Chapter 4

Question 1

Whats the difference between a broker and an agent

Answer 1

Agent sides w the insurance and Broker sides w the policyholder

Question 2

What are an underwriters responsibility?

Answer 2

Rate making, Risk selection, and Policyholder services. They don’t rlly interact w clients

Question 3

Is householding considered a physical or moral hazard?

Answer 3

Physical

Question 4

What is a brokers duty to clients & insurers

Answer 4

They must show skill, care, and diligence when dealing with clients, and they must be completely truthful when dealing w insurance companies. Pretty easy

Question 5

What are the 3 activities performed by an underwriter? Briefly explain each of them

Answer 5

Risk selection: Determining if the risk of something is worth it and will be profitable

Policyholder Services: Things like paperwork, handling policy changes, etc

Rate making: setting prices