Contract Certainty is achieved by the complete and final agreement of all terms between the Insured and Insurer by the time that they enter into the contract, with contract documentation provided promptly thereafter.
The policy wording to be used must be clearly identified. Cover must not incept ‘Policy wording TBA’. If the wording is not a standard wording (i.e. NMA, LSW or a lodged form) then a full copy of the wording must be attached to the Slip for Insurers’ agreement or language such as ‘wording as expiring Policy number XXX as agreed by (name of Insurer) for the period XXX to XXX’ may be used.
Similarly, any non-standard clauses/endorsements must be attached for Insurers’ agreement. If the wording of a clause is not available then the Client and Insurers must agree temporary verbiage or the use of an acceptable temporary clause until such time as formal agreement to the preferred language is reached.
It should be remembered that any temporary language puts the Client at a disadvantage and so every effort must be made to obtain agreement to the required language, prior to binding. If no wording is available for endorsements or amendments at the time of inception then cover must not attach until at least a temporary wording has been agreed by Insurers and the Client.
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