Learning Center
Plans & pricing Sign in
Sign Out




             Document #: SBD800


          Prepared By
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 2 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

 Document #:                    Title:                                                           Print Date:
 SBD800                         SALES & BUSINESS DEVELOPMENT
 Revision #:                    Prepared By:                                                     Date Prepared:
 1.0                            Sami Abdelnour                                                   06/1/2009
 Effective Date:                Reviewed By:                                                     Date Reviewed:
 10/1/2009                      Mr. Elias Chamoun                                                05/01/2011
                                Approved By:                                                     Date Approved:
                                Mr. Elias Chamoun; Dr. Tariq Al Fayez                            06/30/2011
 Standard: Saudi Arabian Monetary Agency

                                                 Table of Contents
POLICIES & PROCEDURES                                                                     FILENAME                        PAGE

Functions and Tasks of Elite                                                                      SBD801
 1.0 Main Functions ....................................................................................................5
 2.0 Selection of Insurers ............................................................................................10
 3.0 Placing Insurance .................................................................................................17
 4.0 Negotiation of Claims ..........................................................................................24
Policy Forms and Rates                                                                            SBD803
 1.0 Policy Wording and Packaging ............................................................................27
 2.0 Policy Amendments .............................................................................................28
 3.0 Policy Cancellation ..............................................................................................28
 4.0 “Free Look” Clause (Protection & Savings Insurance Products) ........................28
 5.0 Pricing ..................................................................................................................29
Client Code & Policy Number Designation                                                           SBD804
 1.0 Client Code & Policy Number Designation and Assignment ..............................31
 2.0 Policy Number Recordkeeping ............................................................................31
Sale of Insurance Products and Services                                                           SBD805
 1.0 Disclosure to Customers ......................................................................................33
 2.0 Customer Obligations ..........................................................................................35
 3.0 Confirmation of Coverage ...................................................................................35
 4.0 Documentation .....................................................................................................35
 5.0 Related Parties .....................................................................................................35
 6.0 Premium Collection .............................................................................................36

ELITE Insurance & Reinsurance Broker                                                                               Page 3 of 55
   SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

POLICIES & PROCEDURES                                                       FILENAME                        PAGE
   7.0 Scope and Relationship with Third Parties ..........................................................36
     SBD805-1 – ELITE BOR .........................................................................................37
   Product Development                                                                            SBD806
    1.0 Developing a New Product ..................................................................................41

   Sales Leads                                                                            SBD807
    1.0 Incoming Sales Calls............................................................................................45
    2.0 Business Reply Cards and Letters........................................................................45
    3.0 Trade Shows/Seminars.........................................................................................46
    SBD807-1 - Sales Lead Tracking form ........................................................................47
   Sales Order Entry                                                                              SBD808
    1.0 Sales Representatives ...........................................................................................49
    2.0 Sales Administration ............................................................................................49
    3.0 Credit Department ................................................................................................50
    4.0 Customer Service .................................................................................................50
    5.0 Accounting/Billing ...............................................................................................50
   Sales Training                                                                                 SBD809
    1.0 Orientation and Training ......................................................................................51
    2.0 Professional Conduct ...........................................................................................52
    3.0 Sales Process ........................................................................................................52

   ELITE Insurance & Reinsurance Broker                                                                           Page 4 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:             Title:                                       Print Date:
Revision #:             Prepared By:                                 Date Prepared:
1.0                     Sami Abdelnour                               06/1/2009
Effective Date:         Reviewed By:                                 Date Reviewed:
10/1/2009               Mr. Elias Chamoun                            05/01/2011
                        Approved By:                                 Date Approved:
                        Mr. Elias Chamoun                            06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           The role and functions of Elite are presented to explain the operations
                  duties in respect to customers.
Purpose:          To examine the role and functions of Elite in relation to its position as
Scope:            This procedure covers the role of Elite in the selection of insurers; explain
                  its duties in respect of the negotiation and placing of an insurance risk; and
                  discuss its specific functions in relation to the negotiation of claims.
          In simple terms, the main functions of Elite with which we are concerned are to:
              Ø take instructions from his client;
              Ø execute them in an efficient manner; and
              Ø assist in the negotiation of claims.
          However, these simple steps embrace a multitude of different tasks and
          responsibilities, including:
              Ø obtaining a detailed knowledge of the client’s business and philosophy;
              Ø maintaining clear records of the client’s business so that this can be
                explained to an insurer and other parties;
              Ø provision to the client of technical advice and advice on developments in
                the insurance market and the law;
              Ø maintaining a detailed knowledge of available markets ;
              Ø selection and recommendation of an insurer or group of insurers;
              Ø negotiating with insurers on the client’s behalf;
              Ø acting promptly on instructions from a client and providing written
                acknowledgements and progress reports;
              Ø providing the client with a written record of the insurance placing;

