Underwriting

Chubb

100

When did ACE acquire Chubb

January 14, 2016

200

Roughly how many products does Chubb offer

200+

300

How does Chubb make money

Underwriting Income and Investment Income

400

What is some of the Global Casualty value proposition (think specific)

Over 40% of the Fortune 1,000, Over 93% renewal retention, bundled or unbundled claims, technology solutions with worldview and accelerator, Tailored programs and collateral solutions, world class service

500

What is the Overall Chubb Value Proposition

World class underwriting, service, and claims handling, Excelptional Financial Strength, 200+ Years in the Industry, Operate in 54 Countries and capabilities to transact worldwide, 200_ products, Largest Publicly Traded Property & Casualty Insurance Company

WC

100

Outline what is meant by No-Fault Coverage

Workers' compensation being described as "no fault insurance" means that it provides benefits to employees who are injured or become ill as a result of their job, regardless of who was at fault for the incident. This means that employees do not need to prove that their employer was negligent or responsible for their injury in order to receive benefits. Instead, workers' compensation is designed to ensure that injured workers receive medical care and compensation for lost wages without the need for lengthy legal battles. This system helps to streamline the process of obtaining benefits and provides a level of protection for both employees and employers.

200

Describe Part 1 of the coverage form- what is it?

Part One of a workers' compensation policy typically covers the employer's liability for workers' compensation benefits as required by state law. This section outlines the insurance coverage for medical expenses, lost wages, rehabilitation costs, and other benefits for employees who are injured or become ill due to their work. It ensures that the employer complies with state regulations regarding workers' compensation and provides financial protection against claims made by employees for work-related injuries or illnesses. The specifics can vary by state and policy, but generally, Part One is focused on the statutory obligations of the employer.

300

Describe Part 2 of the coverage form- what is it and what does it cover?

Part Two of a workers' compensation policy typically refers to the "Employers Liability Insurance" coverage. This part provides additional protection for employers against claims made by employees that are not covered by the workers' compensation laws.

Specifically, Part Two covers:

1. Legal Defense Costs: It provides coverage for legal expenses incurred in defending against lawsuits brought by employees for work-related injuries or illnesses.

2. Third-Party Claims: If an employee sues the employer for negligence related to their injury (beyond the scope of workers' compensation), this part can cover the damages awarded in such lawsuits.

3. Consequential Bodily Injury: It may cover claims made by family members of an injured employee, such as loss of consortium or other related claims.

4. Other Liability: It can also cover situations where an employee may seek damages for injuries that are not strictly covered under workers' compensation laws, such as certain intentional torts.

Overall, Part Two provides an additional layer of protection for employers against potential lawsuits and claims that arise from workplace injuries or illnesses, complementing the statutory benefits provided in Part One.

400

Describe Part 3- Other States Insurance

Part Three of a workers' compensation policy is known as "Other States Insurance." This section provides coverage for employees who may be working in states other than the one where the policy is issued.

Key features of Part Three include:

1. Coverage for Other States: It extends workers' compensation coverage to employees who are temporarily working in states not specifically listed in the policy. This is important for employers with operations or employees that may travel or work in multiple states.

2. Compliance with State Laws: It helps ensure that the employer complies with the workers' compensation laws of those other states, which may have different requirements and benefits.

3. Automatic Coverage: If an employee is injured while working in a state not listed in the policy, Part Three can provide coverage as long as the employer has not specifically excluded that state.

4. Limitations: It's important to note that coverage may be subject to certain limitations, and employers should verify that they are meeting all legal requirements in the states where their employees are working.

Overall, Part Three is designed to protect employers and their employees by ensuring that workers' compensation coverage is available for work-related injuries or illnesses that occur outside the primary state of operation.

500

What does MN have in place with work comp system?

The Minnesota Workers' Compensation Reinsurance Association (WCRA) is an organization that provides reinsurance to workers' compensation insurers in Minnesota. Its primary purpose is to help stabilize the workers' compensation insurance market by providing a safety net for insurers against large or catastrophic claims.

Key features of the WCRA include:

1. Reinsurance Coverage: The WCRA offers reinsurance to insurers, which helps them manage the financial risk associated with high-cost workers' compensation claims. This allows insurers to provide coverage more affordably and sustainably.

2. Pooling of Risks: By pooling risks among various insurers, the WCRA helps to spread the financial burden of large claims, making it easier for insurers to operate in the market.

3. Support for Insurers: The WCRA assists insurers in maintaining solvency and stability, which ultimately benefits employers and employees by ensuring that workers' compensation coverage remains available and affordable.

4. Regulatory Compliance: The WCRA operates under the regulations set forth by the Minnesota Department of Commerce, ensuring that it adheres to state laws governing workers' compensation.

