Associate in Claims (AIC) 300 – Claims in an Evolving World Practice Test

Claims settlements can be paid in multiple ways, not just with a check or cash. Electronic funds transfer is a common, efficient method because it moves the money quickly and creates a clear, auditable record of the payment. It reduces handling time and the chance of errors, which is why it’s widely permitted as a settlement option.

The other options either involve transferring value in a non-monetary form (like arranging repairs directly with a contractor) or providing a future premium credit, which doesn’t deliver an immediate cash settlement to the claimant. Cash is less common in modern claims handling and can raise security and record-keeping concerns, though it may be allowed in some cases.

So, electronic funds transfer is a standard, permissible way to pay a claim, making it the best answer.