Conquer the CAS Challenge 2026 – Your Ultimate Actuarial Adventure Awaits!

Question: 1 / 400

Why is it important for a claims representative to determine if the persons who suffered a loss are covered under a given policy?

Because policies are always transferable

Because not all policies cover every claimant

Determining if the persons who suffered a loss are covered under a given policy is essential because not all policies cover every claimant. Insurance policies often have specific terms and conditions that outline who is eligible for coverage. There may be exclusions based on the type of loss, the relationship of the claimant to the policyholder, or other criteria outlined in the policy document.

Understanding the specific coverage details ensures that the claims representative can accurately process the claim and provide the necessary support to the rightful claimants. This step is crucial to prevent disputes and to ensure that the insurance company complies with its contractual obligations. When a claimant is not covered under the policy, it can lead to frustration for all parties involved and result in potential legal issues.

Get further explanation with Examzify DeepDiveBeta

Because claims must be settled quickly

Because claims can be higher than expected

Next Question

Report this question

Download Casualty Actuarial Society (CAS) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy