CIP C112 Practical Issues In Claims Management Exam
Questions and Answers
Question 1
Communicating Abstract Ideas
Correct Answer
Because many people are visually oriented, using charts, maps, and other such devices to present ideas can make
concepts concrete and thus easier to understand.
Question 2
when a company executes an audit to uncover the root cause of an issue, unknown, immediately is an example of an
Correct Answer
emergency audit
Question 3
What makes a successful team
Correct Answer
Share aims, have a common work language, able to manage relationships as well as tasks.
Page 1 of 47
,Question 4
Specific Audit
Correct Answer
Examines limited aspects of the operation
( Focus narrow (reserving / indemnity / financial reporting requirements)
Question 5
Duty to defend
Correct Answer
Arises when a suit brought against the insured alleging facts that would elicit a payment under the policy
Question 6
SIU
Correct Answer
special investigation unit
Question 7
Privacy Act (July 1, 1983)
Correct Answer
obligations of Federal Gov. and Agencies.
Page 2 of 47
,Question 8
PIPEDA (January 1, 2004)
Correct Answer
Personal Information Protection and Electronic Documents Act (private sector obligations)
Question 9
IBNR
Correct Answer
Incurred But Not yet Reported (reported after years)
Question 10
Effective teams
Correct Answer
team members are motivated, hard-working, and prepared to contribute extra time and effort in a crunch.
Question 11
what benchmark are adjusters held to?
Correct Answer
Utmost good faith
Page 3 of 47
, Question 12
Present Value is
Correct Answer
a sum of money needed today to meet a stated obligation at a future point. (fluctuates according to interest rates and
future predictions.)
Question 13
(name two ) reserving philosophies
Correct Answer
ultimate possible outcome theory 2. probable settlement value theory
Question 14
(how do) P&C Ins. Co's. define themselves ?
Correct Answer
by how they fulfil their promise of follow through on indemnity payments to Insureds.
Question 15
Baseline budgeting
Correct Answer
uses previous years budget to determine new budget
Page 4 of 47
Questions and Answers
Question 1
Communicating Abstract Ideas
Correct Answer
Because many people are visually oriented, using charts, maps, and other such devices to present ideas can make
concepts concrete and thus easier to understand.
Question 2
when a company executes an audit to uncover the root cause of an issue, unknown, immediately is an example of an
Correct Answer
emergency audit
Question 3
What makes a successful team
Correct Answer
Share aims, have a common work language, able to manage relationships as well as tasks.
Page 1 of 47
,Question 4
Specific Audit
Correct Answer
Examines limited aspects of the operation
( Focus narrow (reserving / indemnity / financial reporting requirements)
Question 5
Duty to defend
Correct Answer
Arises when a suit brought against the insured alleging facts that would elicit a payment under the policy
Question 6
SIU
Correct Answer
special investigation unit
Question 7
Privacy Act (July 1, 1983)
Correct Answer
obligations of Federal Gov. and Agencies.
Page 2 of 47
,Question 8
PIPEDA (January 1, 2004)
Correct Answer
Personal Information Protection and Electronic Documents Act (private sector obligations)
Question 9
IBNR
Correct Answer
Incurred But Not yet Reported (reported after years)
Question 10
Effective teams
Correct Answer
team members are motivated, hard-working, and prepared to contribute extra time and effort in a crunch.
Question 11
what benchmark are adjusters held to?
Correct Answer
Utmost good faith
Page 3 of 47
, Question 12
Present Value is
Correct Answer
a sum of money needed today to meet a stated obligation at a future point. (fluctuates according to interest rates and
future predictions.)
Question 13
(name two ) reserving philosophies
Correct Answer
ultimate possible outcome theory 2. probable settlement value theory
Question 14
(how do) P&C Ins. Co's. define themselves ?
Correct Answer
by how they fulfil their promise of follow through on indemnity payments to Insureds.
Question 15
Baseline budgeting
Correct Answer
uses previous years budget to determine new budget
Page 4 of 47
