See the NOVUS Walkthrough Guide for general information about the system.
The insurance industry is often called upon at very short notice to provide protection for business customers wishing to transfer risk. Insurers and insurance brokers have a history of rising to the challenge by quickly providing protection, often with limited information. In most situations this works very well and the insurance industry provides customers with clear protection and peace of mind.
However, there may be uncertainty, either by the customer as to exactly what level of protection was provided and for the insurer not knowing exactly what it is they are insuring. Uncertainty may lead to disputes over what was agreed when the protection started. This may be very important if a customer needs to make a claim against the insurance contract and the terms of the contract are uncertain.
Contract certainty is achieved by the complete and final agreement of all terms between the insured and insurer by the time that they enter into the contract, with contract documentation provided promptly thereafter.
‘Contact certainty’ is a measurement of how reliable an insurance policy is on the date of incept, can it be relied on.
This is done by checking that the contact has been fulfilled (i.e. the market is 100%), the date on which this was achieved, comparing this against the inception date of the policy. It also uses the firm order date and compares that against the inception date, finally the contract document that has been sent to the client confirming the insurance.
This document is known as the ‘evidence of cover’, i.e. the proof the insurance contract exists.
There are four types of documents that can be seen as evidence of cover.
The type of document to be used can be specified against a specific policy. If not specified NOVUS implements a ‘first come first served’ policy that the first of the four documents produced from NOVUS is used as the evidence.
The documents to be used are broker’s documents - BID, i.e. cover notes, certificate of insurance, complete slip and insurance policy.
The contact certainty is a three level measure: A (certain), B (less certain), and C (unlikely).
They are calculated as follows:
|C - Unlikely||Firm order date is after the incept date|
|B - Less Certain|| Firm order date was before or on the incept date |
BUT the date the last line on the market was written is after the incept date
|A - Certain|| Firm order date was before or on the incept date |
AND the date the last line on the market was written is before or on the incept date
(NOTE: Only cover note and policy programs affect the data, the others are still to be implemented, the evidence of cover is noted as a property of the risk, which can be used to denote document that is not issued by NOVUS such as an insurer certificate)
Evidence of Contract (EOC)
The Cover Note program does not support different policy types.
The requirement for the specific policy type cover note is available through the POLISSUE program.
v4.2.0 – Updated to latest version