4. Renewals Flashcards
A short term insurance policy is renewable …
annually
Advance listing usually happens … before renewal.
two months
For the client’s claims experience, the underwriter will consider two things:
- the number of claims
2. the size or value of claims
If the claims experience is very bad the underwriter can decide not to (1)… the policy and the policy will therefore (2)…
(1) renew
(2) lapse or be cancelled
If the cover is to continue, the renewal premium should be paid by the client, … the renewal date.
on or before
In order to have SASRIA cover except on motor insurance, you need to have … as one of the perils.
fire
Regarding terms and conditions the underwriter may exercise one of the following options if their is a trend in burglaries for instance:
- amend the first amount payable.
- ask for risk improvements.
- request a survey to be carried out.
The broker usually have a … of clients renewals that are due.
separate list
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.
new terms & conditions
If the insurer does not …, then broker needs to try and place the business with another insurer.
renew the policy
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.
(1) suspicious
(2) read
(3) Language
(4) Legal and insurance jargon
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)…
(1) rates, terms and conditions
(2) automatic inflation
(3) under-insurance
SASRIA cover is not (1)… given. If the insured wants the cover, it must be requested (2)… of the underlying policy.
(1) automatically
(2) on or before inception or renewal date
SASRIA stands for?
South African Special Risks Insurance Association
SASRIA will not backdate cover for more than …
6 months
The insurer has … days to issue the coupon for SASRIA cover.
30
The request for SASRIA cover needs to be in …
writing
The survey option is useful for the underwriter in that it provides the underwriter with …
eyes on the ground
The surveyor provides the underwriter with a … of the property.
visual inspection
The underwriter will use the … to determine if the premium is adequate.
claims experience
The … is a list received by the underwriter indicating the policies due for renewal.
advance listing
When looking at a clients claim history, the underwriter will look at the last … years.
three
When looking at the rate being charged, the underwriter will decide if the rates should be:
- Increased
- Decreased
- Remain the same
Why is the advance listing so far in advance and what does the underwriter need to consider:
- the claims experience of the policy.
- the rate being charged.
- the current terms & conditions.
