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14 Cards in this Set
- Front
- Back
Underwriting
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The process of selecting insureds, pricing coverage, determining insurance policy terms and conditions, and then monitoring the underwriting decisions made
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Book of Business
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A group of policies with a common characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency
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Adverse Selection
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The tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance
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Policyholder's Surplus
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Under statutory accounting principles (sap), an insurer's total admitted assets minus its total liabilities
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Capacity
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The amount of business an insurer is able to write, usually based on a comparison of the insurer's written premiums to its policyholders' surplus
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Underwriting Guidelines
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A written manual that communicates an insurer's underwriting policy and that specifies the attributes of an account that an insurer is willing to insure
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Underwriting Authority
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The scope of decisions that an underwriter can make without receiving approval from someone at a higher level
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Line underwriter
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Underwrtier who is primarily responsible for implementing the steps in the underwriting process
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Staff underwriter
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Underwriter who is usually located in the home office and who assists underwriting management with making and implementing underwriting policy
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Manuscript policy
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An insurance policy that is specifically drafted according to terms negotiated between a specific insured and an insurer
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Underwriting policy
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A guide to individual and aggregate policy selection that supports an insurer's mission statement
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Advisory organization
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An independent organization that works with and on behalf of insurers that purchase or subscribe to its services
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Prospective loss costs
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loss data that are modified by loss development, trending and credibility processes, but without considerations for profit and expense
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Loss development
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The increase or decrease of incurred losses over time
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