Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

CPCU 520 Chapter 5

CPCU 520 Chapter 5 Risk Control and Premium Auditing

TermDefinition
Moral hazard a condition that increases the likelihood that a person will intentionally cause or exaggerate a loss
Morale hazard a condition of carelessness or indifference that increases the frequency or severity of loss
Exposure unit a fundamental measure of the loss exposure assumed by an insurer
Experience modification a rate multiplier derived from the experience rating computations
Exposure unit (unit of exposure) the unit of measure (i.e. area, gross receipts, payroll) used to determine an insurers policy premium
Test audit an audit conducted by an insurance advisory organization or bureau to check the accuracy of insurers’ premium audits
Premium pay (shift differential) a payroll system that increases the regular hourly wage rate for the night shift or other special conditions
Deposit premium the amount the primary insurer pays the reinsurer pending the determination of the actual reinsurance premium owed
Primary purpose of risk control function evaluate loss exposures to assist with underwriting decisions
Insurer risk control goals earn a profit; meet customer needs; comply with legal requirements; fulfill duty to society
Types of risk control services conducting physical surveys; performing risk analysis and improvements; developing safety managment programs
Factors affecting risk control service levels line of insurance; commercial insured size; types of loss exposures insured; potential legal liability
Departments risk control cooperates with underwriting; marketing and sales; premium auditing; claims, producers
Reasons for premium audits determine correct premiums; collect ratemaking data; meet regulatory requirements; deter and detect fraud; reinsurance insured's confidence; obtain additional information
Premium audit process planning; reviewing operations; determining employment relationships; finding/evaluating books and records; auditing books or records; analyzing and verifying premium related data; reporting the findings
Premium audit contributions ability to properly classify accounts; conducted in timely manner; verify employment classification regarding claims; provide information for risk control
Created by: CHahnCPCU
Popular Insurance sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards