Page 5 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Fundamentals
The party responsible for delivery of the document(s), whether Hollard or the binder holder, must ensure that documentation is delivered via the insured’s preferred delivery choice, for example post, email, etc. It is good business practice to have a documented process in place for returned mail.
In addition to this the insured must be notified of the following at the point of sale:
○ what document(s) constitutes his/her contract with the insurer
○ that he/she will receive these policy documents within 31 days and how he/she will receive it, for example email, post, etc.
○ that it is the insured’s responsibility to contact the party concerned (Hollard or the binder holder) if he/she has not received the policy document(s) within 31 days
○ it remains his/her responsibility as the insured to read the contents of his/her policy document(s). PROPOSAL FORMS AND OTHER DOCUMENTS
Complete and valid data provides the foundation on which to base risk selection, profiling and pricing.
In conjunction with our actuaries and underwriters we have agreed the minimum information necessary to adequately underwrite personal lines business. Data collection is key to building a sustainable rating model in the future and has therefore become our joint responsibility, one that we take seriously and which we will measure and monitor carefully.
The following minimum information must be available when underwriting personal lines business:
○ a fully completed proposal form signed by the insured
○ any notes or additional information on a separate file or stored electronically
○ the original document, not altered under any circumstances
○ the number of years the insured has enjoyed uninterrupted comprehensive insurance
○ proof of claims history from the previous insurer(s) which must include the date of loss, description of loss, as well as the claimed amount
○ any amendments to debit order details, in writing and signed by the insured.
The following information must be addressed in the proposal form:
○ Policyholder employment, business or occupation
Accurate detail about the policyholder’s occupation and employment is necessary to evaluate the risk. Describing the policyholder as “self-employed” is not sufficient for effective underwriting. The business or occupation assists in determining the exposure pertaining to the risk proposed and whether the risk profile is insurable or not. For example, the exact occupation may assist in determining use of a vehicle such as a rep on the road carrying trade samples/goods or whether a business is run from home.
○ Age
Cover may be excluded or restricted for specific age groups, for example over 80 years and under 21-year-old
drivers.
○ Postal code and suburb
Certain areas are undesirable because of unique risk factors. It is important to confirm the exact location of the proposed risk. Rates are usually determined by suburb level rating, hence the importance of using the correct address, postal code and suburb.
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Personal Underwriting Mandates & Guidelines – Binder – Version 3