Chapter 8 Flashcards
What is the principal task of the underwriter?
The underwriter’s task is to manage the common pool (of funds) effectively by assessing risk, deciding whether to accept the risk and deciding upon the terms and conditions of acceptance, and calculating a suitable premium.
Give five underwriting factors in respect of motor insurance for an individual.
Many different factors are used in rating motor insurance, and different insurers will consider different factors to be more important than others. Examples are: • driver's age; • type and make of car; • use of vehicle; • geographical area; • where the vehicle is kept overnight; • driving history; • modifications to vehicle; and • cover and extensions.
What is the main rating factor in respect of health insurance?
The main rating factor for health insurance is occupation.
What are the main underwriting factors in respect of household buildings insurance?
The most important rating factors for buildings insurance are use, construction and location.
What will be an underwriter’s principal concern when considering a proposal for business interruption insurance?
With business interruption insurance, an underwriter’s principal concern will be how quickly a proposer can get their business up and running again after an incident.
What is the fundamental purpose of the Insurance Fraud Bureau?
The Insurance Fraud Bureau’s main purpose is to co-ordinate industry-wide action (general and life offices, police forces and other agencies) in fighting crime and fraud.
What will be the effect of fraud on genuine policyholders?
Genuine policyholders would be affected by fraud by seeing a marked increase in premiums.
What is meant by sensitive personal data under the Data Protection Act 2018?
Sensitive personal data pertains to any data that falls into one of several special categories of personal data, including race, genetics and biometrics.
