There are six Line Underwriter Steps/Activities. You are to identify the six major steps/activities. Then explain in detail the purpose of the step/activity and explain what the underwriter will do to complete the step/activity. Information in the book starts on page 4.16.

The underwriter at Great Insurance Company, Sam, has received an application from Happy Time Toys. They produce toys for the age group of five to eight years old. They have been producing toys for eight year and are a privately held company, no shareholders. Top management has been in place for the past five years.

They are located in Tulsa, Oklahoma. They have sales of $10 Million and sell only in the US. They have 20% of their toys that are produced in China under contract. They use wholesalers to distribute their toys to the US market. They do not sell directly to the public.

Their application shows that they are looking for product liability coverage for their toy products, both those made in the US and in China. Their application also shows that they have no current lawsuits for injuries caused by their toys. They want a coverage limit of $20 million for product liability to protect them from lawsuits from injuries and damages caused by their products.

The application is from a long time independent agent for Great Insurance Company. Great Insurance Company provides coverage to commercial customers including Workers Compensation, Property, and Liability including Product Liability. Their underwriting guidelines restrict Product Liability coverage to products only made in the US.