...------------------------------------------------- Principles of Insurance & Risk Management ------------------------------------------------- 9:40 #4 The characteristics of Lloyd’s of London, Lloyd’s technically is not an insurance company, but is a society of members corporation and individuals who underwrite insurance in syndicates; the insurance is written by the various syndicated that belong to Lloyd’s; new individual member who belong to the various syndicates now have limited legal liability; corporation with limited legal liability and limited liability partnerships are also members of Lloyd’s of London; member must also meet stringent financial requirements and Lloyd’s is licensed only in a small number of jurisdictions in the United States. #8a independent agency system also knower as American agency system, independent agency is a business firm that usually represents several unrelated insurers; agency owns the expirations or renewal right to the business; and independent agency is compensated by commissions that vary by line of insurance #8b exclusive agency system, agent represents only one insurer or group of insurers under common ownership Agents do not usually own the expirations or renewal rights to the policies, and Agents are generally paid a lower commission rate on renewal business than on new business. #8c direct writer is an insurer in which the salesperson is an employee of the insurer, not an independent contractor. Employees are usually compensated on a...
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...a marketing company that specializes in getting qualified guaranteed prospects to see in front of independent insurance agents. GPS actually stands for “Guaranteed Prospects to See”. GPS Marketing guarantees every agent that comes aboard with our company that we will put them in front of at least 15 qualified prospects. GPS Marketing’s mission statement is “ Our goal is to get independent insurance agents in front of qualified annuity prospects on a favorable basis which in return increases their income substantially. We do this in a multitude of ways and we want to show you just how we can help you and your business.” In the following paragraphs is a description of how GPS Marketing can do just that. Our first program that we offer our independent insurance agents is our GPS program or our Guaranteed Prospects to See Program. GPS guarantees each of our new independent agents that we will send out one-thousand mailers which are done through direct mail. GPS sends this direct mail to a particular demographic. What this means is that this mailer will only be sent to those individuals that make at least an income of $50,000 or more, own their own home, and are between the ages of 50 and 70 years old. GPS does this for the agent because they will then know that the client has some money to work with or at least a better chance that they have money to work with. This will help the agent potentially make a retirement aspect type of sale whether it be an annuity or some other type of...
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...Table of Contents Why Do Car Insurance Companies Use Credit Scores……….……………page 3 Information considered too determines score…………………….………..page 4 Professionals opposes this policy………………………..…………………page 5 Implementing Step Decrease Program………………………….………….page 6 Why Do Car Insurance Companies Use Credit Scores? Depending on which state an individual lives in , when a motorist submits for automobile coverage they will have their credit history searched by the insurer which is used to gauge for "insurance or credit scores" which are then analyzed to establish the possibility of a probable policyholder filing a claim; carriers think that the financial background of motorists show a direct connection with the chances of them being tangled in accidents or claims and there are reports that show this to be accurate. A company will assess individuals that have been previously insured centered on claim history along with their credit report and assign groups for drivers with similar characteristics. (Online Auto Insurance 2013) When a person submits for an auto insurance policy they will be placed in a unit based on their credit background; comparable to the way insurers use driving reports to assign risks. The riskier a person may be to insure the more likely they will have to pay a lot more for their insurance; the opposite applies as well. If a person has an firt-rate credit history they would probably receive a discount, whereas a poor credit statement may result in...
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...ESSAY ANSWERS Chapter 4 In Whose Interest Does the Physician Act? 1. Why do physicians play such a crucial role in the delivery of medical services? Although only 25 percent of personal medical expenditures are for physician services, the physician controls the use of a much larger portion of medical resources. In addition to their own services, physicians determine admission to the hospital, the length of stay once in the hospital, the use of ancillary services and prescription drugs, referrals to specialists, and even the necessity for services in nonhospital settings, such as home care. The role of the physician has been shaped by two important characteristics of the medical system. The first is the legal system: only physicians are permitted to provide certain services. Second, both patients and insurers lack the necessary information to make many medical-related decisions. Patients depend on the physician for diagnosis and recommended treatment and have limited information on the qualifications of the physician or the specialists to whom they are referred. The patient’s lack of information places the physician in a unique relationship to the patient. The physician becomes the patient’s agent. 2. How might a decrease in physician incomes, possibly as a result of an increase in the number of physicians, affect the physician’s role as the patient’s agent? In addition to being the patient’s agent, physicians are suppliers of a service, and their incomes depend on how much...
