Chapter Questions
How does ratemaking, or the pricing of insurance, differ from the pricing of other products?
a. Define the meaning of underwriting.b. Briefly explain the basic principles of underwriting.c. Identify the major sources of information available to underwriters.
Briefly describe the sales and marketing activities of insurers.
Explain the basic objectives in the settlement of claims.
Describe the steps involved in the settlement of a claim.
Briefly describe the following types of claims adjustors:a. Agentb. Company adjustorc. Independent adjustord. Public adjustor
a. What is the meaning of reinsurance?b. Briefly explain the reasons for reinsurance.c. Explain the meaning of "securitization of risk."
Distinguish between facultative reinsurance and treaty reinsurance.
Briefly explain the following types of reinsurance methods for sharing losses:a. Quota-share treatyb. Surplus-share treatyc. Excess-of-loss reinsuranced. Reinsurance pool
Briefly describe the following insurance company operations:a. Information systemsb. Accountingc. Legal servicesd. Loss control