Alberta General Insurance Level 1 Practice Exam

Regulators monitor the average length of time a claim is open because it gives insight into the efficiency of the claims process. Other options may also be important to monitor, such as A (statistics on frequency and severity of claims) for determining risk and D (incidence and cost of fraudulent activity) for detecting potential fraud. However, these options do not provide information about the overall effectiveness of the claims process. C (changes in average private premiums) may also be monitored, but this does not directly relate to the claims process and is more relevant to insurance companies' financial stability. Therefore, B is the most appropriate response.