Chapter 9 Underwriters

Question 1

What are 4 functions of underwriters?

Answer 1

• Assess the risk being presented to the pool
• Decide whether to accept and what % will accept
• Determine terms and conditions
• Calculate premium

Question 2

4 reasons underwriters only take a share of the risk

Answer 2

• Size of risk and authority levels
• Balancing the portfolio
• Insurance broker input
• New class of business

Question 3

4 Roles of a lead underwriter

Answer 3

review the risk presentation being made by the broker;
* consider whether or not to accept it;
* decide the terms and conditions upon which to accept the proposal; and
* quote a premium

Question 4

Characteristics of good lead underwriter

Answer 4

Credible
Supportable
Competitive quotation

Question 5

Principles that must be followed when placing subscription business to satisfy competition law

Answer 5

European Federation of Insurance Intermediaries (BIPAR)

Question 6

If Overall leader is outside London first London underwriter will be…

Answer 6

Slip leader

Question 7

If Slip leader is insurance company first Lloyd’s syndicate will be…

Answer 7

Bureau leader

Question 8

What changes are agreed leader only under General Underwriters Agreement

Answer 8

Part 1

Question 9

What material changes must be agreed by all underwriters under General Underwriters Agreement

Answer 9

Part 3

Question 10

Agreement where claims agreed only by lead insurer

Answer 10

Single Claims Agreement party SCAp

Question 11

Underwriters initials and date which indicate they have seen the presentation is known as

Answer 11

Scratch