AIC-M
A 360-degree feedback system employs self-evaluation and peer appraisals delivered through -
ANS-Anonymous employee surveys.
A branch of a classification tree that leads to a classification of a target variable ends at a -
ANS-Leaf node.
A claim representative refuses to provide the claimant's medical records to the claimant's
employer. The claim representative's behavior illustrates - ANS-Confidentiality.
A claims department's optimal reporting structure should give claims representatives the
authority to make decisions while - ANS-Providing the appropriate level of supervision to allow
them to succeed.
A claims manager for ABC Insurance Company has been closely monitoring claims data
available to him and has noticed that there is an imbalance of new claim assignments to the
more experience claims representatives causing them to do more than their share of work. In an
effort to balance the workload and smooth out the caseload data the claims manager should
most likely - ANS-Provide additional training and p
A common theme among management theories is that an individual will not be motivated to
meet objectives until that individual's needs have been met. These needs include the emotional,
such as the need for rest, work-life balance, equity, financial rewards, and - ANS-Praise and
reinforcement.
A great deal of loss data is available from an insured's computerized claim system. This data is
used in many different financial ratios. One of the most common ratios used to show insurer
profitability is the - ANS-Loss ratio.
A manager's directives should include an explanation of the directives' relevance to the
employee's role and to the - ANS-Organization's mission and vision.
A PESTLE analysis is best described as a method of assessing - ANS-The external
environment in which an organization operates.
A possible option to improve subrogation and reinsurance referrals to recovery for Great Fire
Insurance Company is to have its regional claims managers become involved in random
quarterly file reviews. The managers would be sure the files they reviewed had referral indicator
coding if the investigation warranted one. Which one of the following would be the likely cost
and effect of implementing this option? - ANS-This option will likely increase referrals at a very
low cost but not correct the underlying problem with the claims representatives.
A training initiative is being considered as an option by General Fire Insurance Company, in an
effort to improve their referrals of potential subrogation and reinsurance recovery claims to their
recovery department. By increasing the number of potential recovery claims files, the dollar
amount recovered will likewise increase. Which one of the following is likely a correct cost and
effect analysis of such a training initiative? - ANS-Use of outside resources to train can be
expensive but the result is likely to be improved recovery referrals and dollars.
ABC Company uses a balanced score card with four key performance indicators (KPIs) to
measure success. Supervisors are required to align performance goals with the KPIs. Which
,one of the following explains how a supervisor should assign performance goals to an
employee, targeting each KPI? - ANS-A supervisor would need to review the actual tasks
performed by the employee. These tasks can then be sorted into four KPI categories: Financial,
Customer, Internal Business Process, and Learning and Growth. From there, specific metrics
are developed. Goals should be challenging, yet attainable.
ABC Insurance Company needs to improve the overall accuracy of the company loss ratio by
improving claims reserving by minimizing the stairstepping of reserves. As a result, ABC is
considering the purchase of computer software to assist in setting reserves. Which one of the
following is likely true of this option in regard to improving the loss ratio accuracy and reducing
the stairstepping of reserves? - ANS-This option is likely to increase the loss ratio and reserving
for severity indicators.
ABC insurance Company recently noted that the amount of money that ABC was recovering
based on paid loss amounts has been consistently declining over the past year. Which one of
the following loss data reports that ABC monitors should ABC analyze first to attempt to
determine any problems that may be developing? - ANS-Subrogation referrals.
ABC Insurance Company's computer system generates a number of reports regarding loss
data. What might ABC's claims managers review from reports on data involving loss reserves? -
ANS-Paid to incurred ratios
According to a study by the Center for American Progress, replacing an employee can cost an
organization what percentage of that employee's annual salary? - ANS-20%
According to the Power/Interest Matrix for Prioritizing Stakeholders, what is the best course of
action for dealing with stakeholders who have low interest in the organization and high power
over the organization? - ANS-Keep them satisfied
According to the study, "Motivating People: Getting Beyond Money," employees rated all of the
following among the top three financial motivators, EXCEPT: - ANS-Gift cards.
According to the study, "Motivating People: Getting Beyond Money," employees rated which one
of the following as the top overall motivator? - ANS-Praise from immediate manager
Actuaries use several common methods to estimate ultimate losses. Which one of the following
methods is an actuary likely to use when current loss experience is limited or of little predictive
value? - ANS-Expected loss ration method.
After Marilyn began to work for Major Indemnity Insurance Company, her supervisor, Ed,
showed her how to use the claims program. This software uses predictive modeling to predict
claim characteristics and to group claims according to likely severity and complexity. This
software is an example of the company's claims - ANS-Process.
An after-action review can provide information that will improve the team's processes and
should also help the manager to - ANS-Evaluate team members' performance.
An approach to decision-making that involves a contest of persuasion and defense of positions
can best be described as - ANS-An advocacy approach.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS-Improves performance.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS-Improves performance.
, An insurer should be prepared to - ANS-Reevaluate the attributes in a predictive model.
