Property and Casualty Insurance Practice Exam

What must the insured complete as part of their duties after a loss?

1. A report of their financial situation

2. A proof of loss inventory

3. An assessment of their current policies

4. A survey of prior losses

The correct answer is: A proof of loss inventory

The requirement for the insured to complete a proof of loss inventory is an essential part of the claims process following a loss. This inventory serves as a formal statement detailing the specifics of the loss, including the items that were damaged or destroyed, their values, and any other relevant facts. By submitting this documentation, the insured provides the insurer with necessary information to evaluate the claim accurately and determine the compensation owed. This process helps facilitate the settlement of the claim and ensures that all relevant details are recorded and submitted in a structured manner, which is crucial for the claims investigation and resolution process. It establishes a clear and organized account of the loss, which can significantly impact the outcome of the claim. While reporting financial situations, assessing current policies, or surveying prior losses could be helpful actions in the broader context of managing risk or preparing for future claims, they are not specific duties mandated after a loss has occurred. The focus immediately after a loss is primarily on the proof of loss inventory, as it directly relates to the claim being processed.