While having retired from Alexander & Alexander in 1997, and a contract writer for IRMI, and a consultant for a number of entities, personally I have always read all of he mind numbing language on every single contract that I have ever been involved in. Without reading the contract, how does one compare coverage to the binder ? Now while I am undoubtedly going to get a few adverse comments, the majority of business that I brokered was Fortune 500. Contractual language, which is sacrosanct irrespective of the subject matter is in fact the back bone of risk analysis. Be well all. Pete
Unfortunately, there are many people who choose not to read the contract, and that’s likely the norm moreso than the exception.
Even more concerning is someone, let’s say an independent agent – but it could be anyone, who reads the contract but doesn’t have basic reading comprehension skills and misinterprets what it being offered and accepted.
Not understanding what you’ve read may be worse than not reading at all.
I agree about reviewing contracts before selling them, especially manuscript or proprietary products like Executive Protection and other specialty coverages. But once you review and understand ISO forms, it’s really not necessary to re-read them each and every time. Only to be abreast of form changes and be aware of what endorsements will be attached that may change coverage.
Congrats on your retirement! I remember A&A from years past! Along with BMF, J&H, Frank B. Hall, Fred S. James. I could go on. Sigh!
Libby, thanks for the comment. One thing though. Despite the knowledge of the so called ISO form, the vast majority of contracts have any number of endorsements, either standard format or manuscript, and these are the very documents which can provide a problem. Take care. Pete
Yes then you will be really upset. If we pull out what you are covered for you can barely fill one page.
But yes I guess it’s as simple as read the whole thing.
Just read the policy like AIG does. You read the exclusions very carefully. Define every exclusionary word six ways to Sunday. See if it applies to the claim. Practice preparing a reservation of rights letter utilizing the exclusionary wording or if needed, apply the exclusions from any other policy that seems to fits. Now you can file the policy away and relax knowing it doesn’t cover a thing!
While having retired from Alexander & Alexander in 1997, and a contract writer for IRMI, and a consultant for a number of entities, personally I have always read all of he mind numbing language on every single contract that I have ever been involved in. Without reading the contract, how does one compare coverage to the binder ? Now while I am undoubtedly going to get a few adverse comments, the majority of business that I brokered was Fortune 500. Contractual language, which is sacrosanct irrespective of the subject matter is in fact the back bone of risk analysis. Be well all. Pete
Unfortunately, there are many people who choose not to read the contract, and that’s likely the norm moreso than the exception.
Even more concerning is someone, let’s say an independent agent – but it could be anyone, who reads the contract but doesn’t have basic reading comprehension skills and misinterprets what it being offered and accepted.
Not understanding what you’ve read may be worse than not reading at all.
Peter-
I agree about reviewing contracts before selling them, especially manuscript or proprietary products like Executive Protection and other specialty coverages. But once you review and understand ISO forms, it’s really not necessary to re-read them each and every time. Only to be abreast of form changes and be aware of what endorsements will be attached that may change coverage.
Congrats on your retirement! I remember A&A from years past! Along with BMF, J&H, Frank B. Hall, Fred S. James. I could go on. Sigh!
ISO forms? Ha! What’s that?
Glad Chris Boggs is back!
Libby, thanks for the comment. One thing though. Despite the knowledge of the so called ISO form, the vast majority of contracts have any number of endorsements, either standard format or manuscript, and these are the very documents which can provide a problem. Take care. Pete
Exactly. Endorsements are the killer!
So basically just read the entire policy then.
Yes then you will be really upset. If we pull out what you are covered for you can barely fill one page.
But yes I guess it’s as simple as read the whole thing.
I tell my insurance customers it is a good idea to read the policy and ask any questions; if nothing else it may help them with insomnia.
One staid member of the community replied, to this suggestion: I always just look the agent in the eye to see if I trust them.
Wonder how we got so far from the 165 lines of the standard New York Fire Policy, would attorneys have any possible connection. :)
Just read the policy like AIG does. You read the exclusions very carefully. Define every exclusionary word six ways to Sunday. See if it applies to the claim. Practice preparing a reservation of rights letter utilizing the exclusionary wording or if needed, apply the exclusions from any other policy that seems to fits. Now you can file the policy away and relax knowing it doesn’t cover a thing!
Very funny rocket, well played!