RMI 3502 Lecture 1: PNC FINAL EXAM
14 Feb 2017
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Risk control, premium auditing, claims, why insurers fail, info technology (add these) Pnc final exam ( please kill me now) Insurer risk control goals: main purpose is to evaluate loss exposures to assist underwriting. Goal #1-earn a profit: risk control helps insurers reach profit goals. Goal #2 meet customer needs (usually commercial and industrial: needs arising from legislation (osha) & threat of large liability judgements, sound risk control makes accounts more attractive to underwriters. Goal#3 comply with legal requirements: some states require insurers to provide a minimum level of risk control service to commercial insureds to provide minimum level of risk control service to commercial insureds. Goal#4 fulfill duty to society: preventing losses from occurring is preferable to paying for losses. Fire may cause employee layoffs and business income losses. Risk control services: conduct physical surveys. Collect underwriting info on customers loss exposures. Construction types, worker occupations, fire protection systems. Gain insight into extent of moral and morale hazards.
