of policy
territory? Puerto Rico
Buddy's store is damaged in a fire. He suffers loss of his merchandise as well as loss of income
while he replenishes his stock. His direct loss is The loss of his merchandise and damage to
the store.
In handling a property claim under Special Form Coverage, a claim representative should gather
facts about the cause of loss and then Determine if the cause of loss is excluded in the
Special Form Coverage.
Which one of the following statements is correct with regard to the various users of claim
information? Individual underwriters are interested in claim information for the specific
accounts they have underwritten.
Which one of the following statements is true concerning claim information users?
Producers must have policyholder loss information to prepare renewal policies properly.
In the claim function, supporting the insurer's profit goal is accomplished through
Controlling expenses.
Which one of the following statements is correct regarding the claim function of an insurer?
The claim function helps insurers achieve underwriting profit through control of expenses.
Most insurers give some producers the authority to pay claims up to a certain amount. In this
role, producers function much like An inside claim representative.
People who handle claims may be staff claim representatives, independent adjusters,
employees of third-party administrators, or Producers who sell policies to insureds.
People who handle claims fall into a number of categories. Those who handle claims, keep
claim records, and perform statistical analysis on behalf of self-insureds are called Third-
party administrators.
An employee of an insurance company who performs some or all of the insurer's claim-handling
activities is called A staff claim representative.
Which one of the following statements regarding authority levels is true Claim information
systems might allow different authority levels for different types of employees.
, State insurance regulators conduct claim audits to ensure Understanding of reserving
practices.
Claim audits are a review of claim files to ensure that claims are being handled properly, and
Can be conducted by an individual other than an insurer's internal personnel.
Soon after a loss has been assigned and initial reserves have been established, a claim
representative contacts the insured or the insured's representative. Which one of the following
statements is correct with respect to that contact? Claim representatives must be careful
not to give the impression that a claim will be paid if potential grounds exist to deny the claim.
An important aspect of acknowledging a claimant's liability claim, upon first contact, is To
try to obtain information on the nature and extent of the injury.
Claim representatives are responsible for determining the cause of loss, liability, and the loss
amount. Which one of the following statements is correct with respect to this process? The
claim representative reviews all component parts of the policy and applies them to the facts of
the case.
The question "Is the location of the loss covered?" is a part of the framework for coverage
analysis because the location where the loss occurred must be within the policy's territorial
limits. The PAP includes which one of the following locations in the definition of policy
territory? Puerto Rico
Buddy's store is damaged in a fire. He suffers loss of his merchandise as well as loss of income
while he replenishes his stock. His direct loss is The loss of his merchandise and damage to
the store.
In handling a property claim under Special Form Coverage, a claim representative should gather
facts about the cause of loss and then Determine if the cause of loss is excluded in the
Special Form Coverage.
