Assignment 6
Book Mgmt
Assignment 7
Reunderwriting
Retrospective Rating Plans
Types of Reinsurance
Acronyms
100
A small group of customers or potential customers brought together to provide opinions about a specific product, service, need, or other issue.
What is Focus Group?
100
The process of analyzing the characteristics of policies within a book of business and the trends of those characteristics.
What is Reunderwriting?
100
The purpose of a retrospective rating plan.
What is adjusting the premium to reflect the insured organization's current losses?
100
The primary insurer negotiates a separate agreement for each loss exposure that it wants to reinsure.
What is facultative reinsurance?
100
PIF
What is Policies in Force?
200
A snapshot at a particular point in time that provides data on a specific set of characteristics common to all policies in a book of business.
What is Risk Profile?
200
Catastrophe modeling is a type of predictive modeling used to forecast this type of loss for a book of business based on catastrophe scenarios.
What is Probable Maximum Loss (PML)?
200
The level at which each individual accident or occurrence is limited for the purpose of calculating a retrospective rating insurance premium.
What is Loss Limit?
200
The reinsurer agrees in advance to reinsure all the loss exposures that fall within the agreement.
What is treaty reinsurance?
200
NCCI
What is National Council on Compensation Insurance?
300
A study that compares the likely costs of a product or service with the likely benefits, both to the customer and to the insurer.
What is Cost/Benefit Analysis?
300
The purpose of Reunderwriting.
What is correcting results that are not achieving profitability goals?
300
Under this plan, the insured pays a deposit premium at the beginning of the policy period and reimburses the insurer for its losses as the insurer pays for them.
What is paid loss retrospective rating plan?
300
The primary insurer and reinsurer share the amounts of insurance, policy premiums, and losses using a fixed percentage.
What is quote share reinsurance?
300
AAIS
What is American Association of Insurance Services?
400
The process of identifying factors crucial for an organization’s success or failure in the marketplace, defining signals or events that affect the factors, and determining the implications of the signals or events.
What is Environmental Scanning?
400
Periodic reviews of a sample of policies to determine whether applications selected by underwriters meet the criteria established by the underwriting guidelines.
What are Underwriting Audits?
400
A retrospective rating plan is considered a hybrid risk financing plan because it contains elements of both of these.
What are retention and transfer?
400
A type of pro rata reinsurance in which the policies covered are those whose amount of insurance exceeds a stipulated dollar amount, or line.
What is surplus share reinsurance?
400
SPV
What is Special Purpose Vehicle?
500
The two main reasons a commercial insurer would seek to change their products.
What are changes in customer needs and threats from competitors?
500
Two special events that would trigger Special Event Review.
What are Mergers and Book Transfers?
500
The retrospective rating premium formula.
What is (Basic premium + Converted losses + Excess loss premium) x Tax multiplier
500
A reinsurance agreement whereby one reinsurer transfers all or part of the reinsurance risk it has assumed or will assume to another reinsurer.
What is retrocession?
500
BRMA
What is Brokers & Reinsurance Markets Association?
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