Chapter 5

What is the primary role of the underwriting department in an insurance organization?

• To handle customer complaints

• To calculate premiums and control the extent of cover

• To manage marketing strategies

• To process claims

Who typically agrees on the underwriting strategy?

• The marketing team

• Senior management

• The claims department

• The IT department

Which of the following is NOT a specialist area within the underwriting department?

• Property

• Liability

• Marine

• Marketing

Who has the most underwriting discretion in an insurance organization?

• Assistant underwriters

• Section supervisors

• Class underwriters

• Director of underwriting

What does an underwriting manual for commercial property typically include?

• Details of premiums based on construction type and occupation

• Marketing strategies for new policies

• Customer feedback forms

• Employee payroll details

What is the 'pure risk premium'?

• The total premium including all expenses and profit

• The premium necessary to pay for losses and loss-related expenses only

• The premium charged for high-risk policies

• The premium including sales and marketing expenses

In life insurance, what factors can lead to loadings or discounts in premiums?

• Type of car owned

• Dangerous occupations and health conditions

• Number of family members

• Type of house owned

How is insurance typically purchased through the internet?

• Through personal interaction with a broker

• Through an automated process with no personal interaction

• By visiting the insurance company's office

• By mailing in a paper application

What happens if an underwriting assistant receives an enquiry outside their authority?

• They decline the enquiry immediately

• They refer it to a more senior underwriter

• They provide a quote without approval

• They ask the proposer to call back later

What information is required for a comprehensive pack for a printing company?

• Details of the building and printing processes

• Marketing strategies

• Customer satisfaction surveys

• Employee training programs