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Leadership & Management Flashcards

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  1. Which statement best describes the difference between management and leadership in a claims organization?

    Answer: Management focuses on planning, organizing and controlling; leadership focuses on influencing and inspiring people

    Managers coordinate resources and processes, while leaders influence people toward a vision; effective claims supervisors need both.

  2. A claims supervisor uses bonuses tied to closure targets and corrects adjusters who miss standards. This most closely reflects:

    Answer: Transactional leadership

    Transactional leadership uses rewards and corrective action in exchange for meeting set expectations.

  3. Several adjusters are close to burnout because pending caseloads keep growing. Which management action best addresses the root cause?

    Answer: Analyze workload distribution and rebalance assignments or add resources

    Burnout from overload is best solved by fixing workload distribution and capacity, not by temporary morale boosts.

  4. Which of the following is MOST important for a claims manager to model in order to build an ethical claims culture?

    Answer: Consistently showing fair, honest, good-faith claim handling

    Leaders shape culture through their own conduct, and good-faith handling is central to ethical claims practice.

  5. An experienced, highly motivated adjuster can handle complex files independently. Under Situational Leadership, the manager should use which style?

    Answer: Delegating

    Delegating suits followers with high competence and high commitment, who need little direction or support.

  6. During a performance appraisal, a manager rates an adjuster highly in every category because of one outstanding catastrophe deployment. This rating error is called:

    Answer: Halo effect

    The halo effect happens when one strong trait or event unfairly raises ratings in unrelated areas.

  7. Which communication practice BEST helps a claims manager gain adjusters' acceptance of a new reserving guideline?

    Answer: Explaining the reasons, inviting questions and gathering feedback

    Two-way communication that explains why a change is happening builds understanding and buy-in.

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