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!

So, are you ready to put your C06 Claims Processing knowledge to the test? Let's get started with our carefully curated MCQs!

C06 Claims Processing MCQs | Page 2 of 4

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Q11.
Why do insurers' officials visit the scene of loss in major losses?

a.

To assess underinsurance

b.

To penalize the insured

c.

To obtain an immediate idea of the loss

d.

To avoid discussing issues with the insured

Discuss
Answer: (c).To obtain an immediate idea of the loss Explanation:Insurers' officials visit the scene of loss in major losses to obtain an immediate, on-the-spot idea of the nature and extent of the loss.
Q12.
What is the purpose of "On account payment" in non-life insurance claims?

a.

To finalize the claim assessment

b.

To make an immediate payment to the claimant

c.

To penalize the insured for delay

d.

To seek recommendations from co-insurers

Discuss
Answer: (b).To make an immediate payment to the claimant Explanation:"On account payment" is made to the claimant if the loss is large and the completion of assessment may take some time.
Q13.
What is the purpose of "Discharge vouchers" in insurance claim settlements?

a.

To reinstate the policy after a claim

b.

To cancel the policy after a claim

c.

To record the completion of the assessment

d.

To obtain confirmation from the claimant that the claim is settled

Discuss
Answer: (d).To obtain confirmation from the claimant that the claim is settled Explanation:"Discharge vouchers" are used to obtain confirmation from the claimant that the claim is settled under the policy.
Q14.
In which situation does the sum insured under a fire policy stand reduced?

a.

After the claim assessment is complete

b.

When the co-insurers and reinsurers are paid

c.

Upon payment of the capital sum insured

d.

Following "On account payment" approval

Discuss
Answer: (c).Upon payment of the capital sum insured Explanation:The sum insured under a fire policy stands reduced after the payment of a claim.
Q15.
What happens to a personal accident policy after the payment of the capital sum insured?

a.

It stands canceled

b.

It gets reinstated with pro-rata premium

c.

The policyholder receives a discharge voucher

d.

The policy is automatically renewed for another term

Discuss
Answer: (a).It stands canceled Explanation:After the payment of the capital sum insured under a personal accident policy, the policy stands canceled.
Q16.
How does post-settlement action in non-life claims relate to underwriting?

a.

It involves making recommendations to underwriters

b.

It leads to the reinstatement of the policy

c.

It automatically extends the policy term

d.

It varies depending on the class of business

Discuss
Answer: (d).It varies depending on the class of business Explanation:Post-settlement action in non-life claims varies based on the class of business and doesn't always involve underwriting.
Q17.
What is "Salvage" in the context of insurance claims?

a.

Salvage refers to the rights and remedies of the insured.

b.

Salvage is the amount paid by a third party responsible for the loss.

c.

Salvage is the damaged property that belongs to insurers after payment.

d.

Salvage refers to the procedure for settling disputes related to claims.

Discuss
Answer: (c).Salvage is the damaged property that belongs to insurers after payment. Explanation:Salvage in insurance claims refers to damaged property that belongs to insurers after a loss payment.
Q18.
How do insurers recover losses from third parties who may be responsible for a loss?

a.

By obtaining a letter of subrogation from the insured

b.

By issuing a policy condition of "Arbitration"

c.

Through dispute handling procedures outlined in the policy

d.

By automatically initiating legal proceedings against third parties

Discuss
Answer: (a).By obtaining a letter of subrogation from the insured Explanation:Insurers recover losses from third parties by obtaining a letter of subrogation from the insured.
Q19.
What common reasons might lead to disputes between insurers and the insured regarding claims?

a.

Policy exclusions and losses caused by excluded perils

b.

Lack of communication between the insurer and the insured

c.

Delay in payment and dispute handling procedures

d.

Inadequate policy premium and non-disclosure of material facts

Discuss
Answer: (a).Policy exclusions and losses caused by excluded perils Explanation:Disputes between insurers and the insured can arise from reasons like policy exclusions and losses caused by excluded perils.
Q20.
What is the condition "Arbitration" commonly found in insurance policies?

a.

It refers to the process of dispute handling and grievance redressal.

b.

It indicates the amount of claim to be paid to the insured.

c.

It is a type of salvage procedure for damaged property.

d.

It specifies the procedure for calculating salvage.

Discuss
Answer: (a).It refers to the process of dispute handling and grievance redressal. Explanation:The condition of "Arbitration" in insurance policies relates to the process of dispute handling and grievance redressal.
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