New Personal Lines Policy Evaluate Needs Nature of Risk/Type of Policy needed Identify locations, insureds & other parties (mortgage, loans, tenants) Valuation tools/replacement Cost Client name/number Date Use detailed product checklists Consider liability limits, crime, auto, travel/health, property, auto Extensions, options, special coverage Review Broker Intro Letter (ownership, compensation, markets, privacy, disputes) Identify and disclose any potential or perceived conflict of interest Quoting Explain Options to Client Present all quotes (if not, why not?) Compare coverage between insurers (special limits, exclusions, limitations) Explain key exclusions Explain limitations Any coverages not quoted & why Disclose compensation (commission) variance between options Claims handling/reporting procedure Closing and Confirmation Sign application Sign to confirm any options declined Explain renewal process Policy wording given/mailed Confirmation of sale letter to client Confirmation letter to others McCuskee Consulting Ltd. Page 1 of 9
Personal Lines Renewal Check Renewal and Review File Changes, claims, correspondence during prior policy term(s) Check renewal to prior policy for accuracy Update Valuation/ Replacement Cost Identify premium difference and rating changes New discounts available Coverage changes on renewal Options previously declined Loss payees/additional insureds Client name/number Date Quoting (if Quotes obtained) Renewal Communication to Client ( by Phone by Personal Visit by Letter/Email) Whether quotes obtained/ results Changes in coverage/ limitations/ deductibles Update property values/liability limits Provide wording if changed Re-offer options previously declined Explain premium changes Confirm scheduled property/vehicles Changes in Broker Intro info, if any Confirmation Confirmation letter/renewal to insured Confirmation or certified copy to insureds/payees McCuskee Consulting Ltd. Page 2 of 9
New Commercial Lines Policy Evaluate Needs Nature of Risk/Type of Policy needed Identify locations, insureds & others (mortgage, loans, tenants) Valuation tools/replacement Cost Use detailed product checklists Consider liability limits, crime, auto, business interruption, property, auto Extensions, options, special coverage Review Broker Intro Letter (ownership, compensation, markets, privacy, disputes) Identify and disclose any potential or perceived conflict of interest Quoting Explain Options to Client Present all quotes (if not, why not?) Compare coverage between insurers (special limits, exclusions, limitations) Explain key exclusions Explain limitations Any coverages not quoted & why Disclose compensation (commission) variance between options Claims handling/reporting procedure Closing and Confirmation Sign application/quote sheet Sign to confirm any options declined Explain renewal process Policy wording given/mailed Confirmation of sale letter to client Confirmation letter to others Client name/number Date McCuskee Consulting Ltd. Page 3 of 9
Commercial Lines Renewal Review File and Update Info Changes, claims, correspondence during prior policy term(s) Contact client for updated receipts changes in operations /locations/ territory new schedules (auto, loc n, equip) new Business Interruption limits review payees/additional insureds Coverage changes on renewal Options previously declined Update Valuation/ Replacement Cost Identify premium difference and rating changes Check renewal to prior policy for accuracy Quoting (if Quotes obtained) Client name/number Date Renewal Communication to Client ( by Phone by Personal Visit by Letter/Email) Whether quotes obtained/ results Changes in coverage/ limitations/ deductibles Update property values/liability limits Provide wording if changed Re-offer options previously declined Explain premium changes Confirm loss payees/add l insureds Changes in Broker Intro info, if any Confirmation Confirmation letter to insured Confirmation or certified copy to insureds/payees McCuskee Consulting Ltd. Page 4 of 9
New Personal Lines Policy Evaluate Needs Nature of Risk/Type of Policy needed Identify locations, insureds & other parties (mortgage, loans, tenants) Valuation tools/replacement Cost Use detailed product checklists Consider liability limits, crime, auto, travel/health, property, auto Owner occupied or rented? Condo? Who owns/lives there? Any other locations/cottage? Do RCT Use Homeowner Checklist Recommend $2M liab, auto, travel Extensions, options, special coverage Review all special limits/scheduled options Review Broker Intro Letter (ownership, compensation, markets, privacy, disputes) Identify and disclose any potential or perceived conflict of interest Quoting Explain Options to Client Present all quotes (if not, why not?) Compare coverage between insurers (special limits, exclusions, limitations) Explain key exclusions Explain limitations Any coverages not quoted & why Disclose compensation (commission) variance between options Claims handling/reporting procedure Closing and