Chpt 3. 1,2,3,4 pg 59
1. The process to identify loss exposures faced by an organization or individual and to select the
most appropriate techniques for treating such exposures.
2. Pre- loss
- include the goals of economy, reduction of anxie
4. It is the sum of the loss ratio and expense ratio. Its an overall measure of the underwriting
performance and profitability.
b. If the investment income offsets the underwriting loss.
8. Rate must be adeq
A. The independent agency is a business firm that usually represents several unrelated insurers.
The agency owns the expirations or renewal rights to the business. The independent agent is
compensated by commissions that vary by line of insurance.