Which three departments are unique to insurance companies?

The correct answer identifies the actuarial, claims, and underwriting departments as unique to insurance companies because these functions are specifically tailored to the insurance industry's core activities.

The actuarial department is responsible for analyzing statistical data to assess risk and determine pricing for insurance products, which is crucial for the financial viability of the insurance company. Actuaries use mathematical models to predict future claim costs and ensure that the company sets appropriate premiums.

The claims department handles the process of assessing and settling insurance claims made by policyholders. This function is critical to the insurance operation, as it directly impacts customer satisfaction and the company’s financial performance. The way an insurance company manages claims can significantly influence its reputation and operational success.

Underwriting is the department that evaluates the risk of insuring an individual or asset and decides the terms of coverage. This includes determining premium rates and assessing the level of risk associated with insuring particular applicants. Underwriting is essential because it helps insurance companies mitigate potential losses by ensuring they only accept risks that are manageable.

While the other options contain departments important for the operation of various businesses, they do not specifically cater to the unique needs and responsibilities intrinsic to the insurance industry. Functions like marketing, sales, and customer service are important across many industries, while human