See the full video at https://rumble.com/vnhcno-insurance-underwriting.html and https://youtu.be/8Gp6WT990IY
Before the adjustment of insurance claims begins a claim investigation he or she must understand the nature of insurance because that is how an insurance policy arises.
Warranty is defined as the process of accepting or rejecting risks. It requires a decision by the insurer on the risks for which insurance is sought and the conditions under which the insurance will be written if the risk is acceptable. Underwriting insurance is a feature that is unique to the insurance industry that transfers the risk of loss from the insured person or entity to the insurer.
Three centuries ago, insurance was originally a very personal matter. A property owner would discuss with an individual insurer problems, valuations and risks of loss in a commercial business. They then agree on the terms under which the insurer would insure the risk. Together they would draw up a contract and the insurer would write his name at the bottom – he literally took out the insurance.
When Lloyd's insurance market started in Edward Lloyd's cafes, police often wrote in chalk on a blackboard and those who wanted to join the insurance would sign their name and the percentage they wanted to take off the risk according to the terms of the insurance on the board.
In its original use, the insurance company referred to the activities of the insurance business. Today, in the application, there is a more limited meaning applied to the term.
Underwriting, in modern use, is a systematic technique for evaluating risks offered to an insurer by potential insured persons. The function of underwriting involves evaluating, selecting, classifying and evaluating each risk. Underwriting sets the standards for coverage and amount of protection for each acceptable risk. It formulates and administers the rules and procedures used to ensure that predetermined standards are met by warranties. Insurers are the risk takers. Adjusters only become involved when the risk becomes a loss and the adjuster is encouraged to keep the promises made by the policy created by the insurer.
In the United States, the insurance company has become more entrepreneurial and less individual. Underwriters are now always employed by insurance companies and no longer jeopardize their personal fortunes.
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to employment as an insurance consultant specializing in insurance coverage, insurance claims management, bad faith insurance and insurance fraud almost as much for insurers and insurers.
He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance and claims management attorney and more than 54 years in the insurance industry.
He is available at http://www.zalma.com and firstname.lastname@example.org. Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following libraries with books and other materials to enable insurance companies and their claims staff to become liable for insurance.
Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library-https: //zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4
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