Underwriting rules decide if a risk
qualifies for coverage
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| Term | Definition |
|---|---|
| Underwriting rules decide if a risk | qualifies for coverage |
| Underwriting | Process which determines whether to sell a policy and what premium to charge |
| The more coverage purchased, | The higher the premium |
| Investigating claim history | includes both the type and number of claims filed |
| As it pertains to construction, when are premiums lower? | When sturdier materials are used, such as brick. |
| What is considered in availability of local fire protection? | Quality community fire protection and nearby water sources. |
| Rating Territory | Different areas have different risks; area is factored into insurance premiums |
| What is considered when classifying a rating territory? | Higher crime rates, storm activity, claims history, flood risk |
| Why does the price of a home not equal the cost to rebuild? | Because the price of a home includes the price of the land (property) |
| Premium discounts are offered based on | factors likely to reduce losses or expenses |
| Paid in Full Discount | Discount for paying a year's worth of insurance premiums up front |
| Mature Homeowner Discount | Owners have reached a certain age (dependent on insurance company) |
| Claim Free Discount | Discount for having never made a claim |
| Non-Smoker Discount | You don't smoke! |
| New Home Discount | Encourages buyers to purchase new homes/first-time homes |
| Credit-based Discount | Determined from credit score |
| Multi Policy discount | Discount for having multiple policies |
| Protective Devices Discount | Discount for having extra security devices protecting the dwelling (smoke detectors, fire extinguishers, burglar alarms, deadbolts, etc) |
| Loss Step 1: Notification | Notify agent or insurance company immediately; report any losses due to crime to police |
| Loss Step 2: Review | Review your policy and ask the insurance company questions regarding coverage dollar limits |
| Loss Step 3: Forms | Ask what forms are needed. Be timely and accurate. |
| Loss Step 4: Details | Make a detailed list of all damages and photograph/tape all you can before repairs are made. |
| Loss Step 5: Temporary | Make temporary repairs to keep things livable. Save receipts for temporary repairs, submit claim to insurance so they can inspect before repairing permanently. |
| Loss Step 6: Contact | Tell agent/insurance company where they can reach you. |
| Loss Step 7: Log | Write down date, name, and title of person spoken with and log everything said during the conversation. |
| Always keep | Inventory, Receipts, Photos/Videos, Documents (second location), Appraisal |
| When is your actual premium price determined? | Determined after the company receives the application and underwriting process is completed |
| Is a premium quote binding? | No. |