Underwriting, policyholder service, claims handling, and producer responsibilities
Producer service and claims duties
Underwriting begins with accurate information: application answers, loss history, inspections, motor vehicle records, and financial data. Producers should submit complete information, avoid answering for the applicant, and document advice. Policyholder service includes binders, endorsements, certificates, renewals, audits, cancellation notices, and premium finance follow up. A producer is not the insurer and cannot adjust claims beyond granted authority. Claims handling requires prompt notice to the insurer, cooperation, and fair treatment.
Claims concepts
Read duties after loss, proof of loss, appraisal, subrogation, reservation of rights, and settlement authority. Unfair claims practices include unreasonable delay, misrepresentation of policy provisions, and failure to investigate. Liability is determined by coverage and law, not by sympathy alone. Errors and omissions risk rises when instructions are ignored or oral promises are undocumented.
Traps
A certificate does not create coverage. A binder may be temporary but must be within authority. Do not tell a claimant what the policy will pay before coverage is confirmed. Do not delay reporting a claim to protect a relationship. Compare the date of loss, policy period, and reported date.
Worked example
A client asks for a $2,000,000 liability limit. The producer fails to submit the endorsement, and a $1,500,000 claim occurs. The policy limit remains $1,000,000. The client may allege producer negligence. Rule of thumb: document the request, confirm the bound limit in writing, and check the issued policy.