1. Insurance Community University www.InsuranceCommunityUniversity.com 1 Insurance Proposals and Submissions  The webinar will begin shortly.  There is no audio at this time.  This presentation is being recorded for your viewing pleasure at a future date.  The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.  The PowerPoint presentation is also available under ‘Materials’.  You will receive the course number for your state near the end of class.  Use the ‘chat’ window for questions on the content.  100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

2. Insurance Community University www.InsuranceCommunityUniversity.com Welcome to your Insurance Community University All of you are currently on mute – Un-mute your own system – Telephone Option Select Telephone on your screen Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option You can use this option if you have a headset that you use with your computer Audio 2

3. Insurance Community University www.InsuranceCommunityUniversity.com Participation & Chat Window You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel Q & A is welcomed during the presentation and at the end of the presentation You will find the question box on your control panel – Write your question in that box – and send it to the presenter/organizer The presenter will take those questions in the order submitted 3

4. Insurance Community University www.InsuranceCommunityUniversity.com DOI Requirements When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only If you do not raise your hand, the monitor will be in contact with you in the chat box If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

5. Insurance Community University www.InsuranceCommunityUniversity.com Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5

6. Insurance Community University www.InsuranceCommunityUniversity.com Forms To Complete for CE After class ends – Return attendance form – Proctors – return your form to email address Email address is in chat window or in email sent to you today 6

7. Insurance Community University www.InsuranceCommunityUniversity.com DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. 7

8. Insurance Community University www.InsuranceCommunityUniversity.com Internet Disruption If the presenter looses internet connection STAY ON THE LINE The administrators will communicate with you

9. Insurance Community University www.InsuranceCommunityUniversity.com Internet Failure If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated You will receive instructions by email as to how we will proceed This is a precautionary notice, only 9

10. Insurance Community University www.InsuranceCommunityUniversity.com This class is being recorded Available in the University Does NOT qualify for CE

11. Insurance Community University www.InsuranceCommunityUniversity.com Test YOUR Knowledge After class you will link to a Quizflash on today’s topic in your follow up email 11

12. Insurance Community University www.InsuranceCommunityUniversity.com Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional material provided by Insight Insurance Consulting and the Insurance Community Center is intended as a general guideline and any interpretations provided by Insight, Insurance Community or presenters do not modify or revise insurance policy language. When ISO language is included in the materials, all ISO content is protected by the ISO copyright. All parties to this presentation and creation of materials assume neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2013 All Rights Reserved www.insurancecommunitycenter.com 12

13. Insurance Community University www.InsuranceCommunityUniversity.com Proposals and Submissions Your Presenters Today Casey Roberts, CIC, AFIS, ACSR President, Laurus Insurance Consulting www.laurusinsuranceconsulting.com casey@laurusinsuranceconsulting.com

14. Insurance Community University www.InsuranceCommunityUniversity.com What This Course Will Cover Submissions—The Basics The Process Account Review—Identifying Exposures Applications/Marketing Proposals Issuance of Policy and Review 14

15. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #1 15

16. Insurance Community University www.InsuranceCommunityUniversity.com Submissions The Basics Standard of Care 16 Based on Regulations To the Insurance Customer To the Insurance Company

17. Insurance Community University www.InsuranceCommunityUniversity.com Basics of Standard of Care Based on Regulations Compliance with such issues as GLBA, Privacy Acts, authority as an agent/broker To the Insurance Company That the submission qualifies for the insurance carrier That you are honest and accurate To the Insurance Customer Ordinary care to obtain the coverages they have requested 17

18. Insurance Community University www.InsuranceCommunityUniversity.com Standard of Care and Submissions The submission for insurance is the culmination of several steps in a process – Acquiring the customer – Identifying exposures to risk that can be transferred to insurance – Gathering all the necessary information to provide the appropriate insurance AND to understand the transfers of risk the insured has assumed OR transferred 18

