PROPOSAL FORM
PROPOSAL FORM
STRUCTURE AND PURPOSE
the fear of the Lord is the beginning of wisdom mqondisimagagula@gmail.com What are proposal forms?
A proposal form is a standard mass-prepared document by insures to the insured for the purpose of disclosing the needed material facts, it is usually the form of questions that aim the insured to provide answers.
It is the most common mechanism by which the insurer receives information about risks to be insured.
Proposal form stands as an offer to the insurer of which the insurer is at liberty to accept or reject.
If a proposal is properly presented, and an insurer accepts it, and the premium is paid (or there is an agreement to pay the premium) a contract comes into existence.
Generally a proposal form is used in cases involving simple risks and are not required in cases of large industrial risks. In such cases inspection of the risk is essentially undertaken before accepting the proposal.
In the past the proposal form acted as a form of advertising and there is still an element of this today.
In most classes of insurance a proposal form is completed by the proposer and submitted to the insurer to give the insurance company full particulars of the risk against which the insurance protection is desired
It is the basis of any insurance policy.
Proposal forms will be of variable length dependent on the nature of the risk and the information which an insurer will need to be able to underwrite the risk.
For example private car form has quite a number of questions but the liability form is perhaps even longer.
the fear of the Lord is the beginning of wisdom
What are proposal forms?
Proposal forms should be simple to understand and easy to complete.
There are certain classes of insurance for which proposal forms are not normally required.
The main example of this being fire and marine insurance.
In the case of a fire insurance the actual details of the risk could be so complex that it would be
STRUCTURE AND PURPOSE
the fear of the Lord is the beginning of wisdom mqondisimagagula@gmail.com What are proposal forms?
A proposal form is a standard mass-prepared document by insures to the insured for the purpose of disclosing the needed material facts, it is usually the form of questions that aim the insured to provide answers.
It is the most common mechanism by which the insurer receives information about risks to be insured.
Proposal form stands as an offer to the insurer of which the insurer is at liberty to accept or reject.
If a proposal is properly presented, and an insurer accepts it, and the premium is paid (or there is an agreement to pay the premium) a contract comes into existence.
Generally a proposal form is used in cases involving simple risks and are not required in cases of large industrial risks. In such cases inspection of the risk is essentially undertaken before accepting the proposal.
In the past the proposal form acted as a form of advertising and there is still an element of this today.
In most classes of insurance a proposal form is completed by the proposer and submitted to the insurer to give the insurance company full particulars of the risk against which the insurance protection is desired
It is the basis of any insurance policy.
Proposal forms will be of variable length dependent on the nature of the risk and the information which an insurer will need to be able to underwrite the risk.
For example private car form has quite a number of questions but the liability form is perhaps even longer.
the fear of the Lord is the beginning of wisdom
What are proposal forms?
Proposal forms should be simple to understand and easy to complete.
There are certain classes of insurance for which proposal forms are not normally required.
The main example of this being fire and marine insurance.
In the case of a fire insurance the actual details of the risk could be so complex that it would be