Functions within insurance organisations

Question 1

What is the role of the underwriting department?

Answer 1

To calculate premiums and control the extent of cover given under policies.

Question 2

What is the structure of the underwriting department?

Answer 2

Director of underwriting, head of department, class underwriters, section supervisors, underwriters, assistant/trainee underwriters.

Question 3

What is a managing general agent (MGA)?

Answer 3

An insurance broker with binding authority from an insurer, performing tasks like assessing risk and paying claims.

Question 4

What is the purpose of risk management in insurance firms?

Answer 4

To identify, analyze, report, and monitor risks to improve business operations and performance.

Question 5

What is a risk register?

Answer 5

A central data source on all risks faced by the company, kept current by the risk management department.

Question 6

What is the role of the claims department?

Answer 6

To ensure fair and equitable settlement of claims according to policy terms.

Question 7

What is delegated authority in insurance?

Answer 7

Allowing other parties to perform underwriting or policy administration tasks to acquire more business and reduce expenses.

Question 8

What is the role of the compliance department?

Answer 8

Ensuring operations are compliant with regulatory requirements and communicating updates to staff.

Question 9

What is the role of the actuarial department?

Answer 9

Assessing and calculating risks, setting premiums, and ensuring financial stability through reserving and capital management.

Question 10

What is customer relationship marketing?

Answer 10

Using information about customers to build strong