Fall 2018 Underwriter Scenarios

10 Questions | Total Attempts: 70

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Fall 2018 Underwriter Scenarios


Questions and Answers
  • 1. 
    New business applications homeowner, automobile and umbrella.
    • Automobile risk- 3 drivers – Husband- 57, wife 56 and son – 19 (licensed 2 years) All drivers are clean. Insurance Score –EE- 3 vehicles- 2012 BMW, 2017 Mercedes Benz and 2012 Toyota Camry. Liability limits of 500/500/100 with full coverage on all vehicles. The son is away at school with vehicle over 100 miles. Husband is an attorney and wife is a nurse.
    • Primary homeowner risk – HO-7, Coverage A $375,000. $1,000 deductible – 1 loss, 7/15/17 wind loss - $6,100, PC 4
    • Secondary homeowner – Ho-3- $110,000 Coverage – pc 9, $500 deductible. No losses. Located on Lake Ontario.
    • Umbrella application – 2 million limit with Sum accepted. The application is listing a 2015 Yamaha Motorcycle with limits of 250/500/100 liability and Sum insured with Progressive and a 45’ Formula Yacht insured with US Boat Insurance Company- $500,000 liability.
    Will you write this risk and explain your answer?
  • 2. 
    We write a homeowner risk that has been with NYCM since 5/2006. Our 3rd year block is May 5, 2021. We receive return mail that is marked undeliverable. The return mail clerk has contacted the agency and the agent states they have been trying to locate the insured with no luck. How will you proceed with this exposure?
  • 3. 
    Pet Injury coverage. What is the maximum we will pay for this coverage? What coverage/coverages are required for this coverage to respond? 
  • 4. 
    Equipment Breakdown coverage. What is the key component needed to trigger a covered loss on equipment breakdown? 
    • A. 

      Power Failure

    • B. 

      Sudden and Accidental Event

    • C. 

      Rust and Corrosion

    • D. 

      All of the Above

  • 5. 
    A total line worksheet is sent in for your review. Renewal with a proposed Coverage A of $2,149,000, the total line will be $4,727,800. What steps do you take when reviewing this policy for renewal?
  • 6. 
    Reviewing Homeowner New Business. Inspection shows a nice Bi-level home, no liability concerns, no alternate wood heat mentioned, home is insured to value. The inspection does show a pool. When writing up the 60-day endorsement to add the pool you notice "PACE" reads foundation. Do you also amend to slab while adding the pool? Yes or No?
  • 7. 
    Automobile New Business. Insured single male age 50, 2013 Toyota Rav4, Clean MVR. When reviewing interview, we find he is a full-time driver for Uber Eats. How do you proceed?
  • 8. 
    Phone call from agent on an existing Home file. Gold account, coupled. Agent received a call from the insured advising they have recently built a small building on the residence premises to be rented out weekly. The most they will rent is a total of 13 weeks. How is this new exposure covered? HO 04 40 or NYC HO 4 42?
  • 9. 
    New Business NYCM standard, Mono line auto, no homeownership, prior carrier: Progressive. 23-year-old single male, 2013 Hyundai Elantra - 50/100/50 limits - Liability only, Insurance score – AD. ·         2/16/17 Chargeable accident - $3,421 paid in property damage ·         5/3/16 - Excessive Speed - 96/65 This risk was referred to the underwriter due to occurrences. The loss of 2/16/17 was duplicated.    Will you write this risk?
  • 10. 
    ACIC Renewal: Monoline account written in 2008. Insurance Score AE. 2 drivers: 54-year-old divorced female and a 22-year-old daughter who has been licensed for 2 years. Vehicles: 2006 Cadillac with 25/50/25 liability limits and $500 comp and collision deductibles (mother is principal operator) and a 2002 GMC Sierra with liability only (daughter is the principal operator). Activity: ·         2 losses - 3/30/16 - 100% NAF (mother's loss) - $0 paid and a 9/30/15 glass claim - $0 paid (withdrawn claim) ·         Mom's MVR is clear ·         Daughter has a 4/16/17 speed - 61/45 and a suspension/reinstatement 6/23/17-8/23/17. Suspension was due to insured receiving ticket during the probation period. Will you renew this policy and explain your answer?
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