ELITE Insurance & Reinsurance Broker                                                  Page 5 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Ø collecting and remitting premiums;
            Ø where appropriate and dependent on the size of both the client and broker,
              providing additional services, such as risk management services and
              uninsured loss recoveries;
            Ø assisting in the negotiation of claims.
            Ø maintaining precise records of past claims

        The individual is not; on the whole, very insurance-conscious. He is aware of a
        few of the common forms of insurance but will probably have no conception of
        the enormous variety of covers which the insurance market provides. He may be
        prepared to concede that the idea of insurance is a good one, but he still tends to
        be a reluctant purchaser.
        His reluctance is perhaps understandable when one thinks that he is being asked
        to payout money in return for which he receives no immediate tangible benefit.
        All he gets is a promise and a piece of paper - the insurance policy -, which
        embodies that promise. The policy is a legal document and as such is written in a
        style and language, which the insured may find difficult to understand.
        The agreement is an odd one because not only may a very long time elapse before
        there is an opportunity to test the promise that has been given, but also that
        opportunity will usually arise only in unpleasant circumstances, which the insured
        would rather not think about. It is, in short, an agreement, which both parties
        would rather never, came into effect, and so it is hardly surprising that most
        insurance for individuals is bought as a result of either compulsion or persuasion.
        Compulsory insurance, as far as the individual under non-life category, is
        concerned, generally means motor insurance, and many brokers base their
        business on individual motor policies. The motorist must have cover, and he does
        not know how to find the best insurer. That is the problem that the broker solves
        for him. The broker is able to find the best combination of rates and conditions for
        the particular circumstances of his client among the many on offer, and to
        recommend a sound insurer to him.
        If the insured has a motor accident, it is to the broker that he turns for guidance
        and help through the formalities of making a claim upon his insurers, and possibly
        for assistance in making an uninsured loss claim against the other motorist.
        This is one of the simplest illustrations of the role played by a broker in arranging
        insurance and in making sure that the insured obtains the full benefit from it when
        he comes to make a - claim, but it can lead to a very successful relationship
        between broker and client. Just how close the relationship can be is shown by the
        number of clients who find it very difficult to remember the name of their insurer
        but who have no difficulty in recalling that of the broker.

ELITE Insurance & Reinsurance Broker                                              Page 6 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        If motor insurance tends to be the result of compulsion, life assurance often
        depends upon persuasion. A broker has to be a good salesman to be successful in
        life assurance, but he has to be much more than that. He must also be a financial
        adviser to his client, recommending the best forms of cover for the client's
        particular circumstances. These will decide whether it will be protection of the
        client's family in the event of his death or life assurance as a means of investment,
        which will be emphasized.
        The relationship built up through meeting these more readily recognizable needs
        of the client is often the starting-point for the broker to introduce his client to
        other forms of insurance because, where the individual is concerned, the broker's
        role must to some extent be that of an educator in insurance matters. The client,
        who probably has many things he would rather think about than insurance, will
        often need prompting to consider the need to insure his possessions against loss
        and to make sure that his family would have a continuing income not only in the
        event of his death but also if he were involved in an accident or suffered a major
        The broker needs to do more than merely introduce his client to the forms of
        cover he requires. He must keep in touch with his client to ensure that the
        insurances he has are still appropriate as his way of life or family circumstances
        change. In these days of inflation, too, the broker has a duty to remind his client
        of the necessity to make sure that the sums insured on his policies are regularly
        adjusted so that the cover remains adequate.
        In arranging insurances for individuals, the broker's task will largely be to select
        the most appropriate cover from a range of standardized policies.
        Some, particularly those which set out to package several insurances in one
        policy, may offer a range of options which between them will meet the needs of a
        very large majority of the general public, but there is comparatively little.
        The Broker will at times find himself acting as a ‘first-line’ underwriter. As the
        Broker gains exposure, he will come to know the decisions that companies are
        likely to make when confronted with different situations. For example, a life
        insurance proposal from a professional trapeze artist may well be refused by most
        insurers because of the high risk of injury that it presents. Similarly, the Broker
        knows the insurers’ attitudes to certain medical conditions such as hypertension,
        heart conditions, and so on. Some may result in exclusion of certain types of
        claims from the cover, others to premium loadings, or declinature. With this
        wisdom, the Broker alerts the client to the possible problems that may be
        encountered in an insurance proposal and even be able to advice on alternatives.
        The scope for designing a 'tailor-made' policy for a particular individual Insurance
        is, of course, based on the principle of a fund built up from the contributions of
        many people, out of which the losses of a minority of them can be paid. There
        must be a certain minimum of premium to be derived from a form of insurance
        before it becomes economic to offer it, so that the individual who wants a cover
        applicable to him alone is unlikely to find it.

