C121 Advanced Underwriting Flashcards
What rating approach is used for when statistics can be gathered on a large number of risks that share common characteristics?
Class rating
A policy wording that does not conform to the standard wording in general use within the insurance industry.
manuscript wording
The ratio of losses paid and reserved to premiums earned
Incurred loss ratio
Builder’s risk coverage applies to the structure being erected and:
The materials to be incorporated into the structure
The two key areas of Cyber Risk exposure:
BEHAVIOUR MANAGEMENT AND SYSTEMS AND TECHNOLOGY MANAGEMENT
Define Manuscript Wordings
Manuscript wordings is a policy wording that does not conform to the standard wording in general use within the insurance industry and that is unique to the policy involved
Please provide 5 captions normally found on a loss run report
Can be any of the following: Date of loss, Date of report, Type of loss, Description of loss, Location, Outstanding reserves, Losses incurred or claims paid
What two aspects of indirect loss does business interruption insurance address?
The reductions in earnings directly resulting from the interruption of business due to a covered peril and the necessary expense incurred to reduce the business interruption loss
Please explain drop down coverage
This is a clause found in umbrella policies provided that the umbrella will drop down over reduced or exhausted underlying policy aggregate limits
What are the 5 most important factors an Underwriter should look at when Underwriting a professional liability policy?
- The name of applicant and names of all the professionals working for the applicant
- the total number of firms employees
- has an insurer declined or refused to renew a policy, the professional qualifications
- experience of the applicant
- if there are any allegations of professional negligence and if there are any contracts and contractual arrangements
Explain the difference between ridesharing and carsharing
Ridesharing is an arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by it’s owner for free or a fee.
Carsharing is an arrangement set up by means of a website or mobile app that links renters and car owner Sometimes called vehicle sharing or peer to peer car rental services.
Please define what a cyber risk is
It is any risk of financial loss, disruption of business, or damage to an organizations reputation due to a failure of its information technology systems
What is a “claims made basis” policy?
claims made basis policies cover any insured claim made against the insured during the policy period
Skill set required for an Underwriter - what categories are included?
Technical skills (rating / ratemaking / computer / research / knowledge of the product, loss control and reinsurance)
Analytical skills - all information must be sifted, ordered and weighted to make a decision on a risk
Communication - to close deals and fulfil their duties, an UW must be able to communicated effectively both written and orally
Organization - time management skills are a must
What is median accident date?
The date in the middle of a series of dates of loss such that the number of dates of loss that precede the median date is the same as the number of dates of loss that follow it.
What Hazards may be involved to damage the dwelling in Marijuana grow operation?
-Holes may be cut into the walls to install illegal wiring.
-Windows may be covered or sealed to maintain humidity, which can result in mould.
-Water damage from watering the plants and the harmful air quality produced by such activities can make the dwelling uninhabitable.
Which two aspects of an indirect loss are addressed by Business interruption insurance?
-The reduction in earnings directly resulting from the interruption of business due to a covered peril
-the necessary expense incurred to reduce the business interruption loss.
Three commercial activity periods in ridesharing
-Period 1. Driver is accessing the app in the vehicle but has not yet selected a ride.
-Period 2. Driver has accepted a ride and is driving to pick up the passenger.
-Period 3. Driver is carrying the passenger from pick up to drop off.
What are the 6 levels of automation in autonomous vehicles?
Level 0 - No automation
Level 1 - driver assistance
Level 2 - partial automation
Level 3 - conditional automation
Level 4 - high automation
Level 5 - Full automation
What is General Aggregate limit?
it is the maximum amount an insurer will pay for covered losses during a policy period
Name a peril included in cyber risk insurance package policies
3rd party liability; cyber crime; extra expense; business interruption losses; crisis-management consulting services
