Casualty Actuarial Society (CAS) Practice Exam

Which type of information may be included in a claims report?

1. Claims with low reserve amounts

2. Claims assigned to independent adjusters

3. Claims processed with no prior reserved amounts

4. Claims that have been randomly selected

The correct answer is: Claims assigned to independent adjusters

A claims report provides detailed insights about the claims being processed by an insurance company. In this context, including claims assigned to independent adjusters makes sense for several reasons. Independent adjusters are usually brought in for specific cases where the handling of the claim may require neutrality or expertise that is not available internally. Reporting on these claims can help assess their impact on the overall claims process, the efficiency of external resources, and the outcomes of claims management. Moreover, tracking claims that involve independent adjusters can facilitate better oversight and ensure that the quality of claims handling meets the company's standards. While the other choices reflect various scenarios that could occur in claims management, they do not provide the same level of critical insight into the handling and outcomes of claims as the inclusion of independent adjusters does. Claims with low reserve amounts, claims processed without prior reserved amounts, and claims that have been randomly selected might provide important data, but they don't necessarily highlight the involvement of external parties who can significantly affect the outcome of the claim process.