1. B. This is an actual loss The claim representative received a letter from an insured claiming damage
notice because losses can to his property under a homeowners policy. Which one of the following statements
be reported by mail. about the letter is true?
Correct. Not all losses Select one:
are reported using a loss A. This can be an actual loss notice only if it contains all of the information
notice. Some no-tices of concerning the loss and its causes.
loss may be by letter or B. This is an actual loss notice because losses can be reported by mail.
lawsuit. Not all details of C. This is not an actual loss notice because the producer must submit an special
the loss must be form by mail, e-mail or fax.
contained in the notice
D. This is not an actual loss notice because an actual loss notice must follow a
of loss.
standardized format and be submitted electronically.
2. B. Identify the policy,
Once a claim is acknowledged, a claim representative should
contact the insured, in- Select one:
vestigate, and docu- A. Contact the insured, determine the amount that the insured is seeking, and
ment the loss. then pay the claim.
Correct. To ensure that B. Identify the policy, contact the insured, investigate, and document the
every claim is han-dled loss.
in good faith, the claim C. Identify the policy, investigate the loss details, pay the claim, and then establish
representa-tive should the claim reserve to ensure claim reserve.
follow a systematic D. Determine the loss amount and pay the claim.
claim han-dling process
which includes
acknowledg-
ing the claim, identify-
ing the policy, contact-
ing the insured or in-
sured representative,
investigating and doc-
umenting the claim,
determining cause of
, loss and loss amount and
concluding the claim.
3. B. Identifying the poli-
cy Activities in the claim handling process include documenting the claim;
Correct. Of these four determining the cause of loss; identifying the policy; and contacting the insured.
activities, identifying Of these four activities, which one is normally performed earliest? Select one:
the policy is normally A. Contacting the insured
performed earliest. B. Identifying the policy
C. Determining the cause of loss
D. Documenting the claim
4. C. By civil authorities All of the following are common ways a loss is reported to an insurer, EXCEPT:
Correct. All listed are
common ways a loss is Select one:
reported to an insurer, A. Through a lawsuit
EXCEPT by civil author- B. Through an insurance agent
ities. C. By civil authorities
D. By telephone
5. B. They are not al- Which one of the following statements is true concerning the six activities in the
ways undertaken se- claim handling process.
quentially. Select one:
Correct. They are not A. Activities cannot be repeated for a particular claim.
always undertaken se- B. They are not always undertaken sequentially.
quentially. C. Not all activities are performed in every claim.
D. Only one activity should be performed at a time
6. A. Creating loss runs All of the following are among the six activities in the claim handling process,
Correct. All listed are EXCEPT:
among the six activi- Select one:
ties in the claim han- A. Creating loss runs
, dling process, EXCEPT B. Contacting the insured's representative
creating loss runs. C. Determining the loss amount
D. Concluding the claim
7. D. Send the insured a A claims representative is beginning to investigate a claim and wants to be sure not
nonwaiver agreement to waive the company's rights to deny coverage at a later date.
or reservation of rights The representative should
letter. Select one:
Correct. A nonwaiver A. Advise the insured that the claim is likely to be paid but without promis-ing
agreement or reserva- any payment.
tion of rights letter ad- B. Continue to investigate the loss and hope that the claim will be resolved
vises the insured that within 90 days.
any action taken by the C. Hire an outside investigator who does not have the same need for disclosure.
insurer in inves-tigating D. Send the insured a nonwaiver agreement or reservation of rights letter.
the cause of loss, or in
ascertaining the amount
of loss, is not intended to
waive or invalidate any
policy conditions.
8. D. Loss notice ac- Successful insurers follow a systematic approach to handling claims. The
knowledgment and as- first step in the claims process is the
signment. Select one:
Correct. The first step in A. Initial assessment.
the claims process is the B. Coverage determination.
loss notice ac- C. Obtaining statements.
knowledgment and as- D. Loss notice acknowledgment and assignment.
signment.
9. A. Not advisable be- A representative investigating a third-party claim is very concerned about waiving
cause a third-party any rights under the policy. She decides to send a reservation of
, claimant has no oblig- rights letter to the third-party claimant. Generally, this action is
ations under the poli-cy. Select one:
Correct. Reservation of A. Not advisable because a third-party claimant has no obligations under the
rights, like non-waiver policy.
agreements, can only B. Not advisable because a nonwaiver agreement is the appropriate vehicle for
be used with the third-party claimants.
insured on any type of C. Advisable because a reservation of rights letter will prevent a claimant from
first-par-ty claim. incurring expenses if they think that there may be no insurance.
They are not sent to
D. Advisable because under the agency principle, she must act to protect the
third-par-ty claimants
company's rights.
because third-party
claimants have no
obligations under the
policy, un-
less required by state
law.
10. C. That the claim was
received and provide the A claim representative acknowledging receipt of a claim should advise Select one:
name of the claim
A. The insured that the claim is covered and should begin taking steps to get the
representative, his or
claim paid.
her telephone number B. That the claim representative received the claim, coverage was verified
and the claim number. and the claim representative will call to take a statement.
Correct. The purpose of C. That the claim was received and provide the name of the claim repre-
the acknowledge-ment is sentative, his or her telephone number and the claim number.
to advise the insured D. That the claim was received and a follow up call will be made within the next
that the claim has been twenty days.
received and the name
and contact information
of the as-signed claim
represen-
notice because losses can to his property under a homeowners policy. Which one of the following statements
be reported by mail. about the letter is true?
