Michigan Insurance, Inc. (MII), an insurer of small businesses, has a claims-processing department that

(LO 1) receives, processes, and refers casualty and property loss claims to insurance adjusters for resolution.

Approximately half of the claims arrive by standard mail; the other half are phoned in by policyholders.

Required The following activities and subactivities of MII’s claims process are not in a logical order. Arrange them into a numbered, logical sequence or process (e.g., 1.0, 1.1,...,2.0,2.1,...).

Annual Time Claims-Processing Activity Claims-Processing Subactivity (hours)

Receive claims TAK eiP MONG:Call. Area Aha te ee ea eC 2, oe eae 1,000 Check information ODEN alate, Bote Bical he aon daesectatee tae eee eee eee 700 Analyze claim Sorlmailityiclainmity Ske wewak Recess baat seis ene 200 Forward claim to adjuster Refer phone Call by Claim tyP@ ...........c:ccccsssevueceesstecseseenteenne 800 Verify completeness of information on written claim............. 900 Compare coverage in policy to casualty or loss claim......... 800 ore Mighella gb arren rtnttr chess tain oschadee cet ra kata resses orem cee hea eee 500 Verify accuracy of policy information on written claim.......... 1,000 Return incorrect claims to POlicyhOlders ........ccccecceeceeeeeee 400 Review incorrect claims with policyholders........ Mar 500 Bile leCOOlSSION Calin Gamaeesstit aue pteanr eae e 1,400 Send claim and policy copy to adjuster ...........ccceeeeeee 400 Package copy of claim and policy for shipment LOLACIUSIS (Ate ce icare teh tA AcinNei ei ie Lecer ner ee 500 Hogue! alii teeeee ete seh See ee ee 500 eee alysis Consider the activities and subactivities in Exercise 5.29.

(LO 3) Required Form small groups to rate each activity on a value-added scale from 1 to 5, with 5 being the most highly valued from an external customer’s perspective.