Week 6 Operations
What do insurers do in moving risk to reinsurance?
They transfer business as the ceding company
What's something regulators do not regulate?
Insurance company hiring practices
Name something a declarations page doesn't include
A list of exclusions
Name something not covered in Homeowners Coverage A?
Land on which the dwelling is located.
What is a state's plan to insure high risk drivers?
The residual market.
A claims adjuster getting a paid percentage is known as this.
A public adjuster
What Act returned insurance regulation to the U.S. states?
The McCarran-Ferguson Act.
How can personal property be adequately insured?
Adding an endorsement of agreed upon value
What's not covered under homeowners' personal liability?
Business activities conducted outside the home.
With an ambiguous policy, why do courts usually favor the insured?
Because insurers are responsible to say things clearly.
Beyond advertising, how do insurance companies drive production?
Insurance agents and brokers.
What would help pay insolvent insurance company claims?
State Guaranty Funds
What is the primary reason for co-insurance?
To achieve equity in insurance rates.
Why would insurer reject an application with an adverse CLUE report
Multiple insurance claims made by the former homeowner.
What added coverage covers increased repair costs given stricter building codes?
An ordinance of law
What insurance career offers almost guaranteed jobs?
A career in claims.
A company incorporated in one state doing business in another is known as this.
A foreign insurer
Why is flood damage excluded from standard homeowners insurance?
Private insurers consider it uninsurable.
Why are property and mortgage holders sometimes listed on a claim check?
Both mortgage company and owner have financial interest in property.
Why do conditions on homeowners exist in insurance policies?
To ensure they take care of responsibilities like tarping a roof following a loss.
What do actuaries calculate to put aside money to pay claims?
They set aside reserves.
What would prompt insurance companies to require more reinsurance coverage?
Concerns over insurer solvency.
Deductibles are not included in which type of insurance.
They are never included for life insurance.
What is the most appropriate value to insure full economic recovery for a new home?
The home's rebuilding cost.
Why is mold damage excluded from most policies?
Mold is considered a maintenance issue.