Have you had a car accident in the past five years?: Yes No Have you ever been convicted for a driving offence?: Yes No If yes, please provide details?
Signature: Date:
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It is very important to answer proposal form questions truthfully. The answers help the insurance company to assess the risk before it decides whether or not to provide the insurance.
Step 3: The Premium
When the insurance company agrees to provide insurance, it will let the applicant know how much their fee will be. This fee is called a premium and it must be paid to the insurer in full or in instalments over an agreed period of time.
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The fee paid by the insured for insurance is called a premium.
We will look at how the insurer calculates the premium later in the chapter. Step 4: The Insurance Documents
When all details have been agreed, the insurer will send the insurance documents to the insured person.
These documents are:
• The insurance policy • The certificate of insurance.
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The insurance policy is the insurance contract between the insurer and the insured. It contains the details of the insurance agreement.
