Claims Management and Loss Control Flashcards

A motor carrier's driver is involved in a serious accident while driving under a load. The carrier's insurer hires an Independent Medical Examiner (IME) to review the injured claimant's records. What is the primary goal of the IME?

Answer: To provide an objective opinion on the extent and causation of injuries

An IME provides an independent, objective medical opinion on injury causation, extent, and treatment necessity, helping the insurer evaluate the validity and value of bodily injury claims.

In transportation risk management, 'loss development' refers to:

Answer: The change in total claim costs as claims mature and are fully paid

Loss development tracks how reported claim costs change over time as additional payments are made, reserves are adjusted, and claims ultimately close, which is critical for accurate reserving.

Which type of loss control program specifically addresses the ergonomic risks faced by long-haul truck drivers?

Answer: Wellness and musculoskeletal injury prevention programs

Wellness and musculoskeletal injury prevention programs address the ergonomic risks of prolonged sitting, repetitive motion, and awkward postures common among long-haul drivers.

Under the Federal Motor Carrier Safety Regulations (FMCSRs), how long must a motor carrier retain records of driver vehicle inspection reports (DVIRs)?

Answer: 3 years

FMCSRs require motor carriers to retain DVIRs for 3 months, but the related systematic maintenance records must be kept for 1 year after the vehicle leaves service.

A transportation risk manager is evaluating the effectiveness of a new backing assistance camera system installed on delivery trucks. Which metric best measures its direct impact on loss frequency?

Answer: Reduction in the number of backing-related accidents and claims

The direct measure of a backing camera system's effectiveness is the reduction in backing-related accidents and claims, which directly reflects loss frequency improvement.

What is the purpose of a 'tolling agreement' in transportation claims litigation?

Answer: To extend the statute of limitations by mutual consent of the parties

A tolling agreement is a contract between parties to pause or extend the statute of limitations, allowing more time for investigation or settlement negotiations without filing suit.

In cargo insurance, the term 'particular average' refers to:

Answer: A partial loss affecting only specific cargo, not shared by all interests

Particular average is a partial loss or damage to specific cargo that is borne solely by the owner of that cargo, distinguishing it from general average which is shared among all parties.