C120 Underwriting Essentials

Front 1

Underwriting Loss

Back 1

The amount of money that an insurance company losses as a result of its insurance operation

Front 2

Underwriting Profit

Back 2

The amount of money an insurance company gains as a result of its insurance operations

Front 3

Underwriter

Back 3

An investor of shareholder's capital

Front 4

Trend Factors

Back 4

Adjustments applied to all losses if they were to occur next year

Front 5

Development Factors

Back 5

Adjustments to current reserves for claims that have yet to be settled

Front 6

A bucket of premium

Back 6

Pure premium + Expenses (Acquisition Costs + Administrative Expenses + development factors + trend factors + profit)

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Acquisition Cost

Back 7

The cost of putting a business on the book and acquiring the premium, It may include commissions, premium tax, fild reps' costs, and head office acquisition cost of operation

Front 8

Premium

Back 8

The price of insurance protection for a specified risk for a specified period of time

Front 9

Pure Premium

Back 9

Portion of the total premium to pay expected losses

Front 10

MSRP

Back 10

Manufacturer's Suggested Retail Price

Front 11

SABS

Back 11

Statutory Accident Benefits Schedule

Front 12

Non-owned automobile Insurance

Back 12

If an employee operates on behalf of the employer, and it is not owned by the employer

Front 13

Insurance Telematics

Back 13

UBI, Usage Base Insurance

Front 14

FSCO

Back 14

Financial Services Commission of Ontario

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Commercial Use

Back 15

In the course of Commercial Activity

Front 16

Personal Use

Back 16

For Pleasure

Front 17

Lienholder

Back 17

One who holds a registered claim against a given property as collateral, it must be fully discharged if it needs to be liquidated, sold, or transferred

Front 18

Lessee

Back 18

One that holds the property by lease

Front 19

Lessor

Back 19

One that conveys the property by lease

Front 20

Credit Check banned

Back 20

Newfoundland, LaBrador, and Ontario

Front 21

DTC

Back 21

A Driver's Training Certificate

Front 22

Risk Sharing Plan

Back 22

A self-insurance method of reducing exposure to risk by spreading the burden of loss

Front 23

FA (Facility Association)

Back 23

An entity established by Canadian Automobile Insurance Industry to ensure that automobile insurance is available to everyone

Front 24

GAA

Back 24

In Quebec, the Groupement des Assureurs Automobiles

Front 25

Government Compensation Plan

Back 25

In Quebec

Front 26

The Crown Corporations

Back 26

British Columbia, Saskatchewan, and Manitoba

Front 27

Contributory Negligence

Back 27

Many accidents are the partial fault of both parties

Front 28

Umbrella Policy

Back 28

A special form of liability policy designed to protect the insured for unknown contingencies over and above coverages, to provide excess insurance

Front 29

Employer's Liability Insurance

Back 29

Coverage for the legal liability impsoed on an employer to pay damages to an employee injured by the employer's negligence, not equal to Worker's Compensation Insurance Plan

Front 30

A slip-and-fall Premise

Back 30

In Preston v. Canadian Legion, the occupier failed in its duty

Front 31

Indemnity agreement

Back 31

A written contract entered into between indemnitor and surety in which the indemnitor secures surety against loss the surety may sustain as a result of having issued a bond for a third party

Front 32

Hold-harmless agreement

Back 32

An agreement that allows one party to protect another party against any future losses or claims

Front 33

Invitee

Back 33

A person who was expressly or impliedly invited onto the premises , e.g. customers

Front 34

Host liquor liability

Back 34

Hosts of private gatherings can be held liable if intoxicated and damaged

Front 35

Contractual Entrant

Back 35

A person who enters the premise under a contract with the occupier, e.g. hotel guest, theatre-goer

Front 36

Licensee

Back 36

A person who has permission to enter the premise for his or her own purposes

Front 37

Trespasser

Back 37

A person who wrongfully enters onto someone else's land, the lowest duty of care, with common humanity, In Veinot v. Kerr-Addison Mines Ltd.