ELITE Insurance & Reinsurance Broker                                              Page 7 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        Nevertheless, it is the broker's job to search the market to find as close an
        approximation to a 'tailor-made' cover as possible at a reasonable premium,
        provided that it is offered by an insurer in whose security and reputation the
        broker has absolute confidence. However good the cover may look on paper,' its
        value is diminished if there are unwarranted difficulties or delays in claims
        settlement, and it is worthless if the insurer becomes insolvent.

        Businesses come in all sizes, and the role of the broker will vary in some respects
        with the size of the client company and the amount of insurance expertise it has
        available among its own staff. The approach to insurance of a small engineering
        workshop in a side-street will not be the same as that of a huge multi-national
        corporation which may number an insurance company among its subsidiaries. The
        essentials of the broker's task will be the same, however, for the largest company
        as it is for the individual: to use his knowledge of insurance and of the insurance
        market to help his client to arrange a sound insurance program which, to the
        maximum extent possible, meets the client's particular insurance needs.
        The broker will handle the insurances of a small company in a manner very
        similar to those of an individual. The relationship is likely to be a personal one
        with the directors of the business, and they can be considered, in a way, as
        individuals who have a different, and more extended, set of insurance needs
        because of their involvement with the company.
        The first essential will be for the broker to ensure that his clients have the
        compulsory insurances, which they need for their business to be carried on
        legally. Employer's liability cover to protect the workforce must be arranged, and
        motor insurance is also likely to be a necessity. If the business has plant or
        machinery, which must have a periodical statutory inspection, it will be usual
        possibility of a huge award being made in a products liability case.

        In many respects, the role of the broker with a client in commerce or the
        professions will be similar to his function as broker to an industrial company.
        He must be able to understand the intricacies of his client's business, so that he
        can recommend the best insurance program from among all the available options.
        The range of covers from which the choice is to be made will be the same as for
        an industrial company, but the relative importance of covers will not be the same.
        For smaller companies, some form of package policy covering most of the risks of
        shops or offices in a single document may be appropriate. It will be part of the
        broker's duty to examine how well a cover of this kind, with its standardization,
        meets the particular needs of his client firm, and to recommend the stage at which
        it would be better served by separate policies designed to cover the client's
        individual circumstances.

