What steps are involved in the claims process?

The claims process is a structured sequence of actions designed to efficiently handle insurance claims from the moment they are reported to the final settlement. The steps identified in option B accurately reflect this process:

1. Notification of Claim: This is the initial step where the policyholder informs the insurance company about an incident that may lead to a claim. This notification is crucial as it triggers the claims handling process, allowing the insurer to begin evaluating the situation.

2. Investigation: Following notification, the insurance company conducts an investigation to gather all pertinent information related to the claim. This may involve inspecting damage, speaking with the claimant and any witnesses, and reviewing relevant documentation. The investigation is critical to determining the validity of the claim and the extent of the insurer's responsibility.

3. Adjustment: Once the investigation is complete, the claim is adjusted. This involves assessing the loss and determining the amount payable under the policy terms. Adjusters evaluate damages, verify coverage, and correlate facts to prepare for settlement, maintaining an objective perspective throughout the adjustment phase.

4. Settlement: The final step is the settlement, in which the insurer offers a payment based on the adjustment findings. This process concludes when the policyholder accepts the compensation, and