CIP C112 - CH01 - Introduction to Claims Managements Exam
Questions and Answers
Question 1
What does the term claims management encompass?
Correct Answer
Handling individual claims.
Departmental claims processes and procedures.
Question 2
Identify broader departmental activities needed for a claims department within claims management.
Correct Answer
- establish procedures for the day to day administrative transaction for claims files
- providing admin support
- establishing a system of record keeping
- ensuring budget compliance
- aligning operations to overall corporate vision and strategy
- ensuiring compliance with regulatory and contractual obligations
- staffing and educating the claims department
Page 1 of 19
,Question 3
What is a core function of an insurance company relating to claims?
Correct Answer
claims handling
Question 4
What 3 qualities must an insurance company preserve when it delivers its claim obligations?
Correct Answer
- core strengths
- values
- culture
Question 5
When creating a mission statement, why is the choice of word important?
Correct Answer
- principles a company holds dear are tied to its mission statement
- choice of word inspires a certain feeling or attitude
Page 2 of 19
, Question 6
Give an example of a general corporate mission statement on claims service for a company that has built its reputation of
excellence.
Correct Answer
- we strive for excellence in providing claims service to our policyholder
Question 7
What is a limitation factor common to any company strategy?
Correct Answer
- the need to manage expenses
Question 8
What principle of law sets the standard for conduct in the contractual relationship between the insurer and insured?
Correct Answer
- utmost good faith
- proposed claims handling activities must meet the test of utmost good faith
- comprising of honesty, fairness, integrity, and respect for the insured
Page 3 of 19
Questions and Answers
Question 1
What does the term claims management encompass?
Correct Answer
Handling individual claims.
Departmental claims processes and procedures.
Question 2
Identify broader departmental activities needed for a claims department within claims management.
Correct Answer
- establish procedures for the day to day administrative transaction for claims files
- providing admin support
- establishing a system of record keeping
- ensuring budget compliance
- aligning operations to overall corporate vision and strategy
- ensuiring compliance with regulatory and contractual obligations
- staffing and educating the claims department
Page 1 of 19
,Question 3
What is a core function of an insurance company relating to claims?
Correct Answer
claims handling
Question 4
What 3 qualities must an insurance company preserve when it delivers its claim obligations?
Correct Answer
- core strengths
- values
- culture
Question 5
When creating a mission statement, why is the choice of word important?
Correct Answer
- principles a company holds dear are tied to its mission statement
- choice of word inspires a certain feeling or attitude
Page 2 of 19
, Question 6
Give an example of a general corporate mission statement on claims service for a company that has built its reputation of
excellence.
Correct Answer
- we strive for excellence in providing claims service to our policyholder
Question 7
What is a limitation factor common to any company strategy?
Correct Answer
- the need to manage expenses
Question 8
What principle of law sets the standard for conduct in the contractual relationship between the insurer and insured?
Correct Answer
- utmost good faith
- proposed claims handling activities must meet the test of utmost good faith
- comprising of honesty, fairness, integrity, and respect for the insured
Page 3 of 19
