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Chapter 10 Nature of the Insurance Industry
Apply Your Knowledge
16. Do you think an insurer should be permitted to use an applicant’s
insurance score to determine what kind of risk they may present? Why
or why not? Explain your answer.
17. Think of an example not mentioned in the text of how a policyholder or
an insurance agent can break utmost good faith. What processes are
in place to make sure that the insurance agent and the policyholder are
behaving honestly?
18. Think of an instance in which it may be better for the insured not to file
an insurance claim even if the damage may be covered. Why would
someone decide not to file a claim?
19. Conduct an Internet search for the term “insurance fraud”. What types of
fraud are at the top of your search? Why do you think this is the case?
From the reports you read, how do you think that fraud could have been
prevented?
20. Create a one-act play that shows the interaction between an agent and
an applicant or an investigator and a claimant. Be sure the dialogue
shows the nature of the relationships.
Working in Teams
Working in a team, conduct an Internet search to find applications for
insurance policies. Beyond a person’s name, what other information is
included in the application? Why would having this information help an
insurance carrier determine the potential risk an applicant represents?
Create a chart that shows what questions are used most frequently and
what they tell the company about the applicant.
G-W Learning Mobile Site
Visit the G-W Learning mobile site to complete the chapter
pretest and post test, to review the History of Insurance articles,
and to practice vocabulary using e-flash cards. If you do not have a smartphone,
visit the G-W Learning companion website to access these features.
G-W Learning mobile site: www.m.g-wlearning.com
G-W Learning companion website: www.g-wlearning.com