Overall, the Minnesota WCRA plays a crucial role in the state's workers' compensation system by providing reinsurance support, which helps to ensure that both insurers and injured workers are protected.

GL

100

What is Coverage A

In a general liability insurance policy, Coverage A refers to "Bodily Injury and Property Damage Liability." This coverage protects the insured against claims for bodily injury or property damage that occur as a result of the insured's operations, products, or premises.

Key aspects of Coverage A include:

1. Bodily Injury: This covers medical expenses, lost wages, and other damages resulting from injuries sustained by third parties due to the insured's actions or negligence.

2. Property Damage: This covers damage to someone else's property caused by the insured's operations, products, or premises.

3. Legal Defense Costs: Coverage A typically includes the cost of legal defense against claims, even if the claims are found to be groundless.

4. Occurrence Basis: Most general liability policies provide coverage on an occurrence basis, meaning that coverage applies to incidents that occur during the policy period, regardless of when the claim is filed.

Overall, Coverage A is a fundamental component of general liability insurance, providing essential protection for businesses against common risks associated with bodily injury and property damage claims.

200

What is Coverage B and how does it differ from Coverage A

Coverage B in a general liability insurance policy refers to "Personal and Advertising Injury Liability." This coverage protects the insured against claims arising from specific types of non-physical injuries that can occur in the course of business operations.

Key aspects of Coverage B include:

1. Personal Injury: This includes claims related to offenses such as slander, libel, false arrest, wrongful eviction, invasion of privacy, and other similar offenses that cause harm to an individual's reputation or personal rights.

2. Advertising Injury: This covers claims arising from advertising activities, such as copyright infringement, trademark infringement, or misappropriation of advertising ideas.

Differences Between Coverage A and Coverage B:

• Nature of Claims:

  • Coverage A deals with bodily injury and property damage claims, which involve physical harm or damage to tangible property.
  • Coverage B addresses personal and advertising injury claims, which involve non-physical harm, such as reputational damage or issues arising from advertising practices.

• Types of Incidents Covered:

  • Coverage A is focused on incidents that result in physical injuries or property damage to third parties.
  • Coverage B covers incidents that may not involve physical harm but still result in legal claims against the insured for personal or advertising-related offenses.

In summary, while Coverage A provides protection against physical injury and property damage, Coverage B offers protection against non-physical injuries related to personal rights and advertising activities. Both coverages are essential components of a comprehensive general liability insurance policy.

300

Where would you go to correctly classify exposures and understand what is included/not included within the classification? Try and outline the two areas Jenks would point you to.

PAAS and ISO

400

Outline at least 4 of the 9 Premium Bases. Bonus for what ISO Rule this is under.

Admissions, Area, Each, Gross Sales, Payroll, Total Cost, Total Operating Expenditures, Units.

Rule 24

500

Outline the Coverage Territory in the Form.

4. "Coverage territory" means:

a. The United States of America (including its

territories and possessions), Puerto Rico and

Canada;

b. International waters or airspace, but only if the

injury or damage occurs in the course of travel

or transportation between any places included

in Paragraph a. above; or

c. All other parts of the world if the injury or

damage arises out of:

(1) Goods or products made or sold by you in

the territory described in Paragraph a.

above;

(2) The activities of a person whose home is in

the territory described in Paragraph a.

above, but is away for a short time on your

business; or

(3) "Personal and advertising injury" offenses

that take place through the Internet or

similar electronic means of communication;

provided the insured's responsibility to pay

damages is determined in a "suit" on the merits, in

the territory described in Paragraph a. above or in

a settlement we agree to.

Program Structures

100

What are the High Level Program Structures we typically see? Hint: There are roughly 5

Guaranteed Cost, Large Deductible, Self-Insured Retention, Hybrid / Deductible over SIR, Matching Deductible / Front.

200

What are the ALAE Treatment by- Hint: There are two.

Deductible/SIR Level and Policy Level Treatment

300

Give 4 or More Differences Between a Deductible Program and SIR Program

Duty to Defend, Limit Treatment, Credit Risk/Collateral, Medical Payments, Mandatory Exclusions, Taxes, Policy Form

400

What are 4 premium components that are NOT STORM

ULAE (Unallocated Loss Adjustment Expenses), Taxes, Retro Losses, Captive Losses, Broker Commission

500

What is the Difference between ALAE and ULAE

ALAE (Allocated Loss Adjustment Expenses) and ULAE (Unallocated Loss Adjustment Expenses) are terms used in the insurance industry to describe different types of expenses related to the handling of claims.

