Why is a quotation used?
Sets out when the cover starts once the insured accepts
Insurer is legally bound to honour this quotation
How long do quotations last before expiring?
Usually 30 days unless stated otherwise
If not stated then a reasonable time
What are all the methods for UW to obtain material information?
-Proposal Form
-Call centres and internet
-Brokers
-Risk Survey
-Supplementary Questionnaires
-Meeting with clients
What is the premium Calculation?
sum insured x rate=premium
What are the alternatives to premium and the common pool?
-Adjustable Premium
-Flat Premium
What is an adjustable premium?
The premium will adjust depending on other factors when the year ends
What is Flat Premium?
There is no rate taken into account
When does a contract come into force?
When the insurer accepts the proposal and the insured has paid or agreed to pay the premium
What is the policy document viewed as?
Evidence of the contract
What is the Contract Certainty code?
It is to help avoid disputes from uncertainty, states that until contract certainty is achieved by the complete and final agreement of all terms
What is the purpose of a cover note?
To provide immediate proof of cover in circumstances where a policy document cannot be issued right away
What are the contents of a cover note?
-Start date of cover
-Statement that the policy follows normal t&cs
-Risk-specific information
-Any special terms
-Expiry date of the cover
What is different about a motor policies cover note?
It includes the time at which the cover started
Confrims the cover issued conforms with the Road Traffic Act 1988
What insurances legally require a certificate of insurance as evidence of cover?
Compulsory Insurances
What must a motor insurance certificate contain?
-Name of policyholder
-Reg of car
-Start and end of cover
-People insured to drive
-Limitations to use
-Confirm that the policy complies with law
When was motor insurance certifcates be allowed to be sent electronically?
2010
What must a Employers’ Liability insurance certificate contain?
-Name of Policyholder
-Start and end of cover
-Name of insurer
-Signature of insurer
-Level of cover
-Policy satisfies legal requirements
