One of the primary sources of information 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 include the selected services discussed below
(4) Check your car insurance
The Fire Marshal Reporting Service. This particular service (FMRS) reports to fire marshals in 27 states unstoppable claims its members have paid. Additionally, the FMRS maintains a catalog on reported fire losses in every state which any member can use to discover the prior loss record of a claimant.
The Burglary and Theft Loss Index. Utilization of the Burglary and Theft Loss Index enables a member to detect simultaneous claims on a single item or a claim on a loss that the claimant has previously been reimbursed.
The nation’s Automobile Theft Bureau. It is a service organization sponsored, operated, and supported by approximately 500 insurance firms 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 made to prevent or reduce such losses.
The Index System. The Index System accumulates and makes available 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 determine whether the claimant has already established a series of losses or is submitting claims for a similar loss to other companies.
Reinsurance is only a transaction between insurance companies where risk exposures are redistributed. Strictly speaking, reinsurance may be understood to be the “insurance of insurance.”7 Reinsurance is a crucial arrangement utilized to spread or layer the liability on high volume risks. The Reinsurance Facilities Corporation reported that more than 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. A lot more than 120 insurers were associated with covering damage done in 1979 to Pennsylvania’s Three Mile Island nuclear power plant, insured for longer 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 company that originally issues anything will be the direct writer or ceding company. The business acknowledging accept all or an element of the risk will be the re insurer.