Study 6 Underwriting & Rate Setting

What do underwriters take into consideration when making their decision?

What contributes to the Reliability of Predictions:

The second function of an underwriter is to determine the maximum insurance the insurer can insure

An application for insurance is

Regardless of how accurate the probability of an event is to occur, it will never reach certainty.

Underwriting is the selecting of risks and applying the appropriate rate.

What is included in the steps in the ratemaking process.

What are the benefits of a written application

What knowledge is required of an underwriter?

Which theory(ies) are used in ratemaking:

Which unique insurance contract feature reinforces the Duty to Disclose?

Adding a loading to a base rate increases the rate. The purpose of loading(s) are/is

Oral applications are preferred

Adding a credit to the base rate decreases the premium. Why are credits added to a risk?

Ratemaking is a process of establishing rates

What reason(s) would an insurer reject a risk?

What decisions does an underwriter have when reviewing a risk?

What meaning(s) does Exposure have in the insurance context?