When are the terms of an insurance policy created?
Several weeks before a client’s policy with its existing underwriter was due to expire, an insurance broker trades emails and phone calls with an alternative underwriter about placing the expiring client’s policy with that alternative underwriter.
The insurance broker and the alternative underwriter agree the key terms of cover. While they agree the start date of the replacement cover, they never discuss the start time on that day. However, they do agree that the new underwriter would go on risk from expiry of the client’s existing policy, as is usual. [Read more…]