Which combination best describes the practices that support good-faith claim handling?

• A. Consistent supervision, thorough training, and manageable caseloads.
• B. Avoiding the use of policy provisions.
• C. Only dealing with defense attorneys.
• D. Not communicating with claimants.

Answer: (A)

The idea under test is how organizational practices and communications support claims that are handled in good faith. When supervision is consistent, staff receive thorough training, and caseloads are manageable, claim decisions tend to be more accurate, fair, and timely. Consistent supervision provides oversight to ensure procedures are followed, reducing variability in how claims are evaluated. Thorough training keeps adjusters current on policy terms, coverage interpretations, and legal requirements, which helps them make correct, defensible decisions. Manageable caseloads mean adjusters have enough time to review documentation, consult when needed, and respond promptly, all of which are essential to treating claimants fairly and avoiding rushed or botched outcomes.

Avoiding the use of policy provisions would undermine determining coverage correctly, since policy terms guide what is and isn’t covered. Only dealing with defense attorneys narrows the focus and can sideline the insured’s perspective and transparency. Not communicating with claimants directly violates the duty to keep claimants informed, a core element of good-faith handling. Together, these practices—solid supervision, ongoing training, and reasonable workloads—best support fair, transparent, and diligent claim handling.