Page 7 - Policy Wording - Hollard Business Binder (2020-06-24)

General Underwriting Principles
4.3.4 if a vehicle is written off no refund of the premium is allowed. The full benefit has been paid in that the vehicle value, as insured, has been paid;
4.3.5 premiums may also be paid quarterly or bi-annually.
4.4 Short period policies
4.4.1 are paid once off for the period of insurance;
4.4.2 no premium refunds should be authorized at any time.
4.5 Annual paid monthly
The same requirements apply as per annual policies.
4.6 Monthy policies
Issues with debit orders not met by the bank are dealt with in the General Exceptions, Conditions and Provisions section of the Policy Wording.
4.7 Insurance period/New business
4.7.1 Policies are normally issued for a period of 12 (twelve) months. Should the renewal date be extended, the period of insurance may not exceed 18 (eighteen) months.
4.7.2 No new business should be accepted from 1 December to 15 January unless proof of previous insurance can be provided and there is no interruption of cover.
4.8 Temporary cover/hold covered
Hollard does not subscribe to the "Hold Covered" principle offered by some insurers.
5. WORDINGS
5.1 Any bespoke wording specific to your brokerage must be approved by the Hollard Head Office Technical team.
5.2 All other partners are to use the Hollard Commercial Binder Wording, Sectional Title or Agri wordings.
6. ASSETS ALL RISKS
Partners are not allowed to issue Assets All Risks policies. Should cover be required on this basis, please refer same to your Hollard branch.
7. CO-INSURANCE
7.1 Where co-insurance is required, the risk must be referred to your Hollard branch.
7.2 Hollard does not subscribe to the market co-insurance agreement so we do not accept, neither do we pay handling fees.
8. MPL (MAXIMUM PROBABLE LOSS)
Partners need to ensure that all policies are always issued on a 100% MPL.
9. DECLARATION POLICIES
9.1 The declaration condition is only available in respect of Stock under the Fire section and Gross Profit, Gross Rentals and Revenue under the Business Interruption section and is intended for businesses where the stock or turnover fluctuates regularly and by huge margins.
9.2 Ensure that declarations are received on time as per frequency selected by the Insured.
9.3 Minimum stock or BI sum insured should be R7 500 000.
9.4 The deposit percentage selected can range from 75% to 90% and the agreed annual premium must be adjusted accordingly.
9.5 The declaration period can be either monthly, quarterly, bi-annually or annually.
9.6 At the end of the period of insurance the average value at risk will be calculated.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 5