Binders & Off Policies

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See the NOVUS Walkthrough Guide for general information about the system.

Binders & Off Policies

A binder is an authority given to the third party (usually the intermediary) to bind the insurance on behalf of that underwriter. Both binder and lineslip can have one or more underwriters, but lineslips are a vehicle for flexible handling of declarations that have a loose connection with the scope of the master. Some binders work like lineslips.

There are two types of binders:

  • In-house binder
  • Wholesale binders

They are different – an in-house binder has limits that the attaching off policies attach to and have transactions raised in detail one or more against each off-policy, whereas a wholesale binder has a transaction in bulk, usually once a month and the transaction is processed against the master.

Binder off policy.PNG

The binder to which an off-policy attaches is specified in the course of policy set up, after the off-policy number has been selected or set. This establishes a link between the off-policy number, and the binder policy number which enables transactions to be processed on the binder’s market but redirected on the IBA (insurance brokerage account) ledger to the client or proposer specified in the off-policy.

Certain attributes on an off-policy must be the same as on the binder or master e.g. division, year, and policy type.

This link obviates the need to set up the market for the off-policy.

For this to work, the binder market must be configured with the client specified. This acts as a keyword and triggers the prompt at transaction entry time to ask for the relevant off-policy. Specifying the off-policy enables the client to be changed to the client specified in the off-policy. If this is not specified, this acts as a secondary trigger to take the proposer as the client.

There are three possible mechanisms for processing business on a binder:

• Set up a master policy and use the policy copy program to replicate the policy and market into a stand-alone policy. The client on the market must be changed for the appropriate client and will result in a very large table in the PARTNER program.

Binder client details.PNG

• Set up the binder and specify the client. Create an off-policy, link this to the binder, and specify the client in the off-policy in the cl/ins/reins field. The client specified must be created in the PARTNER program. Transactions against the binder/off-policy will result in IBA entries against the client specified in the off-policy. Cash matching will be in terms of this cl/ins/rein partner account.

• As in the second example above - except that the client in the off-policy is left blank and the proposer’s reference is completed (9 characters). Transactions against the binder/off-policy combination will result in a client, IBA client, and the proposer reference will be linked to the (client) IBA entry. Recording of cash will be made against a client account whilst specifying the proposer reference. Cash matching will be carried out for a client account but also by specifying the proposer reference.

Off-policies can be configured with a sub-set of the sections on a binder. For example, if a binder has sections A,B,C,D, and E, an off-policy comprising only sections C and D can be configured. Other sections can be added to the off-policy using the SECTADD program, but any additions must form part of the binder set of sections, A through E.

Version History

v4.2.0 – Updated to latest version