Part a
1) Texas Workers Compensation Self Insurance Group Requirements
a) What is the TDI definition of a self Insurance Group
b) What are the minimum number of employers to form a WC self insurance group?
c) What are the security requirements for such a group?
d) What are the fidelity bond requirements for such a group? (what is a fidelity bond?)
e) What is a requirement if the group hires a service company to pay claims, etc.?
2) Windstorm Inspection and windstorm insurance (TWIA - Texas Windstorm Insurance Association)
a) What are the fourteen counties in the 14 first tier counties (catastrophe area) for windstorm in Texas?
Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kennedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Willacy.
b) What are the minimum wind speed requirements for properties for TWIA windstorm insurance in each of the following areas:
i) Inland II - 110 mph
ii) Inland I - 120 mph
iii) Seaward - 130 mph
c) When are over-water boat houses covered for TWIA windstorm insurance
3) In order to properly classify insurance so that data is recorded properly, the NAIC has developed a Uniform Property & Casualty Product Coding Matrix. Answer these questions associated with this uniform code (do not use general knowledge or other resources)
a) What is the difference between ‘ farmowners' and ‘ commercial farm and ranch'
b) What is a DIC policy
c) What is the difference between a medical malpractice ‘ occurrence' and ‘ claims made policy'
d) How does ‘ alternative workers compensation' differ from ‘ workers compensation'
4) The (NIPR) National Insurance Producer Registry (NAIC)
a) Summarize what is the producer database
b) Who manages the NIPR
c) When was the NIPR established
d) Does the NIPR ask agents to provide social security numbers
5) Texas Claims Adjuster Licensing
a) What are the two ways a person can qualify for an adjuster' s license
1) Successfully completing a TDI certified course and approved final exam
2) By passing the Pearson VUE exam.
b) Can a person fax a license application? NO
c) What is the fingerprint requirement? You must have a fingerprint receipt if you do not do the Pearson VUE rxam.
d) What are the two designation exemptions that waive an examination for a property- casualty adjuster' s license
Part b
A. Basic Information about Select Insurance Companies
On the Texas Department of Insurance Website www.tdi.texas.gov look up the insurers listed below.
Provide the following information about each:
1. Type of company: stock, mutual, reciprocal, etc.
2. Texas domestic or foreign company
3. Current A.M. Best rating
4. Current automobile complaint index (Most Recent)
5. Asset to liability Ratio (Most Recent)
6. Actions in last ten years resulting in fines of $50,000 or more.
7. Does the company use credit information in the underwriting of auto insurance
8. Is the company licensed to reinsure, if so, what lines
9. Other pertinent information you feel is relevant
Celina Insurance
Farmers Insurance Exchange
Travelers Casualty Insurance Company of America
Federal Insurance Company (Chubb)
Allstate Insurance Company
State Farm Auto Insurance
GEICO General Insurance Company
Progressive County Mutual Insurance Company
B. Measuring Insurance Company Underwriting Performance
Download the Zenith Insurance Company 2010Combined Annual Statement in Blackboard
1. For each of the five years of financial Data calculate the following underwriting ratios
2. Explain the trend of each of these ratios over the five years in the annual statement
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Ratio*
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2010
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2009
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2008
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2007
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2006
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Net underwriting gain or loss
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Expense ratio
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Combined ratio
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* The term in our text followed by the calculation in the combined annual statement for Zenith
Loss ratio: Losses and loss expenses incurred to premiums earned
Expense ratio: Other underwriting expenses to net premiums written
Combined ratio: (loss ratio + expense ratio)
C. Measuring Insurance Company Financial Performance
Download the Erie Insurance Annual Report for 2011 in Blackboard
1. Calculate and/or find the ratios for the three years 2011, 2010, 2009
2. Explain the trend of each of these ratios over the three years in in the annual statement
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Ratio*
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2011
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2010
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2009
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Statutory Combined Ratio
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Investment income ratio
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Overall operating ratio
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Return on Equity
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Statutory Combines Ratio (see Erie report)
Investment income ratio (net investment income / earned premiums)
Overall operating ratio (statutory combined ratio - investment income ratio)
Return on equity (see Erie report)