Acronyms Flashcards
Risk Management
IMC
IMC
Identify
Measure
Control
Identifying The Risk
SEFH
SEFH
Site inspection
Enployee interviews
Financial Analysis
Historical records
Funtions of Insurance
SSCCEL
SSCCEL
Spread risk Security Credit Capital Employment Loss prevention
Steps in Rate determination
CGDDD
CGDDD
Classify the risk Gather statistics Determine the pure premium Determine the total premium Detetermine the rate
Private Insurers
CCSIR
CCSIR
Captives Cooperatives Stock Companies Insurance Pools Reciprocals
Insurance Company Organization
FAABMUC
FAABMUC
Finance, Accounting and Investing Administraion Actuarial Branch Operations Marketing Underwriting Claims
Agency/Brokerage Agreement
PCBPORT
PCBPORT
Parties to the agreement Class of business to be written Binding authority Premium collection and credits terms Other Remuneration Termination
Broker Obligations
ACCDNA
ACCDNA
Avoid negligence Collect and remit premiums Claims notice Do not delegate authority Notification of business written Act within the contract
Broker Formations
LLGCCSIPFT
LLGCCSIPFT
Liability Lack of privacy Goverment Control Capital Continuity Skills Initial cost Partner disputes Flexibility Tax advantages
Role of Intermediaries
PPPTC
PPPTC
Product knowledge Production targets Prospecting and selling Time control Curiosity
Elements of a contract
CLAIM
CLAIM
Capacity of the parties to contract Legality of object Agreement (offer and acceptance Intention is genuine Money (or other consideration)
Void and voidable contracts
MMUD
MMUD
Mistake
Misrepresentation
Undue influense
Duress
Discharge of a contract
PAFOB
PAFOB
Performance Agreement Frustration Operation of Law Breach
Conditions of Formation of Contracts
CCCO
CCCO
Consent
Capacity to contract
Cause of contract
Object of contract
Additional requirement for a contract
IAU
IAU
Insurable interest
A risk and promise to indemnity
Utmost good faith
Written application is preferable because
FMPM
FMPM
Forms part of the policy
Misunderstandings are avoided
Prevents fraud
Misrepresentation has been made or not
Problems with binders
WDW
WDW
Was a contract actually made?
Does the intermediary have authority?
What are the provisions of the contract?
Parts of a policy
DIPSS
DIPSS
Declaration Insuring agreements Policy conditions Statutory/general conditions Signature clause
Declarations
PPCIAD
PPCIAD
Parties to the contract Premium Commencement and expiry dates Interest in the policy Amount insured Description of subject matter
Insuring agreements
SPEC
SPEC
Subject matter of insurance
Perils insured
Exclusions
Circumstances under which the insured may recieve the proceeds of insurance
Influences on standardization of coverage
GLC
GLC
General usage
Legislation
Court decisions
Finalizing the claim
SSRPC
SSRPC
Salvage Subrogation Release Proof of loss Claims forms
Investigating the loss
LCRAFIVKAL
LCRAFIVKAL
Loss report Confirm coverage Routing the claim Appointing an adjuster Fraud Investigate and report Verify damage and extent of Keep claims department informed Adjusters reports Loss reserves kept up to date
Reasons for reinsuring
IPERM
IPERM
Increase the insurer’s capacity to write business
Provide stability in the fluctuating market
Enable an insurer to cease operations
Reduce the effect of catastrophic loss
Maintain a proper reserve/liability balance
