Valuation Problems and Why the Underwriter Won’t Give the Insured a Break - ON DEMAND - NO CE
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- Not yet rated
- Categories:
- Big “I” Virtual University | Commercial Lines | Commercial Lines - Basic
- Faculty:
- Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS
- Course Levels:
- All Levels
- Duration:
- 1 Hour
- License:
- Access for 90 day(s) after purchase.
Description
Coinsurance provisions found in property policies exist primarily to assure that the insurance carrier receives adequate premium for the coverage provided. Without a coinsurance condition, and its applicable penalties, insureds might be willing to purchase an amount of coverage somewhat less than the value of the subject property because of the statistically low probability of a total loss.
In this session we dispel the myth that coinsurance is as easy as:
Did/Should x Loss – Deductible = Payment
In fact, it’s a little more complicated, but just as easy to explain.
The true meaning of ACV isn’t what agents have been taught or believe it to be. The definition of ACV isn’t as simple as “Replacement cost at the time of the loss minus physical depreciation.” In fact, the meaning varies by state and even the loss situation.
ACV is not defined by the policy, but may be defined by statute or possibly common law. There are up to four different applications of ACV depending on the state.
There is a not-so-simple, simple answer to this question – yes or no. The answer varies by state. Some states address the depreciation of labor by statute, some by legal precedence, and some not at all.
This part of this session looks at each possibility.
Carriers spend many hours in underwriting meetings discussing “premium leakage.” Maybe you have heard the underwriter slip up and use that term when explaining why they can’t class something a certain way or why the premium cannot be altered any further. And if you didn’t ask the underwriter, I bet you’ve asked yourself – what in the wide-open world is premium leakage?
In this session we define and remove the mystery from the concept of premium leakage. Maybe you can help the underwriter help you with this knowledge.
Basic Course Information
Learning Objectives- Explain Coinsurance – Down and Dirty
- Discuss What is the True Meaning of Actual Cash Value (ACV)
- Understand Can Labor be Depreciated
- Learn What Does Your Underwriter Mean by “Premium Leakage”
Course Materials
| Valuation Problems and Why the Underwriter Won’t Give the Insured a Break Outline (0.01 MB) | Available after Purchase | ||
| Valuation Problems and Why the Underwriter Won’t Give the Insured a Break Handout 1 of 2 (1.19 MB) | Available after Purchase | ||
| Valuation Problems and Why the Underwriter Won’t Give the Insured a Break Handout 2 of 2 (0.63 MB) | Available after Purchase | ||
Faculty
Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS Related Seminars and Products
Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, joined the insurance industry in 1990. He is the Executive Director of the Independent Insurance Agents and Brokers of America (Big "I") Virtual University. His current duties involve researching, writing, and teaching property and casualty insurance coverages and concepts to Big "I" members and others in the insurance industry.
During his career, Boggs has authored more than 300 insurance and risk management-related articles on a wide range of topics as diverse as Credit Default Swaps, the MCS-90, and enterprise risk management. In addition to this, Boggs has written 13 insurance and risk management books:
- "The Insurance Professional's Practical Guide to Workers' Compensation: From History through Audit," now in its second edition;
- "Business Income Insurance Demystified: The Simplified Guide to Time Element Coverages," now in its third edition;
- "Property and Casualty Insurance Concepts Simplified: The Ultimate 'How to' Insurance Guide for Agents, Brokers, Underwriters and Adjusters;"
- "Wow! I Never Knew That! 12 of the Most Misunderstood and Misused P&C Coverages, Concepts and Exclusions;"
- "Insurance, Risk & Risk Management! The Insurance Professional's Guide to Risk Management and Insurance;"
- "Workers' Compensation: How You Can Effectively Answer Your Clients 12 Most Commonly Asked Questions;"
- "Glossary of Insurance Terms;"
- "Choosing the Best Risk Financing Option;"
- "Writing Property and Liability Coverage for Condos;"
- "The Truth about Enterprise Risk Management;"
- "The Experience Mod Worksheet;"
- "What has ISO Done to us Now?" and
- "Cancellations, Non-Renewals & Conditional Renewals: THE Insurance Professional's Guide to Statutory Insurance Carrier Notification Requirements for All 50 States!"
Boggs is a regular speaker at industry events, speaking for groups such as the National Association of Mutual Insurance Companies (NAMIC), the National Society of Insurance Premium Auditors (NSIPA), the American Association of Managing General Agents (AAMGA), the Institute of Work Comp Professionals (IWCP), and the CPCU Society.
A graduate of Liberty University with a bachelor's degree in Journalism, Boggs' background includes work as a risk management consultant, loss control representative, producer, claims manager, and quality assurance specialist