C06 Claims Processing MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C06 Claims Processing, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C06 Claims Processing MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of C06 Claims Processing mcq questions that explore various aspects of C06 Claims Processing problems. Each MCQ is crafted to challenge your understanding of C06 Claims Processing principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C06 Claims Processing MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of C06 Claims Processing. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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C06 Claims Processing MCQs | Page 1 of 4

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Q1.
What is "TAT" in the context of insurance claims?

a.

Total Amount of Transaction

b.

Turnaround Time

c.

Total Assessment of Total loss

d.

Timely Approval Threshold

Discuss
Answer: (b).Turnaround Time Explanation:"TAT" stands for "Turnaround Time," which is the time taken for claims processing.
Q2.
What is the benchmark of efficiency for insurance companies in terms of claims settlement?

a.

Total claim amount

b.

Time taken for processing claims

c.

Number of claims filed

d.

Premium collected

Discuss
Answer: (b).Time taken for processing claims Explanation:The benchmark of efficiency for insurance companies is the expeditious settlement of claims, often measured by the "Turnaround Time."
Q3.
What does Loss Assessment (Claims Assessment) involve in insurance?

a.

Determining the insured's premium

b.

Assessing the insurer's financial status

c.

Determining if the loss is covered by the policy

d.

Calculating the insurance company's profits

Discuss
Answer: (c).Determining if the loss is covered by the policy Explanation:Loss Assessment (Claims Assessment) is the process of determining whether the loss suffered by the insured is covered by the insurance policy.
Q4.
What is one of the important aspects considered for non-life insurance claims?

a.

Number of claims filed by the insured

b.

Compliance with warranties

c.

Value of salvage

d.

Premium payment history

Discuss
Answer: (b).Compliance with warranties Explanation:Compliance with warranties is one of the important aspects considered for non-life insurance claims.
Q5.
What is the insured's duty in the event of a loss?

a.

To conceal any information about the loss

b.

To act as if uninsured and take measures to minimize the loss

c.

To immediately file a lawsuit against the insurer

d.

To maximize the loss to receive a higher claim amount

Discuss
Answer: (b).To act as if uninsured and take measures to minimize the loss Explanation:In the event of a loss, the insured is expected to act as if he is uninsured and has a duty to take measures to minimize the loss.
Q6.
What does the amount payable for a loss depend on in insurance claims?

a.

The total number of claims filed by the insured

b.

The value of the insured's insurable interest

c.

The insurer's financial status

d.

The number of insurance agents involved

Discuss
Answer: (b).The value of the insured's insurable interest Explanation:The amount payable for a loss in insurance claims depends on factors such as the extent of the insured's insurable interest in the property affected.
Q7.
What are "Standard claims" in insurance?

a.

Claims related to natural disasters

b.

Claims that penalize underinsurance

c.

Claims that clearly meet the policy terms and conditions

d.

Claims with average or average clauses

Discuss
Answer: (c).Claims that clearly meet the policy terms and conditions Explanation:"Standard claims" are claims that are clearly within the terms and conditions of the policy.
Q8.
What does the "Condition of average or average clause" penalize?

a.

Claims with natural perils

b.

Claims involving catastrophic losses

c.

Claims with underinsured properties

d.

Claims exceeding the sum insured

Discuss
Answer: (c).Claims with underinsured properties Explanation:The "Condition of average or average clause" penalizes claims where the property is insured for a sum less than its actual value, known as underinsurance.
Q9.
What are "Act of God" perils in insurance?

a.

Catastrophic losses due to human actions

b.

Natural perils like storms and earthquakes

c.

Claims that involve "Condition of average"

d.

Losses that meet the policy terms and conditions

Discuss
Answer: (b).Natural perils like storms and earthquakes Explanation:"Act of God" perils are natural perils like storms, cyclones, floods, inundations, and earthquakes.
Q10.
What is the purpose of surveyors appointed for catastrophic losses in insurance?

a.

To penalize the insured for underinsurance

b.

To immediately assess losses and minimize them

c.

To visit the scene of loss to provide immediate payment

d.

To adjust the premium for the next policy term

Discuss
Answer: (b).To immediately assess losses and minimize them Explanation:Surveyors appointed for catastrophic losses are tasked with immediately assessing losses and minimizing them.
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