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25 Cards in this Set
- Front
- Back
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3 tasks for implementing the underwriting decision |
*communicate the decision *issue documents (binder and certification *record information |
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5 factors considered before selecting underwriting alternative |
*underwriting authority *supporting business *mix of business *producer relationship *Regulatory restrictions |
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3 types of ratting plans for commercial applicants |
*experience rating *schedule rating *retrospective rating |
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7 actions claims representatives take once contact is made |
*inform insured what is required *describe inspection, appraisal, and investigation processes *explain additional investigations needed *explain coverage questions, policy limitations and exclusions *obtain nonwaiver *if medical or wage losses exist, obtain authorizations *explain amount of time to process and conclude the claim *supply blank proof of Loss gotten and necessary written instructions |
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7 steps in claims handling process |
*acknowledge and assign the claim *identify the policy and setting reserved *contact the insured or insured's rep *investigate the claim *document COL, liability and Los amount *conclude the claim |
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2 Tasks to ensure satisfactory results when monitoring the underwriting decision |
*Monitor individuals *Monitor Books of Business |
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4 major ways an underwriter can modify a submission |
*Require Risk Control measures *Change Rating Plans or policy limits *Amend policy terms and conditions *use facultative reinsurance |
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4 questions to ensure a property claim is covered |
Does the insured have an insuravle interest in the property? Is the damaged property covered by the policy? Is the COL covered by the policy? Do any additional coverages, endorsements, or limitations apply? |
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MoralE hazard |
Condition of carelessnessor indifference that increases the freq or severity of loss |
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Why do ORGANIZATIONS practice risk management? |
Add value *Help ensure losses or missed opportunities do not prevent it from meeting its goals |
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Why do INDIVIDUALS practice risk management |
Protect their limited assets from losses *help meet personal goals |
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Tort Law |
The branch of CIVIL law that deals with civil wrongs other than breach of contract |
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Central concern with tort law |
Determining responsibility for injury or damage |
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Tort |
A wrongful act or an omission other than a crime or breach of contract that invades a legally protected right |
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3 types of torts |
Strict liability Intentional torts Negligence |
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3 examples of torts |
Owning a wild animal Assault DUI |
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2 Tasks to evaluate a submission |
Weigh need for information Gather necessary info |
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Information efficiency |
Essential, desirable, and available information |
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5 underwriting management responsibilities |
Overall Mgmt - making broad decisions *Arranging Reinsurance *Delegating UW authority *Develop and Enforce UW guidelines *Monitor UW Results |
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3 elements of property loss exposures |
1. Assets exposed to property loss 2.COL 3.Financial consequences |
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3 foundations of legal liability |
General source of the law *distinction between civil and criminal law *concept of damages |
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3 things legal liability is based on |
Torts *Contracts *Statutes |
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5 categories of property (real and personal) |
buildings *personal property contained in buildings * $ and securties *Vehicles and watercraft *property in transit |
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3 ways risk management benefits society |
Reduced need for social services after losses *improved social and economic environment *encouraged economic growth |
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Special damages |
Form of compensatory damages that awards a sum of money for specific, identifiable expenses associated with the injured person's loss I.e. medical expenses or lost wages |
