Risk management

15. An insurer wants to get into a new line of insurance. and use ISO forms for this new line of insurance. ISO led the forms with the state department of insurance. What if anything must the insurer now do with the department of insurance to use those forms? 16. Why does an insurer need to show unearned premiums on its balance sheet? 17. What information is needed to calculate rates based on the loss ratio method that is not needed on the pure premium method? 18. Explain how the businessowners insurance policy is like a homeowner's insurance policy. 19. A commercial insured who suffers a property loss may also receive payment from a business income interruption insurance policy (if the insured has that policy). That seems to be paying the insured twice for one loss. Explain whether that is double recovery or why it does not violate the principle of indemnity. 20. We have an application for insurance from a mechanical engineering company. These companies do the design, drawings and oversight of the mechanical parts of buildings. like elevators and heating & ventilation equipment and all the related components. There is a growing demand for these services to improve the ventilation and air quality of commercial buildings. Getting to write this would expand our insurance book beyond our existing types of insurance policies of traditional small businesses. This policy would be for professional liability insurance. plus worker's compensation insurance (which we offer for our traditional small business accounts). a. What do you want to know about what this company (and similar companies) do? b. How will you get information about this company to make an underwriting decision? c. What risks do you think exist with their world d. What claims are likely to be made against them? e. Should we expand and do this? f What do we have to do about getting insurance policy forms? 9 . How can we evaluate if this company is good. better, or worse than other mechanical engineering companies? h. What concerns should we have if we write only this one application. rather than trying to write many such businesses? i. When do we set case reserves for this insured