ELITE Insurance & Reinsurance Broker                                            Page 8 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        The insurances of larger companies will be handled in the same way as those of
        an industrial company, with the same combination of expert placing of the risk in
        the insurance market and advice on means of preventing or minimizing loss. In
        large retail organizations security will assume particular importance. There will
        inevitably be a substantial amount of cash in transit, and losses through theft by
        shoplifters or by staff can, if unchecked, assume serious proportions. The broker
        should be equipped either to give advice on risks of this kind himself or to draw
        his client's attention to the need for loss prevention, and perhaps to indicate some
        other sources of specialist advice.
        The presence of the public on the insured's premises leads to risks, which the
        industrial client is unlikely to have to face to anything like the same extent.
        Liability insurances, both public liability and products liability, which will
        provide cover against liabilities incurred through products sold or supplied, will
        be important, and the broker must ensure that his client has insurance protection
        which is both adequate in amount and wide enough to cover all the types of
        business in which he is engaged. Subsequently, the broker must remind his client
        of the necessity of ensuring that the limits of liability under his policies are
        reviewed periodically so that they remain adequate as inflation and court awards
        Liabilities will also be very much in the broker’s mind in advising clients in the
        professions. The major risk in this case will be that of professional negligence.
        Substantial professional indemnity cover is now a condition of being permitted to
        practice many professions, including that of an insurance broker. The public is
        entitled to expect that persons or firms holding themselves out as possessing
        particular professional skills will in fact exercise them, and the trend is towards
        the extension of liability to include persons other than those with whom the
        professional person is in a contractual relationship.
        Placing the professional indemnity risk may call for the exercise of just such a
        professional skill on the part of the broker, for the financial consequences of an
        error may be far greater than any other risks the professional person may face.
        Apart from professional indemnity, his insurances may be no more complicated
        than those of a simple office risk.
        It is in alerting his client to major risks of this kind which may be concealed in
        what appears to be a comparatively risk-free occupation, as well as in the skilful
        placing of insurances both complicated and simple, and in helping the client to
        obtain a speedy and fair settlement when a claim comes along, that the broker
        earns his money.
        Although the broker will normally be remunerated by the insurer through a
        commission based on the amount of the premium, and although he will be for
        some purposes the agent of the insurer, there is no doubt where the broker's chief
        loyalty lies. Above all other considerations he must put the interests of his client

ELITE Insurance & Reinsurance Broker                                             Page 9 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        Here we examine in detail some of the specifics of these tasks in the following
        Ø the selection of insurers;
        Ø placing insurance;
        Ø negotiation of claims;

        Making an assessment of an insurer will involve a wide variety of factors and it is
        important that when making a recommendation that a balanced view of an
        insurer’s different qualities is provided. The factors include, in no particular order,
        the following:
            a.   quality of service;
            b.   breadth of cover;
            c.   flexibility;
            d.   credit facilities;
            e.   capacity;
            f.   geographical spread;
            g.   claims service;
            h.   support and sales literature;
            i.   provision of technical advice;
            j.   price;
            k.   survey and risk control;
            l.   reciprocity;
            m.   financial security;
            n.   continuity;
            o.   reputation and experience.
        a) Quality of service:
            Quality of service is vital to retaining business. Why do you think this is, and
            what are the aspects of service that should be looked for from an insurer?
                 Ø fast and comprehensive quotations;
                 Ø an efficient system of documentation;
                 Ø a competent survey system;
                 Ø efficient accounting;
                 Ø suggestions for the improvement of cover;
                 Ø prompt notification of proposed changes in market practice;
                 Ø specialist services.
            All such features will be considered credit-worthy in the eyes of Elite when
            selecting an insurer.

ELITE Insurance & Reinsurance Broker                                              Page 10 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            You should consider for yourself how the above should be reflected in an
            insurer’s service. Here are some examples:
                Ø It is as important for an insurer to tell you quickly that he cannot
                  respond to a particular proposal as it for him to quote. This saves much
                  time wasting on both sides.
                Ø Documentation should be clear and without mistakes. Why? Returning
                  the documents is time consuming and delay will reflect as much on the
                  broker as the insurer.
                Ø Surveys, where performed by an insurer, should take place quickly and
                  the surveyor should be practical with a good understanding of the
                  client’s business.
                Ø Among other forms of service provided by insurers may be mentioned
                  the vetting of credit-worthiness of clients’ potential customers by a
                  credit insurer and the vetting of new employees for positions of trust
                  by an insurer undertaking fidelity guarantee business. There are readily
                  available to the broker and his client.
        b) Breadth of cover:
           Elite’s aim should be to obtain the widest form of cover possible. In fact many
           modern policy wordings are based upon improvements sought by brokers. The
           modern public and products liability policy is a case in point.
           However, it is equally important that Elite understands the variations in cover
           between insurers so that these may be explained to a client when alternative
           quotes are compared.
           Whilst a broad wording is a point in favor for an Insurer, Elite must not ignore
           the willingness of other insurers to negotiate.
        c) Flexibility:
            The latitude shown by an insurer in the terms and Conditions of his policies
            will influence the decision of Elite, as will the willingness of the insurer to
            innovate, such as by writing a risk on a burning cost basis or to offer a high
            deductible or to accept a Franchise rather than excess. A further example
            might be the level of medical-free limits granted under a group life assurance
        d) Credit facilities:
            Some insurers offer credit facilities allowing insureds to pay, either by
            installments or by credit cards and the like. Often the credit offered by an
            insurer may be on competitive terms compared with other sources of Finance
            and may provide an attractive selling point.
            To many brokers, the investment income earned on premiums is a valuable
            source of income. This additional income is naturally dependent on two
            factors, namely the speed with which the broker can collect the premiums and
            the time allowed to pay by the insurer (s).

