General Knowledge on Insurance

1 WHAT IS BINDING IN INSURANCE TERMS

Binding in insurance refers to, coverage in force, although a policy is yet to be issued.

Binding will takes place through verbal agreement, in person or over phone, email etc.

Parties:

The parties involved in binding an insurance policy includes insured party, an independent insurance agent or the insurance provider (Broker).

Binder:

Binder is a written copy of agreement between the insurer and insured. Binders are typically valid for period of 30 days. A policy may be issued during the binder period or the insurer may choose to issue a revised binder to the insured in case there is any delay in the issue of policy.

ETL System Architecture:

Billing System, Book of records Database:Party:

Is an Individual entity can be an Individual or Organization to which Axis offers various types of insurance products.

(1) (M)

(1) (M)

Billing Account Can be created in the following way’s:

1. Create an account by associating to a new policy or existing policy

2. Create a billing account by searching for an existing Party.

3. Create a billing account by creating a new party and then create the account.

Coverage Hierarchy:

Coverage : Example Collision

Billing Account AssociatePolicy

Billing Account AssociateParty

Insurance policy is subject to multiple endorsement’s during it’s policy term causing either increase or decrease in commission