P&C Insurance Flashcards
Policy Administration System (PAS)
A web-based underwriting and policy administration system
designed for personal and commercial line carriers in the
property and casualty insurance (P&C) industry
Property and Casualty
Insurance
Property insurance and casualty insurance are types of
coverage that help protect the stuff you own — your home
or car, for example — and also provide liability coverage to
help protect you if you’re found legally responsible for an
accident that causes injuries to another person or damage
to another person’s belongings
Property insurance
Insurance designed to cover property losses—the risks that
we will suffer financial losses because things we own are
damaged or destroyed.
Casualty Insurance
Encompasses a wide variety of basically unrelated
insurance products. One of the most important types of
casualty insurance is liability insurance.
Liability Losses
Losses that occur as a result of the insured’s interactions
with others or their property.
Personal Lines
Encompasses coverages for individuals—auto and
homeowners insurance.
Commercial Lines
Encompasses the many kinds of insurance products
designed for businesses.
Underwriting or
Insurance Underwriting
The process of evaluating the risk of insuring a home, car,
driver, or business to determine if it’s profitable for the
insurance company to take the chance on providing
insurance.
Insurance underwriters
An professional who chooses who and what the insurance
company will insure based on risk assessment.
Binder
A legal document that serves as a temporary insurance
policy.
Policy
A contract between the carrier and the insured in which the
carrier promises to cover the insured for specific types of
losses.
Coverage
Protection from a specific risk and is always attached to a
coverable such as a vehicle or a building. Coverages are
always attached to a coverable.
Account
A single person or organization which has or may have one
or more policies – an account could have many, one, or zero
policies. An account is really a collection of information, and
includes the account holder, the policies (each of which has
a policy holder or holders who may or may not be the same
as the account holder),
Contract
A person or organization which includes but is not limited to
the Named Insured(s)
Location (as it pertains
to a policy)
A physical location which may be referenced on a policy.
Both Contacts and Locations can be: created on account
and reused on a policy or simply created on policy.
Coverable
An exposure to risk that can be protected by the policy.
Coverages are attached only to coverables. Within
PolicyCenter, Guidewire makes the policy line a coverable to
represent the named insureds. A policy line is the type of
insurance that the insured is buying such as personal auto
or business owners insurance and so on.
Property coverages
Cover tangible assets belonging to the insured, such as a
vehicle, home, or the body of the insured.
Liability coverages
Cover the liability of the insured when damage is done to a
third party.
PolicyCenter Policy
“Tools”
Tools that are used to complete the work of policy
management.
Transaction
A process that creates or changes the nature of a policy.
Policy tools contact
A person whom the carrier may need to contact but who is
not part of the policy contract (such as a billing manager for
a company which has a business owner’s policy).
Note
A record of a user of PolicyCenter thinking or strategy when
working on a policy.
An underwriting issue.
A note of an issue which is relevant to the creation or
renewal of a policy and may cause the carrier to deny the
policy or raise the premium.
Claim
An event in which a potentially covered loss occurred.
