AIC 300 Practice Questions and Answers 2024

AIC 300 Practice Questions and Answers 2024 11. offering the settlement payments insureds and claimants demand- : Claims representatives could quickly reduce LAE in the short term by rather than spending resources on in- vestigating claims and calculating and negotiating fair payments. 12. best practices, claims audits, & customer satisfaction data: 3 frequently used tools provide quality measures of a Claims Department's performance 13. Best practices: Identified by studying an insurer's own performance or the performance of successful insurers 14. Claims audits: Used by insurers to ensure compliance with best practices and gather statistical information on claims--performed by evaluating information in open/closed claims. 15. sworn statements: Most policies require the insured, and sometimes third-par- ty claimants, to provide . 16. coherence, completeness, objectivity: 3 qualities of effective statements 17. Accident scene details: help the claims rep- resentative determine whether accounts of the accident are plausible. 18. prior claim investigations: Claims representatives conduct on most incoming claims to avoid paying for property damage or bodily injury that the claimant has already been compensated for through prior claims. 19. Subrogation: Allows an insurer to recover payment from a negligent third party when the insurer has paid a claim for a loss caused by the negligent third party. 20. Subrogation agreement: Clauses in most insurance policies that require the insured to cooperate with the insurer by assigning the rights of subrogation to the insurer. 21. give testimony; appear in court: Most subrogation agreements require the insured to and , when necessary, so that the insurer can establish the legal basis to recover from the negligent third party. 22. Diary system: A suspense system or pending system that combines work on a claim with documentation by allowing the claims representative to work on a claim one day and then diary it for review. 23. preliminary, status, summarized: 3 internal reports that a claims representa- tive may write 24. Stairstepping: When a claims rep sets a modest initial reserve but then raises it to issue payments, and later again when more bills arrive. 25. ultimate: Reserves should reflect the cost of a claim.