ALAE (Allocated Loss Adjustment Expenses):

• Definition: ALAE refers to expenses that can be directly attributed to a specific claim. These expenses are incurred in the process of investigating, adjusting, and settling a particular claim.
• Examples: Costs such as legal fees, expert witness fees, and other expenses that are specifically associated with a single claim fall under ALAE.
• Allocation: Since these costs are directly tied to individual claims, they are allocated to those claims in the insurer's financial records.

ULAE (Unallocated Loss Adjustment Expenses):

• Definition: ULAE refers to expenses that are not directly attributable to any specific claim but are necessary for the overall claims handling process. These expenses are incurred in the general operation of the claims department.
• Examples: Costs such as salaries of claims adjusters, office overhead, and general administrative expenses related to claims handling fall under ULAE.
• Allocation: ULAE is not allocated to specific claims but is instead treated as a general expense for the insurer.

Summary of Differences:

• Allocation: ALAE is allocated to specific claims, while ULAE is not.
• Nature of Expenses: ALAE consists of direct costs related to individual claims, whereas ULAE includes general operational costs associated with the claims process.

Miscellaneous

100

What is the difference between an occurrence policy and claims made policy

The difference between an occurrence policy and a claims-made policy primarily lies in the timing of coverage and when claims can be reported. Here’s a breakdown of each type:

Occurrence Policy:

• Coverage Trigger: An occurrence policy provides coverage for incidents that occur during the policy period, regardless of when the claim is made. This means that if an event causing a claim happens while the policy is active, the insurer will cover it, even if the claim is filed after the policy has expired.
• Coverage Trigger: A claims-made policy provides coverage only for claims that are made during the policy period. For a claim to be covered, it must be reported while the policy is active, regardless of when the incident occurred.
• Timing of Coverage: Occurrence policies cover incidents that happen during the policy period, while claims-made policies cover claims made during the policy period.
• Long-Term vs. Short-Term: Occurrence policies provide long-term protection for past incidents, while claims-made policies require active coverage during the claim reporting period.

200

Name 3 Exposures that are "emerging trends"

Lithium Ion, SHAM, Wildfire, PFAS, Opioid, Vaping, Diacetyl, TBI, EMF, Climate, etc.

300

What are 5 things you would do to prepare for a Strategy

1.Rate and Plan: Branch Plan for Rate Goals by Line and Premium Plan (GWP / NWP)

● 

2.P&L: Review, Review the HO P&L with Management

● 

3.Limits and Deductibles: Net Limits ($2M). Policy Limit – Deductible – Reinsurance = Net Limit

● 

4.Large Loss Review: Review Global Risk Advantage (GRA) Loss Run. Attend Chubb Claims Call (6 months). JY/KY (Chubb Liability Files) and any Workers Compensation Claims excess of the deductible / retention

● 

5.ACES Templates: Set up Historical Exposures and most recent bound ACES Loss Information (Aggregate Losses, Large Losses). Use Audited Exposure and include / remove acquisitions / divestitures).

● 

6.Prior Year Review: Bound Snapshot for Overall Adequacy (STORM % and Dollars) and Rate Change

8.Research: Current events of the Insured via their 10K, 10Q, Website, News, etc.

9.Review Referral: Prior year’s Exp to understand any authority items that you need to get in front of and prepare to have those discussions now

● 

10.Reinsurance: Do we have reinsurance on the deal. Reach out to our reinsurance partners to gauge their expectations for capacity (limits provided) and pricing / rate guidance

● 

11.Chubb Credit Management (CCM): Review the Unsecured Position, Paid Loss Credits, Collateral Form, Credit referrals, etc. If it’s public, get a credit rating early.

● 

12. Actuary: Understand if you need to receive updated and relevant information (Triangles, Loss Data a certain way, etc.)

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13.Reach out: Gauge marketing potential, anticipated exposure changes, or anything business related that we should be aware of (this is NOT the time to discuss rate expectations if you have not COMPLETED the strategy)

14.OneChubb / Other Product Lines: Understand the view of the insured, are they profitable, what are they anticipating doing from a communication / rate / limits perspective, is Excess involved and what are they requesting: attachment point, limit / capacity / structure, rate, etc.

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15.Legal Agreements: Do we have our completed Legal Agreements: Collateral Agreement, Notice of Election, Accelerator (set up within 59 days of the effective date), TPA Agreement, Letters of Credit, etc.

400

What are 4 Forms of Collateral

Letter of Credit (LOC), Cash (Static or Working), Surety Bond, Trust (Investment Account)

500

You are a Quarterback of an Account. Name 6 Departments outside of your branch that will help you on an account.

COU, Home Office, Credit, Actuarial, MSL, GCE, Regional Operations/Field, Claims Client Executive, Risk Engineering