Which option correctly separates policy handling from claim handling?

The choice that correctly separates policy handling from claim handling is based on the fundamental distinctions between what a policy represents and how claims are processed. Policies are essentially formal agreements between an insurer and the insured, outlining the coverage terms, conditions, and limits. They define the scope of protection provided by the insurer in exchange for premiums paid by the policyholder.

On the other hand, claims are service requests made by the insured when they seek compensation or assistance due to a loss covered under their insurance policy. When a claim is filed, it triggers a process where the insurer assesses the validity and extent of the claim, determining the compensation owed to the claimant.

This clear differentiation highlights that policies serve as the underlying product agreements, focusing on coverage specifics, whereas claims are actions taken when those agreements are invoked, representing a demand for service rather than coverage itself. Each plays a distinct role in the insurance process, reinforcing the separation between policy handling and claim handling.

The other choices either imply connections or roles that don't accurately capture the separation between policies and claims. For instance, while policies certainly cover claims, the relationship is more complex and does not represent a clear distinction. Similarly, customer service and underwriting roles are relevant in their own right but do not encapsulate the primary functions