Who will an insurer use to advise the maximum probable loss for a property risk?
A surveyor.
ABC Insurance has outsourced its claims function to Trust Us Claims. From a compliance perspective:
ABC Insurance remains responsible for meeting the FCA rules.
Part of a surveyor’s role is to advise the insurer on what they consider to be the ‘worse case scenario’ loss. What is this known as?
Maximum probable loss.
Who provides recommendations for loss prevention?
Risk surveyor.
In the event of a business interruption claim, who may be appointed to ensure business continuity?
A disaster recovery company.
Whose job is it to negotiate a settlement within the terms of a policy, that is fair to both the insured and the insurer?
Loss adjuster.
The use of Information Technology in claims handling must take into account two characteristics of insurance claims. These are volume and:
complexity.
Using a skilled resource from outside the company is called:
outsourcing.
An insurer outsources the rehabilitation services that it provides to some claimants. What is most likely to be its reason for doing so?
Enables it to access specialist services and reduces claim costs.
Who does a loss adjuster act on behalf of?
The insurer.
Specialists that ensure business continuity in the event of an interruption to the normal flow of business are called:
disaster recovery companies.
What structure is best suited to smaller companies with a limited range of products?
Functional.
In what way may the use of Information Technology [IT] cause a possible adverse cash flow effect?
Reinsurance recoveries may not be as fast as claims payments.
Pierre has suffered a loss and the settlement of this is not likely to be straightforward. Who is he likely to appoint to prepare and negotiate a claim on his behalf?
A loss assessor.
What does an insurer need to take into account under the UK GDPR, when considering its online marketing?
People have to positively give their consent to opt-in to marketing.
A claims computer system must have the capability to undertake a range of activities EXCEPT:
taking decisions in relation to unusual claims.
An insurance company has a business structure that is described as ‘divisional’ but where all claims are handled centrally. A disadvantage of having a centralised claims settlement method in this structure is that:
it is likely to reduce the contact between policyholders and local staff, which could impact negatively on customer retention.
What is the main function of an insurer’s claims system?
To provide an efficient means of recording and processing claims.
