WorksheetsUnderwriting Essentials Ch 7-8 C120
Total questions: 10
Worksheet time: 10mins
A bucket of premium includes all the following except
profit
development factors
pure premium
investment income
Unallocated loss adjustment expenses (ULAE’s) are similar to
administration costs
trend factors
development factors
acquisition costs
The danger from adopting too small a rating class is that that the rates developed from the data obtained might
lack statistical credibility
be too discriminatory
not have enough exposure to loss
lead to unhealthy profits
An example of an exposure base is
per $100 of property value
gross sales
Total premium of $2000
rate per $100
An example of an exposure unit is
per $100 of property value
gross sales
Total premium of $2000
rate per $100
Under a service agreement with GISA, IBS collects data from all of the following except
OBABSP
ASP
OCLSP
CLEAR
Establishing of a good relationship between Underwriters and Facultative reinsurers can be referred to as building
amicus curiae
underwriting credit
quid pro quo
facultative fraternity
An estimate of what the claim will ultimately cost the insurer to settle should be reflected in the Insurers balance sheet as a
loss reserve
IBNR
Asset
Claims receivable
A breach of a ____________ can nullify the insurance contract
warranty by the insurer
warranty by the insured
warranty by the third parties
warranty by the additional insured
A _____ can help the underwriter assess how policy language would be interpreted in the event of a dispute with the insured
Loss control inspector
broker
agent
lawyer
