Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AINS 102 > Chapter 6 - What Are The Key Personal Insurer Roles? > Flashcards

Chapter 6 - What Are The Key Personal Insurer Roles? Flashcards

1
Q

Three main duties of Underwriting

A
  1. Review applications to accept/reject customers
  2. Identify gaps in cover
  3. Determine how much to
    charge that customer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Predicting likelihood that customers will have claims & cost of claims is part of which main job duty for an underwriter?

A

Reviewing applications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the purpose of an underwriter identifying gaps in cover?

A

The insurance company can offer additional products to customers (to generate more income) and fill gaps.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who processes the majority of personal insurance applications?

A

Automated systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

With so much automation, why do we still need underwriters?

A
  1. Human, professional judgement
  2. Critical thinking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why is it important to strike a balance in the insurance company’s insurance portfolio?

A
  1. So they don’t take on too much risk
  2. Need to take on enough customers to be profitable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How do higher property values affect underwriting?

A

Means there is more risk than there used to be i.e. a higher overall level of risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Risk and profitability

A

The balance an underwriter needs to strike

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Are individual accounts and individual needs become simpler or more complex?

A

More complex

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Two main goals of underwriting

A
  1. Develop a profitable book of business
  2. Help insurance company fulfill their promises to insureds
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are insurance rates based on?

A

The insured’s risk level.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Factors affecting underwriting decisions for Auto property damage (Risk of Driver)

A
  1. Driving skills
  2. Natural abilities
  3. Age
  4. Gender
  5. Marital status
  6. Driving record
  7. Occupation
  8. Data from telematics
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Vehicle Type Factors that affect Underwriting decisions

A
  1. Susceptibility to theft
  2. Susceptibility to rollovers
  3. Standard safety features
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Factors affecting the vehicle’s condition

A
  1. Vehicle age
  2. Mileage
  3. Overall condition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What difference does a car having more standard safety features make?

A

Vehicles with these have a smaller likelihood of being involved in an accident

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why is it important to know a vehicle’s condition?

A

It affects the maximum value of the vehicle and cost of claims.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why do underwriters look at driving records, and loss history as factors in Auto property damage?

A

Having prior losses means an increased chance of having future losses.

18
Q

What makes up loss history?

A
  1. Number of past claims
  2. Types of past claims
  3. Amounts of past claims
19
Q

What is one of the most important considerations for underwriting when it comes to personal auto insurance?

A

Driver’s Loss History

20
Q

Why is driver’s financial data important to know?

A

1.Assess if the customer can pay premiums
2. Can they pay for other risk control measures

21
Q

How can an underwriter assess financial status of a driver?

A
  1. Credit reports
  2. Their employment history
  3. Other reports
22
Q

What are the different sources of info for underwriting?

A
  1. The customer’s original insurance application
  2. Speak to the producer who generated the sales lead
  3. Motor vehicle reports
  4. Various financial reports
  5. Personal inspections
  6. Telematics data
23
Q

Why is speaking to the producer (Agents & Brokers) about a potential client important?

A
  1. They interview the applicants
  2. Often view property / operations to be insured
  3. Evaluates loss exposures
24
Q

Who does the personal inspections?

A

The underwriter- on-site visits and meetings with the applicant

25
Q

What are the key underwriting decisions for Homeowners property damage?

A
  1. Loss history
  2. Physical details of the property
  3. Property’s value
  4. Financial data of the owner
  5. Risk control reports
26
Q

What are the physical details factor that underwriters consider for a homeowners application?

A
  1. Construction (how the home was built)
  2. Age
  3. Location
27
Q

Why is location an important factor for property damage risks?

A
  1. Susceptibility to certain natural disasters
  2. Susceptibility to certain types of weather conditions
28
Q

Sources of information for underwriters when making a decision for a Homeowners application

A
  1. Customer’s original insurance application
  2. Speaking to the producer (Agency / Broker) who made the initial sale to the customer
  3. Property value guides
  4. Various financial reports
29
Q

Poor maintenance, insufficient lighting and hazardous equipment are all underwriting considerations for property damage of liability covers?

A

Liability

30
Q

What are the main underwriting considerations for liability covers?

A
  1. Business Activities being done from the home
  2. Poor maintenance
  3. Insufficient lighting
  4. Hazardous equipment
  5. Animals
  6. Farming operations & equipment
31
Q

What could be classed as hazardous equipment at the home from a liability cover perspective?

A
  1. Swimming pools
  2. Landscape machinery
  3. Snowmobile
32
Q

Does it matter if farming operations and equipments are not used for commercial purposes at the home when considering liability at home?

A

Yes, it still matters if only used for personal use

33
Q

What is the most important factor for a producer’s success?

A

Having good relationships with customers

34
Q

Why should a producer need to understand a customer and their unique needs?

A

To be able to provide personalised advice

35
Q

What can make a customer’s insurance-related needs change?

A
  1. Their loss exposures
  2. If their personal situation changes
36
Q

Why do claims reps need to show empathy, professionalism and competence from their first interaction with a customer?

A

Because it sets the tone for the rest of the claims process

37
Q

Is is less risky and less expensive to insure older vehicles?

A

Yes, because the vehicle value and repair costs are lower for older vehicles than new

38
Q

How does cross-selling affect customer retention and profitability?

A

It results in better customer retention and profitability.

Selling to existing customers is less expensive than selling to new, which improves profitability

39
Q

What increases marketing and admin expenses?

A

Securing and processing new applications - so, making a sale to an existing customer is more profitable

40
Q

Identifying gaps in cover and referrals to more suitable producers assists with what?

A

Gaining customer’s trust as consultants/subject matter expert

41
Q

Keys to success for a producer

A
  1. Gaining customer’s trust as a consultant/Subject Matter Expert
  2. Developing long-term relationships with customers

AINS 102 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions