How is an insurance policy written and who specifies the wording of the policy?

Question

I want to learn how to write an insurance policy. How do I go about it ? I can't find a mock policy to use as an example on the web.No, This isn't for fraudulent purposes. I'm trying to start my own insurance co. with a particular type of coverage(p&c).

Answer 1

Most companies use standard forms, and have a team of lawyers to write up specific endorsements or modifications to those terms.  

You can't find mock policies, because the forms are all copywrited - and insurance services office, a business, has a team of lawyers that writes theirs, and sells them to insurance companies, for a living.

Of course,  in any state, the form is going to have to be approved by the state insurance commissioner.

If you're a lawyer specializing in contract law, go to the state commissioner's office, and look at the forms on file there.  

If you aren't familiar enough with your state's laws, to write an insurance form that's legal, you shouldn't be writing it.  And if you can't afford the hundreds of thousands to hire the legal team, you're not going to have the hundreds of millions you need for reserves, to start the company.

Answer 2

Insurance can only be underwritten by insurance companies that meet stringent requirements and that are licensed by the various state insurance departments where they want to sell their products.  

I'm guessing that you have an idea for a particular type of coverage and want to develop that idea with a licensed company.  Many insurance companies have "program" departments where they will underwrite specific types of insurance through a "program manager".  Program Managers are responsible for the marketing, administration, and sometimes the claims payment of a specific line of insurance which is sometimes also known as specialty risk coverage.  Generally you will have to have a very complete business plan which will include such topics as:

Sample policy;

rate calculations;

underwriting rules;

premium projections;

loss projections;

marketing objectives;

availability of reinsurance, etc.

Answer 3

Most P&C standardized policies are ISO (Insurance Services Office).  I would start there.  Then, you will need multimillions in capital or the investors with that kind of money.  You will have to have your forms approved by the state you intend to write business.  You will have to hire underwriters, accountants, lawyers, actuaries (they price the product), computer programmers, etc.  You will have to be licensed in your state.  Also, agents to sell your product (since people that sell insurance have to be licensed).  Most agent's E&O insurance will not cover them unless they sell insurance with a company that is rated "B" or better by AMBest.  A startup company is not rated.  So, you may have trouble getting an agent to sell your insurance.  You may have to do it all yourself and go without E&O insurance (which is taking a huge chance).  Good luck, you have your work cut out for you.

Answer 4

Using the SE like google or yahoo to get some hints first if you want to obtain the massive information,if you do not want to spend too much time,here is a good resource for your reference about your questions.http://insurance.online-frees.info/insur...