Other Than Life (OTL) Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Claims processing is primarily focused on evaluating and settling claims. This entails a detailed assessment of the claims submitted by policyholders to determine the validity of the claim and the amount to be paid out under the terms of the insurance policy. The process involves collecting necessary documentation, investigating the circumstances surrounding the claim, and making decisions based on policy provisions and applicable laws.

Evaluating and settling claims is a critical function in the insurance industry as it directly impacts customer satisfaction and the insurer's financial health. When claims are processed efficiently and fairly, it builds trust with policyholders and reinforces the insurer's reputation.

In contrast, the other options pertain to different aspects of the insurance business. Providing new policy options relates to product development and marketing strategies, while calculating insurance rates involves underwriting and pricing mechanisms. Marketing insurance products focuses on promoting existing offerings, rather than handling claims. Each of these activities plays a vital role in the overall insurance business framework but does not encompass the specific aim of claims processing.