Introduction to Property-Casualty Insurance 2 Flashcards
The process of selecting insureds, pricing coverage, determining insurance policy terms and conditions, and then monitoring the underwriting decisions made.
Underwriting
An insurer employee who evaluates applicants for insurance, selects those that are acceptable to the insurer, prices coverage, and determines policy terms and conditions.
Underwriter
A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy.
Claim
A conscious act or decision not to act that reduces the frequency and/or severity of losses or makes losses make predictable.
Risk Control
Methodical examination of a policyholder’s operations, records, and books of account to determine the actual exposure units and premium for insurance overages already provided.
Premium Audit
Any of several kinds of insurance personnel who place insurance business with insurer and who represent either insurers or insureds, or both.
Producer
An insurance marketing system under which producers (agents or brokers), who are independent contractors, sell insurance, usually as representatives of several unrelated insurers.
Independent Agency and Brokerage Marketing System
A percentage of the premium that the insurer pays to the agency or producer for new policies sold or existing polices renewed.
Commission
The record of an insurance agency’s present policyholders and the dates their policies expire.
Agency Expiration List
An insurance marketing system under which agents contract to sell insurance exclusively for one insurer (or for an associated group of insurers).
Exclusive Agency Marketing System
An insurance marketing system that uses sales agents (or sales representatives) who are direct employees of the insurer.
Direct Writer Marketing System
An insurance distribution channel that markets directly to the customer through such distribution channels as mail, telephone, or the internet.
Direct Response Distribution Channel
A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued.
Binder
A payment procedure in which a producer sends premium bills to the insured, collects the premium, and sends the premium to the insurer, less any applicable commission.
Agency Bill
- Independent contractors (not employees of insurer)
- Receives commissions
Owns expirations - Represents usually more than one insured
Independent Agency & Brokerage Marketing System
