Among the primary resources 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 include the selected services discussed below
(4) Check your general car insurance
The hearth Marshal Reporting Service. This particular service (FMRS) reports to fire marshals in 27 states unstoppable claims its members have paid. Furthermore, the FMRS maintains an index on reported fire losses in most state which any member can use to determine the prior loss record of a claimant.
The Burglary and Theft Loss Index. Technique Burglary and Theft Loss Index enables a part to detect simultaneous claims on a single item or perhaps a claim on a loss that the claimant has previously been reimbursed.
The nation’s Automobile Theft Bureau. This is a service organization sponsored, operated, and sustained 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 may be fraudulent, and promotes programs designed to prevent or reduce such losses.
The Index System. The Index System accumulates and offers for the subscribers records concerning third-party personal and bodily injury claims.
Inside the processing of claims, the indexes of the American Insurance Association (AIA) might be checked to ascertain whether the claimant has already established some losses or is submitting claims for a similar loss with other companies.
Reinsurance is just a transaction between insurance firms where risk exposures are redistributed. As it happens, reinsurance might be defined as the “insurance of insurance.”7 Reinsurance is a vital arrangement utilized to spread or layer the liability on high volume risks. The Reinsurance Facilities Corporation reported that 20 insurers, including re insurers, were involved with since the grain elevator explosions that happened in the U.S. in 1977, when 54 persons were killed and $50 million in property damage was caused. More than 120 insurers were associated with covering damage carried out 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 transfer of risk from insurance carrier to another. The business that originally issues anything may be the direct writer or ceding company. The organization receiving accept all or a part of the risk will be the re insurer.