19. Insurance Community University www.InsuranceCommunityUniversity.com 19 The Process Account Review Identifying Exposures

20. Insurance Community University www.InsuranceCommunityUniversity.com Account Size May Dictate Process Whether small or large premium, all deserve and expect a certain level care, due diligence and service Agent/broker may differentiate based on size of account: small, mid, large – This will differ by agency/brokerage – Procedure manual should specify procedures – All staff should follow 20

21. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #2 21

22. Insurance Community University www.InsuranceCommunityUniversity.com Account Size May Dictate Process Small Limited Marketing Eligibility Application Cover Letter Mid Size Account Review Coverage Analysis Marketing Proposal Coverage Summary Supporting Documents Large More Detailed More Options More Policies Risk Survey Independent Inspections, etc 22

23. Insurance Community University www.InsuranceCommunityUniversity.com The Case Of The “Small Account” The insured had a small woodworking shop insured with an agent as a “single shot account” (No supporting business) The account was an accommodation because the agency handled the son’s account which was a sizable premium The agent spent a lot of time with the son, reviewing values, going over the renewals 23

24. Insurance Community University www.InsuranceCommunityUniversity.com The Case Of The “Small Account” With the woodworking account the agent just kept renewing it year after year “as is” for THIRTY YEARS The woodworker burned to the ground The policy had been issued on a basic fire form without any inflation guard Result??????? 24

25. Insurance Community University www.InsuranceCommunityUniversity.com Basic Account Review Who, What, Where Locations / Operations Gross Sales/Payroll Current Insurance Missing Coverages 25

26. Insurance Community University www.InsuranceCommunityUniversity.com Larger Account Review Survey Risk Exposures Coverage Checklists Locations Operations Gross Sales/Payroll Flow Charts Of All Facets Of Operations Web Search and Review Review of all supporting contracts 26

27. Insurance Community University www.InsuranceCommunityUniversity.com Survey Risk Exposures & Coverage Checklists Physical Inspection – A Must – Many carriers require for large or small – Survey checklist – Take experts with you Coverage Checklists – By line – Exposure based 27

28. Insurance Community University www.InsuranceCommunityUniversity.com Survey Risk Exposures & Coverage Checklists Coverage Checklist and Recommendations – To reduce oversight – Organized approach The Insurance University has a library of coverage checklists for its university members Today, we will be using the Proposal Checklist 28

29. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #3 29

30. Insurance Community University www.InsuranceCommunityUniversity.com Locations/Operations-Flow Charts Graphically view account’s operations Assists in identifying: –Geographic exposures Property / Liability Product / Services Employees –Dependency on other businesses –Shipping 30

31. Insurance Community University www.InsuranceCommunityUniversity.com Flow Chart Of All Facets Of The Operation Locations Operations Employees Manufacturing bottlenecks 31

32. Insurance Community University www.InsuranceCommunityUniversity.com Operations Flow Chart Sample 32 Supplies Suppliers Contributors Sub-Contractors Sub-manufacturers Domestic Foreign Method of Transit Truck / Rail Ship / Air Party Responsible For Damage Type of Operation Manufacture Sell Build Recipients of Products or Services Contract Review

33. Insurance Community University www.InsuranceCommunityUniversity.com Relationship with other Entities--Suppliers Supplier HeilindRTD Parts Supplied Electric Switches Motors & Hydraulics Location IndianaChina 33

34. Insurance Community University www.InsuranceCommunityUniversity.com Relations with Customers 34 PistonsSeals/GlandsPiping10% of Sales30% of Sales48% of SalesArizonaPuerto RicoEngland

35. Insurance Community University www.InsuranceCommunityUniversity.com Basis of Structuring Coverage Client information and risk assessment Document review – Vendor agreements – Contracts – Leases Availability of coverage Premium 35

36. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #4 36

37. Insurance Community University www.InsuranceCommunityUniversity.com 37 Applications

38. Insurance Community University www.InsuranceCommunityUniversity.com Applications and Marketing Complete the application to various insurance carriers Many are sent in incomplete Obtain quotations Choose the right company based on coverages; stability of the insurer and pricing 38

39. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #5 39 You have submitted applications for your insured’s to ten insurance companies. Five companies declined and one company’s quotation was significantly less expensive than the other companies. What is the correct method of advising the insured of your marketing results.

