Mccloskey topic 10

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Author:
tmoy4565
ID:
291299
Filename:
Mccloskey topic 10
Updated:
2014-12-11 00:55:10
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Mccloskey final exam
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  1. What are the 4 risk control goals of insurers?
    • earn a profit
    • meet customer needs
    • comply with legal requirements
    • fulfill duty to society
  2. What is the main purpose of insurer risk control goals?
    to evaluate loss exposures to assist underwriting
  3. #1 risk control goal
    earn a profit
  4. #2 risk control goal
    meet customer needs
  5. #3 risk control goal
    comply with legal requirements
  6. #4 risk control goal
    fulfill duty to society
  7. How does risk control help insurers to reach profit goals?(3)
    • improving underwriting decisions
    • encouraging insureds to improve risk control
    • reducing insureds losses
  8. How does risk control help insurers to meet customer needs?(2)
    • needs arising from legislation¬†
    • sound risk control makes accounts more attractive to underwriters
  9. How does risk control help insurers to comply with legal requirements
    some states require insurers to provide a minimum level of risk control service to commercial insureds
  10. for what kind of policies do some states require insurers to provide a minimum level of risk control service to commercial insureds?
    usually workers compensation and boiler and machinery
  11. How does risk control help insurers fulfill duty to society?(1)
    • for an insurer, preventing losses is preferable to paying for losses¬†(ex occupational injuries cause pain and suffering)
    • ex. a fire may cause employee layoffs and contingent business income losses for suppliers
  12. What are the three types of risk control services insurers typically provide?
    • conducting physical surveys
    • performing risk analysis and improvement
    • developing safety mgmt programs
  13. _____ is when an insurer collects underwriting information on customers loss exposures
    conducting physical surveys
  14. what do insurers look for and do when conducting physical surveys?
    • building construction types,worker occupations, fire protection systems etc
    • inspects the premises and interviews mgmt
  15. what do physical surveys give insurers a better understanding of?
    • better idea of managements ability to control exposures
    • also gain insight as to the extent of moral and morale hazards
  16. Benefits of physical surveys to the underwriter(2)
    • better understanding of loss exposures
    • can quote assuming recommendations will be implemented
  17. Benefits of physical surveys to the insured(3)
    • better understanding of their loss exposures and steps that can be taken to reduce losses
    • able to properly comply with regulations
    • provide better working environment for employees
  18. How does an insurer perform risk analysis and improvement?(2)
    • When an insurer analyzes a customer's loss history and give recommendations to mgmt for reducing hazards that have led to previous losses
    • and by providing training and info
  19. What types of training and info does an insurer do insurers provide for ers?
    • safety programs
    • fire protection systems testing and evaluation
    • preconstruction counseling
  20. How do insurers establish safety mgmt programs?
    • establish risk control goals
    • select appropriate risk control measures
    • establishing monitoring procedures
    • Insurers risk control representative assists the client in all steps of the process except daily implementation(E&O liability)
  21. What does risk control do for underwriters?
    • it enables underwriters to make better underwriting decisions
    • also helps to modify a new applicants loss exposures to meet eligibility requirements
    • (this helps an applicant to remain within the insurer's guidelines)
  22. ______ are often the main communications link between the underwriter and the insured
    risk control reps
  23. how does risk control affect mktg and sales?(2)
    • risk control helps make marginal accounts acceptable
    • it can also convince the potential insured that the insurer understands the firms operations and associated hazards
  24. How does risk control affect claims?(2)
    • risk control needs claim experience info to direct risk control resources and efforts to crucial areas
    • the claims dept relies on risk control for loss experience data and background info that can support the loss adjusting process
  25. how does risk control affect producers?(2)
    • some large agencies and brokerages maintain their own risk control dept
    • if the insured is receiving risk control services from insurer and producer, the two services should coordinate with one another

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