What term describes the prompt resolution of an organization's losses under an insurance program, including claims by others to which it may be legally bound or ethically responsible?

What term describes the prompt resolution of an organization's losses under an insurance program, including claims by others to which it may be legally bound or ethically responsible?

• A. Claims management
• B. Insured Plan
• C. IBNR
• D. Deductible Plan

Answer: (A)

The process of promptly resolving losses under an insurance program, including claims by others you may be legally bound or ethically responsible for, is called claims management. This covers the end-to-end handling of claims—from intake and investigation to negotiation, settlement, and payment—aimed at resolving losses quickly while managing costs and staying compliant with legal and ethical duties. It also involves coordinating with internal teams, defense, adjusting, and potential subrogation opportunities to settle or defend claims efficiently. The other terms refer to different ideas: an insured plan describes coverage structure, IBNR refers to reserves for losses that have occurred but not yet been reported, and a deductible plan relates to the amount the insured must pay before coverage kicks in. So claims management best captures the goal of timely, responsible resolution of losses and related third-party claims.

The process of promptly resolving losses under an insurance program, including claims by others you may be legally bound or ethically responsible for, is called claims management. This covers the end-to-end handling of claims—from intake and investigation to negotiation, settlement, and payment—aimed at resolving losses quickly while managing costs and staying compliant with legal and ethical duties. It also involves coordinating with internal teams, defense, adjusting, and potential subrogation opportunities to settle or defend claims efficiently. The other terms refer to different ideas: an insured plan describes coverage structure, IBNR refers to reserves for losses that have occurred but not yet been reported, and a deductible plan relates to the amount the insured must pay before coverage kicks in. So claims management best captures the goal of timely, responsible resolution of losses and related third-party claims.