Question
Management of the Fruitvale branch of Manzana Insurance Company has changed their procedure for handling policy renewals (RERUNs). Such requests are now introduced into the
Management of the Fruitvale branch of Manzana Insurance Company has changed their procedure for handling policy renewals ("RERUNs"). Such requests are now introduced into the system 30 days before the expiration date of the policy, instead of waiting until 1 day before the expiration date. What are the expected consequences of this policy change under the assumption that the mix and volume of demand does not change and that requests are processed on a First-Come-First-Served sequence. Which of the following statements are true?
A) Utilization of Underwriting will decrease.
B) Average percentage of RERUNs that are late (process completed after due date) will decrease.
C) Average percentage of RERUNs that are late (process completed after due date) will increase.
D) a and b
E) None of the above
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