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Name of Lesson: Basic Property Identificationand Underwriting

Grade Level: Post GraduateSubject: Basic Property Identification and UnderwritingPrepared by:  Allison Shaffer

Overview and Purpose:

The purpose of this lesson is to introduce new insurance professionals, includingunderwriting, field services, and marketing, to the six construction classifications, the spot

cost estimator, and the affect this has on property rating and premium generation. Thislesson will allow participants to be able to identify the classifications in the field and work

through the entire application and rating process.

Educational Standards

● No educational standards are identified for insurance training materials.

Objectives:

Specify skills/information that will be learned 

By the end of this session the participants will be able to:

● Discuss why identifying the construction type is important to the job of the

underwriter, marketer, and risk consultant.

● Given a set of photographs, analyze and identify the correct construction type 9 out of 

10 times.

● Define the three situations that create a fire division.

● Given an accurate example or photograph, classify a fire door with accuracy 90% of 

the time.

● Discuss the importance of the spot cost estimator and how it is used.

● Given an accurate and functioning spot cost estimator, demonstrate the ability toapply the correct construction type to the spot cost estimator in 3 tries without

assistance.

● Given an accurate and functioning spot cost estimator, demonstrate the ability to

complete it error free 100% of the time.

● Discuss the implication that the construction type and spot cost value have on the

basic rate and premium.

● Given an example, apply the construction type and spot cost value to the right report

and the basic rating formula with accuracy 4 of 5 times.

● Given a set of information and an accurate spot cost estimator, accurately calculate

the property premium 100% of the time.

● Given a tablet, functioning apps, and property information; analyze the information

and apply the appropriate information to the apps to complete the spot cost estimatorand right report pages for premium calculation.

● Given a tablet, a cross functional team of employees will be able to complete the

steps in the process from identifying the construction type to final rating and premium

generation with 100% accuracy.

Materials Needed:

● Poster paper

● Markers

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● Tape

● Voting cards with the construction types listed (30 copies)

● Construction Types PowerPoint

● Spot Cost Estimator PowerPoint

● Fire Division Images for SMART Board

Other Resources:(websites, videos, books, etc.)

● SMART Board

● Online textbook for prework

● ISO Property Training website

● Tablets given to each group preloaded with the Spot Cost app

● Rates and Rules intranet documentation

Information:

Assumptions

● The participants have a basic understanding of commercial property insurancecoverage.

● The participants have had training on how to measure buildings.● The participants have received training on calculation of a schedule modifier and the

RF-97 Schedule Mod form.● The participants have basic computer literacy and fluency with the Internet and the

Federated intranet.

Prework● Review the ISO Property Training web site Construction Types

● Complete section 1 of the online textbook

Opening Activity

1. Count off into groups of 4. Move to a pod for easy discussion. (See notes below)Pods will remain the same during the entire session.

2. Given your prework, discuss and answer the following questions within your group.Please take notes on piece of poster paper. When complete post your paper along

the west wall.

a. Why are construction types and features important at Federated?b. How will this knowledge affect your job on a daily basis?

c. What are your expectations from this session?3. Come back together to discuss where groups were similar and where they are

different.4. Discuss and come to consensus on the top 1-2 points for each question and record

on the front flip-chart to refer back to.

Discussion 1 - Construction Types

1. Note taking options: notes sheet with grid/houses, on the tablet or on the laptop.2. Using Twitter send in questions to the presenter and they will be handled in theorder received during the presentation. These will be shown on the south wall

projector.3. Lecture/discussion of construction types. Use the Construction Types PowerPoint to

discuss the following:a. Load bearing wall structure

b. Load bearing roof structurec. How each combination creates the construction type

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d. What features indicate the construction type4. Check for Understanding - Voting

a. Handout a set of voting cards to each participant.b. Instructions:

i. You will be shown a picture or set of pictures that represent on of the6 construction classifications.

ii. Decide which construction classification you think the picturerepresents.

iii. Choose the card that indicates that construction classification.

iv. Hold the card up so the trainer can see it.v. You will be given the correct answer once all participants have made

their choice.

vi. Discuss why it is the construction type it is and what clues to be alertfor.