Correct. Not all losses Select one:
are reported using a loss A. This can be an actual loss notice only if it contains all of the information
notice. Some no-tices of concerning the loss and its causes.
loss may be by letter or B. This is an actual loss notice because losses can be reported by mail.
lawsuit. Not all details of C. This is not an actual loss notice because the producer must submit an special
the loss must be form by mail, e-mail or fax.
contained in the notice
D. This is not an actual loss notice because an actual loss notice must follow a
of loss.
standardized format and be submitted electronically.
2. B. Identify the policy,
Once a claim is acknowledged, a claim representative should
contact the insured, in- Select one:
vestigate, and docu- A. Contact the insured, determine the amount that the insured is seeking, and
ment the loss. then pay the claim.
Correct. To ensure that B. Identify the policy, contact the insured, investigate, and document the
every claim is han-dled loss.
in good faith, the claim C. Identify the policy, investigate the loss details, pay the claim, and then establish
representa-tive should the claim reserve to ensure claim reserve.
follow a systematic D. Determine the loss amount and pay the claim.
claim han-dling process
which includes
acknowledg-
ing the claim, identify-
ing the policy, contact-
ing the insured or in-
sured representative,
investigating and doc-
umenting the claim,
determining cause of
, loss and loss amount and
concluding the claim.
3. B. Identifying the poli-
cy Activities in the claim handling process include documenting the claim;
Correct. Of these four determining the cause of loss; identifying the policy; and contacting the insured.
activities, identifying Of these four activities, which one is normally performed earliest? Select one:
the policy is normally A. Contacting the insured
performed earliest. B. Identifying the policy
C. Determining the cause of loss
D. Documenting the claim
4. C. By civil authorities All of the following are common ways a loss is reported to an insurer, EXCEPT:
Correct. All listed are
common ways a loss is Select one:
reported to an insurer, A. Through a lawsuit
EXCEPT by civil author- B. Through an insurance agent
ities. C. By civil authorities
D. By telephone
5. B. They are not al- Which one of the following statements is true concerning the six activities in the
ways undertaken se- claim handling process.
quentially. Select one:
Correct. They are not A. Activities cannot be repeated for a particular claim.
always undertaken se- B. They are not always undertaken sequentially.
quentially. C. Not all activities are performed in every claim.
D. Only one activity should be performed at a time
6. A. Creating loss runs All of the following are among the six activities in the claim handling process,
Correct. All listed are EXCEPT:
among the six activi- Select one:
ties in the claim han- A. Creating loss runs
, dling process, EXCEPT B. Contacting the insured's representative
creating loss runs. C. Determining the loss amount
D. Concluding the claim
7. D. Send the insured a A claims representative is beginning to investigate a claim and wants to be sure not
nonwaiver agreement to waive the company's rights to deny coverage at a later date.
or reservation of rights The representative should
letter. Select one:
Correct. A nonwaiver A. Advise the insured that the claim is likely to be paid but without promis-ing
agreement or reserva- any payment.
tion of rights letter ad- B. Continue to investigate the loss and hope that the claim will be resolved
vises the insured that within 90 days.
any action taken by the C. Hire an outside investigator who does not have the same need for disclosure.
insurer in inves-tigating D. Send the insured a nonwaiver agreement or reservation of rights letter.
the cause of loss, or in
ascertaining the amount
of loss, is not intended to
waive or invalidate any
policy conditions.
8. D. Loss notice ac- Successful insurers follow a systematic approach to handling claims. The
knowledgment and as- first step in the claims process is the
signment. Select one:
Correct. The first step in A. Initial assessment.
the claims process is the B. Coverage determination.
loss notice ac- C. Obtaining statements.
knowledgment and as- D. Loss notice acknowledgment and assignment.
signment.
9. A. Not advisable be- A representative investigating a third-party claim is very concerned about waiving
cause a third-party any rights under the policy. She decides to send a reservation of
, claimant has no oblig- rights letter to the third-party claimant. Generally, this action is
ations under the poli-cy. Select one:
Correct. Reservation of A. Not advisable because a third-party claimant has no obligations under the
rights, like non-waiver policy.
agreements, can only B. Not advisable because a nonwaiver agreement is the appropriate vehicle for
be used with the third-party claimants.
insured on any type of C. Advisable because a reservation of rights letter will prevent a claimant from
first-par-ty claim. incurring expenses if they think that there may be no insurance.
They are not sent to
D. Advisable because under the agency principle, she must act to protect the
third-par-ty claimants
company's rights.
because third-party
claimants have no
obligations under the
policy, un-
less required by state
law.
10. C. That the claim was
received and provide the A claim representative acknowledging receipt of a claim should advise Select one:
name of the claim
A. The insured that the claim is covered and should begin taking steps to get the
representative, his or
claim paid.
her telephone number B. That the claim representative received the claim, coverage was verified
and the claim number. and the claim representative will call to take a statement.
Correct. The purpose of C. That the claim was received and provide the name of the claim repre-
the acknowledge-ment is sentative, his or her telephone number and the claim number.
to advise the insured D. That the claim was received and a follow up call will be made within the next
that the claim has been twenty days.
received and the name
and contact information
of the as-signed claim
represen-
