M81 - Chapter 5 Negotiating and Placing Risk Flashcards
Based on the Insured’s knowledge, what must be disclosed?
Knowledge of Senior Management
Knowledge of Insurance Team, Including Brokers
Info that would be found on a reasonable search
Based on the Insured’s knowledge, what must NOT be disclosed?
Information held by the Insurer and accessible to the Underwriter
What an insurer would be expected to know
Common knowledge
What does ABI say is good practice when it comes to disclosing historical claims?
Property - 3 Years
EL - 5 Years
Significant claims - Always
When can IA be contracted out of?
Non-Consumer
When drawn to the Insureds attention
Prior to contract start
Must be clear, and unambiguous
Typical policies that may use a signed proposal form?
Package
Personal lines Inc’ Boats/Craft
Fidelity guarantee & Crime
PI/E&O
D&O
Name the methods used to collect complex insurance information and to try and ensure non-consumer makes a ‘fair representation of the risk’
Broker & Insurer Questionnaires
Surveys
Face to Face meetings
Loss Info both, insured and uninsured
What can a broker do to gain assistance when placing a risk?
Use another broker or Introducer - Subject to suitable agreements being in place.
EG They have a special scheme, or there is a need to additional capacity (Lloyds)
What are the methods for specifying cover?
Agreed wording / Standard wording
Specifying all clauses in full (lots of paper)
Separating clauses and negotiating the wording (bit of both)
What are the 3 ‘max losses’
Estimated
Probable
Maximum
What is the new name for a ‘slip’
Market reform contract (MRC)
What’s contained within a MRC?
Risk Details - Risk info, coverage
Additional information - Supporting the above
Security Details - Re-insurance information, bases of signed lines
Subscription agreements - The rules for processing and admin
Fiscal and Regulatory - Specific to the risk
Broker Remuneration and deductions
To comply with contract certainty, what must subjectivities be?
Clear…………..
Who needs to do what, by when and to what standard?
Terms/Cover that apply once complete
The consequences of the work not being done
What do brokers systems produce to instruct cover?
Closings
What is a Manuscript?
A bespoke wording for a large risk, often with wide ranging cover across multiple classes.
What is IPT on Travel insurance?
20%
