Assignment 8 - Underwriting Activities

The state advisory organization has developed a new homeowner's form which increases the limits of liability for personal property in guns, silverware, jewelry, and boats. Jancy Insurance Company is considering modifying this form for its own use. Which one of the following members of Jancy's staff would be involved in the research and development of this new form? Select one: A. Emma, the staff underwriter B. Merve, the claims manager C. Antonia, the accounting manager D. Clara, the underwriting manager

A. Emma, the staff underwriter

An insurance company needs to hire an employee with knowledge of insurance policy forms and the ability to relate policy provisions to the loss exposures of individual policyholders. The person will also prepare premium quotes and process cancellations. Which one of the following employees would best suit the company's needs? Select one: A. Line underwriter B. Producer C. Staff underwriter D. Premium auditor

A. Line underwriter

Which one of the following statements is correct with respect to line underwriters? Select one: A. Line underwriters can offer valuable technical assistance to an insured's risk manager and to the producer responsible for the account. B. Line underwriters formulate underwriting policy and develop underwriting guides. C. Line underwriters select and rate new business. They are not generally involved in the proposal or renewal process. D. Line underwriters focus on risk characteristics and need not be knowledgeable about policy forms and provisions.

A. Line underwriters can offer valuable technical assistance to an insured's risk manager and to the producer responsible for the account.

Staff underwriters share research of the market responsibilities with actuarial and marketing departments. Research includes an ongoing evaluation of which one of the following? Select one: A. Optimal product mix in the book of business B. The hit ratios by underwriter C. Average loss ratio for a book of business D. Revision to coverage forms

A. Optimal product mix in the book of business

Which one of the following tasks is the responsibility of a staff underwriter as opposed to a line underwriter? Select one: A. Review and revise rating plans B. Prepare premium quotations C. Verify policies are issued with appropriate forms and endorsements D. Assist producers and insureds in determining appropriate coverage

A. Review and revise rating plans

Sofie, a property underwriter for Cintriell Insurance Company is reviewing a new homeowners application. Sofie has changed the protection class to unprotected, as the fire protection class listed by the producer is an eight and is incorrect. Which one of the following line underwriter activities is Sofie performing? Select one: A. Coordinating with producer efforts B. Classifying and pricing accounts C. Recommending correct coverage D. Selecting insureds

B. Classifying and pricing accounts

The focus of a line underwriter is Select one: A. Conducting education and training. B. Evaluating new submissions and renewal underwriting. C. Securing and maintaining treaty reinsurance. D. Managing the risk selection process.

B. Evaluating new submissions and renewal underwriting.

Which one of the following statements regarding underwriter responsibilities is correct? Select one: A. Staff underwriters offer valuable technical assistance to the insured's risk manager and the producer who is directly responsible for determining what coverage best meets the insured's needs. B. Staff underwriters typically share responsibility for researching fundamental insurance issues with the actuarial and marketing departments. C. Line underwriters often serve on industry committees that study standard policy forms and recommend changes. D. Line underwriters are generally responsible for completing underwriting audits of the branch or region in which they work.

B. Staff underwriters typically share responsibility for researching fundamental insurance issues with the actuarial and marketing departments.

Tobias, a successful producer with Barnley's Insurance Company, is struggling with an intricate quote on homeowners coverage for his insured, Hanna. Hanna not only has substantial collections of guns and silverware, but also has a small farm located at her premises. Which one of the following individuals from Barnley Insurance Company could provide assistance and support to Tobias? Select one: A. Staff underwriter B. The line underwriter C. The actuary D. The claims representative

B. The line underwriter

While developing goals for its book of business, an insurer's staff underwriter decides to increase its market share of workers compensation insurance in the construction industry. This type of underwriting activity is known as Select one: A. Developing underwriting guides. B. Providing assistance to policyholders. C. Formulating underwriting policy. D. Reviewing and revising rating plans.

C. Formulating underwriting policy.

The common distinction between line underwriters and staff underwriters is that line underwriters Select one: A. Research the market. Staff underwriters verify that policies are issued with the appropriate forms and endorsements. B. Conduct underwriting audits. Staff underwriters prepare files for the data entry department. C. Implement the steps in the underwriting process. Staff underwriters assist underwriting management with formulating underwriting policy. D. Develop underwriting guides. Staff underwriters provide service to policyholders.

C. Implement the steps in the underwriting process. Staff underwriters assist underwriting management with formulating underwriting policy.

All of the following are underwriting activities typically performed by staff underwriters, EXCEPT: Select one: A. Research the market B. Conduct underwriting audits C. Support producers and insureds D. Formulate underwriting policy

C. Support producers and insureds

Which one of the following will draft a manuscript policy or endorsement that is worded to address the specific needs of the insured? Select one: A. Underwriting supervisor B. Underwriting specialist C. Staff underwriter D. Line underwriter

D. Line underwriter

Maja, who has 29 years of experience as a professional liability underwriter, works in the home office of Richley Insurance Company. Her primary responsibilities involve formulating underwriting policy and revising underwriting guides for various lines of professional liability insurance that will be used by personnel in the company's field offices. Maja is functioning as a Select one: A. Line underwriter. B. Field underwriter. C. Chartered underwriter. D. Staff underwriter.

D. Staff underwriter.