The Anatomy of a Quote

By Aleisha Hagy, Administrative Assistant

For an agent, one of the most important steps in the account process is receiving and presenting a quote. It’s critical that the wholesaler and agent review the quote and thoroughly understand everything before sharing the information with the insured. By examining all numbers, information requirements, and terms before presenting to the client, agents almost always have a better shot at selling the coverage. Here are some of the most common quote sections that agents request clarification on; please keep in mind that much of this information can be located by checking the cover page of your quote.

Premium, Taxes and Fees                

– If we (BHA) are filing the taxes: E&S tax % and fees

– If you (Agent) are filing the taxes: What we will require from you after you file the taxes. Fees will not be listed here, check the Payment Terms & Commissions section.

Payment Terms & Commissions

– Premium Due Date: Net 10 means 10 days from invoice or Policy Effective Date, whichever is later

– Policy Fees: These may be taxable, depending on the state in which taxes are filed.

To Bind

A list of items we will require to bind. Carrier-specific subjectivities may be allowed more time (5-30 days) if approved by the carrier. All other items are required at binding.

Coverage Construction Forms

This is required in order to bind.Not all of these items will be on your form, depending on who is filing taxes. The following points outline why it is crucial for agents to fill this out:

–  Coverage Construction Confirmation – The agent initials this form as confirmation that he/she and the insured are in agreement with the retroactive dates on the indication (if applicable) and that the coverage form structure as presented is acceptable.

– Excess & Surplus Lines Filing and Countersignature Responsibility – To be filled out with the surplus lines licensing information you will use to file the E&S taxes. This information must be in our file and our underwriting system to issue the policy.

– (State) E&S Information – Information we will need if WE are filing the taxes.

This section should look familiar, as this is where you would find everything being offered, including:

– Coverages
– Limits
– Deductibles
– Retro dates
– Policy Term
– Minimum Earned Premium
– Premium
– Terrorism Additional Premium
– Forms & Endorsements
– Additional documents/information we need from you

Policyholder Disclosure Notice of Terrorism Insurance Coverage – This form is where the policyholder can accept or decline Terrorism coverage as quoted on the section above.

We strive to make our quotes clear and complete, and hope to strengthen our communication with wholesalers and agents in order to best present the insurance being offered. For more information about our quoting process, or to discuss a specific account, please contact us.