AU 60 - ASSIGNMENT 8 -
COMMUNICATION AND
NEGOTIATION FOR UNDERWRITERS
QUESTIONS & ANSWERS 100%
SOLVED
Bargaining Stage - ANSWERThe next stage of the negotiations is ____. Based on
the foundation established in the opening stage, the underwriter and the producer
collaboratively explore solutions that will meet the needs of both parties. The
underwriter should express his or her willingness to negotiate and his or her interest
in reaching a mutually beneficial resolution.
Sender - ANSWERThe person who initiates the communication process.
Projection - ANSWERA defense mechanism in which a person attributes his or her
own thoughts and feelings to another.
Attribution - ANSWERThe process of assigning or ascribing a characteristic or
quality to a person or an object.
Value system - ANSWERA set of precepts or rules of conduct defining acceptable
and unacceptable behavior.
Opening Stage - ANSWERIn the ____ stage, the underwriter should set
expectations for the negotiation and be open to the needs of the producer. It is
important at this stage for the underwriter to engage in active listening and to read
any nonverbal cues the producer may be providing. This stage sets the tone for the
rest of the negotiations process.
Closing Stage - ANSWERThe final stage is ____ where both parties summarize the
discussions and seek agreement. The underwriter should express his or her
willingness to work with the producer and to close the sale.
Receiver - ANSWERThe person who chooses from the verbal and nonverbal
symbols in the sender's message to interpret the message's meaning.
Initial credibility - ANSWERThe degree of credibility an individual has before
interpersonal communication begins.
Derived credibility - ANSWERAn individual's perceived credibility during
interpersonal communication.
,Terminal credibility - ANSWERAn individual's perceived credibility after interpersonal
communication in a given situation has occurred.
Message - ANSWERThe words a sender uses in the communications process and
their underlying theme.
Encoding - ANSWERThe process of translating a message into words.
Medium - ANSWERThe means by which a message is transmitted from sender to
receiver.
Decoding - ANSWERThe process by which a receiver interprets a sender's
message.
Active listening - ANSWERThe process of listening with mental and physical
openness to more clearly determine a message's meaning.
C. Initial credibility. - ANSWERCredibility that depends on an individual's reputation
and experience is known as
A. Terminal credibility.
B. Reputational credibility.
C. Initial credibility.
D. Derived credibility.
B. Verbal messages should have some demonstrable utility or relevance for the
receiver. - ANSWERWhich one of the following statements is correct with respect to
communication?
A. An underwriter cannot evaluate whether the receiver has interpreted a message
accurately.
B. Verbal messages should have some demonstrable utility or relevance for the
receiver.
C. Feelings and emotions are more accurately conveyed by verbal rather than
nonverbal communication.
D. Nonverbal communication is far less effective in conveying meaning than verbal
communication.
A. When selling a decision to make changes to an account, highlighting a resulting
benefit can help. - ANSWERWhich one of the following statements is true regarding
selling a decision?
A. When selling a decision to make changes to an account, highlighting a resulting
benefit can help.
B. Underwriters cannot convince producers that the reasoning behind declining an
account is valid.
C. Underwriters should avoid building rapport with producers as this can influence
their decisions.
, D. When trying to persuade, generalizations tend to be more effective than specific
facts.
D. Am I really listening, or am I thinking about what I'll say next? - ANSWERHugh, a
commercial property underwriter, received a submission from a producer and elected
to decline the business. Based on the application and Best's Underwriting Guide,
Hugh determined that there was a higher-than-average fire risk associated with the
applicant's operations. The producer has telephoned Hugh to discuss the file and to
try to convince him to accept the business. While listening to the producer, which
one of the following questions would Hugh be best to ask himself?
A. How can I explain the fire hazards in a way the producer will understand?
B. Why does the producer not understand that the risk is unacceptable?
C. What was it about my written correspondence that was unclear to the producer?
D. Am I really listening, or am I thinking about what I'll say next?
A. Make an outline of the information he needs. - ANSWERWayne is a commercial
property underwriter. He has received a submission from a producer and has
determined that he needs additional information to properly assess the risk. Which
one of the following would Wayne be best to do first?
A. Make an outline of the information he needs.
B. Chastise the producer for not providing the information.
C. Decline the risk due to the lack of information.
D. Request that a loss control report be done.
A. The ability to listen actively - ANSWERWhich one of the following is one of the
most essential skills for the receiver in the communication process model?
A. The ability to listen actively
B. The ability to accurately decode messages
C. The ability to perceive nonverbal messages
D. The ability to provide feedback to the sender
D. Miscommunication can result if an underwriter's written or oral communication is
ambiguous. - ANSWERWhich one of the following statements is correct in the
context of the communication process model?
A. Effective communication is independent of formal grammatical rules.
B. The clearest way to communicate with producers and insureds is to use technical
insurance terminology.
C. The term encoding refers to the process of wording communication so that its
meaning is obscured.
D. Miscommunication can result if an underwriter's written or oral communication is
ambiguous.
