GENERAL RULES OF UNDERWRITING

GENERAL RULES OF
UNDERWRITING

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 DOCUMENTS and CONCEPTS IN UWG
• Insurance Contract
• Proposer
• Insured
• Insurer
• Intermediaries – Agents and Brokers
• Underwrite
• Sum Insured – Under & Over- insurance

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 DOCUMENTS and CONCEPTS IN UWG
• Underwriter
• Underwriting
• Underwriting Office
• New Business
• Moral / Morale - Hazard

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 DOCUMENTS and CONCEPTS IN UWG
• Physical Hazard
• Selection of Risk
• Premium – Computation
• Short Period Rates - Premium
• Prorate Rate - Premium

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 DOCUMENTS and CONCEPTS IN UWG
• Renewal Business
• Renewal Follow-up List
• Evaluation of Experience
• Renewal Notice- 1st , 2nd ,3rd Reminder-Notices
• Renewal Procedures

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 DOCUMENTS and CONCEPTS IN UWG
• Proposal Form
• Pre-risk Survey Form
• Policy
• Endorsements
• Cover Notes
• Basis of Rates
• Period of Insurance
• Cancellation of Policies

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 o PROPOSAL FORM
• ( IT’S FUNCTION) :
To provide the insurer with the information which is
necessary to complete the policy documentation;
To enable the insurer to underwrite the risk to
decide whether to accept the risk and if so, at what
term;
To obtain a statement from the proposer that the
information given and which the contract is based
on are accurate and complete to the best of the
proposer’s knowledge and belief

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 o GENERAL QUESTIONS FOUND ON A TYPICAL
PROPOSAL FORM
• Proposer's name
• Proposer's address
• Risk address
• Risk address
• Proposer's Occupation
• Previous and present Insurance History
• Particular question
• Declaration
• Signature:

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 5.THE POLICY
• Explain clearly and accurately to the insured the
amount of cover he can expect from his policy.
• Only too often agents are vague on this point either
in order to easily secure the business or through lack
of attentiveness, and the insured believes his cover to
be more extensive than the policy provides for.

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 FORMS OF POLICY WORDING
• There are two basic forms of policy wording:-
– A narrative policy
– The schedule policy

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 A narrative policy
• A narrative policy style is written with no sections or
divisions.
• The details of the cover are written in continuous
prose, with little or no attempt to subdivide in to
paragraphs or clear cut divisions just like a story or
narration.
• The earliest insurance policies were written in this
style.

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 The schedule policy
• The schedule policy style is one in which the
different parts of the document are clearly
divided into sections, and the particular part
often relating to the contract is detailed in a
schedule

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 STRUCTURE OF THE SCHEDULED
FORM OF POLICY
6.1. ENDORSEMENTS

6. SCHEDULE
1. HEADING

The
Policy 2. PREAMBLE OR
5. CONDITIONS
RECITAL

4. EXCEPTIONS 3. OPERATIVE
OR EXCLUSIONS OR INSURING

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 Structure of a scheduled policy Form
• Heading
• Preamble (Recital) Clause
• Operative Clause (Insuring Clause)
• Exceptions/Exclusion
• Schedule,
• Conditions,
• Attestation Clause/Signature

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 THANK YOU
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