Insurance entities establish ___________ to investigate and settle some or all of the claims of the member companies.
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A. B. C. D.D
The correct answer to this question is D. Adjustment bureaus.
Insurance companies may establish adjustment bureaus to investigate and settle some or all of the claims made by their policyholders. An adjustment bureau is a third-party organization that is hired by insurance companies to handle claims and to ensure that they are handled in a timely and efficient manner.
Adjustment bureaus are typically staffed by experienced claims adjusters who have the knowledge and expertise to investigate and evaluate claims. They may work directly for the insurance company or may be contracted by the company to handle claims on their behalf.
The primary purpose of an adjustment bureau is to investigate claims, assess damages, and negotiate settlements on behalf of the insurance company. This can involve a range of tasks, including interviewing witnesses, gathering evidence, evaluating medical records, and working with other professionals, such as lawyers and medical experts.
By outsourcing some or all of the claims handling process to an adjustment bureau, insurance companies can improve their efficiency and reduce their administrative costs. This can be particularly important in situations where the insurance company is dealing with a large volume of claims, or when claims involve complex legal or medical issues.
Overall, adjustment bureaus play an important role in the insurance industry by providing a centralized, professional, and cost-effective way for insurance companies to handle claims.