100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
WGU C16 BUSINESS OF INSURANCE EXAM 2024 COMPLETE 250 QUESTIONS WITH 100%CORRECT DETAILED AND VERIFIED ANSWERS BRAND NEW EXAM ALREADY GRADED A+$20.49
Add to cart
WGU C16 BUSINESS OF INSURANCE
EXAM 2024 COMPLETE 250
QUESTIONS WITH 100%CORRECT
DETAILED AND VERIFIED ANSWERS
BRAND NEW EXAM ALREADY
GRADED A+
How are brokers affected by market cycles? -
....ANSWER...During a soft market cycle, brokers
enjoy the abundance of capacity, premium
rates decline and underwriters are less demanding.
However a decline in rates means a
decline in commission.
During a hard market cycle, brokers must labour
intensively find capacity for
their clients needs and must negotiate more diligently
to obtain reasonable prices.
Commission income rises when premium increases.
1
,How are consumers affected by market cycles? -
....ANSWER...During a soft market cycle, consumers are
simply more neutral in their reaction to
the insurance industry.
During a hard market cycle, consumers become wary,
distressed and often angry.
They are faced with premiums that are suddenly not
affordable, availability that is
restrictive and coverage terms that are limited.
Consumers are in an awkward
situation as they cannot afford to buy insurance that is
mandated by law.
What are some disadvantages that may flow from an
insurer exerting
excessive internal cost-cutting? - ....ANSWER...They
may find that the company's functional competence
suffers, questionable
risk selection occurs, succession plans cannot be
developed and the company's
financial results are negatively affected.
2
,Explain influences over Canadian marketplace -
....ANSWER...- Distribution channels (some support
multiple distribution channels)
- Companies' influence - product offerings, capacity,
rates, market consolidation (mergers)
- Reinsurance impacts primary market (insurers feel
impact of rate increase in reinsurance market)
- Consumer influences of supply and demand
-licensing
-level of government regulation
-international influences
Market cycle affect on insurers - ....ANSWER...soft
market - insurers begin to lose profitability
-aggressively look for new business
-existing business under attack
-hard market - insures gain profitability
but face anomisty of brokers and public if prices are
high or not accepting risk
market cycle on risk managers - ....ANSWER...soft market
- lower prices, easier underwriting, less demanding loss
control requirements
3
, -deliver risk protection more easily
-hard markets - need to be creative in offering options to
deal with risk
-alternative risk financing propositions like capitves
- reciprocal exahcnes, less convntial ways to deal with
risk
market cycle affects on government - .......... ANSWER...-
hard markets - impose measures to make it affordable
- focused on making mandatory insurance available
-establish backstops for cat loses
strategies for profitability - ....ANSWER... Approach
each risk very cautiously being offering to insure it
o Set more exacting underwriting standards
o Give loss control and loss prevention measures
significant consideration
o Tighten policy terms to limit exposures
o Make substantial rate increase
o Terminate relationships with brokers with
unprofitable results or with only a small volume of
business
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller symonmuchiru. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
