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Underwriting profit is the profit after these two things are deducted. The first would be any losses incurred from claims. The second would be the companies administrative expenses. Any premium left after those two deductions is underwriting profit.
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Are mutual insurance companies inherently stronger than stock or public insurance companies and why?
The mutual business model in no way implies that it will be a stronger company. The only difference between mutual and stock companies is who the profits are paid to. If a company can not produce underwriting profits, it doesn't matter if a stockholder or a policyholder owns the company it will not last. Underwriter profits are fundimental to the overall operation ratio of a company and the operating ratio determines how well the company is doing. Chad Joiner http://insurance-racsun.blogspot.com
Accounting profits are typically?
greater then economic profits,as accounting profits do not include implicit costs
How do you calculate economic profits?
Profits = revenues - expenses
Of what significance are stock dividends as factors of production?
Although in business usage stock dividends are distributed profits, in economic analysis they figure as returns to capital, a kind of interest payment, since they are a return to finance rather than to entrepreneurship
Which statements is true about profits in a monopolistically competitive market?
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
How may the surety insurance industry be said to have thrived in the mid 1990s?
In 1995, surety underwriting profits nearly doubled to $276.9 million, while fidelity under-writing profits were flat -- up only 1.9 percent to $232.9 million.
What is In house underwriting when dealing with home mortgages?
In House underwriting means that the lender is doing their own underwriting instead of sending it out to a 3rd party underwriter.
When was Professional Liability Underwriting Society created?
Professional Liability Underwriting Society was created in 1986.
Underwriting requirements for public liability insurance?
underwriting requirements of general public insurance covers
In what country is the JUA Underwriting Agency based?
The JUA Underwriting Agency is based out of Australia. JUA is the preferred insurance underwriting agency for many brokers in Australia. JUA has an office in Sydney and one in Melbourne.
What is contigency underwriting?
Contingency underwriting refers to the practice of providing insurance coverage for specific events or situations that fall outside of the usual scope of coverage provided by a standard policy. Insurers may offer contingency coverage for unique risks that require customized terms and conditions. This type of underwriting allows insurers to tailor coverage to meet the specific needs of a client for non-standard risks.
What banking activities were prohibited to commercial banks by the glass steagall act in 1993?
Underwriting stocks :) plato pals :)
Are mutual insurance companies inherently stronger than stock or public insurance companies and why?
The mutual business model in no way implies that it will be a stronger company. The only difference between mutual and stock companies is who the profits are paid to. If a company can not produce underwriting profits, it doesn't matter if a stockholder or a policyholder owns the company it will not last. Underwriter profits are fundimental to the overall operation ratio of a company and the operating ratio determines how well the company is doing. Chad Joiner http://insurance-racsun.blogspot.com
What are the advantages of a decentralized underwriting department?
None
What is the meaning of underwriting?
of Underwrite, The business of an underwriter,
Why is Underwriting important?
http://krsreejit.googlepages.com/insurance
What are the underwriting considerations in insurance?
In general, underwriting involves the assessment of risks. Insurance companies have "underwriting guidelines" that define the metes and bounds of the risks they are willing to accept. Those metes and bounds are defined, in turn, by the type of insurance that the insurer issues. That is, the underwriting considerations for a life insurance company involve factors such as age and health, whereas underwriting considerations for an insurer that issues automobile physical damage coverage involves considerations such as make and model of the auto, where the auto is principally kept, number of miles driven, and driving history. The totality of the underwriting factors, in part, determine the premium that the insurer will charge for the insurance.
