4. Renewals

Question 1

A short term insurance policy is renewable …

Answer 1

annually

Question 2

Advance listing usually happens … before renewal.

Answer 2

two months

Question 3

For the client’s claims experience, the underwriter will consider two things:

Answer 3

1. the number of claims

2. the size or value of claims

Question 4

If the claims experience is very bad the underwriter can decide not to (1)… the policy and the policy will therefore (2)…

Answer 4

(1) renew

(2) lapse or be cancelled

Question 5

If the cover is to continue, the renewal premium should be paid by the client, … the renewal date.

Answer 5

on or before

Question 6

In order to have SASRIA cover except on motor insurance, you need to have … as one of the perils.

Answer 6

fire

Question 7

Regarding terms and conditions the underwriter may exercise one of the following options if their is a trend in burglaries for instance:

Answer 7

1. amend the first amount payable.
2. ask for risk improvements.
3. request a survey to be carried out.

Question 8

The broker usually have a … of clients renewals that are due.

Answer 8

separate list

Question 9

If the broker’s renewal list does not correspond with the insurers list then the broker needs to request the insurer for … for the client.

Answer 9

new terms & conditions

Question 10

If the insurer does not …, then broker needs to try and place the business with another insurer.

Answer 10

renew the policy

Question 11

Renewal Cycle from Insured’s Perspective:

• Most insured’s out there view the industry as (1)…
• The average person does not (2)… their policy document when given to them.
• (3)… is a big barrier as Afrikaans or English is most South African’s second or third language.
• (4)… can also make it difficult for the insured to understand.

Answer 11

(1) suspicious
(2) read
(3) Language
(4) Legal and insurance jargon

Question 12

Renewal Cycle from Insurer’s Perspective:

• After the underwriter has reviewed the policy the new (1)… will be entered into the system.
• Most personal policies will have an (2)… margin written into them.
• The client does not have to accept this increase but need to be aware of (3)…

Answer 12

(1) rates, terms and conditions
(2) automatic inflation
(3) under-insurance

Question 13

SASRIA cover is not (1)… given. If the insured wants the cover, it must be requested (2)… of the underlying policy.

Answer 13

(1) automatically

(2) on or before inception or renewal date

Question 14

SASRIA stands for?

Answer 14

South African Special Risks Insurance Association

Question 15

SASRIA will not backdate cover for more than …

Answer 15

6 months

Question 16

The insurer has … days to issue the coupon for SASRIA cover.

Answer 16

30

Question 17

The request for SASRIA cover needs to be in …

Answer 17

writing

Question 18

The survey option is useful for the underwriter in that it provides the underwriter with …

Answer 18

eyes on the ground

Question 19

The surveyor provides the underwriter with a … of the property.

Answer 19

visual inspection

Question 20

The underwriter will use the … to determine if the premium is adequate.

Answer 20

claims experience

Question 21

The … is a list received by the underwriter indicating the policies due for renewal.

Answer 21

advance listing

Question 22

When looking at a clients claim history, the underwriter will look at the last … years.

Answer 22

three

Question 23

When looking at the rate being charged, the underwriter will decide if the rates should be:

Answer 23

1. Increased
2. Decreased
3. Remain the same

Question 24

Why is the advance listing so far in advance and what does the underwriter need to consider:

Answer 24

1. the claims experience of the policy.
2. the rate being charged.
3. the current terms & conditions.