Intro to Risk Mgt Homework 4.docx

Intro to Risk Mgt Homework 4.docx - Carl Trunko Intro to...

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Carl Trunko Intro to Risk Mgt/Insurance Homework #4 1. Why do agents and brokers who sell life insurance need to get approval from the home office before the policy is issued? To minimize the chance that its agent may fraudulently or mistakenly create an erroneous policy that cannot be corrected, the power to bind the life insurance company remains with the home office. 2. Explain the difference between underwriters and actuaries. Underwriters review applications for insurance and then either accept them at an appropriate rate or reject them. This person makes a decision based on criteria set by the insurer’s management and on his or her own personal experience and judgment. Actuaries are skilled professionals who apply their extensive training in mathematics and
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