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10 Cards in this Set
- Front
- Back
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What are the different types of insurance products covered under the main types of insurance products ?
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Liability
employer's liability motor third party liability public liability product liability professional indemnity Property home building/contents commercial motor aircraft marine Financial Loss Fidelity guarantee mortgage indemnity guarantee business interupption cover Fixed benefits Personal accident Health insurance - mdeical expenses |
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what are the different types of insurance products and what categories will we study under them
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types - Liability, Property, Financial and Fixed benefits
Study under headings:- Benefits and insured perils measures of exposure claim characteristics risk factors and rating factors |
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Describe Employer's liability - benefits and insured perils
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Benefits
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 |
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What measures of exposure for ER liab?
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Pay roll, number of employees,
premium based on mOE. measure of the risk. size and frequency. easy to use, understand, non complex. verifiable. |
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what are claim characteristics?
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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. |
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risk factors - affecting the risk.
rating factors - risk factors more measuarable. |
payroll
type of business location materials handled processes involved excess/limits experience in past staff training and security measures first aid facs available. |
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describe the motor third party liability product
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benefits
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 RIFS miles driven, traffic density, driver ability, speed, ease of damage and cost of repairs, theft risk, fire risk RAFS type of cover - liability or comprehensive Excess on policy, limits use 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 |
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Describe Marine property insurance in terms of benefits and insured perils, measures of exposure, claim characteristics and rating factors
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Benefits
hull/cargo/vessel under construction/loss of use of vessel insurance liability - passengers or third party damage - property , injury or death Perils 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 |
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Marine insurance - boats/yachts - rating factors - data captured for determining premiums
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Use
Year/age make/model/lenght max speed horse power fuel type location limits of voyages timings owner profile - age/occupation/sex/past experience/traffic violations Cover Limits - hull market value excess/deductibles liability cover limits trailer value personal effects value |
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Give miscellaneous factors in considering risk of a particular product
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cover type
excess/limits/deductibles exclusions moral hazard fraudulent claims accumulations concentration of risks latent claims large losses/catastrophes non homogeneity of risks delays - reporting or settlement randon experience variation past experience/credibility capital requirements |
