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Among all the doubts that exist in the world of insurance, the insurance proposal is one that can bring more confusion. Follow this article and understand this subject better, discovering how this proposal works.

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The language used in the world of insurance always causes doubt in people who are having a first, or even second, contact with it.

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Terms such as deductible, claim and insurance proposal are some of the most frequent terms both in use and in causing strangeness.

If you are thinking about taking out car insurance or are already in the research and negotiation phase, and are having difficulty understanding some terms, don't worry, this is completely normal.

So normal that we prepared an article exclusively to explain one of these terms.

Continue reading and understand better and in a very simple way what the term 'insurance proposal' means and how it works.

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What is an insurance proposal?

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What is the insurance proposal?

The insurance proposal is a document prepared by the insurance broker together with the person interested in contracting the service.

This document must contain all the necessary information about the coverage that the customer wishes to purchase, in addition to, of course, their personal data and information about their routine and the condition of the vehicle.

In addition to this information, the insurance proposal must also contain details such as additional drivers, accident history and copies of the documentation necessary to analyze the proposal.

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It is worth mentioning that it is essential that all the information contained in the insurance proposal is 100% in accordance with reality.

If they are not and insurance is contracted based on this information, the insured may lose the right to coverage contracted and paid later, without any possibility of reimbursement.

Therefore, as soon as the proposal is ready, read it carefully and confirm that all the data provided by you is correct and that the desired coverage is in accordance with what you discussed with your broker.

It is very important that this verification is carried out before signing the proposal.

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Because, once the document is signed, you will agree with everything described in it.

What happens after the insurance proposal is signed?

Once signed, the insurance proposal must be delivered to the insurer.

You will, from the moment you receive this document, have a period of 15 days to analyze the risks of accepting the client's proposal.

If the insurer deems it necessary, it may request additional documents to ensure the veracity of the information found in the insurance proposal.

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When the request for these additional documents is made, the 15-day period is suspended and begins again only after such documents are delivered.

Within this period, the insurer has the right to refuse to close a contract with the client, if it believes that the risks assumed in providing the service are too high.

However, if the insurer does not respond within the 15-day period, it will automatically be obliged to accept the proposal.

If the insurance company accepts the insurance proposal, it must send the customer the insurance policy, which is nothing more than the service provision contract.

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Once the client has the policy in hand, they must read the contract very carefully and only after understanding all the clauses and verifying that personal information and coverage are correct will they be able to sign the policy, thus becoming the company's new insured.

What information is required in an insurance proposal?

As mentioned previously, the insurance proposal must contain some specific information such as the customer's personal data, routine use of the vehicle and choice of protection to be purchased.

This entire process, as well as the provision of insurance, is regulated by SUSEP – Superintendency of Private Insurance.

Which, in SUSEP circular no. 251, dated April 15, 2004, presents the necessary rules for executing the insurance proposal and issuing the policy.

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To give you an idea of ​​what information is generally requested, we have selected some data that, according to SUSEP, are essential in an insurance proposal, these are:

  • Documents and information so that the insured asset can be identified;
  • Price of the asset to be insured, if it has been included in the “determined value” modality;
  • Indication in the referenced and substitute table, as well as its means of publication if the policy is made in the “referenced market value” modality;
  • Presentation of the adjustment mode, this must be defined as a percentage, to be used in the case of compensation, regardless of whether it is negative or positive;
  • Breakdown of all premiums according to each coverage;
  • Definition of compensation limits for coverage;
  • Types of franchises chosen by the customer;
  • Number of points in the customer's bonus class, if any;
  • Truth-aligned answers to the risk assessment questionnaire.

This is the information that, according to SUSEP, must be included in an insurance proposal.

However, the amount of information may vary depending on the insurance company.

Since, in addition to this information, companies are free to adopt other types of criteria for contracting car insurance.

What are the types of proposal characterized by SUSEP

In addition to this type of insurance proposal, there are others that are considered by SUSEP, these are:

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  1. Membership proposal: used for personal insurance

This is a declaration of all the elements necessary to purchase protection, in addition to details about the risks in which the client intends to purchase coverage.

This proposal must also include the client's knowledge of all contractual conditions.

  1. Hiring proposal: used for personal insurance

This proposal is a declaration that must be made the same as the previous one.

Its difference is that this can be done by both an individual and a legal entity.

In addition to having a breakdown of all coverage to be purchased.

  1. Registration Proposal: used for Social Security

The registration proposal is a document where the person presenting the proposal expresses the desire to take out insurance coverage or even participate in collective bargaining.

In this type of proposal, the proponent's complete knowledge of the regulations and all contractual conditions relating to the service must be specified.

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What is the difference between the insurance proposal and the insurance policy?

Many people wonder about the difference between the insurance proposal and the insurance policy, but in fact the difference between these two documents is simple.

The proposal is the document that shows the insurer the client's interest in hiring its services.

It must contain all the information necessary for this contract.

The insurance policy, in turn, is the contract document for these services.

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It contains all the services chosen by the customer, with the rules for use and compensation, in addition to the price that the insurance company will charge for offering the service.

In other words, these two documents are not the same thing, but one depends directly on the other so that the car insurance contract is signed and becomes valid.

How is the insurance proposal requested?

The simplest and fastest way to request an insurance proposal is to enlist the help of a specialized broker.

However, this procedure can be carried out directly by the customer with the chosen insurance company.

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To do this, after carrying out research with different quotes and choosing the insurance company that offers services and prices that best suit your needs, simply call the company or look on its website for the way to send the insurance proposal, in addition to request the model of what should be sent.

Each insurer has a different communication channel and a specific insurance proposal model, so it is important to find out from the company how this procedure works.

We hope that after reading this article the term 'insurance proposal' will no longer be a problem for you.

In short, it is the document where all information about the customer, their car and the insurance coverage they wish to purchase must be specified.

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This is the document that must be sent to the insurance company to request car insurance.

It will be analyzed by the insurance company and if accepted, the company must send the insurance policy to the customer.

If you still have any doubts about the subject, the best option is to look for a trusted insurance broker and ask for further clarification.



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