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...BROKERS Insurance brokers act as an intermediary between clients and insurance companies. Clients may be either individuals or commercial businesses and organisations. They use their in-depth knowledge of risks and the insurance market to find and arrange suitable insurance policies and arrange cover. They act in the interest of their clients and offer products from more than one insurer to ensure that their clients get the best deal. Retail insurance brokers usually arrange insurance policies for individuals or companies and deal directly with them. Policies range from motor, house, travel or pet cover for individuals or property to employer's liability and public and product liability insurance. Commercial insurance brokers deal with high value and more complex insurance cover in areas such as marine, aviation, oil and gas and financial risks. AGENTS Insurance agents, who may be referred to as insurance sales agents, help clients choose insurance policies that suit their needs. Clients include individuals and families as well as businesses. Captive agents work for an insurance company, and only sell that company's products. They are one ones who connect with the customers emotionally. They are a good mediator between the insurer and the insured. They tell about the latest taste of the consumer in the market to the company. They generally work under (DO) development officer, who works under sales manager. There are many agents under one DO. They also help the agents and give...
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...industry has different component sectors which are; accommodation, transport, attractions, tour operators, travel agents, tourism development and promotion, ancillary services. Tourism is the quickest growing Industry in England from 2010. The Tourism Industry puts the UK economy up by 127 billion pounds a year. There are three different types of Tourism: Domestic Tourism is when the tourists travel within their own country only. For example going from London to Yorkshire for more than 24 hours is a domestic tourism. Albatross London is one of the Domestic companies within the UK. Inbound Tourism is when non-resident people (tourist) visit different countries. Inbound tourism is a large source of income as the tourists who come from the other countries put the money into country they are coming to. Outbound Tourism is when people travel from one country to another. It can be for family holiday or a business trip; e.g. when someone travels from U.S.A to UK. The next pages will be about component sectors in Travel and Tourism Industry. Welcome to the Travel and Tourism Industry. Tourism is a movement of people from their own home to the other place for longer than 24 hours but less than 2 years. This people are called Tourists. Tourism industry has different component sectors which are; accommodation, transport, attractions, tour operators, travel agents, tourism development and promotion, ancillary services. Tourism is the quickest growing Industry in England from...
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...is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods. In order to accomplish this, network marketing companies and their associates recruit individuals I.E. “their sales force,” just like other companies and franchises, have done for years, take for example the insurance industry. How often have you seen ads on television that use the term, “Independent Insurance Agent or Associate?” Yet, as we watch these advertisements we naturally assume they are employees of the company, when in reality they are independent business owners! No doubt you have noticed as you have driven through your neighborhood many of these small businesses, they have signs and other advertisements designed to draw your attention to them. Yet, you will rarely see advertising from the approximately 13 million people who are either involved with direct selling, or in the network marketing industry according to figures by the Direct Selling Association (DSA). There is distinct difference between us and them, in most cases they are assigned an exclusive territory and therefore cannot market outside of their assigned territory. Where as in network marketing in most cases, you can market just about anywhere your company is established! Why are companies willing to pay you to market for them… …Why don’t they just utilize the internet or other traditional...
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...Employee or Independent Contractor? Responsible for Knowing Content of Links Highlighted in Yellow Key Issues 1. Why is the definition of “employee” so important? 2. How does an employer distinguish between an employee and an independent contractor? 3. Which key agencies have suggested criteria for determining if a worker is an employee or an independent contractor? 4. What is the most important factor in determining a worker’s classification? 5. What are the consequences of misclassifying an employee? 6. Various federal and state agencies have established standards for determining worker status. Below are there of the more important: a. IRS common law criteria b. Darden Factors c. FLSA criteria 7. How do the standards above overlap? 8. [pic]Cases Classifications of Workers – there are two general categories of workers: independent contractor or employee. Independent Contractor: (read to Section Form SS-8) Definitions vary based on specific regulations or laws. However, in general, the “payer” has the right to control or direct only the result of the work done by an independent contractor, not the means and methods of accomplishing the result. Misclassification is common and the consequences can be significant for an organization (payer). In most cases, a worker’s status is obvious, but can be complicated. Other Worker Terms Contingent or Temporary Workers: Worker’s job with an employer...