Front 38

Breach of contract

Back 38

It occurs when one of the parties fails to fulfill one of its obligations under the contract

Front 39

Public Nuisance

Back 39

An action that interferes with the general public, only the Attorney General can take such an action

Front 40

Private Nuisance

Back 40

Unlawful interference of a person's enjoyment

Front 41

Case law for Duty of Care

Back 41

In Arland v. Taylor

Front 42

Negligence in Quebec

Back 42

Endowed with Reason

Front 43

Duty of care

Back 43

The obligation that a person has to exercise reasonable care

Front 44

Negligence

Back 44

Failure to use the degree of care expected from a reasonable (Prudent) person

Front 45

Tort

Back 45

A wrongful act, a legal wrong

Front 46

Statute law

Back 46

A law set down in a government act and passed by legislature, law passed in written form by governments

Front 47

A crime commited in Canada

Back 47

A crime against Society and prohibited by the Criminal Code and other federal statutes

Front 48

Federal Government Contracts

Back 48

In the right of Her Majesty the Queen

Front 49

Governmental Power in Canada

Back 49

Divided by the Constitution Act

Front 50

Third Party Insurance

Back 50

Liability insurance to indemnify the third party for damage or loss

Front 51

The Insured, The Insurer, The Party Injured

Back 51

1st Party, 2nd Party, the Third Party

Front 52

Liability Insurance

Back 52

Insurance that agrees to indemnify the insured to pay to third parties for damages for BI or Damages to property

Front 53

Automatic Sprinkler

Back 53

A device to protect property from damage by fire in which water is pipied to devices called "Sprinkler Heads" that melt with heat and release water to extinguish a fire

Front 54

Flashpoint

Back 54

The minimum temperature at which the liquid gives off sufficient vapours to form an ignitable mixture with the air near the surface of the liquid

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Atlantic Provinces

Back 55

Severe Blizzards every winter

Front 56

Manitoba

Back 56

Floods threaten parts of Manitoba every spring

Front 57

Alberta

Back 57

Hail

Front 58

Ontario and Alberta

Back 58

Tornadoes are a concern

Front 59

British Columbia and Quebec

Back 59

Prone to Earthquakes

Front 60

Special hazards

Back 60

Flammable liquids, welding equipment, wood stock, foreseen hazards common to certain types of business, e.g. Paintshops

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Hazard

Back 61

A condition that increases the chances of a loss, a probability that the event insured against might occur

Front 62

Common Hazards

Back 62

Wiring, Plumbing, heating and related concerns

Front 63

Subrogation

Back 63

Legal process by which an insurance company is assigned the rights of the insured to recover (after the payment of a loss)

Front 64

T.L.L (Tenant Legal Liability)

Back 64

Tenant legal liability protects a tenant against liability for damages caused by an insured peril

Front 65

Public Protection

Back 65

The availability of fire departments

Front 66

Exposure

Back 66

It refers to the chance that the applicant will suffer a loss 'as a result of proximity' to other risks

Front 67

Occupancy

Back 67

It refers to the use of the property by its occupants

Front 68

COPE

Back 68

Construction, Occupancy, Protection, Exposure, used when assessing an ordinary single risk

Front 69

Confirming No Losses

Back 69

HITS, AutoPlus through CGI Canada

Front 70

Underwriter's decision

Back 70

An assessment of the likelihood that the insurer will suffer a loss if the underwriter accepts the risk

Front 71

The Past Losses

Back 71

The indicator of losses

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TIV

Back 72

Total Insurable Value

Front 73

Back-dated policy

Back 73

The main concern is the moral hazard, the policy that will become effective retrospectively after the applicant applies for it

Front 74

Mortgage clause

Back 74

The policy covers the mortgagee even if the named insured is unable to recover (the breach of the contract)