To download a PDF of this article as it appears in the magazine click here .Your feedback on the "practical" MOT last week was invaluable. Obviously, we did not wish to duplicate the excellent CII assessment in last week's issue by giving a multiple choice MOT, but as it turned out it seems you thoroughly enjoyed both. So how did you get on?
Task 1: Make a list of things that might let a client downBear in mind that we are only dealing with the process of completing a proposal with a client. What about the following:
Claim being refused Claim being reduced Policy being avoided Not gathering information at the first attempt and having to bother the client unnecessarily Not being helpful in gathering information from previous insurers.Do remember that compliance is also about customer service as well as making sure claims are paid and clients do not lose money.Task 2: Make a list of circumstances which could lead to the examples in task 1There are many but here are a range of examples:
Not explaining the duty of disclosure and its effect Not inserting the correct postcodeu Allowing both broker and client to complete different parts of the proposal (it should be one or the other) Not making reasonably sure that the customer can understand the answers Not asking additional questions about the proposal when appropriate Not explaining terms in the proposal Leaving sections in the proposal blank Adding an insufficient definition of the business of the customer Not checking that insurable interest exists in notorious situations (for example, a family company insuring a property that is actually owned by the pension fund or Great Aunt Maude). The list could be very long indeed, but it should be relevant to your own firm, your own staff and your own customers.Task 3: Create guidance to other staff for each example1) Not explaining terms on a proposal.This could lead to an insured giving incorrect information and an insurer rejecting a claim or avoiding a policy.Guidance: As you go through the proposal make sure that you ask the client several times whether they understand the terms that are being used.Try to watch the customer as you or they complete the form and be on the look out for signs of puzzlement or lack of comprehension. In particular, business people may not wish to show ignorance on a subject.On key questions (for example, definition of business activity) try to give the customer examples of what might be especially material to an underwriter. For example, even though a garden centre is described as retail only, the insurer would want to know about any form of manufacturing or making things.2) Not inserting the correct postcode.There is inconvenience to the client and the broker in having to chase it up. Guidance: Take time to get the postcode correct and make it clear. Worst offenders are often more senior brokers with less attention to this sort of detail. But if we get it right first time it saves an inordinate amount of time and money. Remember - block capitals and sensibly spaced.Do you see how a simple CPD learning exercise can create a welter of guidance for staff. And this all originates from the starting point of working together with your own staff to consider how you can let the client down and how to avoid it. I am sorry that the CPD is so short this week but perhaps we can continue the theme another time. In the meantime, try the exercise in a variety of scenarios for example: a renewal meeting; dealing with a claim; or handling money.
This page is edited by RW Associates, specialists in training, compliance and competence. Email: ruy.lopez@brokercompliance.co.uk 
