RMI 3011 (5) | UPDATED Questions with 100% Verified
Answers
Q1: Underwriting
A: selection, classification and pricing of insurance applications offered to an insurer
Q2: Field Underwriting
A: underwriting done by the agent
Q3: Reinsurance
A: an arrangement in which an insurance company transfers to another insurance company
some or all of the risks it has taken on by writing primary insurance. The primary insurer or
ceding company that issues the policy transfers all or part of the risk to another insurer,
the reinsurer.
Q4: Treaty (automatic) Reinsurance
A: primary insurer agrees in advanced to transfer a portion of some type of loss exposure
covered by the primary insurer, reinsurer agrees to accept them automatically.
Q5: Facultative Reinsurance
A: Optional for both primary insurer and reinsurer, handled case-by-case, retains "faculty" or
privilege or accepting/ rejecting reinsurance.
Q6: Independent Adjusters
A: adjust claims using subcontractors in auto and homeowner's where company is small,
prefers outsourcing this function, or insurers are dispersed geographically
Q7: Public Adjusters
A: represent the policy owner for a fee, help through process and defend interests
Q8: Rate Making
A: process of establishing the price to be charged for insurance
Q9: Rate
A: price charged for each unit of coverage, called an exposure unit, the policy provides
Q10: Premium
A: the price charged for the amount of coverage the policy provides
Q11: Pure (net) Rate
Answers
Q1: Underwriting
A: selection, classification and pricing of insurance applications offered to an insurer
Q2: Field Underwriting
A: underwriting done by the agent
Q3: Reinsurance
A: an arrangement in which an insurance company transfers to another insurance company
some or all of the risks it has taken on by writing primary insurance. The primary insurer or
ceding company that issues the policy transfers all or part of the risk to another insurer,
the reinsurer.
Q4: Treaty (automatic) Reinsurance
A: primary insurer agrees in advanced to transfer a portion of some type of loss exposure
covered by the primary insurer, reinsurer agrees to accept them automatically.
Q5: Facultative Reinsurance
A: Optional for both primary insurer and reinsurer, handled case-by-case, retains "faculty" or
privilege or accepting/ rejecting reinsurance.
Q6: Independent Adjusters
A: adjust claims using subcontractors in auto and homeowner's where company is small,
prefers outsourcing this function, or insurers are dispersed geographically
Q7: Public Adjusters
A: represent the policy owner for a fee, help through process and defend interests
Q8: Rate Making
A: process of establishing the price to be charged for insurance
Q9: Rate
A: price charged for each unit of coverage, called an exposure unit, the policy provides
Q10: Premium
A: the price charged for the amount of coverage the policy provides
Q11: Pure (net) Rate