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...Harvard Business School 9-692-015 Rev. January 30, 1997 Manzana Insurance - Fruitvale Branch (Abridged) It was a Monday morning in early September 1991. Bill Pippin had been at Manzana for only a week, but already he was thinking that perhaps he should have taken a different job. He gazed at a note on his desk from John Lombard, his boss at the Fruitvale branch: "I'm giving a speech at a conference on property insurance, so I'll be out of the office until next week. Please give this some thought while I'm gone." The note was attached to a memo from Tom Jacobs, Manzana's senior vice president for underwriting operations: To: John Lombard From: Tom Jacobs Subject: Second Quarter Performance The performance figures on Property Insurance for the second quarter have just been completed, and Fruitvale is at the bottom of the list again. More important, Golden Gate is killing us in your territory, and they have just announced a promise of one-day turnaround time to all agents. If something isn't done immediately to improve your operating performance, a lot of our agents are going to defect to Golden Gate, and some of us are going to need new jobs. Here are some of the numbers: Manzana-Fruitvale This Quarter This Year New policies Endorsements Renewals Turnaround time (average) Renewals late Renewal loss rate 326 206 1,063 6 days 44% 47% This Quarter Last Year 278 235 1,253 5 days 20% 33% Golden Gate This Quarter (estimated) 375 300 1,400 2 days NA 15% Something has got to...
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...LifeSystem The LifeSystem Suite has been developed over the last 10 years into a highly mature solution, currently supporting more than 20 million life insurance contracts in 36 installations across 16 countries globally. “eBaoTech's LifeSystem helps us to leverage our centre of competence for innovative insurance solutions in Luxembourg in different markets and distribution channels.” Swiss Life www.eBaoTech.com info@eBaoTech.com LifeSystem eBaoTech Product Offerings for Life Insurance Our offering for life insurers consists of our flagship LifeSystem Suite, supplemented by components that can be also installed separately like SalesPlatform, LifeClaims and others. In addition, we also offer specialized product Suites for Group Life and Life Insurance Wrappers based on the same architecture as LifeSystem. “eBaoTech’s SaaS offering based on LifeSystem is very useful for us to execute our vision and strategy especially in the economic conditions that is full of uncertainty and also very competitive insurance market. eBaoTech SaaS definitely will bring WanaArtha Life to different level of customer service where we can offer faster and more convenient service towards our customers. During installing period, the solid cooperation between eBaoTech team from Shanghai-Singapore-Indonesia with our dedicated team is the key of success.” Managing Director, WanaArtha Life End-to-End Suites eBaoTech LifeSystem GroupLife AssetLink Typical Sub-Suite Component Offerings ...
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...MAAA, CIDM, ARe, William F. O’Connor, Jr., CPCU, AIM, ARM, Lisa Poirier, CPCU, Thomas E. Quinn, CPCU, ARM and Gregory Riley, CPCU Introduction unning an insurance company is like managing a supermarket, where the price of the product is determined by the checkout clerk.” This decades old quote was meant to accurately describe a process in which subjectivity and perceptions of individual underwriters determined prices. This highlights the historical concern for fairness, accuracy, and consistency in underwriting. When we look at the underwriter’s role today we find two startling realities: (1) the underwriting function, however described and accomplished, is pivotal for any insurer and (2) the industry does not appear to be investing adequately in the development of professional underwriters for the skills being demanded. This is most notable with the impending loss of senior talent to retirement and the increasing availability of electronic tools to support the function. The research in this article examines the changes in the underwriting process. The professional underwriter still brings accuracy, fairness, and a consistent approach to profit to the table for the future oriented insurance company. The success of the professional underwriter is critical for any insurer. However, that success depends on underwriters who can use technology to improve efficiency and drive down costs, and also to guide management risk based decisions across the enterprise. The industry is not investing...
