Across
- 6. the income the insurer earns from the investment of unearned premiums and pay reserves
- 7. the amount by which earned premiums fall short of the cost of incurred claims and expenses
- 8. the price of a unit of insurance usually for one year
- 10. adjustments to current reserves for claims that have yet to be settled to reflect the estimated final cost of claims
- 12. the total cost of insurance
- 13. used when the body of statistical data is too fragmented to permit class rating. i.e. commercial property
- 15. used when statistics can be gathered on a large number of risks that share common characteristics. i.e. auto insurance
Down
- 1. the denomination in which the unit of exposure is expressed. i.e. gross sales
- 2. the amount of money left to the insurer after it has paid all its expenses
- 3. the general expenses the insurer incurs to operate the business
- 4. costs incurred by the insurer to conclude a contract of insurance with a policyholder. i.e. commission
- 5. a specified amount of the exposure base
- 9. the premium required to pay claims
- 11. adjustments applied to all losses to reflect what they would probably cost if they were to occur next year rather than having occurred at some time in the past
- 14. the process by which underwriters apply the rates to the information gathered to determine premium for individual risks