Chapter 14

Question 1

10 common quantitative production reports that help management assess the performance of the underwriting department

Answer 1

1. submitted business
2. approval percentage
3. final action report
4. final action by underwriter
5. tobacco use ratios
6. requirements ordered
7. time service
8. placement ratios
9. unit cost
10. Informal’s processed

Question 2

submitted business

Answer 2

actual cases sent to the department

Question 3

approval perentage

Answer 3

ratio of cases approved to all cases submitted

Question 4

final action report

Answer 4

total final actions

Question 5

final action by underwriter

Answer 5

breakdown of final actions for each underwriter

Question 6

tobacco-use ratios

Answer 6

approval percentages by tobacco-use classifications

Question 7

requirements ordered

Answer 7

various data on requirements ordered (APS’s per case, cases submitted with unanswered questions etc…)

Question 8

Time service

Answer 8

average length of time from submission to final decision

Question 9

placement ratios

Answer 9

what percentage of cases are placed

Question 10

unit cost

Answer 10

reduces all explicit and allocated costs for underwriting to a cost per unit of work

Question 11

informals processed

Answer 11

number of informal applications underwritten

Question 12

Quality measures used by underwriting manager to evaluate underwriter performance (3)

Answer 12

case audits, field and client feedback, reinsurer and other external audits.

Question 13

Management issues with remote underwriting (5)

Answer 13

1. logistical difficulties training at different sites
2. security and confidentiality
3. working conditions
4. quality and productivity
5. employee development

Question 14

Information underwriter manager should review to develop and monitor underwriting guidelines.

Answer 14

Individual performance feedback audits and department level or company level risk audits.