What is the insurance stipulation?

Terms used in the insurance industry often lead to doubts about their meanings. A good example is the term “insurance stipulator”, the subject of our article today. Follow and understand the subject better.

In fact, the insurance industry is full of nomenclatures and terms that sound strange and cause doubts among consumers. After all, what is the insurance deductible? What are bonus classes? And what's wrong?

Who has never signed the insurance contract and sometimes, even those who already have one have several questions to answer. And, among them all, one of the most common is “what is the insurance stipulation?”.

Before answering the main question of the text, however, we need to talk about the importance of car insurance.

Insurance is nothing more than protection for the vehicle. It is thanks to it that, after an accident, the user has their losses reimbursed by the insurance company, according to their insurance policy.

Common accidents involving a car are theft or theft, collisions, fire and lightning strikes.

That said, it is always interesting to take out car insurance. After all, with it you will have the money to repair the car, or even to purchase a new one.

Most insurance also covers damages to third parties, which again prevents high consumer expenses.

Now that you know why you need protection, it’s time to talk about the insurance stipulations. Keep reading!

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What does insurance stipulation mean?

The insurance provider is someone responsible for taking out insurance coverage for a group of people.

He can be either an individual or a legal entity, and must intermediate the contracting of insurance for this group, directly with the insurer.

A stipulator is only present in negotiations of the insurance policy when it is collective. Collective insurance is one that has a single contract aimed at several users.

It is common, for example, for members of unions, condominiums and commercial associations.

When carrying out such a contract, the insurance provider automatically becomes responsible for responding to the group members with the insurance company.

Typically, the stipulators are insurance brokerage companies, but they can also be individual consultants.

How can I count on a stipulator? How it works?

Having a stipulator works as follows: a group of people want to take out insurance. So, look for someone to take care of all the documentation and processing of this contracting. insurance policy.

This person will be the insurance stipulator. She will carry out the necessary quotes, indicate to the insurer the desired coverage and will also negotiate the payment method for the insurance contract.

With all the research carried out, the stipulations insurance forward the results to customers who wish to have coverage.

These, in turn, may or may not agree with what is offered. If they agree, the stipulator signs the insurance policy, including all those insured in the contract.

In other words, the stipulator remains the representative of the insured before the insurance company.

Then, users pay the protection premium amount. The premium is nothing more than the cost of hiring the service.

With a signed agreement and paid premium, interested parties become insured. From this moment on, the customer is protected by the company and, after any accident, they will receive assistance from the insurance company.

Meanwhile, the insurance provider will be responsible for resolving all issues in this contract with the insurer, including after accidents.

Shortly after a covered incident, the stipulator, or broker, will contact the protection company. Then, it will begin with the claim process and request compensation amounts.

The compensation may be partial, for repairs, or full, for the purchase of a new car.

Full compensation is only released after a theft or theft in which the car is not recovered, or when the costs to repair the car exceed 75% of its market value.

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Insurance policy regulation

The Superintendency of Private Insurance (Susep), the body responsible for regulating the insurance sector in Brazil, defines, through resolution no. 107, of 2004, the rules for stipulating insurance.

Among all the determinations found in this resolution, the ones that stand out the most are:

• Exporters and importers are obliged to receive from the insurance company all the clauses and conditions of the contracted insurance, especially those that provide guidance on claims;
• Insured parties must present a document that expressly states that they do not have any insurance policy in force with another company, insurance that is the same as that being contracted by the stipulator;
• Stipulators are prohibited from charging policyholders any amount relating to the insurance contracted, in addition to those presented by the insurer.

In addition to these definitions, it is specified that the insurance provider, even though it is collective in nature, must deal with the contracting of policies individually, always preserving the obligations and rights between the insured and the insurer.

Another function of insurance policyholders is to keep the insurer updated on policyholder data.

If one of the users changes their marital status, car, home address and so on, the protection company needs to be informed.

This is because several of these aspects directly influence the cost of insurance and, consequently, how much compensation will be paid.

If, after a insurance claimIf the insurance company finds that the registered data is inconsistency with reality, it may deny payment of compensation to the individual, alleging fraud. It will be up to the professional to inform the injured insured.

Other rules for the insurance stipulator

They are also the stipulations that keep the user updated on aspects of the insurance, such as rising costs or changes in coverage.

The individual still functions as a guardian for the policyholders. After all, he will be able to report to SUSEP if he notices irregularities in the insurance company.

A collective insurance contract can only be terminated if at least three-quarters of the insured group agree to this cancellation.

In short, the insurance stipulator is responsible for taking care of all negotiations regarding the contracting of the insurance policy, and for being responsible for the insured with the insurance company.

Differences between the insurance broker and the insurance policyholder

There are some differences between the insurance broker and the insurance provider. Among them, when an accident occurs, the stipulator is obliged to be there to sign. The broker carries out the sale and is not obliged to do so.

Remembering that the stipulation is for collective insurance, such as associations, unions and others. So, if you noticed that there is a stipulation in your car insurance contract, check what happened.

If, even after reading this article, you still have questions, look for a reliable broker and ask for more clarification. You can also contact us!

*Published in: 08/29/2018 and updated on 10/26/2020.