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Insurance Function – Surplus Relief?

Insurance Function – Surplus Relief?

Insurance Function – Surplus relief? – There are treaties that do provide relief.

Proportional Treaties do just that. Surplus relief that is.

This means that this relief allows for more business

to be written at larger limits. This function spells out relief!

Now, let’s look at the actual insurance contract arrangement itself.


The function of Insurance – Contracts?

This type of insurance is defined as a contractual arrangement. This means that 1 party will

agree to compensate another party for the loss. The party that has agreed to pay for the

loss, is the insurance company. The party that the insurance company needs to

make payment to for the loss is, the insured. It is the insured’s payment,

on the insurance premium, that this insurance company has received.


Policy Premium Function

This payment is a policy premium. What does that exactly entail?

Great question! It is defined as the following:

The total dollar amount for the coverage will be

itemized and included in your insurance documents.

Where do you find these insurance documents anyways?

Normally, all insurance information on the policy

sheet will be broken down or itemized for your reference.


Insurance Function


Reason for Process?

The reason for this process is to provide and compare

coverage amounts to coverage dollar.

The information is also shared on the insurance packet for your review.

You would receive this information from the insurance company directly.

This process usually happens at the time of sale.

However, you are always entitled to a duplicate packet.

This insurance packet is also known as the declarations page.


Insurance Packet – The Coversheet?

Yes, your insurance packet is thick and full of pages.

That means, there is important information included for your review.

Hopefully, you will review these pages, and ask

questions to an insurance professional if you are in doubt.

In some cases, with certain types of policies,

the number of pages can be in the range from 20-40 pages or more.

So, we do not expect you to read cover to cover all this material.

Or, to absorb every little detail.


Industry Review?

That sounds unreasonable, even to those who work within the industry.

Now, this is typically your entire packet,

that is the many, many pages you receive in the mail.

This mail-out application that some consider in the format of a novel,

is sent out after you make your first deposit on your insurance policy.


Immediate Action –

(The Insurance Function Process)

However, with the advent of technology, also comes the advancement

in paper transmission. You can always ask for an electronic format.

This type of format can be sent via an email delivery system,

instead of the traditional mail delivery system.

This can help with reduced paperwork and environmentally friendly processes.

This is also in addition to providing error-free documentation.

If the policy packet has errors at the time of electronic delivery,

then immediate steps can be taken in order to correct these errors.


The Actual Insurance Transaction

Once monies are exchanged, insurance uploaded, and coverage bound,

then this step of mailing the actual application is what you should expect

next in the lineup. You will also have a 1 to few pages as your declaration

pages. Depending on the type of policy and product, you may have only

1 page for your declarations page.

The important thing to mention about this topic

is, your most important information is listed on this page.


Transmission Process?

Keep in mind, however, on the transmission process.

As we have stated above, the retrieval of your policy documents can now

come through a myriad of avenues, and not just through the United State Postal Service.

Fax transmissions and email transmissions are also an option of receiving these

vital insurance documents. This step will vary on the type

of insurance purchased, and from what type of agency or carrier.

You can find everything from the effective and expiration date of the policy,

to the coverage conditions and policy exclusions. Very important area to understand

and read thoroughly. Ask questions to your insurance

advisor or professional if you should have any.


Insurance Convenience & Technology

Having a page or so, for your first declaration page for your insurance policy is convenient.

Sometimes, you just need to pull out data quick, and this page

has it all! For example, if you need the VIN number off the car for filling purposes.

You can always take a snap shot of this information and save it for later use.

There are many functions and areas that your declarations page can serve you on.

First and foremost, it provides an overview of your policy.


Accuracy and Overview

You can review for accuracy and make sure that you are protecting yourself

and your investments properly. It is like the “table of contents” of a book.

It outlines what you are getting, what to expect and how to prepare for in advance.

You understand the different layers of coverage.

The main idea is to know where to gain further policy, product and company knowledge.


An Insurance Policy – A legal Contract

Yes, insurance is a legal binding contract. This means that a legal contract

will follow and require your signatures to be complete. Many people

sometimes forget this major framework of each policy they sign.

This is because the actual policy is a legal binding contract.

It spells out who it covers, what coverage limits it entails,

and the other most basic information you will need on your policy.


Insurance Function


Technology Advancement?

Keep in mind that technology advances have allowed for e-signatures

to be a form of binding these contracts. This allows both parties

involved in the contract, to hold to the contract through an e-sign

and is honored as if physically present in agents office or brokerage.

If you are having any issues with this overview, our advice, is to seek

out an insurance professional. One who has experience in your niche.

They will have a list of contacts and industry insight knowledge to ensure no

gaps in coverage exist. A lot of times, a comprehensive policy review

will be advised. Any gaps in coverage or policy restrictions will be identified.

This way, you will know if you are being properly covered.

It is like getting a second recommendation from the doctors.

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