Underwriting Department

Underwriter

Principle of Indemnity

Underwriter Responsibilities

Adverse Selection

Principle Distribution Exposure

Profitable Distribution of Exposures AKA Spread of Risks

Insurance

Large Group

Hardship

Catastrophic

Uncertain

Definite and Measurable

Predictable

Large C-H-U-M-P

Insurable Interest

Loss Exposure

4 Types of Loss Exposure

Property Loss Exposure

Liability Loss Exposure

Personal (Human) Loss Exposure

Personnel Loss Exposure

Peril

Hazard

3 Types of Hazards

Physical Hazard

Moral Hazard

Morale Hazard

Law of Large Numbers

Pure Risks

Speculative Risks

Risk

2 Types of Risks