Chapter 2 Flashcards
What is Lloyd’s?
A physical marketplace for insurance. Located in London.
Who are ‘buyers’ in the insurance market?
Private individuals
Companies
Partnerships
Public bodies
Charities
What is the role of an Underwriter?
Assess the risk that people bring to the pool
Decide whether to accept the risk
Determine the terms and conditions
Calculate a suitable premium
What is the role of Claims Personnel?
Deal quickly and fairly with submitted claims
Distinguish between real and fraudulent claims
Determine the realistic cost of a claim prior to payment
Settle claims with minimum wastage
What is the role of an Actuary?
Apply probabilities and theory to assess risk and future market states
Predict claims and probability of a loss
What is the role of a loss adjuster?
Investigate the circumstances of a claim
Determine whether the policy covers a loss
Facilitate emergency measures
Negotiate amounts claimed
Make a recommendation for settlement to the insurer
What is the role of Surveyors?
Establish the seat of the fire(how the loss started)
Gather evidence to suggest fraud or deliberate acts
Determine the proximate cause of a loss
Establish faults that may have been pre-existing
What is the role of Risk Managers?
The provision of guidance when it comes to best practice
Identification, analysis, and economic or control of risk that threaten the business
The transfer of appropriately identified risk to the insurer
What is the role of Compliance Officers?
Communicate the company policy to members of staff, set up any necessary training
Complete regular reports on governance, finance and complaints for the FCA
Reviewing all stages of the business ensuring they are appropriate and compliant
Maintaining the company’s compliance manual
What are the two classes of insurance?
Personal lines insurance protects a policyholder from loss or damage to the personal property of from damages for which the policyholder may be made personally liable.
Commercial lines insurance protects a business from loss of its business property or damages for which the company may be held liable.
Who is the UK regulation agency for insurance activities?
The FCA is the regulator for all aspects of insurance sales, advice and conduct.
What is a composite insurer?
An insurer which accept several types of business.
What is a specialist insurer?
Insurers who tend to issue policies for one class of business.
What are Proprietary companies?
Most companies in this group are registered under the companies act. These companies are owned by shareholders, who in buying shares, contribute to the capital of the firm.
What are mutual companies?
In contrast to proprietary companies, mutual companies are owned by the policyholders. The policyholders share in the profits by the way of lower premiums.
