A Video Explaining How to Acquire a Policy of Insurance

Read the full article at https://www.linkedin.com/pulse/acquisition-policy-barry-zalma-esq-cfe and see the full video at https://rumble.com/vpohte-acquisition-of-the-policy.html and at https://youtu.be/OrKrMIemM58 and at https://zalma.com/blog plus more than 4000 posts.

The person buying insurance may only acquire insurance from an insurer by one of three methods:

By Meeting With An Agent of The Insurer

The agent is a person appointed by the insurer to transact insurance business with and on behalf of the insurer. The agent usually has the right to bind insurance in the name of the insurer without first obtaining permission from the insurer. The prospective insured presents his or her needs to the agent who will either accept or reject the proposed insurance. If accepted, the prospective insured is immediately an insured of the insurer.

By Dealing With A Broker

An insurance broker is a person who transacts insurance with, but not on behalf of, an insurer. The broker’s only duty is to the prospective insured, so he or she shops for the broadest coverage available at the lowest possible price. The broker cannot bind an insurer without first obtaining a commitment in writing to insure the potential insured.

Through A Direct Writer.

Some insurers, known as direct writers, refuse to deal with agents or brokers. They will accept proposals for insurance directly from a prospective insured who will speak—usually by telephone—with an employee of the insurer who has the authority to accept a particular risk.

The Underwriter

The person who makes the decision to insure or not insure a prospective insured, in modern practice, is called an underwriter. Unlike the original underwriters at Lloyd’s who invested his or her own money in the policy of insurance, the person with the title “underwriter” in modern American insurance, is usually an employee of an insurer who was employed to evaluate risks the insurer employer is willing to take.

The Loss Prevention Engineer

If the risk the prospective insured proposes is large, he or she will often be visited by a loss prevention engineer. T

The Pre-Risk Inspection Service

If the risk is residential or a specialty type of business the insurer will have it inspected by a specialized company called a “pre‑risk inspection service.”

ZALMA OPINION

The key to analyzing every claim presented to an insurer requires an analysis of the acquisition of the insurance policy, the representations made by the insurer to obtain the policy and the insurance that was agreed to by the insurer.

© 2021 – Barry Zalma