Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
What does a submission contain? |
Application, additional verbal information, additional written information. |
|
|
What are the broker's duties in handling an applicant's request for insurance?h |
1. Complete the survey, search for interested insurers, meet to discuss quotes, requesting binding coverage from insurer, review policy and delivery to client |
|
|
What does a survey do? |
Identifies possible loss exposures, helps determine coverage needed, develops other information needed by the insurer. |
|
|
How does using a property checklist help? |
Alerts broker to possible loss exposures, ensures needed coverages are not missed and reduces potential e and o claims. |
|
|
What are the five classes of building construction? |
fire resistant, noncombustible, heavy timber, ordinary, frame |
|
|
What is fire resistive? |
Has met minimum standards and can withstand several hours of test burn in carefully controlled setting. |
|
|
What is a common hazard? |
A hazard common to all buildings which influence it's potential for loss. |
|
|
What common hazards are on the application? |
Heating, occupancy, protection, electricity, detachment |
|
|
If Bob and Sam want to insure their 75 year old house, what upgrades might the insurer be interested in? |
Houses older than 25, roof, wiring, over current protection, plumbing and heating |
|
|
What are the duties of the underwriter? |
Risk selection, risk classification, rating and rate making, policyholder's service. |
|
|
Why do insurance rates change from year to year? |
Rising claim costs due to inflation and changes in interest rates |
|
|
What is a physical hazard? |
A condition relating to the use of tangible property which may cause a peril to occur. |
|
|
What are the considerations of physical hazards? |
Geographic, External Exposures, protection, occupancy, construction, housekeeping (G, Epoch) |
|
|
What conditions might indicate a moral hazard? |
Financial condition, associates, moral character |
|
|
What conditions might indicate a morale hazard? |
Indifference to loss, poor management |
|
|
What external sources could the underwriter use for additional information? |
Government records (tax, liens), the broker (reputation), Financial rating services |
|
|
What internal sources could the underwriting use for additional information? |
Field representative, the underwriter manual, claims information, loss experience data, inspection reports |
|
|
Why would an insurer accept accommodation business from a broker? |
If the broker has reasonable loss ratio, sufficient premium volume, good mix of business and has worked with insurer for a long time. |
|
|
What are an underwriters choices when making a decision about a risk? |
To accept as presented; to reject; to accept with higher premium; to accept with increase deductible |
