Binding Authority Services

Ever wondered just what is involved behind the scenes in binding a professional liability account? Here is a sneak peek at what we do.

HCI provides retail insurance brokers access to specialty insurance carriers with which they are not contracted directly.  HCI approaches the market with over 20 years of experience in placing professional liability with our specialty carriers.  The volume and knowledge enables our underwriters to efficiently match insured with the insurer.

1. Underwriting
1. Receives and reviews submission. If necessary, obtains additional information from the broker.
2. Analyzes the submission information to determine the best available carrier, coverage, forms and premium.
3. Reviews claims history for consideration in underwriting.
4. Orders site inspections, MVR or other underwriting tool reports as appropriate.
5. Generates proposal(s)/quote(s) based upon the carrier's rate structure and underwriting guidelines.
6. Releases quote(s) providing broad description of terms and conditions and exclusions.
7. Negotiates final price, terms and conditions.
8. Binds coverage with confirmation to the broker and carrier.
9. Participates in semi-annual carrier audits.
2. Policy Services
1. Follows carrier policy issuance manuals and procedures to issue the policy to the broker.
2. Reviews policy for accuracy before delivery.
3. Processes endorsements, which include amended rates, updated schedules or other needed changes.
4. Produces expiration notices, including requested information that will be needed to market or underwrite the renewal.
3. Accounting
1. Issues statement of accounts or invoices
2. Collects premium
3. Pays carrier and broker
4. Files surplus lines taxes, where appropriate.
5. Issues notice of cancellation for non-payment and reinstatement when payment is received. Coordinates with policy management to ensure proper notification.
6. Coordinates audits between carrier and broker.
7. Reconciles all claims payments.
4. Claims
   1. All claims, incidents or inquiries are created as claim records.
   2. Information entered into database.
   3. Claim personnel review first notice of loss for potential coverage under this policy and any other policy RPS writes.
      1. If there is coverage and we have:
         1. No claims authority: submit claim to carrier's claim department
         2. Claims authority:
            1. Contact appropriate claims professionals (attorneys, adjusters, inspectors, appraisers, etc)
            2. Manage those services including payment for their services
            3. If necessary, provide large loss notification to the carrier
            4. Bring claim to resolution.

Our office supports the underwriting, policy services, accounting and claims functions with:

1. Marketing
1. Promoting, advertising, direct sales campaigns and participation in various trade shows and industry events for the various programs and products for which RPS acts as the underwriting branch.
2. Finding, maintaining and managing a viable distribution network for the various programs and products for which HCI acts as the underwriting branch. The screening process includes:
1. Verifying that the entity has adequate E&O limits
2. Verifying that the entity is properly licensed
2. Personnel - Hire, train and maintain an underwriting, process, administrative and management staff.
3. Technology - Create and maintain computer systems to support the underwriting (including rating, quoting, policy issuance, policy endorsements and cancellations), accounting (billing and collections) and claims processes.
4. Research and Development - invest time to research, design and develop products for the distribution network that are priced competitively, with the broadest coverage available and insured with the highest rated carrier. If necessary, find replacement carrier(s).