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11 Cards in this Set
- Front
- Back
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State the role of the broker in the insurance process. |
The role of a broker in the insurance process is to serve as the intermediary between the client and the insurer. They are not a party to the contract. |
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State the primary Duty owed by Brokers to clients. |
The primary Duty by the Brokers to clients is to ensure they receive the right Insurance advice and coverages. |
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State the primary Duty owed by Brokers to the insurers. |
The primary Duty owed by Brokers to the insurers is to tell the truth about the risks they submit and will not withhold or conceal important information. |
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Brokers do make mistakes, some of them which can result in financial loss to their clients. Identify the most common causes of Errors and Omission claims. |
The most common cause of errors and Omission claims a broker makes include failure to provide proper coverages, failure to advise clients of exclusions, failure to place coverage or placing it too late, mistake in coverages and not correctly advising as to the availability of coverages. |
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Who are Underwriters? |
Underwriters are employees of the insurance companies. It is their responsibility to accept or reject business in the particular line in which they specialize. |
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States of primary role of an underwriter. |
The primary role of Underwriters is to select those risks likely to be most profitable for the insurer. |
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Identify three sources of information used by Underwriters when making a decision regarding the suitability of a risk. |
The application, the broker, loss experience data and inspection reports. |
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Define physical hazards and provide types. |
Physical hazards are conditions relating to the promises which may cause a peril to occur. Construction, occupancy and housekeeping. |
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Define moral hazard and identify three types. |
Moral hazards are subjective characteristics of the applicant that could cause a peril to occur. Financial condition, moral character and indifference to loss. |
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Identify the two steps normally taken when a loss occurs. |
The insured reports of claims to The Brokerage. The Brokers reports claims to the insurer |
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What is the difference between company adjusters and independent Adjusters? |
Company adjusters are employed by the insurance companies. When company adjusters are not available, or a particular expertise is required, the insurance company may contract the services of an independent adjusting firm. An independent adjuster is not an employee of the insurer |
