COMMERCIAL INSURANCE
NEW BUSINESS PROCEDURE
1. Change computer file from prospect to customer if necessary and update information in customer's computer file.
2. Input coverage and underwriting information into system.
3. If policy has not been issued, obtain an assigned policy number. If no number is available, assign a binder number.
4. Issue binder that is exactly reflective of the coverages being provided by the company and send to customer along with Binder and invoice.
5. Enter binder information into appropriate log.
6. Send binder and copy of application to company and use Cover Letter for the transmittal.
Dear :
Enclosed are the binders/certificates issued to ____ for ____. The appropriate applications/ renewal requests are enclosed. Please issue a policy and forward to us as soon as possible.
Thank you for your prompt attention.
Sincerely,
7. Send copy of binder to loss payee/mortgagee using Cover Letter.
Dear :
Re:
Enclosed please find the binder/certificate of insurance for your above captioned customer. Should you have any questions regarding the attached, please call us at your convenience.
Sincerely,
8. Enter appropriate data concerning binder in customer's computer file.
9. Send accurate Certificates of Insurance to the appropriate entities. If necessary:
- Obtain authorization from company and confirm in writing
- Make sure that the correct number of days are being used for the notice of cancellation (No more than 10 unless authorized by the binding company)
- Distribute copies of the certificate as follows:
- Certificate Holder - Original
- Company - 1 Copy
- Customer - 1 Copy
- Transactional file - 1 Copy
- Enter record of certificates in customer's computer file.
10. If applicable, issue automobile ID cards.
11. Assemble Binder, copies of Certificates, Auto ID cards and other appropriate forms and mail with Cover Letter to customer.
Dear :
I am pleased that you have decided to place your ____ with ____. We have enclosed the following information for your to retain pending the issuance of the policies and forms which you requested:
- Insurance Binder
- Copies of Certificates
- Auto ID Cards
- Other
Would you please sign the attached form/application/finance agreement and return it/them to me in the enclosed envelope. It is necessary that we receive this information within 7 days so I would ask that you give them your immediate attention.
Sincerely,
12. Send CSR Introduction Letter.
Dear :
This letter will serve to introduce _____ to you. _____ works with me daily on your insurance program and is thoroughly familiar with every aspect of your insurance.
_____ is here to serve you. Her function is to take care of all changes on policies, give quotes, take claims and answer almost any questions you may have regarding coverages, billing procedures or claims handling.
This is important to both you and me, since I am out of the office a great deal of the time working in the field with insureds, and you need your questions answered and your problems solved NOW.
This means you can call _____, who is here from 9:00 a.m. to 12:00 noon and 1:00 p.m. to 5:00 p.m., Monday through Friday, thus giving you the immediate service you deserve. You don't have to wait for me to return your call when I get back to the office.
Please call on _____. She will keep me fully informed about current matters pertaining to your insurance program.
Sincerely,
13. Establish suspense to follow up on binder and application to company.
14. Send Welcome from President Letter.
Dear :
I have been informed by _____ that you have purchased your insurance coverage from our agency. I want to take this opportunity to thank you for allowing us to provide this most valuable coverage for you and your ______.
Our goal is to provide you, our customer, the most comprehensive coverage at a very competitive price, while at the same time, providing excellent service for you in the event of a claim.
I look forward to a long relationship and should we not live up to your expectations, please feel free to contact me immediately.
Sincerely,
15. In 5 working days send Letter outlining various auditable portions of commercial policies.
Dear :
Please take a few minutes to read this letter and keep it handy for
reference. it contains information that may save you money on your
insurance costs.
As you know, Workers Compensation and General Liability policies are subject to an annual audit by the insurance company. Within 60 days after expiration, a company auditor will come to your office, or you will receive a request in the mail for a self-audit. The purpose is to determine the actual 'exposure units' upon which your final premium will be based.
Following are suggestions that should lessen the possibility of being overcharged for your insurance.
- Some premiums are based on annual sales or receipts. Be sure that sales tax that you remit separately is not included in the gross sales figure. Also remember that intercompany sales (involving subsidiaries and parent companies) are excluded.
- If your General Liability premium is based on payroll, omit your truckdrivers' wages. A premium is charged for each vehicle, and includes the drivers, so no payroll charge for drivers' wages is made.
- When auditing General Liability and Workers Compensation, consider overtime pay as straight time when determining payroll base.
- If the audit is performed in person, request a copy of the auditor's worksheet and any further calculations that may be made. Check these figures against your records to ensure you're not mistakenly overcharged.
If you have any questions concerning the auditing procedure, please give us a call. We'd be happy to help.
Sincerely,
16. When policy is received compare information on application, binders, proposal/survey, Commercial Lines Checklist, certificates, etc. to assure that policy is accurate.
17. If any discrepancies are noted send ACORD change request form, or the entire policy to the company for correction. Be sure to note all transaction in computer file.
18. If changes are minor and involve typos, etc., a copy of the changes can be attached to the policy for delivery to the customer.
19. If changes are more severe, submit change request (See #17) and set up suspense. Also check expiration for Binder to determine if a new one must be issued awaiting the policy corrections.
20. If policy is correct give to producer with invoice, finance agreement, Premium Payment Letter and any other pertinent data for delivery to customer.
Dear :
We are very pleased that you have decided to allow us to provide your insurance protection. We think you will find our friendly and efficient staff able to handle all of your insurance needs. We feel it is beneficial for you to know how we view the payment of your insurance premiums.
The full premiums are due and payable on the effective date of coverage. If you wish to make other arrangements, such as premium finance, this should be discussed with the representative prior to the effective date of coverage.
To guarantee proper protection for you, our customer, all of your policies will automatically be renewed. If you do not wish this renewal coverage, the renewal contract must be returned to immediately.
If any policy, endorsement or audit is not returned to us within fifteen (15) days, there will be an earned premium charge made.
If you have an questions regarding the payment of your insurance premiums, please feel free to talk to any of the team. Thanks again for allowing us to serve you.
Sincerely,
21. Producer reviews policy and signs it.
22. Mail all applicable copies of policies, endorsements, etc. to additional interests.
23. Producer reviews policy, finance agreement, premium payment agreement, invoices, etc. with customer and obtains customer's signature and any monies owed.
24. Producer delivers signed agreements and all checks to CSR.
25. CSR updates customer's computer file and sends checks to bookkeeper.
26. CSR deletes all follow ups (if nothing is pending) and creates a new suspense to trigger the next visit by the producer.
27. All paper for this account is date stamped, noted in the customer's computer file, and filed.