What is the first step in the claims-handling process from notice to settlement?

What is the first step in the claims-handling process from notice to settlement?

• A. Investigation and adjuster evaluation
• B. Reserve setting
• C. Notice of loss
• D. Subrogation

Answer: (C)

Notice of loss is the trigger that starts the entire claims-handling process. When the insured or claimant reports a loss, the insurer opens a claim file, assigns an adjuster, and begins gathering facts to determine coverage and liability. This notification sets everything in motion, because without it there’s no claim to investigate, no reserves to set, and no possibility of recovery through subrogation. After notice, the process moves to investigating and evaluating damages, then reserving funds as needed, and later pursuing subrogation if another party is responsible.

Notice of loss is the trigger that starts the entire claims-handling process. When the insured or claimant reports a loss, the insurer opens a claim file, assigns an adjuster, and begins gathering facts to determine coverage and liability. This notification sets everything in motion, because without it there’s no claim to investigate, no reserves to set, and no possibility of recovery through subrogation. After notice, the process moves to investigating and evaluating damages, then reserving funds as needed, and later pursuing subrogation if another party is responsible.