Principles of Risk Management and Insurance, 13th Edition

Review Questions

1. How does rate making, or the pricing of insurance, differ from the pricing of other products?

2. 1. a. Define the meaning of underwriting.

   2. Briefly explain the basic principles of underwriting.

   3. Identify the major sources of information available to underwriters.

3. Briefly describe the sales and marketing activities of insurers.

4. Explain the basic objectives in the settlement of claims.

5. Describe the steps involved in the settlement of a claim.

6. Briefly describe the following types of claims adjustors:

   1. Agents

   2. Staff claims representatives

   3. Independent adjustors

   4. Public adjustors

7. a.

   1. What is the meaning of reinsurance?

   2. Briefly explain the reasons for reinsurance.

   3. Explain the meaning of “securitization of risk.”

8. Distinguish between facultative ...