🏠 Module 5-Winning Large Property Deals

Question 1

“Hard Market” Characteristics
(ARPFC)

Answer 1

• Actual losses exceed expected
• Reserves inefficient to cover losses
• Prices increase
• Fear increases
• Clients typically receiving “bad news”

Question 2

“Soft Market” Characteristics
(APC)

Answer 2

• Actual losses less than expected
• Prices decrease
• Competition increases

Question 3

FML

Answer 3

;ossForseeable Maximum Loss

• True “worst case scenario”
• Assums all safety measures fail,
• Significantly higher potential loss compared to PML

Question 4

RMS

Answer 4

Risk Management Solution

Model used to determine PML and/or FML

Question 5

Manuscript

Answer 5

Form specifically written to customize coverage for an individual account

Question 6

Layered Coverage

Answer 6

Coverage purchased from multiple carriers in layers to:

• Obtain high coverage limits, or
• Insure high-risk items at reasonable rates.

Question 7

“Quota Share” Coverage

Answer 7

Coverage purchased from multiple carriers in one or more layers

• Each layer is divided into percentages
• Each carrier responsible for specified percentage