An insurer typically categorizes each new claim it receives into a group according to the claim's
expected complexity and severity. The purpose of this grouping is to - ANS-Assign claims to the
appropriate claim representatives.
An insurer wants to determine the complexity of a claim at the time of first report. Which one of
the following is an important step after identifying the attributes of complex claims? -
ANS-Ranking the attributes according to their relative information gain
An intangible asset resulting from a collection of perceptions and opinions, past and present,
about an organization that resides in the consciousness of its stakeholders is known as an
organization's - ANS-Reputation.
An organization must clearly communicate its message when responding to stakeholders in
times of crisis. Mishandling information provided to stakeholders concerning a crisis can -
ANS-Lead to new regulatory constraints.
An organization's external stakeholders can be divided into which one of the following
groupings? - ANS-Those who have a business relationship and those who do not
Argot Insurance Company ("Argot") has a business continuity plan that includes sections
addressing the following topics:
An increase in employee retirement rates;
Predicted talent shortages; and
Key-executive succession planning.
Which one of the following is a justification for addressing the above topics in Argot's business
continuity plan? - ANS-A lack of strong leadership at crucial times can result in major business
interruptions.
As a result of a noticeable nationwide increase in workers compensation claim severity, the VP
of claims for BRE Insurance Company has met with BRE's field claims managers and
developed a number of options to try to address this issue. Based on the cost and effect of an
option to assign nurse case managers to all lost time claims, which one of the following is likely
to be true? - ANS-Hiring more nurses will increase costs but likely have an overall positive
financial effect.
Assignment of specific responsibilities, tasks, authority, and accountability throughout an
organization typically takes place during - ANS-Strategy implementation.
Assuming that an organization is structured along functional lines, which one of the following
describes how it can overcome its major communication disadvantage? - ANS-The organization
must try to avoid "silo" effects by increasing the level of communications and actively aligning
departmental objectives.
Based on the age-to-age development factors in the table below, which one of the following
represents the factor that would be used to develop losses that are 12 months from maturity?
Assume that the analyst would use the average factors.
AccidentMonths of DevelopmentYear12-2424-3636-Final11.1001.0910.95821.1671.048 31.143
4- Average1.1371.0700.958 - ANS-0.958
because of its labor practices. The Department of Labor (DOL) investigated complaints from five
female employees that MPC discriminated against them. The DOL found the claim was true.
The Immigration and Naturalization Service (INS) found that the company employed illegal
immigrants and paid them less than the minimum wage. When this news became public, MPC's
A 360-degree feedback system employs self-evaluation and peer appraisals delivered through -
ANS-Anonymous employee surveys.
A branch of a classification tree that leads to a classification of a target variable ends at a -
ANS-Leaf node.
A claim representative refuses to provide the claimant's medical records to the claimant's
employer. The claim representative's behavior illustrates - ANS-Confidentiality.
A claims department's optimal reporting structure should give claims representatives the
authority to make decisions while - ANS-Providing the appropriate level of supervision to allow
them to succeed.
A claims manager for ABC Insurance Company has been closely monitoring claims data
available to him and has noticed that there is an imbalance of new claim assignments to the
more experience claims representatives causing them to do more than their share of work. In an
effort to balance the workload and smooth out the caseload data the claims manager should
most likely - ANS-Provide additional training and p
A common theme among management theories is that an individual will not be motivated to
meet objectives until that individual's needs have been met. These needs include the emotional,
such as the need for rest, work-life balance, equity, financial rewards, and - ANS-Praise and
reinforcement.
A great deal of loss data is available from an insured's computerized claim system. This data is
used in many different financial ratios. One of the most common ratios used to show insurer
profitability is the - ANS-Loss ratio.
A manager's directives should include an explanation of the directives' relevance to the
employee's role and to the - ANS-Organization's mission and vision.
A PESTLE analysis is best described as a method of assessing - ANS-The external
environment in which an organization operates.
A possible option to improve subrogation and reinsurance referrals to recovery for Great Fire
Insurance Company is to have its regional claims managers become involved in random
quarterly file reviews. The managers would be sure the files they reviewed had referral indicator
coding if the investigation warranted one. Which one of the following would be the likely cost
and effect of implementing this option? - ANS-This option will likely increase referrals at a very
low cost but not correct the underlying problem with the claims representatives.
A training initiative is being considered as an option by General Fire Insurance Company, in an
effort to improve their referrals of potential subrogation and reinsurance recovery claims to their
recovery department. By increasing the number of potential recovery claims files, the dollar
amount recovered will likewise increase. Which one of the following is likely a correct cost and
effect analysis of such a training initiative? - ANS-Use of outside resources to train can be
expensive but the result is likely to be improved recovery referrals and dollars.
ABC Company uses a balanced score card with four key performance indicators (KPIs) to
measure success. Supervisors are required to align performance goals with the KPIs. Which
,one of the following explains how a supervisor should assign performance goals to an
employee, targeting each KPI? - ANS-A supervisor would need to review the actual tasks
performed by the employee. These tasks can then be sorted into four KPI categories: Financial,
Customer, Internal Business Process, and Learning and Growth. From there, specific metrics
are developed. Goals should be challenging, yet attainable.
