Insurance company begins processing casualty


At COMET Insurance Company begins processing casualty claims when the claims department receive a notice of loss from a claimant. The claims department prepares and sends the claimant four copies of proof-of-loss form on which the claimant must detail the cause, amount, and other aspects of the loss.

The claims department also initiates a record of claim, which is sent with the notice of loss to data processing department, where it is fled by claim number. The claimant must fill out the proof-of-loss forms with an adjuster's assistance. The adjuster must concur with the claimant on the estimated amount of loss. The claimant and adjuster each keep one copy of the proof-of-loss form. The adjustor files his copy numerically. The adjustor sends the first two copies to the claims department, confirming the estimates on the claimant's proof-of-loss.

The claims department authorizes a payment to the claimant, forward a copy of the proof-of-loss form to data processing, and files the original proof-of-loss form and the adjuster's report alphabetically. The data processing department prepares payment checks and mails them to the customers, files of proof-of-loss form with the claim record, and prepares a list of cash disbursement, which it transmits to the accounting department where it is reviewed.

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Accounting Basics: Insurance company begins processing casualty
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