2037 Words May 23rd, 2015 9 Pages

the fear of the Lord is the beginning of wisdom What are proposal forms?
 A proposal form is a standard mass-prepared document by insures to the insured for the purpose of disclosing the needed material facts, it is usually the form of questions that aim the insured to provide answers.
 It is the most common mechanism by which the insurer receives information about risks to be insured.
 Proposal form stands as an offer to the insurer of which the insurer is at liberty to accept or reject.
 If a proposal is properly presented, and an insurer accepts it, and the premium is paid (or there is an agreement to pay the premium) a contract comes into existence.
 Generally a
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 In many cases the details from the form are transferred to a computer file and this is reflected in the style of question and response required, specifically the confining of answers to boxes.
 The proposer must answer the questions given fully to the best of their belief and knowledge
 Answering all the questions does not relieve the proposer of the duty to reveal material facts for which there is no question on the form

the fear of the Lord is the beginning of wisdom

Contents of a typical proposal form
 Common questions across a range of insurances for b2c business:
 The name and address of the proposer, occupation and age
 Details of past claims and in some cases past or present insurances of a similar nature
 The period of time over which the insurance is required
 The basis upon which the premium will be calculated in the case of household cover this would be the sum insured for contents or buildings.
 In life assurance it would be the age of the proposer plus the sum assured.

the fear of the Lord is the beginning of wisdom

Contents of a typical proposal form

For b2b insurances, general questions might include:
 The name of the proposer, this would be the corporate or business name
 The business address would be required as would the addresses of the various locations from which the company operates, and for which it may require cover  An exact description of the trade, business or profession carried on by the proposer would be