Chapter 2

Question 1

What provides that insurance companies must set aside funds to pay future obligations?

Answer 1

Statutes

Question 2

Average cost reserving is:

Answer 2

set up automatically when loss adjusters open a particular file

Question 3

Under the Canadian Inter-Company Arbitration Agreement,

Answer 3

the members of the committee study the written facts of the dispute/arbitration and make a binding decision

Question 4

The Intercompany Settlement Chart does not apply to which of the following provinces?

Answer 4

Ontario, New Brunswick, Quebec

Question 5

Which entity specifically provides cooperation and assistance to public authorities and to memberinsurance companies in the detection, investigation, and prosecution of insurance fraud?

Answer 5

Insurance Bureau of Canada

Question 6

Typically, special investigation units (SIUs) within an insurance company are

Answer 6

organized to provide training for adjusters and others, and to raise fraud awareness.

Question 7

As a representative of the insurance company, the loss adjuster must be familiar with:

Answer 7

company protocol for handling claims.

Question 8

What program protects policyholders from the financial collapse of an insurer?

Answer 8

Property and Casualty Insurance Compensation Corporation

Question 9

Individual reserving is

Answer 9

the traditional method used for reserving all claims

Question 10

The CIAA provides leadership through

Answer 10

advocacy, education, and recognized professional standards.