174 000 This process includes only the cost of processing

Last updated: 5/13/2023

174 000 This process includes only the cost of processing the claim payments not the actual amount of the claim payments The adjusting activity involves verifying and estimating the amount of the claim and is variable to the number of claims adjusted The process received adjusted and paid 5 800 claims during the period All claims were treated identically in this process To improve the cost of this process management has determined that claims should be segregated into two categories Claims under 1 000 and claims greater than 1 000 claims under 1 000 would not be adjusted but would be accepted upon the insured s evidence of claim Claims above 1 000 would be adjusted It is estimated that 65 of the claims are under 1 000 and would thus be paid without adjustment It is also estimated that the additional effort to segregate claims would add 5 to the receiving claim activity cost Total a Develop a table showing the percent of individual activity cost to the total process cost Round the percents to the nearest whole number if required Statewide Insurance Company Individual activity cost to the total process cost Activities Activity Cost Receiving claim Adjusting claim Percent of Total Process