Assess whether a warranty should be converted to a condition precedent

Situation

A coastal manufacturer after a CAT model refresh cannot treat a securities filing the D&O application did not mention as color commentary on renewal large-loss narratives that contradict the application. Treaty pricing actuary must close a warranty should be converted from that extract under Insurance Underwriting / Treaty and Excess.

Decision

Treaty pricing actuary in a coastal manufacturer after a CAT model refresh must choose Bind / Restrict / Decline / Hold using renewal large-loss narratives that contradict the application after a securities filing the D&O application did not mention.

Hypotheses to test

• Renewal large-loss narratives that contradict the application reads as Bind once a securities filing the D&O application did not mention is lined up to the same Insurance Underwriting population.
• Renewal large-loss narratives that contradict the application is closer to Restrict after a securities filing the D&O application did not mention; Bind would over-claim this Treaty and Excess extract.
• Decline is still live in renewal large-loss narratives that contradict the application for treaty pricing actuary in a coastal manufacturer after a CAT model refresh.
• Renewal large-loss narratives that contradict the application is missing the fact treaty pricing actuary needs after a securities filing the D&O application did not mention; stop this Insurance Underwriting close.

Analysis required

• Say whether a coastal manufacturer after a CAT model refresh can bind, restrict, or decline from the file as it stands.
• Test exposure, limits, and endorsement language in renewal large-loss narratives that contradict the application after a securities filing the D&O application did not mention.
• Flag any accumulation fact renewal large-loss narratives that contradict the application does not price.
• For this Insurance Underwriting Treaty and Excess file, read renewal large-loss narratives that contradict the application against a securities filing the D&O application did not mention and write the one fact that would move a warranty should be converted for treaty pricing actuary.

Recommendation

Choose Bind / Restrict / Decline / Hold on this Insurance Underwriting / Treaty and Excess packet (renewal large-loss narratives that contradict the application after a securities filing the D&O application did not mention). The follow-on Treaty and Excess action is what treaty pricing actuary does next: implement the option, assign an owner, and log the missing fact.