ELITE Insurance & Reinsurance Broker                                           Page 11 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Insurers offer various degrees of credit to brokers. This varies both from
            insurer to insurer and broker to broker. Some insurers will use credit periods
            as part of their marketing to obtain new intermediaries.
        e) Capacity:
            Insurer’s capacity is decided by their perception of the risk (for example good,
            bad or indifferent), the risk itself (for example the trade, construction etc.), the
            insurer’s size and its willingness to use, and the availability of, reinsurance.
            Other factors are also relevant including the size and frequency of claims.
        f) Geographical spread and Global risks:
            The geographical spread of an insurer’s offices maybe an influencing factor in
            selection. There may be a need for international representation by the insurer
            where the client has interests overseas.
            When selecting an insurer for a global program, all of the previous qualities
            are relevant. However, we are now looking for an additional Dimension of
            service. What features should we expect? They will include:
                Ø Sufficient spread of operations worldwide to support the local
                  activities of the insured;
                Ø an understanding of the procedures involved in the management of
                  global insurance programs:
                Ø the ability of the central underwriting area to mandate its overseas
                Ø an ability to provide specialist local claims handling facilities;
                Ø experience in the insured’s business sector;
                Ø where relevant, an ability to write local covers outside of the terms of
                  the global program;
                Ø the ability to be flexible in the allocation and distribution of premiums
                  around the world;
                Ø efficient internal accounting operations;
                Ø sufficient capacity to write worthwhile limits.
            In effect we are looking for all of the qualities described before but available
            in each overseas territory where our client has operations.
        g) Claims service:
            Known liberality in the interpretation of wordings and conditions may affect
            Elite’s choice. Many wordings in common use have never been the subject of
            legal interpretation, and Elite will tend to favor an insurer whom it feels is
            likely to give its client the benefit of any doubt when a loss occurs rather than
            indulge in detailed semantics. It is impossible to be exhaustive in the
            provision for contingencies, and the probability of a liberal and sympathetic
            approach by the insurer should the unexpected happen will be known to Elite.

ELITE Insurance & Reinsurance Broker                                               Page 12 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            However, problems with losses are rare and of equal importance in the quality
            of the insurer’s claim service. This is of particular importance for policies
            with higher volumes of claims such as motor and employer’s liability.
            A failing of many insurers in the time they take to dispatch a claims settlement
            cheque once they have received the insured’s signed acceptance. This bad
            service will in turn reflect badly on Elite.
            What other qualities should be sought?
                Ø rapid appointment of adjusters;
                Ø accuracy of documentation especially settlement cheques;
                Ø rapid decision making;
                Ø openness.
        h) Support and sales literature:
            A number of forward thinking insurers understand this and have produced
            excellent technical sales guides in such areas as business interruption and
        i) Technical advice:
            In theory all insurers should be able to provide technical advice in respect of
            their own policies.
            Thus, the insurer, who is willing to support Elite’s technical service to clients,
            gains competitive advantage.
        j) Price:
            From his knowledge and experience of the market Elite should know whether
            a rate quoted is truly competitive but if he is in any doubt it is his
            responsibility to seek alternative quotations. This is always important but is
            particularly so in the case of small risks such as private motor insurance where
            there is strong competition for business. In the case of larger risks Elite will
            generally first choose an insurer who will offer a contract most suited to the
            needs of the client and will then negotiate with him in order to achieve the
            most advantageous terms.
            In negotiating a rate Elite will bear in mind the size of the client’s insurance
            account and the probability of its growth. The volume and value of the client’s
            business in all the insurer’s departments must be considered, not merely that
            in the departments must be considered, not merely that in the department in
            which a rate is currently being sought. Claims history must be taken into
            account as must the client’s willingness to accept and implement
            recommendations for risk reduction. Anticipated future servicing costs of the
            insurer may also be considered a factor in the negotiated rate.
            Few organizations put out their insurance requirements to public tender, a
            notable exception being certain public authorities who doubtless feel that they
            have an obligation to the general public to do so. Although public tender by