Confirmation Sign application Sign to confirm any options declined Explain renewal process Policy wording given/mailed Confirmation of sale letter to client Confirmation letter to others Training Version Homeowner Sale Written letter reviewed with and given to client Any reason why you might not be able recommend the most suitable product/serve this client fairly? Complete Compu-quote or Intelliquote In Computer rating system All Comprehensive, same limits and deductible Quote sheet printed and reviewed with client Differences in special limits/sewer backup/etc Wood stoves, seepage, sewer, vacancy, unoccupied Jewellery, furs, computers, businesses, etc Comparable commission from all insurers Staff vs. independent adjusters, claims office location Monthly payment or post-dated cheques explained App signed by all insureds if possible Memo of Client Instruction or on quote sheet Automatic renewal, monthly payments continue Given today See example Letter to lawyer for Mortgage company McCuskee Consulting Ltd. Page 5 of 9
Brokerage Introduction Letter (on Brokerage Letterhead) We are pleased to give you a proposal for your insurance. We welcome the opportunity to be your insurance advisor and think you are entitled to know who we are and how we operate. We are an independent broker. We work for you. No insurance company or other financial institution has a controlling interest in our brokerage or can dictate what products we recommend to you. We have contracts with insurance companies which allow us to represent them and sell their policies to you. We may approach other insurance companies for special types of coverage. We mainly use,, and for personal insurance (like home, tenant, personal auto). We mainly use,,, and for commercial policies. Where possible, we will get comparable quotes from insurance companies. We will advise you of all quotes we obtain and explain your options. The choice of coverage and insurance company is yours. We act on your direction. Our brokerage is owned by. The insurance company normally pays a percentage of the premium as commission to our brokerage. In addition, most insurance companies pay compensation at the end of the year (called a profit commission ) to brokers who have good, profitable business and lower than average claims. If you want to know what commission we receive on your policy, let us know and we will be happy to provide details. If insurance options we recommend to you will result in any significant difference in compensation to us, we will explain the differences so you can make an informed choice. Similarly, if our relationship with an insurance company might affect your insurance or how we serve you, we will inform you. We will advise you in writing of any fee we charge over and above the policy premium, and charge such fees only if you have agreed to them in advance. To advise you properly, we ask many questions. For your insurance coverage to be valid, the information you give us must be accurate and truthful. We are obliged to disclose all relevant information to the insurance companies. We will safeguard your personal information and only use it for its intended purpose or as required by law. If you have a disagreement with an insurance company, we will help you resolve it or direct you to alternatives to resolve the dispute. We are licensed by the General Insurance Council of the Province of Saskatchewan. The Council governs conduct and investigates complaints about brokers, agents, or adjusters. We will represent you and always place your interests ahead of our own. McCuskee Consulting Ltd. Page 6 of 9
Brokerage Introduction Letter (on Brokerage Letterhead) We are pleased to give you a proposal for your insurance. We welcome the opportunity to be your insurance advisor and think you are entitled to know who we are and how we operate. We are an independent broker. We work for you. No insurance company or other financial institution has a controlling interest in our brokerage or can dictate what products we recommend to you. We have contracts with insurance companies which allow us to represent them and sell their policies to you. We may approach other insurance companies for special types of coverage. We mainly use,, and for personal insurance (like home, tenant, personal auto). We mainly use,,, and for commercial policies. Where possible, we will get comparable quotes from insurance companies. We will advise you of all quotes we obtain and explain your options. The choice of coverage and insurance company is yours. We act on your direction. Our brokerage is owned by. The insurance company normally pays a percentage of the premium as commission to our brokerage. In addition, most insurance companies pay compensation at the end of the year (called a profit commission ) to brokers who have good, profitable business and lower than average claims. If you want to know what commission we receive on your policy, let us know and we will be happy to provide details. If insurance options we recommend to you