AU 60 Chapter 3 | 20 accurate Definitions , 100% accurate already graded A+

Information Efficiency

Gathers the most useful information at the lowest cost.

Front-Line Underwriter

Decides whether to send an insurance application to an insurer for possible coverage.

ACORD Supplemental Application

Is a standard insurance application for certain coverages or classes of business.

Loss History

Lists the applicant's past claim payments.

Loss Frequency

Measures the number of losses.

Loss Severity

Measures the size of a loss or multiple losses.

Experience Rating Plan

Bases premiums partially on the insured's recent loss history.

Risk Control Report

Is a physical inspection report for a large or complex commercial risk; is compiled by an inspection specialist; is technical and detailed.

Fee for Service Company

Specializes in risk control reports.

Premium Audit

Is an examination of an insured's operations and records to determine the number of exposure units and to calculate initial and final premiums.

D+B

Abbreviates Dunn and Bradstreet

MVR

Abbreviates Motor Vehicle Report.

10-K Report

Reports annual corporate information including extensive financial information, history of the business, description of current operations, and future plans.

10-Q Report

Reports quarterly annual corporate information including the extensive financial information, history of the business, description of current operations, and future plans.

Replacement Cost

Is the cost to replace the property now.

Depreciation

Is the property's loss of value due to age, wear and tear, and/or obsolescence.

Actual Cash Value (ACV)

Equals replacement cost at the time of loss minus depreciation.

ACV

Abbreviates actual cash value.

BUG

Abbreviates Bests' Underwriting Guide.

PAAS

Abbreviates Premium Audit Advisory Service.