Principles of Risk Management and Insurance, 13th Edition

Chapter 6 Insurance Company Operations

“People who work for insurance companies do a lot more than sell insurance.”

Insurance Information Institute

Learning Objectives

After studying this chapter, you should be able to

• Explain the rate-making function of insurers.

• Explain the steps in the underwriting process.

• Describe the sales and marketing activities of insurers.

• Describe the steps in the process of settling a claim.

• Explain the reasons for reinsurance and the various types of reinsurance treaties.

• Explain the importance of insurance company investments and identify the various types of investments of insurers.

Jessica, age 24, is an English major at a large eastern university. The placement director for the university has an annual job ...