Which of the following stages is NOT part of the insurance claims handling process?

The insurance claims handling process typically comprises several key stages, including notification, investigation, and settlement. Each of these stages plays a vital role in managing claims effectively and ensuring that the process adheres to regulatory and procedural standards.

The notification stage involves the policyholder informing the insurance company about a loss or event that may result in a claim. This initial communication is crucial for starting the claims process and ensuring that the insurer can promptly address the claimant's needs.

Following notification, the investigation stage occurs, where the insurer gathers information regarding the claim. This may involve assessing the circumstances of the loss, reviewing documentation, and sometimes interviewing involved parties to determine the validity and extent of the claim.

Settlement is the final stage, where the insurer decides on the claim’s outcome, which may include paying benefits to the claimant based on the findings from the investigation.

In contrast, the audit stage, while important in overseeing processes and ensuring compliance with internal standards and regulations, is not considered a direct part of the claims handling process itself. Audits typically focus on assessing the operation's efficiency and effectiveness after the claims process has been completed, rather than being an active stage in handling individual claims. This distinction clarifies why audit is not deemed a part of the insurance claims handling process.