STUDY 10 – Underwriting Exposure Measurement.pdf View or Download
C13 - Chapter 10
Terms | Definitions |
|---|---|
 What is a moral hazard? | it is the likelihood of a loss caused by some deficiency in the character of the insured. |
| What is a physical hazard? | they are losses that arise from the nature of the work undertaken. e.g. construction, location etc. |
| What can an insurer do to identify physical hazards? | they can gain information from applications, inspections and surveys. |
| What kind of information is found in a survey? | risks are classified in surveys under 3 categories: simple, complex and hazardous |
| What type of information is required for a construction risk? | identity of the insured, general contractor, supervision, permits, blueprints, materials and machinery, nature of tools and equipment, unusual practices or hazards. |
| What specific information about manufacturing risks is needed? | class and type of goods manufactured, machinery, loading arrangements, processes and materials involved, quality control, U.S. sales. |
| Name four hazardous risks. | gas distribution operations (explosion hazard), off-premises welding (fire), construction sites, certain theatres, stadiums and sporting events. |
| What information would an underwriter need for a weed spraying operation? | identity and competence of persons doing spraying, who controls it, equipment, chemicals used, purpose of spraying, exact location of spraying, wind directions, farming methods, copy of contracts and terms |
| Of what interest are claims reports to underwriters? | comments on desirability of a risk has an important bearing on an insureds future insurability. |
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