Peril
A peril is a specific type of risk or danger that can cause a loss in insurance terms. Think of it as what might go wrong - like fire, theft, or flood. When people in insurance talk about perils, they're referring to these specific risks that an insurance policy either covers or excludes. It's like a list of "what-if" scenarios that insurance companies and their clients need to consider. Some policies cover "all perils" except those specifically excluded, while others only cover "named perils" that are explicitly listed in the policy. Understanding perils is fundamental to how insurance policies are written and what they protect against.
Examples in Resumes
Analyzed Peril exposures for commercial property portfolios
Developed underwriting guidelines for multiple Peril coverage options
Created risk assessments focusing on named Peril identification and mitigation
Typical job title: "Insurance Underwriters"
Also try searching for:
Where to Find Insurance Underwriters
Professional Associations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where a client wants coverage for a peril that's typically excluded in standard policies?
Expected Answer: A senior professional should discuss evaluating special risk policies, reinsurance options, and how to structure custom coverage while maintaining profitability and managing risk exposure.
Q: Explain how you would develop an underwriting strategy for multiple-peril policies in a new market.
Expected Answer: Should demonstrate knowledge of risk assessment, market analysis, pricing strategies, and how to balance comprehensive coverage with profitable underwriting guidelines.
Mid Level Questions
Q: What's the difference between named perils and all-risk coverage?
Expected Answer: Should explain that named perils policies cover only specifically listed risks, while all-risk policies cover everything except explicitly excluded perils, with examples of common situations.
Q: How do you assess whether a specific peril should be covered in a standard policy?
Expected Answer: Should discuss evaluating frequency and severity of risks, market standards, cost implications, and regulatory requirements.
Junior Level Questions
Q: What are some common perils covered in a standard homeowner's policy?
Expected Answer: Should list basic perils like fire, theft, vandalism, and explain why these are typically included in standard coverage.
Q: How do you explain the concept of covered perils to a client?
Expected Answer: Should demonstrate ability to communicate insurance concepts in simple terms, using real-world examples clients can understand.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of common insurance perils
- Policy document reading and interpretation
- Customer service and basic explanation of coverage
- Claims processing for standard perils
Mid (2-5 years)
- Risk assessment for multiple perils
- Policy writing and modification
- Complex claims evaluation
- Underwriting decision making
Senior (5+ years)
- Advanced risk management strategies
- Complex policy development
- Team leadership and training
- Strategic planning for coverage options
Red Flags to Watch For
- Unable to explain basic insurance concepts clearly
- Lack of knowledge about standard policy coverages
- No understanding of risk assessment principles
- Poor communication skills when explaining complex insurance terms
- Limited knowledge of regulatory requirements
Related Terms
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