Canadian Accredited Insurance Broker (CAIB) One Practice Exam

Which of the following statements about claim processing is true?

1. If ownership is disputed, all claims will be denied.

2. Insured must include only items they own in the claim.

3. The insurer has no time limit for resolving claims.

4. Cash settlements must be issued within 30 days post-claim.

The correct answer is: Insured must include only items they own in the claim.

The statement regarding the insured needing to include only items they own in the claim is accurate because insurance policies are designed to cover personal property for which the policyholder holds ownership. When filing a claim, the insured must ensure that the items listed are those for which they have an insurable interest. This means that the items should genuinely belong to them or be their responsibility under the terms of the insurance contract. Including items not owned can lead to complications or discrepancies that may affect the validity of the claim. The other statements present situations that either misrepresent standard practices in claim processing or are not reflective of typical insurance policy terms. For instance, if ownership is disputed, it does not automatically lead to a blanket denial of all claims, as insurers might work to resolve ownership issues before making a determination. Similarly, insurers generally are bound by time limits to resolve claims, which can vary by the jurisdiction and the specific terms of the policy, and cash settlements are often required to be issued promptly, but specific timelines can differ from the stated 30 days based on various factors.