Page 9 - Commercial - Underwriting Mandates & Guidelines Binder

Reinsurance Treaty and Referral Process
REINSURANCE TREATY AND REFERRAL PROCESS
1. TREATY ACCEPTANCE
1.1 Commercial, sectional title and agricultural risks are dependent on the same treaty and therefore the same rules apply.
1.2 If the risk or risk description is not contained in this Guideline or the Risk Classification list (Annexure C) it should automatically be treated as a referral to Hollard.
2. TREATY EXCLUSIONS (Annexure A)
2.1 Hollard's underwriting and acceptance ability is limited by specific treaty exclusions and, as such, not all types of business can be accepted.
2.2 Read the list of referrals and exclusions in conjunction with the Risk Classification list (Annexure C) which contains referrals and exclusions from an underwriting perspective.
2.3 For the complete list of treaty exclusions please see Annexure A.
3. RISK CLASSIFICATION (Annexure C)
3.1 Wherever the term 'referral' is used the risk has to be referred to Hollard for approval prior to quoting.
3.2 Risks classified as 'declined' will not be supported by the reinsurance arrangement and must therefore not be accepted.
3.3 Acceptance of a declined or referral risk (not approved by Hollard) is in breach of the mandate and any losses suffered will be paid from the Partner's net account, impacting negatively on the business.
3.4 For the complete list please see Annexure C.
4. RISK ACCEPTANCE LIMITS (Annexure B) AND MANDATES
4.1 Annexure B contains the agreed Risk Acceptance Limits (RAL) per class of business.
4.2 You may only accept a risk within your mandate.
4.3 Any limits in excess of the RAL and risks exceeding your current mandate must be referred to your Hollard branch for approval. Without approval the facility could be at risk.
4.4 If business is placed within the branch and reinsurance is required the responsibility of same rests within the branch concerned.
4.5 If business is placed within the binder and reinsurance is required the business must be transferred to the branch who is responsible for the reinsurance process.
5. REFERRAL PROCESS
5.1 All referrals must be submitted to your Hollard branch for review and final approval.
5.2 Ensure that the following is included with your submission:
• completed referral template;
• latest policy schedule (including splits per premises);
• claims experience;
• survey report (if available);
• any outstanding survey requirements and action taken to mitigate the risk (e.g. punitive deductible imposed);
• applicable wording;
• any other documentation/information material to the risk.
Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022 7