C120 Flashcards
Independent underwriter
Type of UW that writes individual risks
Portfolio UW
UW a group of risks
What is an insurers business?
To earn premium while minimizing loss
. List FIVE (5) of the areas the underwriter should consider when making a decision
- Licensing
- Types of business
- Lines of business
- Territory
- Capacity
- Reinsurance
- Pricing
When assessing a risk, what questions does an underwriter explore before making a decision? (5 marks)
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Questions to explore:
1. Length of time in business?
2. Type of loss?
3. Perils?
4. Physical hazards?
5. Moral hazard?
Explain the difference between pure risk and speculative risk. List the types of insurable risks. (5 marks)
Pure Risk: All loss no profit
Speculative Risk : Chance of loss AND profit
Types of insurable risks:
- Personal risks
- Property risks
- Liability risks
Whats the UW’s responsibility in assessing a homeowner & car owning client?
UW Assessment:
- Driving record
- Past losses
- Financial stability
- Length of time at residence
- Length of time at job (employment)
Type of risks for auto owner clients
- Chance of car Collison
- Risk of injury to client
- Incurred medical costs
- Loss of time at work
- Vehicle damage
UW considerations for spike in accidents in the clients neighborhood:
- Where they live
- Geographical area
- Look at crime statistics
- Location: Urban or rural
- Economic factors
The UW’s Toolkit:
UW’s toolkit:
- Environment
- Legal system
- Business
- Product
- Risk
The capacity to contract
Both parties being adults and not under the influence
5 main elements of a policy
- Coverage summary
- Insuring agreements
- Statutory Conditions
- Policy conditions
- Signature clause
Statutory & Quebec conditions MUST be written on:
- Automobile
- Accident & Sickness (A&S)
- Fire insurance policies
5 Parts of a contract
- Offer and acceptance
- Capacity to contract
- Consideration
- Genuine intention
- Legality of the object
Consideration
Something must be given in return
What is found in the declarations part of the policy
- Parties names in the contract
- Effective / expiry date
- Premiums/ rates
- Amounts insured
What is found in the Statutory conditions part of the policy
Appear in: Auto Property Accident Sickness In common law provinces
What is found in the insuring agreements part of the policy
- Object of insurance
2, Perils insured against - Any exclusions
- How the insured may receive insurance
Homeowners Policy
A multi peril insurance policy for DWELLING risks combining coverages for fire and extended coverages ex theft and liability
What are some considerations of the construction of a single family dwelling home?
- How old is home
- How is home heated
- Any renos or construction?
- What is the size of the dwelling
- What type of construction used to build the home?
What are some considerations for construction of a commercial building?
- Age or location
- Construction
- Bylaws
- Construction materials
- Heat source
