Exam (elaborations)
Chapter 6 RMI 3011 Questions with right answers.
- Course
- Institution
Chapter 6 RMI 3011 Questions with right answers.
[Show more]
Seller
Follow
Content preview
Chapter 6 RMI 3011 Questions with rightanswers.
Ratemaking ANS - refers to the pricing of insurance and the calculation of insurance premiums
Rate ANS - price per unit of insurance
Exposure unit ANS - the unit of measurement used in insurance pricing
Premium= rate x exposure units
Rates and premiums are determined by an _________, using the company's past loss experience and
industry statistics ANS - Actuary
Actuaries also determine the adequacy of ANS - loss reserves, allocate expenses, and compile statistics
for company management and state regulatory officials.
Life insurance certification is called ANS - Society of Actuaries (SOA)
Associate of the Society of Actuaries (ASA)
Fellow of Society of Actuaries (FSA)
Property and Casualty Insurance Certification ANS - Casualty Actuarial Society (CAS)
Associate of the Casualty Society of Actuaries (ACSA)
Fellow of the Casualty Actuarial Society (FCAS)
Production ANS - refers to the sales and marketing activities of insurers
Agents are often referred to as ANS - producers
Underwriting ANS - the process of selecting, classifying, and pricing applicants for insurance
, statement of underwriting policy ANS - establishes policies that are consistent with the company's
objectives
underwriting guide ANS - Acceptable, borderline, and prohibited classes of business
Amounts of insurance that can be written
Territories to be developed
Forms and rating plans to be used
Business that requires approval by a senior underwriter
the basic principles of underwriting include ANS - -Attain an underwriting profit
-Select prospective insureds according to the company's underwriting standards
-Provide equity among the policyholders
Adverse Selection ANS - is the tendency of people with a average-chance of loss to seek insurance at
standard rates. If not controlled by underwriting, this will result in higher-than-expected loss levels.
Steps in Underwriting ANS - •Underwriting starts with the agent
•Information for underwriting comes from:
-The application
-The agent's report
-An inspection report
-Physical inspection
-A physical examination and attending physician's report
-MIB report
•After reviewing the information, the underwriter can:
-Accept the application and recommend that the policy be issued
-Accept the application subject to restrictions or modifications
-Reject the application
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 Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now