Page 8 - Commercial - Underwriting Mandates & Guidelines Binder

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.
9.7 Any difference in premium following the declaration calculation will be either refunded to the Insured or collected, as the case may be.
9.8 The additional/refund premium shall not exceed:
9.8.1 Stock – 50% of the provisional premium paid;
9.8.2 Business Interruption – 33.3% of the provisional premium paid.
10. AUTOMATIC SPRINKLER SYSTEMS
Refer to point 5.3 under the Fire section.
11. STOCK THROUGH-PUT AND BUSINESS INTERRUPTION
11.1 The Marine department is the most appropriate division to provide this cover.
11.2 Business Interruption cover may only be considered if the underlying Stock Through-put policy is issued in a subsidiary of Hollard and then only the Branch may issue the policy.
11.3 No Stock Through-put policies may be issued by a Binder Partner.
12. ADDITIONAL WORDING/ENDORSEMENTS/EXTENSIONS/LIMITATIONS
12.1 Any endorsement contained in the schedule will override the policy wording by either adding or removing cover.
12.2 If there is a need to amend the current wording or endorse the wording to amend cover, it has to be approved by Hollard first. When endorsing a policy, ensure that it does not contradict General Sections, impact the treaty intention or impact other sections.
13. MINIMUM PREMIUM
13.1 A minimum premium ensures that we cover the basic expenses incurred in accepting a risk.
13.2 It also assists in maintaining a lower loss ratio.
13.3 Each section in the guideline indicates minimum premiums and it must be applied.
13.4 A minimum annual policy premium of R5 000 (five thousand rand) must be applied.
14. TERRITORIAL LIMITS – UNDERWRITING ACROSS BORDERS
14.1 14.2
14.3
14.4 14.5
14.6
The territorial limits are defined by treaty.
We should not underwrite across borders due to the local conditions, jurisdiction, legislation and arbitration processes.
To protect the local insurance market, most countries have legislation in place that prevents insurers from outside the country insuring their local assets.
The Hollard Motor policy makes provision for incidental visits across the border only.
Upon advice of across border activity, the underwriter may issue the Riot & Strike optional extension if requested.
Countries within our agreed territorial limits are: Lesotho, Swaziland, Namibia, Botswana, Zimbabwe, Malawi, Zambia and Mozambique.
General Underwriting Principles
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Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022