AIC Chapter 1 Questions and Answers Solved 100% Correct!!

Worthley Insurance Company uses claim audits to ensure compliance with best practices. These audits evaluate both quantitative and qualitative factors. Which one of the following factors that Worthley evaluates is a qualitative factor? Select one: A. Accuracy of data entry B. Accurate evaluation of insured's liability C. Average claim settlement value by claim type D. Timeliness of reserving - Answer-Accurate evaluation of insured's liability. Accurate evaluation of insured's liability is a qualitative audit factor. The best description of a third-party claim is a claim Select one: A. Made against the policyholder by someone to whom the policyholder may be liable. B. Made by the policyholder against the insurer. C. Made by the liable party against the policyholder. D. Made by the insurer against the policyholder. - Answer-A Correct. A third-party claim is a claim made against the policyholder by someone to whom the policyholder may be liable. Anyone who is not a party to an insurance contract who submits a claim against an insured is known as the Select one: A. Claimant party. B. Second party. C. Third party. D. First party. - Answer-C. Correct. A third party is a person or business who is not a party to the insurance contract but who asserts a claim against the insured. The best description of a first-party claim is a claim Select one: A. Made by the liable party against the policyholder. B. Made by the policyholder against someone to whom the policyholder may be liable.C. Made by the insurer against the policyholder. D. Made by the policyholder against the insurer. - Answer-D. Correct. The best description of a firstparty claim is a claim made by the policyholder against the insurer. In an insurance transaction, the insured is designated the Select one: A. First party. B. Second party. C. Third party. D. Fourth party. - Answer-A. First party Correct. In an insurance transaction, the insured is designated the first party.