ELITE Insurance & Reinsurance Broker                                              Page 13 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            businesses is very rare, most will consider reviewing their insurances from
            time to time. Practice varies from the company that has a policy of reviewing
            fully every three years to the business that may only informally review every
            seven or eight years.
            It is often in these circumstances that price becomes one of the most important
            factors in decision making. Some clients may make a decision entirely on
            price, others may set more store by the quality of relationship and service
            When price is paramount and a review occurs at the same time as a period of
            extreme competition in the market, the cost of a given risk may fall
            significantly, often by as much as 40 or 50 per cent.
            In areas such as life assurance or pensions and annuity business where
            contracts differ widely in scope and promise, a cost comparison will require a
            skilled evaluation of the anticipated end benefits and of the assumptions on
            which bonus prospects are based. Only then can a true comparison of prices
            be made and a decision taken on the contract to be recommended.
            It is essential that a competitive price is not obtained at the expense of reduced
            cover unless the client is made aware of the position. The discount granted for
            a large excess may produce an apparent premium saving but this must not
            come as an unpleasant surprise to the client when a loss occurs. Elite must
            always ensure that in considering price it is comparing like with like, and
            when non-standard wordings are involved this can be difficult.
            As in all marketing, the cheapest is not necessarily the best and price can be a
            difficult area in Elite’s selection of an insurer. Often it is necessary for him to
            explain that a higher premium is justified for a better contract and will be in
            the best interest of the client in the long run, but at the same time the must be
            careful to ensure that he is not accused of unnecessary over-selling.
        k) Survey and risk control:
            Where quotations are provided subject to survey, it is important that the
            insurer can carry out surveys quickly.
            It is also important that the advice given reflects an understanding of a client’s
            needs and is practical.
            This can often be a fraught area, particularly for smaller commercial risks and
            is an example of where Elite’s skill in selecting insurers is vital. Different
            insurers have different standards as to, for example, the quality of security
            The granting of provisional cover can be a useful facility but this may backfire
            if the insurer’s surveyor then requires improvements which exceed the value
            of a premium saving.
            It is thus preferable for Elite to arrange surveys before cover is granted or to
            provide the insurer with sufficient information so that possible improvements
            can be anticipated.

ELITE Insurance & Reinsurance Broker                                              Page 14 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        l) Reciprocity:
            In some instances there may be an element of reciprocity which influences the
            choice of insurer. Thus it might be deemed expedient to place part of the
            business with an insurer who makes major purchases of goods or services
            from the insured firm or the granting of loan facilities by the life department
            of a composite insurance company might result in business being directed to
            its general department. There might be an understanding between the two
            parties to this effect, tacit or formally expressed.
            In many such cases Elite will be under direction and will have little or no
            control over the placement but it will still have the responsibility of making
            sure that all aspects of the transaction are in the best interests of its client or
            alternatively of making its client aware of any adverse features. If it knows
            that better terms and conditions are available elsewhere in the market, it must
            negotiate with the nominated insurers as strongly as if the business has been
            placed without commitment.
        m) Financial Security:
            It is necessary to stress here that the security of an insurer and hence his
            ability to meet claims is of paramount importance and should be a major
            factor in Elite’s selection process.
            Elite will seldom find it necessary to undertake a detailed evaluation when
            selecting an insurer for a particular risk because, in most cases, he will have
            compiled a list of approved insurers with whom he habitually deals.
            Whilst, in many circumstances, Elite is not liable for the failure of an insurer,
            there are several reasons why we should monitor constantly the financial
            security of the companies with whom we do business, namely:
            Ø Even if Elite is not liable for an insolvency, he will face considerable
              problems with his clients should a large volume of business have been
              placed with an insolvent company.
            Ø As a result, Elite may be sued by disappointed clients.
            Ø It is possible that, as a prelude to insolvency, problems with claims will be
              experienced and this again could lead to problems for Elite with its clients.
            Ø Business that has to be replaced as a result of insolvency may be at
              punitive terms, which may be unacceptable to or cause problems with a
              client, and will increase Elite’s costs.
            Ø Elite’s reputation could be permanently damaged by association with an
              insolvent insurer.
            Ø Elite may face financial loss as a result of, for example, uncollected
              brokerage or return premiums.
            Ø Elite has a duty to exercise care in the selection of insurers.

