What decision-making tool is Olivia likely using when advising InsureCo of the accident?

In the context of advising InsureCo about an accident, the use of a rules-based decision-making approach focuses on adhering to established guidelines, laws, regulations, or company policies when evaluating actions and outcomes. This method emphasizes compliance and often simplifies complex situations through predetermined rules that serve as a framework for taking specific actions or making decisions.

When dealing with insurance matters, especially those involving accidents, there are typically legal requirements and company protocols that dictate how claims should be processed, what information must be reported, and how disputes might be resolved. A rules-based approach ensures that Olivia's recommendations are grounded in these established criteria, providing a clear path forward that aligns with both ethical standards and legal obligations.

This approach is particularly useful because it minimizes ambiguity and helps maintain consistency in decision-making across similar situations, which can be crucial in the insurance industry given the potential legal ramifications of mishandling an accident. Utilizing a rules-based decision-making model contributes to ethical integrity and protects the company from potential liabilities while also ensuring that the advice given is well-founded and aligned with industry practices.