40. Insurance Community University www.InsuranceCommunityUniversity.com Application & Marketing First to represented / admitted carriers Know your market place – Who are the specialists – What will they accept and not accept Size Type Know your company policy forms Know the rules—underwriting manuals 40

41. Insurance Community University www.InsuranceCommunityUniversity.com Application & Marketing Prepare Executive Summary – Synopsis of account for Underwriter – Outline submission attachments, projected premium and need by date 41

42. Insurance Community University www.InsuranceCommunityUniversity.com Market the Account Know Your Market Maintain Declinations Show Companies on Proposal Show Ratings of the Companies Create the marketing file AMS Follow Up 42 Producer / AM Marketing Manager

43. Insurance Community University www.InsuranceCommunityUniversity.com Declinations In writing Communicate in writing to insured – Coverage summary – Separate document – Retain 43

44. Insurance Community University www.InsuranceCommunityUniversity.com Additional Submission Items Supplemental applications (as required) Financials Statement of Values (SOV) –Signed and dated by insured BI Worksheet –Completed, signed and dated by insured Advertising examples – hard copy, website Leases as required 44

45. Insurance Community University www.InsuranceCommunityUniversity.com 45 Proposals

46. Insurance Community University www.InsuranceCommunityUniversity.com Proposal Purpose and Format Standardize the Process Template Used By AllSignature from Customer Coverages Identifies Coverage LinesTerms and Conditions Written Communication New BusinessRenewal 46

47. Insurance Community University www.InsuranceCommunityUniversity.com Proposals Accurate and complete Use disclaimers Proposal communicates insurance companies and coverages Customer must sign the proposalChanges to proposal must be initialed 47

48. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #6 48

49. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #7 49

50. Insurance Community University www.InsuranceCommunityUniversity.com Initial Coverage Changes Resubmit to quoting insurance companies Obtain new coverage options and cost Communicate coverage changes and cost to the customer 50

51. Insurance Community University www.InsuranceCommunityUniversity.com Customer Authorization Obtain permission to bind coverage in writing from the insured Issues binder OR obtain the policy number from the insurance carrier and issue an evidence of insurance 51

52. Insurance Community University www.InsuranceCommunityUniversity.com After Coverage is Bound or Authorized Order coverage If binding and replacing coverage – start cancellation process Suspense for receipt of policy Review policy when received Verify coverage matches EXACTLY what was requested and ordered 52

53. Insurance Community University www.InsuranceCommunityUniversity.com Proposals 53 See Proposal Checklist

54. Insurance Community University www.InsuranceCommunityUniversity.com 54 Issuance of the Policy Checking and Double Checking

55. Insurance Community University www.InsuranceCommunityUniversity.com Finalize Placement Corrections In writing to company Bind Agency issues Company Issues Follow Up Review policy Additional Corrections 55

56. Insurance Community University www.InsuranceCommunityUniversity.com 56 A Word to the “Wise” on Binders

57. Insurance Community University www.InsuranceCommunityUniversity.com Binders A binder is a temporary contract with a maximum and minimum term determined by state law or underwriting instructions Confers full extensions of rights, duties and privileges under the insurance contract being bound 57

58. Insurance Community University www.InsuranceCommunityUniversity.com Binders A binder must have the elements of CATS: – Complete in all respects, both with what is covered and what is not – Accurate in all respects – Timely with respect to inception and expiration date of binder and with respect to jurisdictional limitations on length of binder – Signed by someone with the authority to do so 58

