M93 - Chapter 10

Question 1

What factors cause an UW to complete a Survey?

Answer 1

Risk characteristics including location, claims, trade or a combo
Premium in ratio to sum insured
UW own experience in the class
Size of premium
Qualify of information provided

Question 2

For surveys what did IA do?

Answer 2

Bring in the concept of fair representation

Question 3

What is a surveyors report?

Answer 3

A factual statement of the risk, covering all parts of the risk.

Normally comes with plan/photos

Question 4

Survey benefits for insured?

Answer 4

Allows them to get insurance

Reduces price in exchange for risk improvements that are economical over time

Brings rules and regs to their attention that effect them

Question 5

Survey benefits for the insurer

Answer 5

Correct price/premium charges
Assess EML
Improve risk quality/risk of high claims
Provides advise to customer/improves relations

Question 6

After survey, what questions to UW ask themselves?

Answer 6

Is the risk acceptable?

What can be done to improve it?

How will improvements turn into premium savings to help the customer pay for them?

Question 7

What are the 3 types of survey outcomes for the customer?

Answer 7

Requirements - must be done.
Recommendations
Points of guidance

Question 8

What is established after survey outcomes for the insured?

Answer 8

Risk improvement plan

Question 9

How is the risk improvement plan prioritised

Answer 9

Items that must be done for insurance acceptance
Items that will reduce premium once complete
Items that will improve risk, but not reduce premium

Note: IA prevents insurers from imposing these mid-term.

Question 10

What key cover headings will the surveyor cover for EML report (its the normal ones)

Answer 10

Building
Stock
Machinery (everything else)

Question 11

How long are surveys good for?

Answer 11

Until there is a major risk change
Until date of expiry
Change of business description or premises
Sum insureds increase by 50%+
Change in distribution values

Question 12

By category, when might a re-survey be needed - A is the best.

Answer 12

A - 5 years
B/C - 3
D - 2
E/F - 1

Question 13

What does a post loss survey look for?

Answer 13

Have measures requested been implemented

Were they effective

Question 14

Post loss survey - what to do if measures did not work?

Answer 14

Deploy new measures to keep risk acceptable and/or re-instate SI

Not re-instate cover, or reduce SI exposure

Question 15

Following a re-survey what sort of changes could trigger new terms?

Answer 15

New Tenants
New processes
Trade expansion 
Proposed changes
Change in heating method

Question 16

EML Grades - Based on fire peril.

Answer 16

A - Low inception, low spread, immediate detection + protection

B - Moderate inception, same as above

C - Moderate inception, moderate spread, same as above

D - Mod/Inc High, poor protection and compartments

E - Both high, poor protection.

F - Accommodations - It will burn down, no matter what (Only some have this)

Question 17

Insurers track exposure on their RISK INDEX, why?

Answer 17

Good practice

Regulation

Question 18

Typical flood defence conditions

Answer 18

No contents in basement
6 inch stillage
Frequent maintained of drains and gullies 
No external stairs/traps to basement
High excess

Question 19

What are the two types of EML combined

Answer 19

Property & BI