4 Claims Information

Question 1

Claims information used to establish…

Answer 1

whether claim is covered

Question 2

Claims info also assists…

Answer 2

Underwriting
Reserving
Accounting
MI

Question 3

Initial info may allow

Answer 3

acceptance or rejection of claim

Question 4

3rd party liability claims

Answer 4

Insured passes info to insurer without further info

Question 5

Ab initio if…

Answer 5

insurer discloses material info known at time of proposal

Question 6

Broker may present claim info True / False

Answer 6

True

Question 7

Apparent authority

Answer 7

If broker acts outside authority

Question 8

Reserving philosophy

Answer 8

corporate approach to reserving.

Question 9

Benefit of reserving philosophy

Answer 9

Consistency between handlers and approach to setting individual reserves

Question 10

Technical reserves

Answer 10

largest part of company profit and loss

Question 11

Reserves are to be setup

Answer 11

asap

Question 12

reserve committees used for

Answer 12

large / complex claims

Question 13

step laddering

Answer 13

keep increasing reserves

Question 14

Reserve increases due to…

Answer 14

new information
injury deteriorates
long tail

Question 15

reserving to exposure for liability claims

Answer 15

Option 1 - Reserve full amout
Option 2 - Reserve based on probability of success
Option 3 - No reserve

Question 16

Which is the best option for reserving to exposure?

Answer 16

Option 2 - Reserve based on prob of success

Question 17

Coverage advice -who pays VAT

Answer 17

Insurer, or insured if VAT registered

Question 18

Subrogation / recoveries

Answer 18

Good practice to make note, rather than reduce reserve

Question 19

Reserve

Answer 19

must not exceed cover amount
allow for excess / deductibles
each payment = reduce reserve by equal amount