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10 Cards in this Set

  • Front
  • Back
What are the different types of insurance products covered under the main types of insurance products ?

employer's liability
motor third party liability
public liability
product liability
professional indemnity


home building/contents

Financial Loss

Fidelity guarantee
mortgage indemnity guarantee
business interupption cover

Fixed benefits

Personal accident
Health insurance - mdeical expenses
what are the different types of insurance products and what categories will we study under them
types - Liability, Property, Financial and Fixed benefits

Study under headings:-

Benefits and insured perils
measures of exposure
claim characteristics
risk factors and rating factors
Describe Employer's liability - benefits and insured perils

Provides indemnity to insured against legal liability to pay compensation to employee or estate for bodiliy injury, disease or death caused during the course of employments

perils -

exposure to harmful working conditions, materials
accident caused by negligence of employer or other employess
What measures of exposure for ER liab?
Pay roll, number of employees,

premium based on mOE. measure of the risk. size and frequency.
easy to use, understand, non complex.
what are claim characteristics?
disease claims - may take long time to report - may be unknown to claimant

concentration of risk/accumulations - employees working ina building

size/frequency - skewed distribution.
risk factors - affecting the risk.
rating factors - risk factors more measuarable.
type of business
materials handled
processes involved
experience in past
staff training and security measures
first aid facs available.
describe the motor third party liability product

indemnifies the owner of a motor vehicle against compensation payable to third party for personal injury, or damage to their property

perils - accident causing BI or PD.

cover may/may not be compulsory

Measure of exposure-
vehicle miles driven - difficult to measure.
vehicle year - measurable

claim characteristics

types of claims - PD or BI
claim size/frequency
accumulations risk
reporting delays
settling delays
claim distribution
latent claims possibility

BI take longer than PD claims
high claim frequency
size - skewed dist
accumulations - motor way pile up

Risk factors and Rating factors


miles driven, traffic density, driver ability, speed, ease of damage and cost of repairs, theft risk, fire risk


type of cover - liability or comprehensive
Excess on policy, limits
age of vehicle/driver
occupation of driver/s
additional or single driver
sex of driver(s)
make/model of vehicle
modifications - extent
location overnight - garaged, on road, drive etc.
address of ph
any convictions in driving
past experience - to scale premiums
Describe Marine property insurance in terms of benefits and insured perils, measures of exposure, claim characteristics and rating factors

hull/cargo/vessel under construction/loss of use of vessel insurance

liability - passengers or third party damage - property , injury or death


perils of sea, jettison, fire, piracy

Measures of exposure

insured value of hull/cargo

Claim characteristics

delays - reporting - reported on reaching port. or event may happen in port.

delays - settlement - may be long, legal disputes

claim sizes - variable

accumulations/concentrations possible

Rating factors

type/size/condition of vessel
nature of cargo
other subjective factors
Marine insurance - boats/yachts - rating factors - data captured for determining premiums
max speed
horse power
fuel type
limits of voyages
owner profile - age/occupation/sex/past experience/traffic violations

Cover Limits - hull market value
liability cover limits
trailer value
personal effects value
Give miscellaneous factors in considering risk of a particular product
cover type
moral hazard
fraudulent claims
concentration of risks
latent claims
large losses/catastrophes
non homogeneity of risks
delays - reporting or settlement
randon experience variation
past experience/credibility
capital requirements