As an underwriter your task is rather difficult and requires not only mathematical analysis
of risk situations, but also critical analysis of people involved in such situations to arrive
at the most accurate and sound judgment of the outcomes of risky situations. Your
assessment is key to the level of protection your company can offer, and even whether or
not offering coverage against a specific peril is even feasible, based on the number of
exposures and the likely frequency of any loss that may occur.
There are several factors one must consider when assessing risk. What is the role of the
following factors as key criteria for judging risk, providing insurance coverage and
costing that insurance premium? Explain each:
1. Age
2. Gender
3. Health

b) Describe each type of Automobile physical damage insurance. What does each cover?
1. Collision Insurance
2. Comprehensive Insurance
3. Uninsured Motorist Insurance

(5 marks each)
(15 marks total)

c) Describe why a business might need Public Liability Insurance or Product Liability
Insurance.

3
d) Discuss and compare the Health Maintenance Organization (HMO) to a Preferred
Provider Organization (PPO)

e) Identify and discuss characteristics of each type of life Insurance.
1. Term Life
2. Whole Life
3. Endowment Life
4. Universal Life

 

Answer rating: 100% (QA)

a Age The older someone is the more likely they are to have health problems This means that they are more likely to make a claim on their insurance and so their premiums will be higher Gender Women ar... View the full answer