Study 4: Identifying Exposures Flashcards
Identify stakeholder priorities when identifying exposures. Describe the key components of identifying exposures, including how a critical approach can be used to clarify objectives and recognize challenges, and the tools used to identify exposures. Given a scenario, describe how insurance professionals help a commercial client identify net income exposures.
What is liability insurance?
Insurance that agrees to indemnify the insured for sums she may be required by law to pay to third parties as damages for bodily injury or damage to property.
What is a survey?
An examination of a risk to be insured, following which the surveyor completes a form giving all particulars of the risk in cause.
What is an application?
A request by an insured for insurance.
What are financial statements?
Financial documents and accounting records that provide information on the financial performance of an organization, including its assets and liabilities at a given time and its profits or loss over a given time.
What is a balance sheet?
Financial statements showing the assets, liabilities and equity for a company.
What is replacement value?
The current market value of the cost to replace the lost or damaged insured property.
What is a statement of cash flows?
A financial statement that reports the sources and uses of cash by an organization over a specified period of time. It divides cash into operating activities, investing activities and financing activities.
What is an inspection report?
A detailed description of the premises or property to be insured, including the hazards involved, prepared after a physical inspection of the risk.
