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ISO information iso has a database of 10B reports for statistics to help standardize policies and
legal reforms, and this helps to better predict loss.
Insurance lesson: Insurers report their information to reduce the success of fraud.
Manuscript policies The wording in the manuscript policies is extremely important, especially for cases
like the attacks on the World Trade Center. Deciding from the wording whether it
was one or two occurrences. A difference of a few words in the policy resulted in a
doubling of the payout from the insurance company. $3.5b --> $7b
Insurance lesson: Manuscript policies lack the high degree of standardization and
the test of time applied to policy wording found in ISO policies. Sometimes that
can work against the insured.
Falling Ice In Tampa Florida, Raymonds car was struck by a chunk of ice which totalled his car.
Still to this day, nobody knows where the ice block came from. In Florida the least
thing you expect is ice falling from the sky, but there are infinite perils that can
happen.
insurance lesson: Because there are an infinite number of different perils waiting to
wreak havoc, most insureds prefer open-perils policies.
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,insurance and risk exam.pdf insurance and risk exam insurance and risk exam.pdf
Electrical Surge Rachels house was struck by lightning during a storm and it resulted in her air con.
unit is getting fried. Her insurance agent denied her claim but after pushing further
it turned out that the electrical surge was actually covered.
insurance lesson: Policies are confusing. Even insurance agents sometimes can get
confused about policy wording and coverages
Zero Deductible John covered his car with auto insurance, and didn't need to pay any deductibles.
Statefarm kept getting burned by this, and now it's virtually impossible to see a
zero-deductible policy.
insurance lesson: This example shows what can go wrong when there is no
deductibles. State farm no longer allows this form of abuse from the insured. John
either would be dropped from coverage, or his premium would increase
State Farm State Farm had an underwriting loss of $5 billion in 2001, and it increased to $6
billion in 2002 due to auto and homeoweners' insurance. In 2002, investment gains
didn't offset losses and as a result State Farm's net loss was $2.9 billlion.
insurance lesson: In most years, as insurer's investment gains offset its underwriting
losses, but not always.
Textile Owner Owner of Rhode Island textile mill made his mill safer but could not get a discount
- he convinced other safe mill owners to form Manufacturers Mutual Fire Insurance,
the first factory mutual in 1935, they saved 50% From the beginning factory mutuals
have focused on loss prevention
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, insurance and risk exam.pdf insurance and risk exam insurance and risk exam.pdf
John Wanted to run John founded a life insurance company for long distance runners. He raised $2
million and partnered with Lincoln National Insurance Company for reinsurance. He
kept the first $25,000 of risk per policy and retained 65% of premiums and sold
67,000 policies over three years. Reinsurers make it possible for new insurance
companies to start from screatch.
A reinsurer is a company that sells a portion of their risk to other insurance
companies. This helps prevent catastropic loss from occuring for the company
selling some of their risk. It also benefits new insurance companies who won't have
the capital in case of a large loss.
Independent Agents Independent agents account for 47.9% of all P&C premiums, and 67.3% of
commercial P&C premium. In life insurance, agents accounted for 48% of all sales.
This solidifies that independent agents are a dominate force. Independent agents
are a major part of insurance markets. They represent many insurance companies
and are able to enter into different agreements with their insurers.
Insurance in Islam In Islamic cultures, policyholders are like stockholdrers in that they are entitled to
the compnay's profits and liable for losses. This is based on the concept of
cooperative insurance Insurance policies differ from country to country, as well as
from plan to plan.
insurance and risk exam.pdf insurance and risk exam.pdf insurance and risk exam.pdf
ISO information iso has a database of 10B reports for statistics to help standardize policies and
legal reforms, and this helps to better predict loss.
Insurance lesson: Insurers report their information to reduce the success of fraud.
Manuscript policies The wording in the manuscript policies is extremely important, especially for cases
like the attacks on the World Trade Center. Deciding from the wording whether it
was one or two occurrences. A difference of a few words in the policy resulted in a
doubling of the payout from the insurance company. $3.5b --> $7b
Insurance lesson: Manuscript policies lack the high degree of standardization and
the test of time applied to policy wording found in ISO policies. Sometimes that
can work against the insured.
Falling Ice In Tampa Florida, Raymonds car was struck by a chunk of ice which totalled his car.
Still to this day, nobody knows where the ice block came from. In Florida the least
thing you expect is ice falling from the sky, but there are infinite perils that can
happen.
insurance lesson: Because there are an infinite number of different perils waiting to
wreak havoc, most insureds prefer open-perils policies.
insurance and risk exam.pdf insurance and risk exam.pdf insurance and risk exam.pdf
,insurance and risk exam.pdf insurance and risk exam insurance and risk exam.pdf
Electrical Surge Rachels house was struck by lightning during a storm and it resulted in her air con.
unit is getting fried. Her insurance agent denied her claim but after pushing further
it turned out that the electrical surge was actually covered.
insurance lesson: Policies are confusing. Even insurance agents sometimes can get
confused about policy wording and coverages
Zero Deductible John covered his car with auto insurance, and didn't need to pay any deductibles.
Statefarm kept getting burned by this, and now it's virtually impossible to see a
zero-deductible policy.
insurance lesson: This example shows what can go wrong when there is no
deductibles. State farm no longer allows this form of abuse from the insured. John
either would be dropped from coverage, or his premium would increase
State Farm State Farm had an underwriting loss of $5 billion in 2001, and it increased to $6
billion in 2002 due to auto and homeoweners' insurance. In 2002, investment gains
didn't offset losses and as a result State Farm's net loss was $2.9 billlion.
insurance lesson: In most years, as insurer's investment gains offset its underwriting
losses, but not always.
Textile Owner Owner of Rhode Island textile mill made his mill safer but could not get a discount
- he convinced other safe mill owners to form Manufacturers Mutual Fire Insurance,
the first factory mutual in 1935, they saved 50% From the beginning factory mutuals
have focused on loss prevention
insurance and risk exam.pdf insurance and risk exam.pdf insurance and risk exam.pdf
, insurance and risk exam.pdf insurance and risk exam insurance and risk exam.pdf
John Wanted to run John founded a life insurance company for long distance runners. He raised $2
million and partnered with Lincoln National Insurance Company for reinsurance. He
kept the first $25,000 of risk per policy and retained 65% of premiums and sold
67,000 policies over three years. Reinsurers make it possible for new insurance
companies to start from screatch.
A reinsurer is a company that sells a portion of their risk to other insurance
companies. This helps prevent catastropic loss from occuring for the company
selling some of their risk. It also benefits new insurance companies who won't have
the capital in case of a large loss.
Independent Agents Independent agents account for 47.9% of all P&C premiums, and 67.3% of
commercial P&C premium. In life insurance, agents accounted for 48% of all sales.
This solidifies that independent agents are a dominate force. Independent agents
are a major part of insurance markets. They represent many insurance companies
and are able to enter into different agreements with their insurers.
Insurance in Islam In Islamic cultures, policyholders are like stockholdrers in that they are entitled to
the compnay's profits and liable for losses. This is based on the concept of
cooperative insurance Insurance policies differ from country to country, as well as
from plan to plan.
insurance and risk exam.pdf insurance and risk exam.pdf insurance and risk exam.pdf
