General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which of the following is NOT one of the four major departments of an insurance company?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The four major departments of an insurance company are marketing, underwriting, claims, and actuarial. Marketing distributes products through the agency force, underwriting selects and prices risks, claims handles loss payments, and actuarial develops rates and reserves. Human resources is an administrative support function that exists in every business but is not one of the four core insurance operating departments. Knowing these departments helps explain how an insurer functions as a business and where underwriting decisions are made.
Why the other options are wrong
- A) Marketing is one of the four major departments; it distributes products and supports the sales force. Marketing is one of the four major departments; it distributes products through the agency force.
- B) Underwriting is one of the four major departments; it selects and classifies risks. Underwriting is one of the four major departments; it selects and prices the risks the insurer accepts.
- C) Claims is one of the four major departments; it investigates and pays covered losses. Claims is one of the four major departments; it investigates and pays covered losses.
Memory hook
The big four: Marketing, Underwriting, Claims, Actuarial. HR files the paperwork, it is not core.