5. Answer any additional questions.

Discussion 2 - Spot Cost Estimator

1. Using Twitter send in questions to the presenter and they will be handled in the

order received. These will be shown on the south wall projector.2. Lecture/discussion of the Spot Cost Estimator (SCE). Use the Spot Cost Estimator

PowerPoint to discuss the following:

a. What is the SCE? What is the estimate that it creates?b. Where is the SCE located? On the intranet and the tablet app.

c. What information do you need to completed the SCE?d. How does this information get used?

3. Example - walk through two example together, the first guided and the second in thepod group with limited facilitator involvement.

4. Example - have each pod walk through a more complex example doing the following:a. Identify the construction type

b. Calculate the square footage from given information

c. Complete the SCEd. Post the completed value on the south white board5. Apply the value to the Right Report.

a. Do this manually

b. Do this using the SCE app.

Discussion 3 - Rating1. Show the basic rating formula interactive app on the tablet.

a. Demonstrate how the app works.

2. Using Twitter send in questions to the presenter and they will be handled in theorder received. These will be shown on the south wall projector.

3. Discuss the following:a. Each piece of the rating formula

b. How each piece impacts the othersc. Where the information can be found

4. Show the intranet to investigate rates and rules.5. Activity: Give the participants time to investigate the basic rating formula using the

 “Basic Rating” app.a. Suggest that that they change different feature to see the premium

difference. Focus on the basic rate and link to the intranet rates and rules.b. Once they are done investigating they can move into the activity.

6. Activity 

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a. Give each of the pods a type of business and a set of photos.b. They will need to decide the construction type, calculate the square footage

from given information, complete the SCE, and complete the rating for thebusiness.

c. Review the answers in a large group discussion.7. Answer any additional questions.

Discussion 4 - Construction Features1. Underwriting also considers features of the construction when they are creating the

schedule modifier.2. Using Twitter send in questions to the presenter and they will be handled in the

order received. These will be shown on the south wall projector.

3. Internet search for ways to create a fire division - in your pod search the Internet fordifferent ways to create a fire division.

a. You will need to take notes on the material that you find and cite the websitesources.

4. At the end of your research you may be chosen at random to share what youhave discovered.

5. Draw a team number to have them share what they have discovered.

6. Facilitate discussion on which points are correct and what needs to be adjusted. Besure to include the entire group asking for citations.

a. Blank space

b. Firewall (blank masonry wall with 18” parapet)c. Firewall (masonry wall with 18” parapet and 3 hour protected openings)

7. Discuss the concept of a fire-door.a. What is the reason to have a fire-door?

b. What are the types of fire-door?c. Why are there different classifications of fire-door?

8. Activity 

a. Bring up the “Fire Division” images on the SMART Board.

b. Have each group circle and notate on each of the images, discussing:

i. Is there a separate fire division?ii. How has the fire division been created?iii. Would you give this consideration as an underwriter? If yes why, if 

not, why not?

9. Discuss other features that may impact the way underwriting views the features of the building.

a. Sprinkler systemsb. Hazardous occupancies

c. Other fire fighting measures

10.Answer any additional questions.

Group Activity (application of the entire process)1. Given a tablet a cross functional team of employees will be given a building to

identify, apply to spot cost, and rate.2. The group will use their knowledge and skills to visit two local business and go

through the process. The group will be required to do the following:a. Measure the building and calculate the square footage.

b. Correctly identify the construction type.c. Complete the Spot Cost Estimator using the SCE app.

d. Complete the Right Report property section.e. Complete the basic rating, agree on the schedule modifier, and calculate

premium.

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3. Bring back the premium that the business will be paying.4. The facilitator has a discussion with the group on their thought process.

Individual Check for Understanding Activity - Homework1. Handout a case study sheet.

2. The participant will need to complete the entire process from start to finish.3. The completed process will be turned in and graded with comments.

Notes

Pod seating: Break the group into cross functional teams of 4 and seat them in pods. Eachmember will take on one of the three roles; underwriter, marketer, or risk consultant.

These roles should be the role that the class member actually has where possible. Theseteams will be kept for the duration of the activities.