will result in any significant difference in compensation to us, we will explain the differences so you can make an informed choice. Similarly, if our relationship with an insurance company might affect your insurance or how we serve you, we will inform you. We will advise you in writing of any fee we charge over and above the policy premium, and charge such fees only if you have agreed to them in advance. To advise you properly, we ask many questions. For your insurance coverage to be valid, the information you give us must be accurate and truthful. We are obliged to disclose all relevant information to the insurance companies. We will safeguard your personal information and only use it for its intended purpose or as required by law. If you have a disagreement with an insurance company, we will help you resolve it or direct you to alternatives to resolve the dispute. We are licensed by the General Insurance Council of the Province of Saskatchewan. The Council governs conduct and investigates complaints about brokers, agents, or adjusters. We will represent you and always place your interests ahead of our own. McCuskee Consulting Ltd. Page 7 of 9
Confirmation of Sale Letter Contents: 1. Basic Information Name, Address, Effective Date, Expiry Date, Insurer Location or territory of coverage Coverage Type (Home, auto, commercial liability, etc) Amounts of key coverages (Building, Contents, Liability) Vehicle or equipment description Deductible Premium 2. Loss Payee or Name and Address, nature of interest Additional Insured 3. Coverage bound or applied for Coverage bound based on the information completed on the application, including claims record and construction details, or clear indication if coverage has not been bound. 4. Additional Information Any information required from the client, such as receipts, appraisals, photos 5. Coverages not included Broader coverage or options which were recommended by the broker but declined, including details if client asked for follow up with possibility of adding them later 6. Follow up by Broker Any additional steps you promised to take or other policy types you will quote on 7. Policy delivery When and how will policy come 8. Payment details Confirm payment or basics of payment plan 9. Renewal process What is expected to happen next year. Will policy be renewed automatically? McCuskee Consulting Ltd. Page 8 of 9
August 24, 2008 George and Kay Whataclient 123 Main St Anyplaceatall, SK S4S 4S4 SAMPLE CONFIRMATION of SALE LETTER Re: Your Home Insurance Dear George, I am pleased to confirm that we have applied for insurance coverage on your home at the address above effective August 10, 2008. Based on the information you provided on the application form, coverage has been bound and is in effect with Wawanesa Insurance. Details of the coverage were on the quote sheet and the actual policy wording I gave you. In summary you have $300,000 Comprehensive coverage with Guaranteed Replacement and $1,000 deductible on your home, and $2,000,000 Personal Liability at an annual premium of $600. Confirmation of coverage has been sent to Bigoldbad Bank, Main Branch, at 666 Broad St., Thistown, as you requested. As we discussed, coverage on coin collections is limited to $1,000. You agreed to get an appraisal of your Assyrian gold coins, so that we can extend your coverage. Please let me know when you have the appraisal. At that time, we may have to approach a specialty insurer depending on the value of the coins. In addition, we need to know when your shingles were replaced, and you expected you would be able to call me with that information before the policy effective date of August 10 th. I have noted that your auto policies expire December 1 st, and will be calling you about November 10 th to discuss the vehicle coverage we can offer you. Your policy should be issued by Wawanesa in about a month, and we will check it and mail it to you then. A full schedule of the monthly payments will come with the policy, and in the meantime I am pleased to confirm receipt of your initial payment of $100 and the estimated monthly payments of $ 52. For your protection and to ensure there are no gaps in your coverage, home policies are normally automatically renewed. Under the monthly payment system, your July payment next year will apply to the renewal of your policy for the 2009/2010 year, so our brokerage practice is to review your home value and look at competitive rates about two months prior to renewal. We will then contact you if we are suggesting any major changes. If you renovate your home or make any significant changes, please let us know right away. I appreciate your business and the trust you have placed in me. It is an honour to look after your insurance protection, and I hope I can serve you for many years to come. Please let me know if you have any questions, and I look forward to hearing from you about your shingles and the coin appraisal. Yours Truly, Really Good Broker, C.A.I.B. McCuskee Consulting Ltd. Page 9 of 9