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32 Cards in this Set
- Front
- Back
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Book of business |
A group of policies with a common characteristics, such as territory or type of coverage, or all policies written by a particular insurer or agency |
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Adverse selection |
In general, the tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance |
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Capacity |
The amount of business an insurer is able to write, usually based on a comparison of the insurer's written premiums to its policyholders surplus |
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Underwriting authority |
The scope of decisions that an underwriter can make without receiving approval from someone at a higher level
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Underwriting guidelines |
A written manual that communications an insurer's underwriting policy and that specifies the attributes of an account that an insurer is willing to insure |
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Line underwriter |
Underwriter who is primarily responsible for implementing that the steps in the underwriting process |
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Staff underwriter |
Underwriter who is usually in the home office and who assists underwriting management with making and implementing underwriting policy |
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Underwriting policy |
A guide to individual and aggregate policy selection that supports an insurer's mission statement |
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Advisory organization |
An independent organization that works with and on behalf of insurers that purchase or subscribe to its services |
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Prospective loss cost |
Loss data that are modified by loss development, trending, and credibility process, but without consideration for profit and expenses |
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Trending |
Loss data that are modified by loss development, trending, and credibility process, but without consideration for profit and expenses |
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Loss development |
The increase or decrease of incurred losses over time |
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Treaty reinsurance |
A reinsurance agreement that covers an entire class of portfolio of loss exposure and provides that the primary insurer's individual loss exposures that fall within the treaty are automatically reinsured |
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Facultative reinsurance |
Reinsurance of individual loss exposure in which the primary insurer which loss exposure to submit to the reinsurer,and the reinsurer can accept or reject any loss exposure submitted |
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Underwriting audit |
A review of underwriting files to ensure that individual underwriters are adhering to underwriting guidelines |
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Expert system, or knowledge- based system |
Computer software programs that supplement the underwriting decision-making process. These system ask for the information necessary to make an underwriting decision, ensuring that no information is overlooked |
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Expert system, or knowledge- based system |
Computer software programs that supplement the underwriting decision-making process. These system ask for the information necessary to make an underwriting decision, ensuring that no information is overlooked |
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Physical hazard |
A tangible characteristics of property, person's, or operations that tends to increase the frequency or severity of loss |
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Expert system, or knowledge- based system |
Computer software programs that supplement the underwriting decision-making process. These system ask for the information necessary to make an underwriting decision, ensuring that no information is overlooked |
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Physical hazard |
A tangible characteristics of property, person's, or operations that tends to increase the frequency or severity of loss |
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Hazard |
A condition that increases the frequency or severity of loss |
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Moral hazard |
A condition of carelessness or indifference that increases the frequency or severity of loss |
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Morale hazard |
A condition of carelessness or indifference that increases the frequency or severity of loss |
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Morale hazard |
A condition of carelessness or indifference that increases the frequency or severity of loss |
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Moral hazard |
A condition that increases the likelihood that a person will intentionally cause or exaggerate a loss |
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Morale hazard |
A condition of carelessness or indifference that increases the frequency or severity of loss |
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Moral hazard |
A condition that increases the likelihood that a person will intentionally cause or exaggerate a loss |
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Legal hazard |
A condition of the legal environment that increases loss frequency or severity |
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Morale hazard |
A condition of carelessness or indifference that increases the frequency or severity of loss |
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Moral hazard |
A condition that increases the likelihood that a person will intentionally cause or exaggerate a loss |
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Legal hazard |
A condition of the legal environment that increases loss frequency or severity |
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Information efficiency |
The balance that underwriters must maintain between the hazards presented by the account and the information needed to underwrite it |
