BINDING REQUIREMENTS Clause Samples
BINDING REQUIREMENTS. An insurance binder is a contract that temporarily affords coverage pending the issuance of a policy. Conditions of the binder should be identical to those shown on the policy. ▇▇▇▇▇▇▇ are issued by the underwriter through authority granted by their respective LOA.
1. All binders must be in writing and recorded in the appropriate systems, logs or bordereaux reports and issued within 24 hours of the effective date (unless coverage is backdated and has been approved by the appropriate Excess Casualty Manager). Binders should include the name of the insured, policy term, limits of insurance and attachment point (i.e., underlying limits), premium, applicable policy terms, forms and endorsements, and name and policy number of controlling underlying policies. Brokerage commission will be included in all binders.
2. All binders must be superseded by the issuance of a policy. The inception of the policy should coincide with the inception date of the binder.
3. Binders should be for a period not in excess of the policy period. A binder should not be issued under the following conditions: • Coverage is not authorized as part of the underwriting unit’s grant of authority. • Coverage is over delegated authority level, without appropriate prior written approval. • Underwriter is not in receipt and acceptance of critical quoting subjectivities. Binders may be issued pending receipt of requested materials, but the relative importance of the information to the underwriting decision should be carefully weighed prior to issuance of the binder.
BINDING REQUIREMENTS. An insurance binder is a contract that temporarily affords coverage pending the issuance of a policy. Conditions of the binder should be identical to those shown on the policy. ▇▇▇▇▇▇▇ are issued by the underwriter through authority granted by their respective LOA.
1. All binders must be in writing and recorded in the appropriate systems, logs or bordereaux reports and issued within 24 hours of the effective date (unless coverage is backdated and has been approved by the appropriate Financial Lines Manager). Binders should include the name of the insured, coverage provided, policy term, limits of insurance, retention, premium, applicable policy terms, forms and endorsements and, if applicable, followed underlying policy and attachment point. Brokerage commission should be included in all binders.
2. All binders must be superseded by the issuance of a policy. The inception of the policy should coincide with the inception date of the binder.
3. Binders should be for a period not in excess of the policy period. A binder should not be issued under the following conditions: Ø Coverage is not authorized as part of the underwriting unit’s grant of authority. Ø Coverage is over delegated authority level, without appropriate approvals in writing. Ø Provide coverage that is not filed and approved in the state of domicile (if admitted paper) or provide coverage that is not in compliance with state regulations. Ø Underwriter is not in receipt and acceptance of critical quoting subjectivities. Conditional Binders may be issued pending receipt of requested materials but the relative importance of the information to the underwriting decision should be carefully weighed prior to issuance of the binder.
BINDING REQUIREMENTS. (a) Producer shall have no authority to bind WNFIS on any risks. Producer agrees to submit the following to WNFIS for approval and binding of coverage:
1) Completed application signed by the applicant and by Producer;
2) Surplus lines affidavit as required by law;
3) Any other forms or disclosures that must be signed by the applicant as required by law or as required by an insurer;
4) Payment of the full premium (minus Producer’s commission, when authorized by WNFIS); and
5) Payment of all non-commissionable charges such as surplus lines tax, surcharge or stamping fee, policy fee and inspection fee.
(b) Producer’s commission shall be based on Collected Net Premiums on business written by Producer. As used herein, and within any Addendum attached hereto, “Collected Net Premiums” shall be defined as the gross premiums collected less the gross premiums refunded to the named insured.
(c) Except when WNFIS receives premiums directly, Producer agrees to pay, whether collected or not, the premium and any applicable taxes and fees on business written by Producer under this Agreement.
(d) All premiums, taxes and fees received by Producer shall be held by Producer in a fiduciary capacity for the sole purpose of remitting to WNFIS, and when applicable, for the sole purpose of paying to the appropriate tax authorities, and also in accordance with the applicable laws of each jurisdiction in which Producer conducts business under this Agreement.