Page 22 - Personal Underwriting Mandates & Guidelines - Binder Addendums - Version 3

2 Personal Underwriting Mandates & Guidelines – Binder Addendums – Version 3
Addendum B: Binder Risk Acceptance & Underwriting Limits (including decline-type risks)
BINDER UNDERWRITING ACCEPTANCE LIMITS
Binder underwriting acceptance limits
This table highlights which risks need to be referred to the Binder underwriting manager, and in turn, which risks must
be referred to the Hollard regional underwriting manager. All risks which exceed the Risk Acceptance Limits must be
referred to Hollard, with the following documents:
○ The policy schedule or proposal form
○ Claims history
○ A GRiP IRiS report
○ The relevant questionnaires (if applicable)
○ For renewals include pre-renewal schedule and proposed renewal terms
Evidence of Hollard’s approval must be retained for record keeping purposes. Unless a risk forms part of the RAL or it is
a vehicle insured on agreed value, these risks do not have to be referred again at renewal.
Risks that have to be referred again at renewal are reflected in aqua font.
Decline-type risks are noted in red under each section. This list is not exhaustive and must be used in conjunction with
the exclusions in the policy wording.
Binder Underwriting Acceptance Limits
Binder
underwriting
manager
Hollard
regional
underwriting
manager
General
All individual risks over the Risk Acceptance Limits (RAL) ✓
Adverse claims history at inception and renewal for example:
○ More than two claims under the same section, in the preceding 12 months or
24 months (excluding geyser, glass and windscreen claims)
✓
Proposer is a student or unemployed and had no previous insurance ✓
New business requests to insure any party other than a natural person provided that the
risk meets the underwriting criteria and the policy wording caters for juristic entities ✓
Declarations:
○ Any response to a question in the proposal/declaration that impacts whether the
risk is acceptable or not ✓
○ The proposer was sequestrated, placed under curatorship or placed under debt
review ✓
○ The proposer had an application for insurance declined, policy cancelled, renewal
refused, renewal not invited or special terms imposed ✓
Requests to change cover via endorsement ✓
Request to re-issue or reinstate a policy:
○ Request to reinstate a policy which had been reinstated previously, following unmet
premiums ✓
○ Request to re-issue a policy following 60 days or more since cancellation. (A new
proposal form is required) ✓
Decline-type risks
○ Commercial properties or risks on a personal lines policy
○ New business where the client's previous insurer cancelled the policy due to fraud, in the last five years