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TOOLS and TECHNIQUES |
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Learning About New Markets' Requirements
As of 7/22/10
Here's a list of questions to consider asking whenever someone needs to learn more about a new insurer's products, services, and underwriting requirements. It is set up so you can either: 1. Print the document, check which questions are relevant, and mail it to the marketing representative or underwriter. 2. Copy the relevant questions and paste them into a letter or email to send to the marketing representative or underwriter. Either way this effort will help you learn markets' requirements before you are frustrated or disappointed when applications are rejected for reasons you should have been aware of before submitting them. These can be used when being approached by a new market to learn how easy it will be to work with in comparison to existing markets and competitors. With regard to serving our clients and prospects: 1. Where do your insurance programs' pricing and products fit into our markets? 2. How much effort will it take to get your policies issued? 3. How much effort will it take to get endorsements processed? 4. How competitive are you priced in our markets? With regard to commissions: 1. What is your commission for new business? 2. What is your commission for renewals? With regard to documentation: 1. Are we to complete ACORD applications, worksheets, or a combination of both in order for you to give us quotes? 2. Do you require wet signatures or can you accept faxed signatures? 3. Where will answers to these questions be kept for access by our team? Who will update the information that gets stored? With regard to geographic locations: 1. What states are you able to place business in? Will you do all filings and fees in all state you can write in? 2. Are you filed differently for states you place business in? (e.g., Are your products and eligibility requirements the same for all states you place business in?) 3. Has someone in your company confirmed that we are licensed appropriately for the states you place business in? 4. What are your Protection Class "PC" code requirements? Under what circumstances can an applicant with an unacceptable PC code be accepted? With regard to eligibility: 1. What coverage amount ranges are you interested in? 2. What types of occupancy do you require? 3. What types of claims and losses can you accept? What types of claims and losses must you reject? 4. Do your guidelines vary from state to state? If so, how can I learn each state's variations? 5. Do you have a decision tree or table that can be used to help us make decisions quickly and consistently? 6. If your underwriter determines a risk is ineligible, how do we ask for an exception to your guidelines if there are mitigating circumstances? 7. Are your requirements spelled out in enough detail that we will know what you need? (e.g., Does "need statement by plumber" mean a plumber has to do a pressure test or can visual inspection satisfy your requirement?) With regard to acceptability: 1. What types of circumstances might make an eligible applicant unacceptable? 2. If I submit an application that meets your guidelines per your response to this request for information and it is rejected, can I use the information you send me to get the decision to reject reversed? 3. How will your reinsurer's requirements effect our working together? What limitations will we encounter? With regard to issuance requirements: 1. What is your application process? How do we increase our chances of getting quotes from you quickly? 2. If a quote is accepted by our prospect, what requirements do we have to meet to get policies issued? (e.g., requirement of signed application, photos, and drawings) 3. Do you have a diagram that shows the steps we should take to obtain quotes and you take to issue a policy? How much time will it take us to get quotes and paperwork? 4. What coverages should be added to most policies in order to reduce our exposure and anticipate what insureds will need on their policies? With regard to roles and responsibilities: 1. Who is our underwriter? Who is our underwriter's backup? 2. Who is our underwriter's assistant and supervisor? 3. Who is our marketing representative? 4. How often will we receive updates concerning changes in your requirements, processing, staffing, etc.? 5. Who is our technical/systems representative? 6. What manager is responsible for our connection to your company? 7. Who will follow up with the market in the future to learn if any answers to these questions have changed? Will that person be informed by our team members when they learn the market has changed operations, guidelines, etc.? With regard to renewals: 1. What are your renewal underwriting guidelines? Are they less stringent than your new business guidelines? 2. Are we, as agents, to participate in your renewal process? Are insureds ever required to participate in you renewal process? Are renewal applications required? 3. If renewal applications are required, do you require payment in full for renewals? If we or insureds do not meet a deadline for a policy's renewal, is there a grace period before non-renewal is created? With regard to cancellations, under what circumstances can a policy be canceled flat with full refund of premium? When will we know enough to determine which 20% of our book of business is costing 80% of our claim payments? |
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