One of the primary resources to be used in underwriting property and liability risks are:
(1) Information within the application;
(2) Dunn and Bradstreet;
(3) Mechanical and electrical engineers’ reports. Other sources are the selected services discussed below
(4) Check your cheap car insurance
The hearth Marshal Reporting Service. A reverse phone lookup (FMRS) reports to fire marshals in 27 states on fire claims its members have paid. Additionally, the FMRS maintains a catalog on reported fire losses in most state which any member are able to use to look for 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 the same item or a claim on a loss for which the claimant has previously been reimbursed.
The nation’s Automobile Theft Bureau. This can be a service organization sponsored, operated, and supported by approximately 500 insurance firms writing automobile, fire and theft insurance. The Bureau assists within 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 makes available to the subscribers records concerning third-party personal and bodily injury claims.
In the processing of claims, the indexes of the American Insurance Association (AIA) may be checked to ascertain whether or not the claimant has already established a series of losses or possibly submitting claims for the similar loss with other companies.
Reinsurance is just a transaction between insurance firms by which risk exposures are redistributed. Strictly speaking, reinsurance could be thought as the “insurance of insurance.”7 Reinsurance is an important arrangement utilized to spread or layer the liability on high volume risks. The Reinsurance Facilities Corporation reported that over 20 insurers, including re insurers, were involved with since the grain elevator explosions that happened in the U.S. in 1977, when 54 persons died and $50 million in property damage was caused. Greater than 120 insurers were involved in covering damage completed in 1979 to Pennsylvania’s Three Mile Island nuclear power plant, insured for more than $300 million.7 http://www.insurance.va.gov/miscellaneous/index.htm
Reinsurance involves a change in risk in one insurance company to a different. The business that originally issues anything may be the direct writer or ceding company. The business agreeing to accept all or a part of the risk will be the re insurer.