Question

1.Which of the following is a temporary insurance contract?

		Certificate of insurance
		Certificate of evidence
		Promissory note
		Binder

2.Some of the primary responsibilities of a(n) _____________ underwriter include conducting market research, creating and revising underwriting guidelines, and conducting underwriting audits.

		line
		staff

Answer 1

1. An insurance binder is a document or contract that serves the purpose of a temporary insurance policy until the full policy has been issued.

Whereas a certificate of insurance is a single-page paper/document that showcases information about the certain types of insurance coverage one holds.

A promissory note is a financial contract that contains promise by one party to pay another party a sum of money at a specified date.

Therefore the correct answer is Binder.

2.Few Activities of staff underwriters as follows:
-> Research the market
-> Formulate underwriting policy
-> Conduct underwriting audits
-> Evaluate loss experience
-> Review and revise pricing plans

Activities of line underwriters as follows:

-> Select Insureds
-> Classify and price accounts
-> Recommend or provide coverage
-> Manage a book of business

Therefore the correct ans is staff underwriter.