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19 Cards in this Set

  • Front
  • Back

What does a submission contain?

Application, additional verbal information, additional written information.

What are the broker's duties in handling an applicant's request for insurance?h

1. Complete the survey, search for interested insurers, meet to discuss quotes, requesting binding coverage from insurer, review policy and delivery to client

What does a survey do?

Identifies possible loss exposures, helps determine coverage needed, develops other information needed by the insurer.

How does using a property checklist help?

Alerts broker to possible loss exposures, ensures needed coverages are not missed and reduces potential e and o claims.

What are the five classes of building construction?

fire resistant, noncombustible, heavy timber, ordinary, frame

What is fire resistive?

Has met minimum standards and can withstand several hours of test burn in carefully controlled setting.

What is a common hazard?

A hazard common to all buildings which influence it's potential for loss.

What common hazards are on the application?

Heating, occupancy, protection, electricity, detachment

If Bob and Sam want to insure their 75 year old house, what upgrades might the insurer be interested in?

Houses older than 25, roof, wiring, over current protection, plumbing and heating

What are the duties of the underwriter?

Risk selection, risk classification, rating and rate making, policyholder's service.

Why do insurance rates change from year to year?

Rising claim costs due to inflation and changes in interest rates

What is a physical hazard?

A condition relating to the use of tangible property which may cause a peril to occur.

What are the considerations of physical hazards?

Geographic, External Exposures, protection, occupancy, construction, housekeeping (G, Epoch)

What conditions might indicate a moral hazard?

Financial condition, associates, moral character

What conditions might indicate a morale hazard?

Indifference to loss, poor management

What external sources could the underwriter use for additional information?

Government records (tax, liens), the broker (reputation), Financial rating services

What internal sources could the underwriting use for additional information?

Field representative, the underwriter manual, claims information, loss experience data, inspection reports

Why would an insurer accept accommodation business from a broker?

If the broker has reasonable loss ratio, sufficient premium volume, good mix of business and has worked with insurer for a long time.

What are an underwriters choices when making a decision about a risk?

To accept as presented; to reject; to accept with higher premium; to accept with increase deductible