Key Terms Assignments 1 - 5

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Across
  1. 2. ability of an insurer to meet its financial obligations as they become due, even those resulting from insured losses that may be claimed several years in the future
  2. 5. resource for classifying accounts and developing premiums for given types of insurance, including rules, factors, and guidelines for applying the rates
  3. 6. expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy; acronym is LAE
  4. 8. condition that increases the frequency or severity of a loss
  5. 11. process of selecting insureds, pricing coverage, determining insurance policy terms and conditions, and then monitoring the decisions made
  6. 13. losses that have occurred during a specific period no matter when claims resulting from the losses are paid
  7. 14. amount the insurer estimates and sets aside to pay on an existing claim that has not been settled
Down
  1. 1. transfer of insurance risk from one insurer to another in return of a reinsurance premium to indemnify another insurer
  2. 3. price per exposure unit for insurance coverage
  3. 4. measures losses and LAE against earned premiums; reflects the percentage of premiums being consumed by losses
  4. 7. losses that have been paid to or no behalf of insureds during a given period
  5. 9. independent agent who represents insurance customer
  6. 10. sells insurance for one or more insurers; aka producer
  7. 12. a contract to pay an amount directly related to the amount of the loss
  8. 14. conscious act or decision not to act that reduces the frequency and/or severity of losses or makes losses more predictable