1. Assign one staff person to review one procedure, to make recommendations or advise that it should be used as printed within 10 days.
2. When all procedures have been reviewed by one or more persons, call a meeting of only those individuals using a particular procedure and review the procedure, discussing it and implementing any changes agreed upon.
3. Within a short period of time, hold a meeting of all staff to explain each procedure. All comments should be noted, any changes made and agreed upon, and final draft of the procedure made.
4. Amend these printed sheets or reissue, making copies for each person involved with a procedure. Then file one copy in this manual for ready reference.
5. Suspend your procedures every six months, to again review with all staff to be sure everyone is still following the procedure to the letter, the procedure is still effective and does not need changing, and all new staff people have been trained on these procedures.
l. Telephone Messages
a. Date, time, and sign every phone message.
b. Write the exact information given, and deliver to the proper person immediately.
c. Don't take messages or try to handle a phone call when the person responsible for that account or job is available.
d. Always get the exact area code, telephone number, and name of the person calling.
e. Maintain a carbonized message-taking book at your desk for all phone calls.
2. Mail and Correspondence
a. Date-stamp every item of incoming mail Immediately.
b. Paperclip ALL pertinent items together.
c. Attach the envelope to an item that has no name and/or return address on its contents.
3. Placement of Coverage and Company Authority
a. Know your companies-what they will and will not allow your agency to bind without calling the company first.
b. Work closely with the underwriters, special agents, or marketing representatives for the companies you represent and obtain their authorization to bind whenever possible.
c. If possible, keep copies of the binding authority in each company's contract in a folder at your desk, for ready reference.
d. If in doubt, CALL the company first for the authority to bind.
4. Written Binders
a. Type up a 10-day or 30-day binder in accordance with the ACORD Binder Procedure Guide. Include AIL coverage information, company name, effective date, deductibles, and form numbers, when available. Be sure to renew at the end of binder period if policy is not received.
b. Mail or give the original to the insured with a deposit billing. Mail one copy to the mortgagee/lender where necessary and one copy to the company, with instructions for policy issuance. Attach one copy to application and company request in insured' s file.
c. Never extend any binder beyond ninety (90) days. This is in violation of the insurance code. If the policy has not been received from the company, obtain policy number and issue a certificate of insurance for all parties showing the full-year expiration date.
ISSUE BINDER IMMEDIATELY UPON RECEIPT OF YOUR ORDER FROM THE CLIENT WITH PROPER BINDING AUTHORITY (see Item 3--Placement of Coverage and Company Authority).
5. Renewal of Expiring Policies
a. Follow the renewal procedure of the agency to the letter. Do not change or skip any step of the procedure-since doing so could result in the oversight of an expired policy without proper renewal action.
b. If a policy is not received from the company prior to the expiration of that policy, issue a binder immediately (as described above) . Send the original binder to the insured, with a deposit billing, and copies to all interested parties described above (item4b).
c. Follow up on all binders prior to expiration of the typed binder-but, in no event, extend beyond 90 days (see 4c).
6. Average Clauses-Property Policies
a. An average clause is a stipulation in a Properfy policy requiring that an insured carry ascertain amount of insurance equal to 80%, 90%, or l00% of either"actual cash value" or "replacement cost" depending upon how the policy is written. If the property is at the time of the loss, it is possible that the insured would not recover the full amount of his or her loss.
It is imperative, therefore, that the amount of insurance equals the percentage shown under the "average clause" column on the policy . Do not tell the insured how much insurance to place on his or her property.
b. Use the dwelling cost estimator of the company you are quoting for a Homeowners policy. Be sure that the square footage given by the insured is correct. And obtain all requested by the company-don't guess.
c. Recommend that the insured obtain a replacement cost appraisal on commercial buildings.
7. Hazards Overlooked and Not Covered
a. For THE AGENT: It is wise to use a regular checklist when discussing a new or renewal Commercial account. Should the insured decide not to purchase a certain coverage, have the insured initial the item indicating that it was discussed.
b. ALL STAFF PERSONS: Check every item handled very carefully. Never assume that the item is correct. Look for the error-a misplaced decimal point or a misspelled name-
c. PERSONAL LINES SERVICE REPRESENTATIVES: Know your policies and what they cover-check them carefully. Refer to our sample letter file, and write letters with all new and renewal policies-pointing out deductibles, limitations, and any special extensions of coverage.
Document all conversations with the insured as to coverage, questions, recommendations, problems, and especially, declinations of coverage.
Use the terminology "higher limits are available" whenever quoting coverage.
Communicate carefully, making sure the insured understands everything you are explaining. Repeat it again, or ask that he or she repeat it to you to be sure there is understanding.
d. COMMERCIAL LINES SERVICE REPRESENTATIVES: Check all policies thoroughly, making sure that no coverage is missing. Doublecheck with the agent/producer-ask questions if any coverage is not included on the application that might possibly need to be included. If there is a reason that it is not included, be sure to explain "why" on the application.
Document everything-date, time, and name of person giving instructions, and document all conversations with the insured as to coverage, questions, recommendations, problems, and, especially, declinations of coverage.
All staff members should be instructed as to the following:
DON'T: