Placement Considerations

Parties involved in the contract of Insurance or Reinsurance comprise primarily of the Client on the one hand, and Suppliers including Underwriters and Intermediaries on the other.  Centuries of evolution of the insurance industry has brought to the fore the requirement of Best Practices that, when followed, help minimise, if not avoid several possible pitfalls or potential disputes.

Therefore, the following Placement considerations are recommended:

Placement Slip:
Placement Slip, usually issued by an Intermediary, usually carries the details of the risk, calculation of gross premium, taxes, brokerage, premium payment terms including instalments, warranty conditions, net premium, among other details.

The underwriter signs and returns the Placement Slip as confirmation. Changes, if any, are endorsed and once the Placement Slip is signed and returned to the intermediary, the underwriter issues the Policy/Certificate/Endorsement and Debit Note/Credit Note according to the terms agreed upon within a reasonable period as agreed.

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