Insurance Binder

[NewbieTotheGame]

Hi I've just recently started insurance business through an odd series of events I've come to be responsible for a small mom and pop insurance brokerage.

So far its been nice I do enjoy the work, however recently Ive gotten a request from the mortgagee to increase the coverage on the insured and add the loan to the insurance binder. I've gotten the insured to sign their agreement to increase coverage and put the new limits on the binder along with the loan number. I know I have to give the binder to the mortgagee but..

My question is do I have to give a copy of the binder to the insurance company? (assuming how else will the insurance company know about the additional loan holder)
(I feel pretty green to be asking but is it a dumb question?)

 

[Milkman1265]

depends if you have binding authority or not.

if you have binding authority, not really. If you dont, (like you go through wholesalers) its up to them, some will let you, some will not let you. Just ask them.

For me, some wholesalers let me issue COI and Binders without letting them know since we know the rules and binding limitations already.

Some wont let me do it and everything has to be issued by them.

What i ALWAYS do is, get email confirmation that i can issue binder/coi and i CC them a copy just to be safe.

 

[NewbieTotheGame]

Thanks, Milkman I believe I have binding authority in this case but will double check for any future cases. Just for curiosity's sake I'm guessing the mortgagee will let the insurance company know that their loan should be on the policy? (since I won't give them a copy of the binder unless its necessary)

Thanks again!

 

[Milkman1265]

For closing, most mortgage bankers wont give your client the commitment paperwork without the paid receipt and binder.

So the insured has to pay you for the full year and give you the mortgagee clause and loan number to put on binder (and application) to submit to the bank, so they can approve it, and give them the commitment paperwork, so they can go ahead and schedule a closing date.

If you have binding authority, make sure you know up to what limits and which endorsements you can do without letting your underwriter know. You can usually issue binder and receipt for which you have binding authority for.

We can issue up to 100k damage to rented, and issue binder, if they want 300k i have to first get approval, then i wait for a WRITTEN confirmation, then i issue it.


Something i learned my 2nd year, get everything in writing, phone calls don't mean anything when it comes to claim. I save a copy of email from client or underwriters with the insured file.

Hope this helps!