CHAPTER 9 - D Flashcards
What is the general meaning of outsourcing in the context of insurers?
Outsourcing refers to one party requesting and empowering another to perform tasks on their behalf under an agreement.
In insurance, which term is used when discussing the delegation of underwriting activities?
Delegation
What term is used for activities such as claims handling and data capture in the insurance sector?
Outsourcing
What are the two centralised functions in the Lloyd’s and London Company Market?
Data capture of risk information and money movement for premiums
Which company performs the centralised functions of data capture and money movement for premiums?
Xchanging Ins-sure Services
What are the three ways an insurer can delegate underwriting authority?
- Consortium
- Lineslip
- Binding authority
In a consortium, who typically handles the claims?
The consortium leader
What is the claims handling process associated with a lineslip?
Handled according to market claims handling rules for Open Market business
What kind of authority can be given to a coverholder under binding authority?
Claims handling authority up to a certain financial limit
True or False: Claims handling can be delegated to a separate entity under a binder.
True
What systems are used to capture claims data for both Lloyd’s and company market business?
Central systems run by Velonetic
Fill in the blank: The process of _______ is essential for the movement of money between insurers and brokers.
claims handling
