CII 820 Practice Questions - Advanced Claims (820) Exam - CII 820 Practice Questions

Question 1

What is the primary strategic objective of aligning an insurer's claims philosophy with its corporate underwriting risk appetite?

To ensure claims payments automatically equal 100% of collected gross written premiums. To establish consistent indemnity decisions that support product pricing assumptions, protect capital profitability, and uphold market reputation. To eliminate the need for legal representation in all third-party liability disputes. To transfer 100% of operational claims handling responsibility to external reinsurance syndicates.

Correct Answer:

To establish consistent indemnity decisions that support product pricing assumptions, protect capital profitability, and uphold market reputation.

Question 2

Under FCA FG22/5 guidelines on the Consumer Duty, how must a general insurer structure its claims settlement handling process?

Claims handling must be structured to deliver good outcomes for retail customers, avoiding unreasonable delays, burdensome processes, or unjust barriers to valid claims. Claims must be paid immediately upon notification without verifying policy cover or investigating potential non-disclosure. Claims handlers must prioritize insurer operational cost reduction over the fair treatment of policyholders. Claims handling rules apply strictly to commercial corporate risks while completely exempting retail motor and home insurance.

Correct Answer:

Claims handling must be structured to deliver good outcomes for retail customers, avoiding unreasonable delays, burdensome processes, or unjust barriers to valid claims.

Question 3

In general insurance claims management, how is 'claims leakage' defined?

The statutory tax paid on reinsurance recoveries received from international reinsurers. Financial losses incurred by an insurer due to unforced overpayments, inefficient handling processes, unrecovered subrogation, or poor claim decisions. The reduction in case reserves resulting from successful litigation defenses. The premium refund issued to policyholders following mid-term cancellation.

Correct Answer:

Financial losses incurred by an insurer due to unforced overpayments, inefficient handling processes, unrecovered subrogation, or poor claim decisions.

Question 4

When an insurer outsources commercial claims handling to a Third-Party Administrator (TPA), what is the primary operational risk regarding regulatory compliance?

The insurer retains ultimate regulatory accountability for TPA conduct and Consumer Duty compliance despite delegating operational execution. The TPA assumes full legal liability for all PRA capital solvency requirements. Outsourcing automatically revokes the insurer's FCA permission to issue insurance contracts. The TPA is legally prohibited from communicating directly with policyholders or loss adjusters.

Correct Answer:

The insurer retains ultimate regulatory accountability for TPA conduct and Consumer Duty compliance despite delegating operational execution.

Question 5

What is the primary function of a Service Level Agreement (SLA) in a delegated claims handling contract?

To specify operational metrics, key performance indicators (KPIs), response times, and authority limits expected from the service provider. To transfer all underwriting profit to the claims service provider. To waive policy deductibles for all claims managed by external vendors. To restrict policyholders from filing complaints with the Financial Ombudsman Service.

Correct Answer:

To specify operational metrics, key performance indicators (KPIs), response times, and authority limits expected from the service provider.

Question 1

Exam overview

About this Exam

Prepare with the CII 820 Practice Questions - Advanced Claims (820) Exam practice quiz. This question bank includes 100 questions covering claims, insurer, loss, primary, and insurance. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

More details

Additional Information

CII 820 Practice Questions - Advanced Claims (820) Exam

This practice set contains 100 questions from the matching question bank and focuses on claims, insurer, loss, primary, and insurance. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

Quiz information

Frequently Asked Questions

The complete question count is available after full access is unlocked.

No fixed duration is currently configured for this quiz.

Question explanations are included where they are available in the quiz content, helping you review the reasoning after answering.

Yes. You can retake the practice test again as you continue studying during your available access period.

After your access is confirmed, you can continue into the complete practice exam from this quiz flow.

Unless explicitly stated otherwise, this page provides independent practice material for study and exam preparation and is not the official examination itself.

Keep studying

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

About this Exam

Additional Information

CII 820 Practice Questions - Advanced Claims (820) Exam

Frequently Asked Questions

Related Questions

307 Advanced Damage Control Practice Exam

3CX Academy Advanced Certification Practice Exam

ABO Advanced Practice Exam

ABYC Advanced Electrical Practice Exam

Claims Adjuster Practice Exam

CodeHS Advanced HTML and CSS Practice test