Chapter 8 Flashcards
What three things will be assessed during the underwriting process?
- The major underwriting factors affecting claims experience for the particular class of business
- The average claim per member of the group
- The proposers characteristics in comparison with the average member
What are the key factors in the motor insurance underwriting process?
- Drivers age
- Type and make of vehicle
- Type of use
- Geographical area
- Storage
- Driving record
- Cover required and/or extensions requested
- Vehicle modificiations
What are the key factors in the health insurance underwriting process?
- Occupation
- Age
- Family circumstances
- Lifestyle and physical condition
- Medical history
What are the key factors in the household insurance underwriting process?
- Construction
- Location
What are the key factors in the contents insurance underwriting process?
- Area
- Occupation during the day
- Security
What are the key factors in the travel insurance underwriting process?
- Destination
- Purpose and duration of travel
- Group policies
- Existence of pre-existing conditions
What are the key factors in the fire and special perils underwriting process?
- Use
- Types of goods stored on premises
- Construction and material
- Safety features
- Risk management features
- Number of floors and area
- Method of heating and lighting
- Location relative to perils
What are the key features in the theft insurance underwriting process?
- Trade
- Geographical area
- Any moral hazard of the owner
- Nature and construction of the property
- Theft precautions
What are the key features in glass insurance?
- The use of the building
- Geographical area
What are the key features of money insurance?
- How much money is handled
- Precautions in storing and transporting money
- How employees are paid
What are the key features of legal expenses insurance?
- Proposers employment criteria, views and actions in respect of health and safety legislation and occupation
What are the key features of employers liability insurance?
- Trade and occupation of the employee
What are the key features of public liability insurance?
- proposers trade or business
What are the key features of pollution liability insurance?
- Trade
- Material used
- Whether there are adequate controls to prevent the escape of pollutants into the air or water
What are the key features of products liability insurance?
- ## Proposer’s trade or business
What are the key features of professional indemnity insurance?
- Occupation
- Professional qualifications
- Experience
- Degree of moral hazard
What is the impact on the insurer if a fraudulent claim is paid?
Impact their bottom line (profit)
Claim costs will rise, impacting on premiums and making them less competitive
What is the impact on the insured if a fraudulent claim is paid?
Genuine policyholders will be affected by the commensurate increase in premiums
What is the impact on the fraudulent claimants if a fraudulent claim is paid?
Temptation to continue this practice in the future
Who mainly deals with fraud prevention?
The Insurance Fraud Bureau
What was the Insurance Fraud Bureau established to do?
- co-ordinate industry-wide action
- actively run public education campaigns
- operate centres of expertise on fraudsters and their methods of operation
What does the Motor Insurance Anti-Fraud and Theft Register have details of?
All total loss and theft claims
What does the Motor Insurance Database have details of?
All registered vehicles in the UK and the related insurance details
What does the Claims and Underwriting Exchange have details of?
Information on incidents reported to insurers by personal insurance policyholders, which may or may not result in a claim
