CAS Practice Exam 2025 – Complete Study Guide

Regulators conduct a claims audit primarily to review insurers' claims handling practices. This is crucial for ensuring that insurance companies are adhering to legal and regulatory standards when processing claims. A claims audit helps regulators verify that claims are being handled fairly, promptly, and accurately, which is essential for consumer protection and maintaining trust in the insurance system.

Through this audit, regulators can identify potential issues such as improper denial of claims, delays in processing, or insufficient documentation. By analyzing the claims handling process, regulators can also ensure that insurers are complying with relevant statutes and regulations, safeguarding both the interests of policyholders and the integrity of the insurance marketplace.

The other options, while related to the broader context of insurance operations, do not encompass the primary focus of a claims audit. Assessing training programs, improving underwriting guidelines, and evaluating the impact of claims on premiums involve different aspects of an insurance company's operations and are generally not the main objectives of a claims audit.