O'Reilly logo

Fundamentals of Risk and Insurance, 11th Edition by Therese M. Vaughan, Emmett J. Vaughan

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

images

CHAPTER OBJECTIVES

When you have finished this chapter, you should be able to

  • Identify and differentiate between the two broad approaches to ratemaking
  • Explain the purpose of underwriting and describe the steps in the underwriting process
  • Identify the principal sources of information on which an underwriter may rely
  • Identify and differentiate among the various types of adjusters
  • Identify and explain the steps in the loss adjustment process

As a part of our study of the insurance mechanism and the way it works, it will be helpful to examine some of the unique facets of insurance company operations. The unique nature of the insurance product requires certain specialized functions that do not exist in other businesses. In addition, financial record keeping of insurers deviates from common practices. In this chapter, we will examine some of the specialized activities of insurance companies, and in the next we will look at the financial aspects of their operations.

images

FUNCTIONS OF INSURERS

images

Although there are definite operational differences between life insurance companies and property and liability insurers, the major activities of all insurers may be classified as follows:

  1. Ratemaking ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required