59. Insurance Community University www.InsuranceCommunityUniversity.com Best Practices of Binder Issuance Know binding authority granted by the insurance company Obtain binder from E & S broker Binding maximum 60 days Issue a binder on new business Issue a binder on renewal business when the policy has not been received 59

60. Insurance Community University www.InsuranceCommunityUniversity.com Best Practices of Binder Issuance When possible – insurance company u/w issue If not – confirmation in writing that agent binding is authorized 60

61. Insurance Community University www.InsuranceCommunityUniversity.com Best Practices of Binder Issuance Agency issue Signed by licensed authorized (by contract) resident or non-resident agent for the state(s) where coverage is provided must sign the form. The agency must be licensed in all states where coverage is bound 61

62. Insurance Community University www.InsuranceCommunityUniversity.com If the Account Is Not Written Send a thank you letter to the company underwriter whose quote was not accepted Send a thank you letter to the company underwriter who does not wish to quote –Good relationship building If unable to quote send a letter documenting same to the client 62

63. Insurance Community University www.InsuranceCommunityUniversity.com ProposalApplicationBinderPolicySummaryCertificates 63 Match Did ALL of these items match and issued correctly?

64. Insurance Community University www.InsuranceCommunityUniversity.com Policy Review Some clients don’t want to take the time – do your best to insist on proper review time Restrictions and limiting endorsements and coverage language – Be aware and educated – Learn how to communicate these issues to the insurance buyer 64

65. Insurance Community University www.InsuranceCommunityUniversity.com Key Issues to Review on Policy Checking Correct effective / expiration dates Name Insured correct – First Named insured – All other entities included or written separately – Inactive entities included 65

66. Insurance Community University www.InsuranceCommunityUniversity.com Key Issues to Review on Policy Checking Locations Limits / Deductibles Endorsements as requested Endorsements added by company Limiting language Warranties Edition dates match proposal and quote 66

67. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #8 67

68. Insurance Community University www.InsuranceCommunityUniversity.com Standard of Care and Submissions Deliver or mail (email) the Include a summary of coverages if that is your procedure Include a letter with the delivery that asks the insured to read their policy and state that the policy provisions supersede all prior documents pertaining to this submission including but not limited to the proposal 68

69. Insurance Community University www.InsuranceCommunityUniversity.com 69 Summaries of Insurance

70. Insurance Community University www.InsuranceCommunityUniversity.com Polling Question #9 70

71. Insurance Community University www.InsuranceCommunityUniversity.com Summaries of Insurance Summaries “summarize” coverages that have been issued. They supersede the proposal. The summary should also indicate that the policies supersede any binders previously issued and that those documents are now null and void Note any differences between requested and issued coverages 71

72. Insurance Community University www.InsuranceCommunityUniversity.com Summaries of Insurance Explain any special exclusions or limitations contained in the policy received There must be disclaimer language on the summary indicating that it does not change any of the terms or conditions of the policy as issued. Customer should sign and date the summary / policy receipt 72

73. Insurance Community University www.InsuranceCommunityUniversity.com Sample Summary Disclaimer Language The purpose of this summary is to recap the insurance program that has been issued for the agency. This summary should be used for reference purposes only as this summary in no way changes nor interprets the terms and conditions of the policy issued. 73

74. Insurance Community University www.InsuranceCommunityUniversity.com Summary Identify, quantify exposures Establish coverage requirements Confirm with customer Ask for coverage correctly Verify that you received what you asked for Document the process and the results 74

75. Insurance Community University www.InsuranceCommunityUniversity.com 75

76. Insurance Community University www.InsuranceCommunityUniversity.com Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 7/18OCIP/CCIP 7/24 and 25Errors and Omissions 7/30Personal Auto Policy Problems & Solutions 76 Upcoming Community ClassesFREE to University Members $25.00/charge for non university members 7/16New Commercial Property Form (1 hr CE) Join the University TODAY. www.insurancecommunitycenter.comwww.insurancecommunitycenter.com Click Join University at the top of the bar