By now (10/6/18), you should have completed reading Chapters 1-4 of your text. This assignment us due on or before October 18, 2018. You can email it to me. 1. Describe the approa ches underwriters can take to minimize the effects of adverse selection. 2. Describe the approaches underwriters can take to ensure the adequacy of policyholders' surplus. Define "policyholders surplus." 3. What's the difference between line underwriters and staff underwriters in terms of the work they perform? 4. Your text notes that effective account selection is essential to attaining four goals. What are those goals? 5. Explain the term "premium-to-surplus ratio." How is it calculated? Why is it called a "capacity ratio? 6. Explain how rapid premium growth can cause insurers to experience excessive premium-to-surplus ratios. 7. What is predictive modeling? Explain the advantages of predictive modeling in making underwriting decisions. 8. Explain how compliance with underwriting guidelines ensures adherence to reinsurance treaty limitations. 9. Distinguish between treaty and facultative underwriting. 10. What is an insurer's combined ratio and how is it calculated? 11. What can we conclude about an insurer with each of the following combined ratios? a. A combined ratio of 100 percent b. A combined ratio of greater than 100% C. A combined ratio of less than 100%