Los Angeles Claims Adjuster Property and Causality Practice Exam

Which component of the claims process follows the notice of claim?

1. Investigation of claim

2. Claim evaluation

3. Claim disposition

4. Proof of loss submission

The correct answer is: Investigation of claim

Following the notice of claim, the next logical step in the claims process is the investigation of the claim. This phase involves gathering all pertinent information related to the claim, which may include interviewing the claimant, consulting witnesses, examining physical evidence, and reviewing documents. This comprehensive investigation is crucial to assess the validity of the claim and to determine the extent of the insurer's liability. Effective investigation ensures that all relevant facts are considered and helps the claims adjuster to make informed decisions moving forward. The results from this investigation lay the foundation for subsequent steps, such as claim evaluation and claim disposition, where the adjuster will determine the amount to be paid or if the claim should be denied. Understanding the precedence of the investigation of claim after the notice of claim is essential in the claims handling process, as it establishes the groundwork for the overall claims decision-making.