4.9 Changes to Product
Changes to the contract can be made at the time of issue of the policy, or subsequent to the policy being issued. An endorsement to a policy overrides the terms and conditions of the original policy and therefore amends the contract itself. It is very important that these changes are correctly recorded. Endorsements can affect […]
4.11 Collection of Premiums
The collection of premium in the short-term marketplace has wide-ranging consequences. The type of collection can affect the terms of the insured’s policy. Where the intermediary is handling premium collections, he must adhere to the following conditions: Be authorised by the insurer in writing. Furnish a guarantee representing a regulatory portion of the estimated annual […]
4.10 Replacement Policy
Should it become apparent to the intermediary during the renewal process, that more favourable terms and conditions are available in the market, the intermediary should present the client with the option to renew the current policy, as well as quotations and recommendations on the alternative covers available. The insurer of the existing policy, being replaced, […]
4.8 Renewal of Policies
In cases where insurers would like to retain a client, it is a standard procedure that the insurers will send out renewal policy schedules (notices) for policies that are due for renewal. These could be sent out to the client directly or to the intermediary concerned who in turn will refer and discuss the renewal […]
4.7 Review of Policies
It is imperative to re-confirm information from the policy holder each year to ensure that the holder remains adequately covered. In the short-term environment this confirmation happens on an annual basis during a renewal process. In addition to the above, inflation also has a role to play and gives rise to problems both for the […]
4.6 Record Keeping
It is imperative that the representative documents all relevant information obtained from a client during this process and that all subsequent documentation obtained on behalf of and presented to the client are kept on file. This enables the representative to accurately reflect on the recommendations made to the client in the event of a dispute. […]
4.5 Fees and Premium Disclosures
It is a FAIS requirement that at the time of quotation or at renewal, all aspects making up the premium the client pays are disclosed. This disclosure includes: Premium charged per section, and excesses applicable thereto SASRIA/NASRIA premium charged per section Additional loadings or discounts Administration fees Broker fees and commission VAT Points 1 to […]
4.4 The Policy Document
Upon the client accepting the quotation, the representative confirms the receipt of the closings or acceptance form and follows the steps as outlined below. It is necessary for the insurer to confirm that the quote issued is the same as the quote accepted by the client. This is critical, as in some instances the premium […]
4.3 Obtaining Acceptance
The recording of the client’s acceptance is critical to the validity of the policy. This can be done in various manners, such as a recorded telephone call between the client and representative, or in writing by the signing of an acceptance form with the intermediary. Without such acceptance from the client, the contract will be […]
4.2 Presenting a Quotation
In the ambit of the FAIS requirements, it is imperative that the client be furnished with all the relevant information to make an informed decision. An insurance quotation for the client, therefore must include, in a language the insured understands. The insurance quotation must include the following: A covering letter. The comparison of cover proposed, […]