Reference no: EM133093500

Question 1

(a) List FIVE (5) features of an insurance contract which are similar to other types of contracts.

(b) Name and describe THREE (3) unique features which differentiate insurance contracts from other contracts, providing an example for each feature.

(c) Briefly describe the challenges for underwriters when using email in their job and what they can do to overcome these challenges.

Question 2

(a) Define frequency of loss and severity of loss.

(b) Explain why an underwriter normally has more control over loss frequency than loss severity.

(c) Within the context of a homeowners policy application, (ii) distinguish between a named insured and a person insured. (iii) briefly explain how persons insured can affect the desirability of a risk.

(d) When underwriting a property application, explain how an inconsistency could exist between the applicant's occupation and total insurable value. Using examples identify TWO (2) reasons why further investigation would be required.