What is insurance underwriting and solicitation?

Insurance policy differs in each country rule and regulation. So we would like to share with you a Must Know basic information about Japan Insurance underwriting and solicitation.

What is insurance underwriting?

The insurance company, accepts the application for insurance and the insurance contract is concluded if the applicant has passed the insurance company underwriting procedure.

What is insurance solicitation?

An insurance solicitor acts as an agent or intermediary for the conclusion of an insurance contract. Conclusion of a contract as an agent means that the insurance solicitor is given the right to conclude a contract. If the solicitor accepts the contract, the contract is concluded.

On the other hand, mediation of conclusion means that the insurance solicitor only solicits insurance contracts. In the case of solicitation without the authority to act as an agent, the conclusion of a contract is left to the approval of the insurance company.

What is the scope of the solicitor?

The scope of solicitors includes

  1. Officers and employees of insurance companies *Includes sales staff
  2. Persons entrusted by insurance companies (e.g., agents) and their officers and employees
  3. Insurance brokers and their officers and employees

What are the qualifications of a solicitor?

Each solicitor must pass the prescribed examination conducted by each association (The Life Insurance Association of Japan, The General Insurance Association of Japan, and The Japan Insurance Brokers Association) and apply for registration with the Prime Minister in advance.

 

La Cuna insurance agent has passed all exam and registered.

What are life insurance solicitors and life insurance agents?

As a general rule, since it is exclusive to one company, no more than two companies may be registered at the same time. However, if there is no risk of lack of protection for policyholders, etc. as an insurance agent, etc., multiple companies may be registered. Life insurance solicitors (agents) act as agents or intermediaries, but in general, the insurance company has the right to conclude contracts and receive declarations notices.

What is a non-life insurance solicitor and non-life insurance agent?

Non-life insurance solicitors and agents are authorized to accept and conclude contracts and collect premiums on behalf of insurance companies.However due to a lot of issues of collecting payments by agents most of the insurance companies does not allow agent and solicitor to collect monies. Instead the customer can choose to pay via bank transfer or credit card.

Multiple companies may be combined if there is no risk of lack of protection of policyholders, etc. Self-insurance contracts exceeding 50% of the average premium handled per year during the last two years are prohibited.

What is an Insurance Broker?

An insurance broker is also called a broker.

A broker is a person who, without being commissioned by an insurance company, acts only as an intermediary between a policyholder and an insurance company for the conclusion of an insurance contract from a neutral standpoint.

They do not have the authority to conclude contracts, receive premiums, or receive notices. The brokerage fee is paid by the insurance company, not by the policyholder. Cannot concurrently work as a life insurance solicitor or non-life insurance solicitor. Self-solicitation of more than 50% of the average premium handled per year during the last two years is prohibited.

What is the Application of the Insurance Business Law?

Insurance solicitors and insurance brokers are subject to the Insurance Business Law.

Basic rules of insurance solicitation

The following responses are required when soliciting insurance

  • Understanding customer needs: family structure, annual income, insurance objectives, etc.
  • Formulate an insurance plan that meets said needs
  • Final confirmation of customer needs and proposed plan

During the insurance solicitation process, the client must be provided with the information necessary to determine the suitability of purchasing insurance.

  • Payment terms (under what circumstances insurance payments will be made)
  • Period of insurance, amount of insurance, etc.
  • Other information that should be helpful to the customer (e.g., road services and other ancillary services)
  • When selling products of multiple insurance companies with comparative recommendations, it is necessary to list comparable products among those handled, and when presenting or recommending a specific product, to explain what makes it superior to other products, etc.

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