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Unformatted text preview: Chapter 6 Outline I. Basic Company Functions A.Rate Making B.Underwriting C.Production D.Claim Settlement E. Reinsurance F. Investments G.Accounting H.Legal Function I. Loss Control Services J. Electronic Data Processing II. Rate Making A.How Insurance Pricing Differs from Pricing of Other Products B.Activities of Actuaries III. Underwriting A.Refers to the process of selecting and classifying applicants for insurance B.Underwriting Policy 1. Importance of a clear statement of underwriting policy 2. Contents of the underwriting guide C.Basic Underwriting Principles 1. Selection of insureds according to the companys underwriting standards 2. Proper balance of insureds within each rating classification 3. Equity among policyowners D.Steps in Underwriting 1. Agent as the first underwriter 2. Sources of underwriting information a. Application b. Agents report c. Inspection report d. Physical inspection e. Attending physicians report and physical examination f. Medical Information Bureau...
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- Summer '08