Chapter 8

Question 1

What are some specific underwriting considerations for Motor? (Name 3)

Answer 1

Drivers age,
Type of vehicle,
Type of use,
Area, (theft)
Storage,
Driving record,
Vehicle modifications

Question 2

What are some specific underwriting considerations for Health Insurance? (Name 2)

Answer 2

Occupation,
Age,
Family history,
Life style,
Medical history

Question 3

What are some specific underwriting considerations for Household insurance? (Name 2)

Answer 3

Construction,
Location,
Area,
Security (alarms)

Question 4

What are some specific underwriting considerations for travel insurance? (Name 2)

Answer 4

Destination,
Purpose,
Group or individual,
Pre-existing conditions

Question 5

What are some specific underwriting considerations for commercial property insurance? (Name 2)

Answer 5

Use,
Types of goods stored,
Safety features,
Number of floors,
Area,
Location relative to perils

Question 6

What are some specific underwriting considerations for theft insurance? (Name 2)

Answer 6

Trade,
Area,
Moral hazard of owner,
Security

Question 7

What is the main underwriting consideration for glass insurance and why?

Answer 7

Use of the building - it often determines whether vandals (one of the greatest risks) will target it in a riot or is there stock inside worth stealing.

Question 8

What are some specific underwriting considerations for money insurance? (Name 2)

Answer 8

How much money,
How it is stored,
Safe/security,
Transit,
If employees are paid in cash

Question 9

What are some specific underwriting considerations for legal expenses insurance? (Name 2)

Answer 9

Employment criteria, (age and gender of employees)
Health and safety regulations,
How many staff,
Trade,

Question 10

What are some specific underwriting considerations for Business interruption insurance? (Name 2)

Answer 10

Can they operate from another premises,
Stock,
Is there replacement machinery,
Critical machinery,
Seasonal features,
Suppliers

Question 11

What is the main underwriting considerations for EL and PL?

Answer 11

Trade!

Question 12

What is the main underwriting considerations for Pollution and Products insurance?

Answer 12

Trade!

Question 13

What are some specific underwriting considerations for PI insurance? (Name 2)

Answer 13

Trade,
Professional qualifications,
Experience,
Moral hazard.

Question 14

What is the main underwriting consideration for extended warranties?

Answer 14

How likely the product is to breakdown over a period of time.

They will likely use statistics to work this out.

Question 15

Would insurers look at credit ratings as an underwriting consideration?

Answer 15

Yes!

Question 16

What does the insurance fraud bureau do?

Answer 16

It helps prevent fraud by
- co-ordinating industry wide action
- running education campaigns
- having expertise on fraudsters and their methods

Question 17

How is technology being used to prevent fraud?

Answer 17

Insurers are now using AI to help detect fraud and sharing information to compare and trap repeat offenders.

Question 18

What is the MIAFTR?

Answer 18

The motor insurance anti-fraud and theft register - it contains data of every theft claim and total loss so insurers can check if a vehicle is being claimed for more than once.

Question 19

How does the MID help to prevent crime?

Answer 19

It contains details of all registered cars and their insurances - which assists the police in tackling motor thefts and uninsured vehicles.

Question 20

What is the CUE?

Answer 20

Claims and underwriting exchange.

This data base contains information of all incidents reported by personal insurance policyholders. This can eliminate multiple claims and policies held by the same person.

Question 21

What is the art loss register?

Answer 21

It is a register of all stolen art. You can check the legitimacy of something’s origins before you buy it. It aims to reduce theft of art and help return art to its rightful owners. Insurers can subscribe to it.

Question 22

When is application fraud committed and how do insurers try to prevent this?

Answer 22

When someone applies for a policy. They can try and validate information provided in the proposal forms.

Question 23

How can claims handlers help to prevent fraud?

Answer 23

1. Being cautious of claims made soon as the policy is incepted
2. Being cautious of similar claims made over a short period
3. Being cautious if no documentation is provided e.g., for a stolen item

Question 24

How can asking a policyholder to complete a claim form over the phone, help to prevent fraud?

Answer 24

People find it harder to lie over the phone. And they can use «anti lie detection «AI over the phone.

Question 25

How can giving claims settlements as replacement rather than cash help prevent fraud?

Answer 25

It would make things more difficult and frustrating for the fraud, as if they are trying to make money, they would have to sell the replaced item.

Question 26

What did the Equality Act of 2010 aim to do?

Answer 26

Harmonise and replace previous legislation and protect further groups of people.

Question 27

Name 5 ´protected characteristics ‘

Answer 27

Age, disability, gender reassignment, race, religion, sex, sexual orientation, marriage status, pregnancy.

Question 28

What are 4 types of discrimination?

Answer 28

1. Direct 2. Associative 3. Perceptive 4. Indirect

Question 29

Can underwriters discriminate based on disability?

Answer 29

Yes and no. They can with justification e.g., if something is standard practice and written down in their philosophy and is supported by medical reports and data. For example, charging more for travel insurance because there is a higher risk. But they cannot treat them unfairly just because they are disabled.

Question 30

Can underwriters charge higher rates for men? And what is Test-Achats?

Answer 30

No. The ruling that made it illegal to use gender as rating for risks.

Question 31

What information does GDPR apply to?

Answer 31

Personal data that can be used to identify a living individual.

Question 32

Name 3 categories of personal data that are ‘special’ which GDPR would apply to?

Answer 32

Race, ethnic origin, politics, religion, genetics, health, sex, sexual orientation

Question 33

What do GDPR principles generally set out?

Answer 33

How we handle, store, process and use sensitive data.

Question 34

What are the 6 principles of data protection?

Answer 34

1. Lawfulness 2. Purpose Limitation 3. Data minimisation 4. Accuracy 5. Storage Limitation 6. Integrity and Confidentiality

Question 35

What are 6 lawful reasons for processing data?

Answer 35

1. You’ve been given consent 2. It’s needed for a contract 3. It’s a legal obligation 4. Vital interest - to save someone’s life 5. Public task 6. Legitimate interest

Question 36

Name 3 rights individuals have over their data.

Answer 36

Right to be informed, right of access, right of rectification, right of erasure, right to restrict processing, right to data portability, right to object, right to reject automated decision making.

Question 37

Is the right to erasure absolute?

Answer 37

No - sometimes the law or other reasons means this isn’t always possible

Question 38

What value are firms expected to have regarding GDPR

Answer 38

Accountability

Question 39

Do firms have to inform anyone if there is a breach of GDPR?

Answer 39

Yes! They have a duty to do so.

Question 40

Who do firms have to inform of breaches?

Answer 40

Information Commissioner’s Office (ICO)

Question 41

Does GDPR still apply if transferring data over seas?

Answer 41

Yes there are restrictions on the transfer of personal data outside the EU. And GDPR applies to firm operating in the EU.