Los Angeles Claims Adjuster Property and Causality Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Los Angeles Claims Adjuster Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


Which step comes first in the processing of insurance claims?

  1. Claim disposition

  2. Investigation of claim

  3. Claims evaluation

  4. Notice of claim

The correct answer is: Notice of claim

The first step in the processing of insurance claims is to have a notice of claim. This step serves as the initial communication from the insured party to the insurer, indicating that a loss has occurred and a claim is being made. It is essential because it formally alerts the insurer about the incident, prompting them to begin their processes. Without this notice, the claims process cannot proceed since the insurer has no knowledge of the claim or the need to investigate further. Following the notice of claim, the insurer can initiate subsequent steps such as investigating the claim, evaluating the damages, and ultimately doing the claim disposition. Each of these stages relies on the initial notice to move forward, making it a critical starting point in the insurance claims process.