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29 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is the purpose of a survey |
Assists in identification of loss exposures Helps determine the coverage needed By the insurer Develops other underwriting information needed by the insurer Alerts brokers to possible lost exposures Ensures that needed coverages are not forgotten or ignored Helps to reduce the potential for errors and omissions claims. This last one is the main Benefits of a survey |
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What are the five classes of building construction |
Fire resistive. Non-combustible. Heavy timber. Ordinary. Frame. |
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What is a fire resistant building |
One which has met minimum standards in terms of hours it will withstand a specific carefully controlled test fire |
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What is a non-combustible building |
Buildings that fall within this construction class are often those that fall just short of meeting the standards necessary to qualify as fire resistive |
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When the building is more than 25 years old what additional information regarding upgrades will normally be requested |
The roof, wiring, overcurrent protection i.e. circuit breakers over fuses, plumbing, heating |
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What are common hazards |
Certain hazards or conditions common to all buildings which influence their potential for laws such as heating, electrical services, detachment, protection, occupancy |
Certain hazards or conditions common to all buildings which influence their potential for laws such as heating, electrical services, detachment, protection, occupancy |
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Heating hazard |
The type of hearing appliance, fuel source and chimney construction or three important factors considered by underwriters |
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Electrical services hazard |
Copper wiring is the most common type of electrical wiring used. Due to a shortage in copper buildings between 1965 and 1973 were often wired with aluminum. Copper is always better. Non-interchangeable circuit breakers provide the best form of overcurrent protection. |
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Detachment |
Refers to the proximity of the building insured, or containing the property insured, two other commercially rated buildings |
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Protection hazard |
Two forms of protection privates protection and public protection |
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What is private protection |
Private protection of forwarded to ensure the property refers to things the insured has done internally to prevent or reduce loss such as sprinkler systems |
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What is public protection |
Refers to protection provided to the insured property that is external to it such as distance to fire hydrants or fire hall |
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Occupancy |
The occupancy of a building by both the insured and others is important information and will influence and underwriters acceptance of it for insurance purposes |
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Special hazards |
The process or operations conducted on the premises can serve to create a special hazard. The insurer will usually require a supplementary questionnaire to be completed in order to evaluate the risk. Special hazards can be for example churches and their use of candles or bakeries and the use of deep fat frying |
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Broker statements on applications |
The application will often require the broker to provide additional information about both the applicants and the building or property being insured. The broker maybe asked to comments on the physical condition of the premises, the quality of the maintenance for housekeeping, and the general character of the insured’s neighbourhood |
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Risk selection |
It is the primary duty of the underwriter to select those risks that are likely to be most profitable for the insurer. |
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What is adverse selection |
Occurs when the applicants for insurance are largely those most likely to suffer a loss |
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Risk classification |
Refers to the grouping or classifying of risks according to establish criteria, which in large parts, is based on their probability for loss as a class. A key advantage of risk classification is that it enables the insurer to determine the proper premium to be charged |
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Why do rates change |
Factors which normally affect the premiums charge by the insurers include rising claims cost due to inflation and changes in the interest rates being paid on investments |
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What is a soft market |
Characterized by intense competition between insurers. As a result reads tend to be unusually low |
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What is a hard markets |
Insurers generally return to a more disciplines underwriting approach and the insured normally receives little to nothing in the way of rate discounts |
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What is a physical hazard |
Conditions related to the use of Tangible property which could cause a peril to occur. Type of building construction Occupancy Housekeeping External exposures Geography Protection |
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What is a moral hazard |
They are subjective characteristics of the applicants that could cause the perils you OK |
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What kind of moral hazards are there |
Financial condition, you’re known associates, your moral character.. |
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What are morale hazards |
They deal with the attitude of the clients |
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What are types of Morale hazards |
Indifference to loss, poor management |
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What are some external sources of information for underwriters |
The broker, government wreckers such as mortgages, financial reading services such as Equifax. |
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What are some internal sources of information for the underwriter |
Inspection reports that provide physical characteristics of the risk and the character of the applicants, claims information, production records. |
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What are production records |
Records about your Brokeridge that underwriters use regarding your brokerages loss ratio, volume, mix of business, and years of service. The underwriter will use this to determine if they will give you any accommodations |
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