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Underwriting Principles and Controls Part I

I Underwriting Principles and Controls Part I Table of Contents Chapter 1 Underwriting BACKGROUND AND OBJECTIVE 1 Underwriter s Goal 1 Underwriting Process 3 Historical Development of Underwriting 5 Traditional Underwriting Practices 5 Little Information Available 6 Rating Process Systematized 6 Underwriter Responsibilities 7 Potential for Conflict 8 Types of Underwriters 8 Line Underwriters 8 Providing Service to Producers and Policyholders 9 Staff Underwriters 9 Conducting Underwriting Audits 10 Evaluating Underwriting Experience 10 Formulating Underwriting Policy 11 Financial Capacity 11 Regulation 12 Personnel and Physical Resources 12 Reinsurance 12 Functions 12 Types of Reinsurance 13 Proportional and Non-Proportional Reinsurance 13 Proportional

Century Insurance Co. Commercial Auto Guidelines 17 Other Types of Underwriting Guides 24 ... Actuary and Reserving 47 Summary of Actuarial Principles 52 ... between the strictness of selection standards and the necessity of having a large volume of risk units to be insured.

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