Key Terms
Policyholder / Assured / Insured
Carrier / Insurer
Insurance Contract
Insurance Amount
Premium
Premium Payment Term / Mode / Frequency
Coverage
Insurance Agent
Insurance Broker
Underwriter
Actual Case Value (ACV)
Replacement Value
Appraisal
Arbitration
Claim
Claimant
Deductibles
Aggregated Limit (Aggregate limit of liability)
Zero Depreciation Cover (Bumper to bumper mostly for automobiles)
Underwriting (Risk Review / Risk Assessment) - is the process of evaluating the risk of a policyholder filing a claim (Identify risks, Analyze risks & Quote a premium)
Underwriting (UW) Adjustment - is a change made to a policy that has not passed the underwriting rules check
Document Adjustments
Use a consistent approach
Use tools
Avoid bias
Insurance quote: This is an estimate of the cost of an insurance policy based on the information provided by the policyholder.
Submission States - Before an individual insurance policy is issued, a submission (potential policy) goes through various stages of the process. The submission status indicates where a submission is within that process.
Stages: Quoting, Not Taken, Underwriting, Approved, Pending request, Pending payment, Needs more information, Unapproved, Quoted, Issued)
Layering / Layer Builder - the process of building an insurance coverage program by using the excess of loss approach. This involves multiple insurers writing coverage, each over the lower limits written by other insurers
Umbrella Liability Coverage, Coinsurance, Layered policy schedule
Account current/summary - A summary statement of an insurance agent's business over a period. It includes gross premiums, agency commissions, and payments made or received. The account current ensures that premiums are paid to the insurance company on time
Renewal Policy - Renewing an insurance policy extends the coverage of an existing policy beyond its expiration date. This ensures that the policyholder continues to be protected against financial losses and potential risks.
COB (Coordination of Benefits) - This is a process that helps health insurance providers determine which plan is primary and which is secondary when a patient has multiple insurance plans. The primary plan pays first, and the secondary plan pays for any additional expenses.
Broker finalization on Quote - Broker happy or not happy with quote
Policy status - As bound, Firm order noted or Declined
Risk Mitigation
Accept
Avoid
Reduce
Transfer
About Insurance Industry
Its a Contract
Primary Functions
Provide Reliability
Provide protection
Evaluate risk
Collective risk sharing
Secondary Functions
Prevent Losses
Provide capital
Ensures the welfare of the society
Indirect Functions
Savings and Investment
Risk-free trade
Employment
Types of Insurance
Auto Insurance
Health Insurance
Life Insurance
Long Term Care Insurance (Catering to people who has chronic medical conditions, mostly for caregiving)
Disability Insurance (Prevent the person working cause of a disability)
Credit Insurance (purchased by the borrower to take of non-payment scenarios)
Property Insurance
Homeowners Insurance
Business Insurance (like Property Insurance, Liability Insurance, Commercial Vehicle Insurance, Worker compensation insurance)
Liability Insurance
Rural Insurance (specifically for rural people to take of their farm-related businesses)
Annuities (It intends to enhance retirement security as Nature of the underlying investment, Primary Purpose, Nature of pay-out commitment, Tax Status, premium pay-out arrangement, etc)
Pet Insurance
General Insurance Principles
Principle of utmost good faith
Principle of proximity cause (causa proximal)
Principle of insurable interest
Principle of indemnity
Principle of subrogation
Principle of contribution (Double Insurance)
Principle of loss minimization
The END.
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