ABC Insurance Company needs to improve the overall accuracy of the company loss ratio by
improving claims reserving by minimizing the stairstepping of reserves. As a result, ABC is
considering the purchase of computer software to assist in setting reserves. Which one of the
following is likely true of this option in regard to improving the loss ratio accuracy and reducing
the stairstepping of reserves? - ANS-This option is likely to increase the loss ratio and reserving
for severity indicators.
ABC insurance Company recently noted that the amount of money that ABC was recovering
based on paid loss amounts has been consistently declining over the past year. Which one of
the following loss data reports that ABC monitors should ABC analyze first to attempt to
determine any problems that may be developing? - ANS-Subrogation referrals.
ABC Insurance Company's computer system generates a number of reports regarding loss
data. What might ABC's claims managers review from reports on data involving loss reserves? -
ANS-Paid to incurred ratios
According to a study by the Center for American Progress, replacing an employee can cost an
organization what percentage of that employee's annual salary? - ANS-20%
According to the Power/Interest Matrix for Prioritizing Stakeholders, what is the best course of
action for dealing with stakeholders who have low interest in the organization and high power
over the organization? - ANS-Keep them satisfied
According to the study, "Motivating People: Getting Beyond Money," employees rated all of the
following among the top three financial motivators, EXCEPT: - ANS-Gift cards.
According to the study, "Motivating People: Getting Beyond Money," employees rated which one
of the following as the top overall motivator? - ANS-Praise from immediate manager
Actuaries use several common methods to estimate ultimate losses. Which one of the following
methods is an actuary likely to use when current loss experience is limited or of little predictive
value? - ANS-Expected loss ration method.
After Marilyn began to work for Major Indemnity Insurance Company, her supervisor, Ed,
showed her how to use the claims program. This software uses predictive modeling to predict
claim characteristics and to group claims according to likely severity and complexity. This
software is an example of the company's claims - ANS-Process.
An after-action review can provide information that will improve the team's processes and
should also help the manager to - ANS-Evaluate team members' performance.
An approach to decision-making that involves a contest of persuasion and defense of positions
can best be described as - ANS-An advocacy approach.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS-Improves performance.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS-Improves performance.
, An insurer should be prepared to - ANS-Reevaluate the attributes in a predictive model.
An insurer typically categorizes each new claim it receives into a group according to the claim's
expected complexity and severity. The purpose of this grouping is to - ANS-Assign claims to the
appropriate claim representatives.
An insurer wants to determine the complexity of a claim at the time of first report. Which one of
the following is an important step after identifying the attributes of complex claims? -
ANS-Ranking the attributes according to their relative information gain
An intangible asset resulting from a collection of perceptions and opinions, past and present,
about an organization that resides in the consciousness of its stakeholders is known as an
organization's - ANS-Reputation.
An organization must clearly communicate its message when responding to stakeholders in
times of crisis. Mishandling information provided to stakeholders concerning a crisis can -
ANS-Lead to new regulatory constraints.
An organization's external stakeholders can be divided into which one of the following
groupings? - ANS-Those who have a business relationship and those who do not
Argot Insurance Company ("Argot") has a business continuity plan that includes sections
addressing the following topics:
An increase in employee retirement rates;
Predicted talent shortages; and
Key-executive succession planning.
Which one of the following is a justification for addressing the above topics in Argot's business
continuity plan? - ANS-A lack of strong leadership at crucial times can result in major business
interruptions.
As a result of a noticeable nationwide increase in workers compensation claim severity, the VP
of claims for BRE Insurance Company has met with BRE's field claims managers and
developed a number of options to try to address this issue. Based on the cost and effect of an
option to assign nurse case managers to all lost time claims, which one of the following is likely
to be true? - ANS-Hiring more nurses will increase costs but likely have an overall positive
financial effect.
Assignment of specific responsibilities, tasks, authority, and accountability throughout an
organization typically takes place during - ANS-Strategy implementation.
Assuming that an organization is structured along functional lines, which one of the following
describes how it can overcome its major communication disadvantage? - ANS-The organization
must try to avoid "silo" effects by increasing the level of communications and actively aligning
departmental objectives.
Based on the age-to-age development factors in the table below, which one of the following
represents the factor that would be used to develop losses that are 12 months from maturity?
Assume that the analyst would use the average factors.
AccidentMonths of DevelopmentYear12-2424-3636-Final11.1001.0910.95821.1671.048 31.143
4- Average1.1371.0700.958 - ANS-0.958
because of its labor practices. The Department of Labor (DOL) investigated complaints from five
female employees that MPC discriminated against them. The DOL found the claim was true.
The Immigration and Naturalization Service (INS) found that the company employed illegal
immigrants and paid them less than the minimum wage. When this news became public, MPC's
