Which practices will vary based on company claim procedures, the line of business and size of claim.

Question

Options

• Aloss reserve
• Bclaim reporting
• CLoss reporting
• Dportfolio reserve

• A
  3% (2)
• B
  74% (51)
• C
  6% (4)
• D
  17% (12)

Explanation

Claim reporting (B) is correct because the procedures for how, when, and to whom a claim is reported are directly shaped by each insurer's internal protocols, the type of coverage involved (e.g., auto vs. workers' comp vs. property), and the claim's complexity or dollar amount - a large commercial loss triggers very different reporting steps than a minor personal lines claim.

Loss reserve (A) is wrong because reserves are actuarial and accounting estimates governed by regulatory and professional standards, not primarily dictated by individual company claim handling procedures.

Loss reporting (C) is wrong because it typically refers to statistical/regulatory loss data submissions to bureaus and regulators - a standardized external process, not an internal procedural one that shifts by company or claim size.

Portfolio reserve (D) is wrong because it is an aggregate financial concept applied across a book of business, entirely separate from the operational steps of how an individual claim is filed or handled.

Memory tip: Think of "B for Bespoke" - claim reporting is the one piece of the claims process that each company tailors to its own workflow, the business line, and how big the claim is. Everything else (reserves, regulatory reporting) follows external standards.

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