Page 6 - Policy Wording - Hollard Business Binder (2020-08-26)

General Underwriting Principles
4.3.3 when a claim is paid mid-term the underwriter is entitled to a pro-rata premium on the claimed amount for the remaining portion of the insurance period up to renewal;
4.3.4 if a vehicle is written off no refund of the premium is allowed. The full benefit has been paid in that the vehicle value, as insured, has been paid;
4.3.5 premiums may also be paid quarterly or bi-annually.
4.4 Short period policies
4.4.1 are paid once off for the period of insurance;
4.4.2 no premium refunds should be authorized at any time.
4.5 Annual paid monthly
The same requirements apply as per annual policies.
4.6 Monthy policies
4.6.1 are collected monthly via debit order for the duration of the insurance period;
4.6.2 cash deposits should not be accepted unless agreed to by Hollard and then only as a once off transaction;
4.6.3 if the first premium is returned as unpaid (new business), cover will lapse from inception. Cover should not be reinstated unless agreed by Hollard and only after the full outstanding premium has been received;
4.6.4 if an existing policy is cancelled due to unpaid premiums, only one reinstatement or reissue of cover is allowed, unless otherwise agreed by Hollard.
4.7 Insurance period/New business
4.7.1 Policies are normally issued for a period of 12 (twelve) months. Should the renewal date be extended, the period of insurance may not exceed 18 (eighteen) months.
4.7.2 No new business should be accepted from 1 December to 15 January unless proof of previous insurance can be provided and there is no interruption of cover.
4.8 Temporary cover/hold covered
Hollard does not subscribe to the "Hold Covered" principle offered by some insurers.
5. WORDINGS
5.1 Any bespoke wording specific to your brokerage must be approved by the Hollard Head Office Technical team.
5.2 All other partners are to use the Hollard Commercial Binder Wording, Sectional Title or Agri wordings.
6. ASSETS ALL RISKS
Partners are not allowed to issue Assets All Risks policies. Should cover be required on this basis, please refer same to your Hollard branch.
7. CO-INSURANCE
7.1 Where co-insurance is required, the risk must be referred to your Hollard branch.
7.2 Hollard does not subscribe to the market co-insurance agreement so we do not accept, neither do we pay handling fees.
8. MPL (MAXIMUM PROBABLE LOSS)
Partners need to ensure that all policies are always issued on a 100% MPL.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 5