Random Mix Flashcards
(75 cards)
The IBNER reserve covers
Shortfalls in the provisions in the outstanding claims reserves
Would the arbitration clause of a household policy apply when a policyholder is disputing the amount offered in settlement of a theft claim
Yes
When designing an IT-based claims management system it is important to
review existing claims procedures and practices
One benefit of using an IT-based claims handling system is that it
can help insurers to deal with foreseeable peaks in demand
an insured has comprehensive cover and is involved in an accident caused by a third party which principle applies?
Subrogation
Under the untraced drivers’ agreement, the Motor Insurance Bureau (MIB) will only consider claims for property damage where the vehicle that caused the damage is unidentified and
compensation has been paid for significant personal injury
The insurer’s position at the end of the financial year is shown in the:
Balance Sheet
Which non-adjudicative option of alternative dispute resolution is common place in personal injury cases and is where the parties come together round the table to discuss options to resolve the case?
Joint Settlement
What reserve is required by law and is designed to smooth fluctuations in loss ratios for certain classes of business
Equalisation Reserve
In relation to an insurer’s corporate claims strategy, the claims manager will be responsible for:
day to day implementation
Where would an insurer’s premium reserves, such as outstanding claims and incurred but not reported claims be disclosed?
The balance sheet - liability section.
Management accounts allow an insurance company to
plan, monitor and control the company’s operations.
What is the objective of reserving?
is to estimate the future costs of claims
The source of the largest outflow of money within an insurance company is managed by its:
Claims department
An unexpired risk reserve is ONLY needed where a loss is foreseen in relation to the
Unearned premium reserve
When implementing an insurer’s overall approach to claims management, a claims manager’s key tasks include
Being aware of current underwriting policies
In relation to a motor claim hard leakage can occur where:
salvage is retained by the insured after a total loss payment
Ex gratia payments should NOT be regarded as leakage because
they are authorised by the claims manager.
When setting up a new commercial property claim which of the following CANNOT be obtained from the insurer’s underwriting records?
Estimates & reserves!! ***
One of the disadvantages of using an IT-based claims handling system is
Upgrades may be needed overtime
A potential disadvantage of centralised claim settlement is a lack of
local contact for policyholders
Insurance companies are usually structured by:
function or division or a blend of both
Within a decentralised structure which claims settlements, if any, will have to be reported to the head office?
Very large claims
Brown’s Electricals Ltd is concerned about the impact on the business of a major fire or flood at their premises. They employ the services of ABC Consultants to develop a plan to ensure business continuity. What type of firm are ABC Consultants?
A disaster recovery company
