Chapter 8: Underwriting Considerations Flashcards
What are the general steps of the insurance underwriting process for commercial insurance?
Assessing the major underwriting factors affecting claims experience for that line of business, the average claim per member of the group, and how the proposer copares to the average member
What are specific underwriting considerations in motor insurance?
Drivers age, type of vehicle, type of use, geographical area, storage, driving record, vehicle mods, cover required
What are specific underwriting considerations in health insurance through work?
Occupation, age, family circumstances, lifestyle and physical condition, and medical history
What are specific underwriting considerations in household insurance?
Construction of the house, its location, whether it is occupied during the day, and its security
What are specific underwriting considerations in travel insurance?
Destination, purpose and duration of travel, group policies, and any prexisting conditions
What are specific underwriting considerations in commerical fire and special perils insurance?
Building use and what it stores, what it is constructed of, its safety and risk management, size, how it is heated, and where it is located relative to perils
What are specific underwriting considerations in commercial theft insurance?
Trade, geographical area, any moral hazard of the owner, nature and construction of the property, and theft precaution
What are specific underwriting considerations in commercial money insurance?
How much money is handled, the precautions in storing and transporting it, and if employees are paid in cash
What are specific underwriting considerations in commercial legal expenses insurance?
The proposer’s employment criteria, and teh breakdown of their employees by demographic factors, occupation, attitudes towards health and safety regulation
What are specific underwriting considerations in employers liability insurance?
Trade and occupation of the employee
What are specific underwriting considerations in public liability insurance?
The proposer’s trade, and how this affects how much physical interaction with the public they have
Define ‘fraud prevention and detection’
Detecting and preventing fraud
What is the impact of insurance fraud?
It impacts insurers bottom line, genuine policy holders will be affected by increased premiums, and fraudulent claimants will be tempted to continue their behaviour if they get away with it
Which trade body mainly deals with insurance fraud?
The Insurance Fraud Bureau, who coordinate industry wide action, run public education campaigns, and provide expertise
What are examples of databases that collect claims across insurers, aimed at reducing fraud?
Motor Insurance Anti-Fraud and Theft Register, Motor Insurance Database, Claims and Underwriting Exchange, Art Loss Register
Define ‘protected characteristics’
Certain characteristics which you cannot discriminate against
What are four types of discrimination?
Direct discrimination, indirect discrimination, associatiev discrimination, perceptive discrimination
Define ‘data protection’
Protecting the processing of personal data in the UK
What data does GDPR apply to?
Personal data, in both electronic and manual files
What needs to exist for data processing to be lawful?
Consent, contract, legal obligation to collect the data, vital interests, public task, or legitimate interest
What rights do individuals have regarding data processing?
The right to be informed, right of access, right to rectification, right to erasure, right to restrict processing, right to data portability, right to object, and rights in relation to automated decision making
With what time scale should an insurer reply to a data access request?
A month
How can you check a vehicle has not already been a total loss?
On the Motor Insurance Anti-Fraud and Theft Register
