Page 14 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

General
Underwriting decision
– We no longer ask this question at sales stage, because it’s archaic and has been replaced by debt review.
– There is no underwriting or legal reason we don’t want to offer insurance to persons under administration.
○ Debt review Definition
Debt review, also known as debt counselling, is a debt rehabilitation program introduced by the National Credit Act to prevent consumers from being placed under administration. It is a process whereby the debt counsellor assesses a person’s outstanding debt and negotiates a new repayment plan with that person’s creditors.
Underwriting decision
– We do not ask this question at sales stage
– There is no underwriting or legal reason we don’t want to offer insurance to persons under debt
review.
PREMIUM PAYMENT
○ Premiums are payable monthly or annually in advance. The preferred payment method for monthly policies is by direct debit order. Annual policies may, however, be paid in cash.
○ If a policy is cancelled due to an unpaid debit order, only one re-debit or reinstatement of the policy should be allowed unless agreed to by Hollard. This does not apply to the first debit order, at inception of the policy. If the first debit order is unpaid the policy is cancelled as if it never incepted.
○ As prescribed by the Policyholder Protection Rules, a grace period of no less than 15 days after the premium is due applies, except for new business where there is no grace period.
PREMIUM REFUNDS
Backdated premium refunds, where the item was sold or ceased to exist, must be given if the policyholder submits proof confirming the sale of the item, as well as the date of the transaction. Based on the principles of Treating Customers Fairly, the premium paid after this date must be refunded. Premium cannot be retained on a risk that no longer exists. Other than the aforementioned, no backdated premium refunds are permitted unless agreed by Hollard.
POLICY RESTRICTIONS
The Policyholder Protection Rules (PPR), in particular, Rule 4.3 (i) require of an insurer (and any agent acting on its behalf) to provide an insured, prior to the entering into of a policy, with the “concise details of any special terms and conditions, exclusions, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided.”
To conform to PPR, Hollard has created a “Important information about your cover” document for each of our non-life insurance products, which must accompany the policy schedule at inception, renewal and mid-term adjustments. It is imperative that any additional client specific restrictions, such as penalty excesses are highlighted to the client. The generic, product specific versions of this document is available on the Hollard Insure Binder library.
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