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22
Selection and Classification of
Risks—Part 2
Dan M. McGill
Revised by Jeremy S. Holmes and James F. Winberg
with contribution by Ronald F. Duska

Chapter Outline

SOURCES OF INFORMATION
The Agent
The Applicant
The Medical Examiner
Attending Physicians
Inspection Report
The Medical Information Bureau
CLASSIFICATION OF RISKS
The Judgment Method of Rating
The Numerical Rating System
NONMEDICAL INSURANCE
History of Nonmedical Insurance
Underwriting Safeguards
Economics of Nonmedical Insurance
Special Branches of Nonmedical Insurance
INSURABILITY OPTION
INSURANCE AT EXTREMES OF AGE
ETHICAL ISSUES OF CLASSIFYING RISK
The Agent/Client Relationship
The Agent/Insurer Relationship
The Insured/Insurer Relationship

The preceding chapter reviewed the type of information an insurance company’s underwriting department needs when considering an application for insurance. This chapter briefly describes the sources from which it obtains this information. Much of it comes from more than one source. This gives the com- pany the means of verifying information that it considers critical to the underwriting decision and serves as a deterrent to collusion or fraud by any of the parties to the transaction.

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