ZIMSEC O Level Commerce Notes: Insurance: Functions of insurance underwriters
Functions of underwriters.
- Are insurers (insurance companies) who provide insurance cover.
- Assess risks (examine details in the proposal form)
- Cover or accept risks by:
- Singing their names against risks they have agreed to cover.
- Charge and collect premiums
- Specialise in different types of risks e.g. fire.
- Sell insurance policies to merchants through brokers.
- Pay commission to brokers.
- Earn profit as remuneration.
- Pay appropriate compensation when loss or risk occurs.
- Found at the Lloyd of London.
- Form syndicates to cover big risks.
- Can re-insure big risks.
- Have large capital to pay big compensations.
- Ensure unlimited investment.
- Suffer unlimited liabilities for losses insured.
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