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...number of unexpected ways CDSs improve debt capital markets and our economy as a whole. On balance, these benefits shed optimistic perspectives on the merits of CDSs. If markets can learn from past mistakes, the advantages of CDSs render them indispensable financial instruments that contribute to better financing and information-gathering capability in our economy. Contrary to popular belief, the conceptual underpinnings of credit default swaps (CDSs) are surprisingly similar to those of traditional insurance policies. CDSs arose out of an ordinary transaction: a 1994 deal between J.P. Morgan, the European Bank of Reconstruction and Development (EBRD), and ExxonMobil. In return for an insurance-style premium to the EBRD, J.P. Morgan received full compensation in the case that a loan given to ExxonMobil fell into default (Anthony). Coined the “credit default swap”, the instrument grew to extraordinary popularity in ensuing years. Problems with CDSs arose in 2007-2008, but why? Did growth in CDS balances necessarily doom the U.S. economy for a downturn? All things considered, CDS instruments in...
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...Chihab EL ALAOUI Student ID: 118989 Title: Case of the Manzana Insurance Fruitvale Branch 1. Describe and evaluate Manzana's operations strategy Manzana has an operations strategy focusing on autonomy among branch offices that shows in the case operational inefficiencies, and it considers each branch as a separate profit and loss center with the space to underwrite insurance, collect premiums and settle claims within territory. Manzana has generally 3 territories of operations, where the company does not deal directly with public, instead of that it operates through 200 independent agents whom are working with other companies, but in case of Manzana the agents are dealing with 4 departments that cooperate with them from within to process the policies whom in order based on the policy process: Distribution, Underwriting, Rating and Policy Writing. The major areas of concern includes: high Turnaround time (TAT), the turnaround time is the total time taken to process a request. At present Manzana’s TAT is around six days compared to one day TAT of its major competitor Golden Gate Insurance firm. The inappropriate work force distribution at Manzana makes some workers to be idle and others being stretched to work, making the system inefficient. There is significant proportion of policies which are being renewed late, this is primarily because the policies...
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...Professional’s “Duty of Due Care”: 1. Duty of Care 2. Breach of duty of care by a reasonably prudent professional 3. breach causes damages that were foreseeable. 4. Negligence Theory: , Can negligence be criminal—US v Parks case Yes! If informed of an issue, should follow through and ensure action was taken (supermarket example) States’ Differing Public Policy on role of stakeholders in making a decision that is in the best interests of the company * Half of the states say the officers and directors can take into account stockholders and other stakeholders (employees, customers, supplies, communities). * Pennsylvania and Indiana allow officers to place the interests of stakeholders above stockholders Why most companies choose Delaware to incorporate Management friendly. Example: business judgement rule Drucker’s Aristotelian statement--aligning a company’s competencies with societal problem “Organizations have a responsibility to try to find an approach to basic social problems which fits their competence and which, indeed, makes the social problem into an opportunity for the organization.” Peter Drucker Aristotle’s Eudaimonia—”full flourishing” if one practiced virtues/excellence for the public good...
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...With the aid of case law critically discuss the integration or organisational test of identifying an employee from an independent contractor. In you answer you should indicate the origins of the distinction between an independent contractor and an employee, why courts adopted this test, when was it discarded and reasons thereof. The integration test was developed as an alternative to the control test by Lord Denning in Stevenson, Jordan & Harrison Ltd v MacDonald and Evans (1952). It relied on the role played by the worker within the organisation for which work was performed. Lord Denning stated;“Under a contract of service, a man is employed as part of the business, and his work is done as an integral part of the business; whereas under the contract for service, his work although not done for the business, is not integrated into it but is only accessory to it”. He argued that it is often easy to recognize a contract of service when you see it but difficult to say wherein the difference lies . A ship master, a chauffeur and a reporter on the staff of a newspaper are all employed under a contract for services. This test provide flexibility necessary to deal with varying types of employment relationships and the changing nature of work practises In the above mentioned case Evans Hemming was an accountant who had been employed first as a servant and then as an executive officer by Macdonald and Evans. Shortly after he left them, he wrote a textbook on business management...
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