Which of the following is an advantage of closing claims early?

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Multiple Choice

Which of the following is an advantage of closing claims early?

Closing claims early targets reducing development risk in casualty claims. When a file stays open, later information—additional medical costs, delayed injuries, or disputes about liability—can push the final cost higher. By closing the claim sooner, you lock in a cost estimate and reduce the chance that new information will cause adverse development, leading to more stable reserves and cash flow. The other options describe outcomes that are not advantages of early closure—for example, it typically lowers administrative burden (not increases it) and delaying treatment or harming customer satisfaction would be drawbacks rather than benefits.

Closing claims early targets reducing development risk in casualty claims. When a file stays open, later information—additional medical costs, delayed injuries, or disputes about liability—can push the final cost higher. By closing the claim sooner, you lock in a cost estimate and reduce the chance that new information will cause adverse development, leading to more stable reserves and cash flow. The other options describe outcomes that are not advantages of early closure—for example, it typically lowers administrative burden (not increases it) and delaying treatment or harming customer satisfaction would be drawbacks rather than benefits.

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