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Commercial UW AU60
Commercial Underwriting Principles Assgnt 2 of 8
| Term | Definition |
|---|---|
| Unfair discrimination | Applying different standards or methods of treatment to insureds who have the same basic characteristics & loss potential, such as charging high-than-normal rates for auto insurance applicant based solely on applicant's race, religion, ethnic background. |
| Termination | An insurer's cancellation of a policy during the policy term or nonrenewal of coverage at the end of a policy term. |
| Declination | An insurer's refusal to provide coverage to an applicant who has made a written request to the insurer or its producer, or a producer's refusal to forward such a written request to an insurer. |
| Notification requirements | Regulatory requirements relating to the timing and contents of an insurer's notice to an insured of the declination, termination, and nonrenewal of insurance coverage. |
| Prior approval | An insurance rating law in which the rate and supporting rules must be filed with and approved by the state insurance department before they can be used. |
| Use and file | An insurance rating law in which the rates must be filed with the state insurance department within a specified period after they are put into use. |
| File and use | An insurance rating law in which the insurer must file rates and supporting rules with the state insurance department prior to their use, but the rates can then be used immediately without specific approval. |
| No-file law | An insurance rating law that allows insurers to develop and use rates without having to file with or get approval from the state insurance department. |
| Deemer provision | A law stating that if an insurance regulator does not approve of an insurer's filing within a specified time, the filing is deemed approved. |
| Cost-based pricing | Insurance rating that attempts to identify and control for every variable that has a significant effect in quantifying differences between otherwise identical risks. |
| Residual market | The term referring collectively to insurers and other organizations that make insurance available through a shared risk mechanism to those who cannot obtain coverage in the admitted market. |
Created by:
lorrainel007
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