6 What is the relationship between the following functions w

6. What is the relationship between the following functions within an insurance company?

a. Marketing and underwriting

b. Underwriting and actuarial

c. Actuarial and investment

d. Legal and underwriting

e. Claims and marketing

f. Claims adjusting and actuarial

Solution

a. marketing people will generate sales to insurace products and underwiriters providers their support in terms of sales of the policies.

b. underwriting is the process where the party is ready to take the liability of the principal and the actuarial can decide the amount of money that can fix as premium to the holder and the total risk matured amount.

c. the collected amount should be invest in different areas to get returns.

d. legal department will take are of the legal issues which relates to a polocy or polocy holder

e. claims are the payments to the insurance holders in the times of maturity and in the times of any risk happens to him.

f. claims are based on the maturity and risk happen during a given period. and it should be planned by the actuarial team.