Overview of Insurance Operations
Insurance Regulation
Insurance Marketing and Distribution
Underwriting Function
Risk Control and Premium Auditing
100
An external constraint that may prevent an insurer from meeting their goals.
What is Regulation, Rating Agencies, Public Opinion, Competition, Economic Conditions, Insurance Marketing and Distribution
100
The primary reason for insurance regulation.
What is consumer protection?
100
The main distinguishing feature between independent agents/brokers and other distribution systems.
What is ownership of the agency expiration list?
100
The overarching purpose of underwriting.
What is to develop and maintain a profitable book of business for the insurer?
100
The primary purpose of premium auditing.
What is determine correct premiums?
200
The department which provides information to the underwriting department to assist in selecting and rating risks.
What is Risk Control?
200
One type of organization that acts as an unofficial regulator of insurance activities.
What are Financial Rating Organizations, Insurance Advisory Organizations, Insurance Industry Professional and Trade Organizations, Consumer Groups
200
An authorized agent of the primary insurer that manages all or part of the primary insurer’s insurance activities, usually in a specific geographic area.
What is Managing General Agent?
200
Changing a fire protection class is an example of this line underwriter activity.
What is Classifying and Pricing Accounts?
200
The insurer representative who may be the only opportunity to meet insureds, see their operations, and review their financial records.
Who is the premium auditor?
300
State insurance departments’ market conduct regulatory actions are a good indication of an insurer’s success or failure in meeting this major insurer goal.
What is Meet Legal Requirements?
300
The three major goals of rate regulation.
What are that rates are adequate, not excessive, and not unfairly discriminatory?
300
The insurance consumer group that would have the most risk financing alternatives available to them.
What are national accounts?
300
Staff underwriters typically share responsibility for researching fundamental insurance issues with these two departments.
What are actuarial and marketing?
300
The first step in developing a safety management program.
What is a complete evaluation of the policyholder’s operations?
400
The insurer goal most commonly associated with proprietary insurers.
What is Earn a Profit?
400
Two producer practices that violate unfair trade practices acts.
What are Dishonesty or Fraud, Misrepresentation, Twisting, Unfair Discrimination, Rebating
400
Two of the commonly used bases of segmentation in marketing.
What are Behavioristic, Geographic, Demographic, Psychographic
400
Two of the conditions that might be indicated by a high hit ratio.
What are Competition is easing, rates are inadequate or lower, coverage is broader, underwriting has strong production skills, underwriting selection is deteriorating, good relationship between insurer and producer
400
A rate multiplier based on the insured’s past exposure units and losses.
What is an experience modification/rating?
500
The two major types of insurers by legal form of ownership.
What are proprietary and cooperative?
500
Two factors that frequently contribute to an insurer’s insolvency.
What are Rapid premium growth, inadequate rates, inadequate reserves, excessive expenses, lax controls over MGA’s, uncollectible reinsurance, fraud
500
Two factors of an insurer’s profile that should be evaluated in selecting distribution systems and channels.
What are Strategies and Goals, Strengths (Financial Resources, Core Capabilities, Expertise), Existing and Target Markets (characteristics of book), Geographic location, Degree of Control required
500
The 5 financial components used to calculate a combined ratio.
What are incurred losses, loss adjustment expenses, earned and written premiums, and underwriting expenses?
500
One of the ways accuracy of premium audits affects equity and accuracy of class rates.
What are accuracy of classification determinations or measurement of exposure unit base?
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