CAIB 2 - Chapter 2 Flashcards PDF

## Card Front - Broker's Role - Underwriting Process - Insurance Submission - Risk Classification - Adverse Selection - Physical Hazards - Moral Hazard - Building Construction Classe - Loss Experience Data - Inspection Reports - Survey Completion - Binding Coverage - Hard Market - Soft Market - Und...

## Card Front - Broker's Role - Underwriting Process - Insurance Submission - Risk Classification - Adverse Selection - Physical Hazards - Moral Hazard - Building Construction Classe - Loss Experience Data - Inspection Reports - Survey Completion - Binding Coverage - Hard Market - Soft Market - Underwriter's Decision - Premium Pricing - Underwriting Guides - Claims Information - (This appears to be damaged text, a guess is building survey) - buildings are over 25 years old? - 2 types of protection - 4 functions of underwriters - Define adverse selection - (This appears to be damaged text, a guess is Risk classification) - (This appears to be damaged text, a guess is Risk mitigation) utilize when catastrophes? utilize when - (This appears to be damaged text, a guess is Catastrophes) change from - (This appears to be damaged text, a guess is Traditional) characteristics of - (This appears to be damaged text, a guess is Traditional) characteristics of hard markets? - (This appears to be damaged text, a guess is What is reinsurance?) - What is moral hazard? ## Card Back - Brokers act as intermediaries between clients and insurers, handling communication, risk assessment, and submissions. - The process of evaluating and selecting risks for insurance. - The application and supporting documents outlining the risk characteristics to be insured. - Categorizing risks into groups based on shared characteristics, influencing premium pricing and coverage. - The tendency of higher-risk individuals to seek insurance more than lower-risk ones. - Building construction, occupancy, and external exposures influencing risk. - Ethical behavior issues concerning the risk of insurance claim misuse. - Categories for building types (Fire Resistive, Non-combustible, etc.) affecting risk. - Historical claims data used to assess risks and set premiums. - Verification of physical characteristics, requiring applicant cooperation for proper risk assessment. - Identifying potential loss exposures, coverages, and underwriting information. - Process including inspections and submission of basic risk information to secure temporary coverage. - Insurance market characterized by high premiums and limited availability. - Insurance market with lower premiums and wider availability. - Options for submissions (accept, modify, reject, defer). - Determining rates based on market conditions and risk assessment. - Resources ensuring consistent risk selection and underwriting procedures. - Access to or use of historical claims data impacting underwriting. - (This appears to be damaged text, a guess is Surplus lines) are often needed by insurance companies - Assists brokers make sure coverages are not overlooked - Assists brokers in reducing errors and omissions losses - (This appears to be damaged text, a guess is Placement) Services - Development (customers building and distance to next building) - (This appears to be damaged text, a guess is Public) (This refers to the paperwork renewal applying for coverage or outside steps such as fire station) - (This appears to be damaged text, a guess is Exposure) & (This appears to be damaged text, a guess is Experience) rating methods used by municipalities, or the Accounts applying for coverage such as those near rivers are the only accounts applying for flood coverage - Taking all accounts similar to each other and placing them in categories based on their likelihood for loss - This allows insurers to calculate proper premiums to charge - Staff inspectors - (This appears to be damaged text, a guess is Internal) Advisory Services - Rates of return on insurance companies investments - Heavy competition among insurers as well as lower premiums - Underwriting standards become more strict and premiums rise - (This appears to be damaged text, a guess is Hazard) (This appears to be damaged text, a guess is Hazard) is (This appears to be damaged text, a guess is the) (This appears to be damaged text, a guess is characteristics) of insureds' property which cause perils to occur - Geography (restricted access) - (This appears to be damaged text, a guess is Catastrophic) (This appears to be damaged text, a guess is catastrophe) events which may cause losses to occur - Poor management (lack of prevention)