One of the primary sources of information for use in underwriting property and liability risks are:
(1) Information contained in the application;
(2) Dunn and Bradstreet;
(3) Mechanical and electrical engineers’ reports. Other sources are the selected services discussed below
(4) Check your cheapest car insurance
The hearth Marshal Reporting Service. This particular service (FMRS) reports to fire marshals in 27 states on fire claims its members have paid. In addition, the FMRS maintains a catalog on reported fire losses in each and every state which any member can use to determine the prior loss record of your claimant.
The Burglary and Theft Loss Index. Use of the Burglary and Theft Loss Index enables a part to detect simultaneous claims on a single item or a claim on a loss that the claimant has previously been reimbursed.
The National Automobile Theft Bureau. This is a service organization sponsored, operated, and sustained by approximately 500 insurance providers writing automobile, fire and theft insurance. The Bureau assists in the recovery of stolen automobiles, investigates automobile and theft losses which might be fraudulent, and promotes programs designed to prevent or reduce such losses.
The Index System. The Index System accumulates and provides to its subscribers records concerning third-party personal and bodily injury claims.
Inside the processing of claims, the indexes of the American Insurance Association (AIA) may be checked to ascertain if the claimant has already established a number of losses or possibly submitting claims for the similar loss to other companies.
Reinsurance is simply a transaction between insurance providers by which risk exposures are redistributed. In fact, reinsurance could be thought as the “insurance of insurance.”7 Reinsurance is a crucial arrangement which is used to spread or layer the liability on high volume risks. The Reinsurance Facilities Corporation reported that 20 insurers, including re insurers, were involved with within the grain elevator explosions that occurred in the U.S. in 1977, when 54 persons died and $50 million in property damage was caused. More than 120 insurers were involved in covering damage completed in 1979 to Pennsylvania’s Three Mile Island nuclear power plant, insured in excess of $300 million.7 http://www.insurance.va.gov/miscellaneous/index.htm
Reinsurance involves a transfer of risk in one insurance carrier to another. The business that originally issues the contract will be the direct writer or ceding company. The organization agreeing to accept any included in the risk is the re insurer.