Page 5 - Policy Wording - Hollard Business Binder (2020-08-26)

4.1
Refunds
4.1.1 Pro-rata refund premiums on policies cancelled mid-term are only applicable in terms of annual policies unless there are circumstances forcing a monthly policy to be cancelled during the month.
4.1.2 If the full sum insured was paid in terms of a claim (i.e. motor theft or write-off) there will be no refund of premium for the remaining period. Refunds are only applicable on that portion of the risk premium where no claim was paid.
4.1.3 We may allow backdated premium refunds on property that has been sold, provided that we obtain proof of sale and no claims were paid during this period. The refund should be restricted to the previous renewal date as covers would have been discussed with the Insured at this time.
4.1.4 If there was dual insurance on the account, Hollard will only refund up to 50% of the premium with effect from the date of dual insurance but not beyond the last renewal date. If claims were settled during this period, the other insurer would need to reimburse up to 50% of the claim(s) paid and vice versa.
Policy cancellation
4.2.1 Where Hollard gives notice of cancellation, the relevant letter must be drafted by the holding branch and sent to the broker for onward transmission to the Insured. The letter must include the reason for cancellation.
4.2.2 Should risk improvements following a survey be requested and the client does not comply with these by the required date, either suspend cover or give notice of cancellation in accordance with Policy Conditions. If, however, the client has requested an extension as the work is in progress but not completed, you may oblige but impose a punitive deductible until the client has complied with the request.
4.2.3 Only Hollard can issue letters of cancellation. Always provide motivation, schedule and claims history when the letter is requested.
Annual policies
4.2
4.3
4.3.1 4.3.2
are paid once a year for the entire period of insurance;
any loss during the insurance period reduces the cover (sum insured) and as a result the reinstatement condition is important on an annual policy;
General Underwriting Principles
3.
2.2.8 Be mindful of risks where the previous insurer has given notice of cancellation or imposed terms. Obtain full details and refer to your Hollard branch prior to quoting or accepting the risk.
2.2.9 If ever you are in doubt, please refer the risk to your Hollard branch.
THE BUSINESS OCCUPATION
3.1 It is important for the underwriter to know what the occupation is in order to assess likelihood of an insured event occurring due to the occupation. For example, a manufacturer of plastic is more hazardous than an office risk from a fire perspective. A gas manufacturer is more hazardous than a retail risk from an explosion perspective. The rates are set according to the nature of the risk and are increased if more hazardous. The underwriter is expected to assess the risk to all perils insured.
3.2 If an incorrect occupation is used then the underwriter may exceed Hollard's risk appetite or treaty capacity.
3.3 Avoid business descriptions such as “property owners” – this does not tell us what the building is being used for. Many claims emanate from policies with such a description, it should only be used for pure residential buildings. If the underwriter does not have the correct business descriptions or understand the nature of the occupancy then this may lead to a frequency or severity of claims that are not adequately priced for or correct deductibles set, thereby impacting on the overall profitability of the Commercial portfolio. Special note must be taken of this as it is critical to the business.
3.4 Additions to the business description such as “and all related activities” and “all companies and related services” must be avoided. If the "related" business includes a declined risk Hollard is exposed and in the event of a claim the treaty will not support us.
POLICY PREMIUM
4.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020