D. Telephone the producer. - ANSWERArpad is a commercial lines underwriter at
ABC Insurance. He is reviewing a property insurance submission and notices that
the producer has neglected to indicate the construction type of the building on the
COMMUNICATION AND
NEGOTIATION FOR UNDERWRITERS
QUESTIONS & ANSWERS 100%
SOLVED
Bargaining Stage - ANSWERThe next stage of the negotiations is ____. Based on
the foundation established in the opening stage, the underwriter and the producer
collaboratively explore solutions that will meet the needs of both parties. The
underwriter should express his or her willingness to negotiate and his or her interest
in reaching a mutually beneficial resolution.
Sender - ANSWERThe person who initiates the communication process.
Projection - ANSWERA defense mechanism in which a person attributes his or her
own thoughts and feelings to another.
Attribution - ANSWERThe process of assigning or ascribing a characteristic or
quality to a person or an object.
Value system - ANSWERA set of precepts or rules of conduct defining acceptable
and unacceptable behavior.
Opening Stage - ANSWERIn the ____ stage, the underwriter should set
expectations for the negotiation and be open to the needs of the producer. It is
important at this stage for the underwriter to engage in active listening and to read
any nonverbal cues the producer may be providing. This stage sets the tone for the
rest of the negotiations process.
Closing Stage - ANSWERThe final stage is ____ where both parties summarize the
discussions and seek agreement. The underwriter should express his or her
willingness to work with the producer and to close the sale.
Receiver - ANSWERThe person who chooses from the verbal and nonverbal
symbols in the sender's message to interpret the message's meaning.
Initial credibility - ANSWERThe degree of credibility an individual has before
interpersonal communication begins.
Derived credibility - ANSWERAn individual's perceived credibility during
interpersonal communication.
,Terminal credibility - ANSWERAn individual's perceived credibility after interpersonal
communication in a given situation has occurred.
Message - ANSWERThe words a sender uses in the communications process and
their underlying theme.
Encoding - ANSWERThe process of translating a message into words.
Medium - ANSWERThe means by which a message is transmitted from sender to
receiver.
Decoding - ANSWERThe process by which a receiver interprets a sender's
message.
Active listening - ANSWERThe process of listening with mental and physical
openness to more clearly determine a message's meaning.
C. Initial credibility. - ANSWERCredibility that depends on an individual's reputation
and experience is known as
A. Terminal credibility.
B. Reputational credibility.
C. Initial credibility.
D. Derived credibility.
B. Verbal messages should have some demonstrable utility or relevance for the
receiver. - ANSWERWhich one of the following statements is correct with respect to
communication?
A. An underwriter cannot evaluate whether the receiver has interpreted a message
accurately.
B. Verbal messages should have some demonstrable utility or relevance for the
receiver.
C. Feelings and emotions are more accurately conveyed by verbal rather than
nonverbal communication.
D. Nonverbal communication is far less effective in conveying meaning than verbal
communication.
A. When selling a decision to make changes to an account, highlighting a resulting
benefit can help. - ANSWERWhich one of the following statements is true regarding
selling a decision?
A. When selling a decision to make changes to an account, highlighting a resulting
benefit can help.
B. Underwriters cannot convince producers that the reasoning behind declining an
account is valid.
C. Underwriters should avoid building rapport with producers as this can influence
their decisions.
, D. When trying to persuade, generalizations tend to be more effective than specific
facts.
D. Am I really listening, or am I thinking about what I'll say next? - ANSWERHugh, a
commercial property underwriter, received a submission from a producer and elected
to decline the business. Based on the application and Best's Underwriting Guide,
Hugh determined that there was a higher-than-average fire risk associated with the
applicant's operations. The producer has telephoned Hugh to discuss the file and to
try to convince him to accept the business. While listening to the producer, which
one of the following questions would Hugh be best to ask himself?
A. How can I explain the fire hazards in a way the producer will understand?
B. Why does the producer not understand that the risk is unacceptable?
C. What was it about my written correspondence that was unclear to the producer?
D. Am I really listening, or am I thinking about what I'll say next?
A. Make an outline of the information he needs. - ANSWERWayne is a commercial
property underwriter. He has received a submission from a producer and has
determined that he needs additional information to properly assess the risk. Which
one of the following would Wayne be best to do first?
A. Make an outline of the information he needs.
B. Chastise the producer for not providing the information.
C. Decline the risk due to the lack of information.
D. Request that a loss control report be done.
A. The ability to listen actively - ANSWERWhich one of the following is one of the
most essential skills for the receiver in the communication process model?
A. The ability to listen actively
B. The ability to accurately decode messages
C. The ability to perceive nonverbal messages
D. The ability to provide feedback to the sender
D. Miscommunication can result if an underwriter's written or oral communication is
ambiguous. - ANSWERWhich one of the following statements is correct in the
context of the communication process model?
A. Effective communication is independent of formal grammatical rules.
B. The clearest way to communicate with producers and insureds is to use technical
insurance terminology.
C. The term encoding refers to the process of wording communication so that its
meaning is obscured.
D. Miscommunication can result if an underwriter's written or oral communication is
ambiguous.
D. Telephone the producer. - ANSWERArpad is a commercial lines underwriter at
ABC Insurance. He is reviewing a property insurance submission and notices that
the producer has neglected to indicate the construction type of the building on the