ELITE Insurance & Reinsurance Broker                                              Page 15 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Ø Also, Elite must ensure that the number of insurance companies with
              which it places business is such as to prevent undue dependence on any
              one company.
        n) Continuity:
            Continuity of cover is an important consideration where there has been poor
            claims experience. Elite may recommend continuing the cover with an
            existing insurer who is able to take into account previous profits in assessing
            the rate for the future and who therefore may prove more competitive in the
            long run.
        o) Reputation and experience:
            Irrespective of whether an insurer writes a broad range of risks or is a
            specialist in a few niches, within each market insurers will develop a
            reputation for certain types of risk. This may be as diverse as an in-depth of
            knowledge of fire risks in, say, the chemical industry to in-depth knowledge
            of the motor -trade.
            When placing substantial or difficult risks, the participation of certain insurers
            may be essential in securing the extent of cover required. This may often be
            beneficial to the insured, but Elite has to guard against complacency. New
            markets are to be encouraged and nurtured.
        p) Other factors
            All of the above are factors which will influence Elite’s decision in selection
            of an insurer for its client. However, are there other factors which may
            influence the broker in his choice? The answer is, of course, yes, and they
                Ø Rate of brokerage;
                Ø overriders;
                Ø credit terms;
                Ø personal relationships.
            In retail business, the growing use of fees is gradually diminishing the
            importance of brokerage although it still is of considerable importance for
            smaller commercial business and personal lines, especially motor and
            investment business.
            Overriders, or profit commission, are payments made to a broker by an insurer
            which reflect the volume and overall quality of the broker’s account with the
            insurer. There are also payments known quaintly as ‘postages’ which were,
            originally, insurers’ contributions to a broker’s overheads.
            Some insurers from special clubs for brokers producing the right volume of
            business, which entitle the broker to other special concessions, for example
            access to senior underwriters, higher quality sales information or better policy

ELITE Insurance & Reinsurance Broker                                              Page 16 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Credit terms are also an invisible inducement, although most large brokers
            receive credit of up to 90 days whereas smaller firms may only get 30 days or
            Therefore, Elite must not be influenced by these factors unless it can prove to
            itself that all of the other criteria operate in the client’s favor.

        Elite has many separate functions which arise during the negotiation and placing
        of a risk. These necessarily vary with the size and complexity of the risk and the
        resources of the broker; however; the basic principles are the same throughout.
        From your own experience you should recognize at least some of the following.
        They include:
            Ø where necessary, obtaining a completed proposal form. Elite employee
              may assist with the completion of the form, but should not complete it
            Ø obtaining other information, by meetings, questionnaires etc., as may be
              necessary to fully explain the risk to underwriters;
            Ø arranging surveys;
            Ø presenting information to insurers;
            Ø presenting and explaining terms to the client;
            Ø effecting cover by way of written instructions to the insurer and insured;
            Ø arranging cover notes and policy documentation;
            Ø entering the risk within Elite’s record system;
            Ø debiting the client and paying insurers;
            Ø agreement of credit terms.
        a) Proposals (Samples of Proposal Forms are presented in the Underwriting
           For many large and complex risks, proposal forms are often irrelevant and are
           replaced by surveys and Elite’s presentations. However, proposal forms are
           required for the majority of medium sized and smaller risks and especially so
           in the case of:
                Ø   private motor insurance;
                Ø   fidelity;
                Ø   professional indemnity;
                Ø   directors’ and officer’s liability;
                Ø   all forms of individual life insurance and related covers.
            The function of the proposal forms is outside the scope of this text. We are
            concerned with Elite’s role which can include providing personal assistance in
            the completion of the form. This does not mean that Elite actually completes

ELITE Insurance & Reinsurance Broker                                             Page 17 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            the proposal but provides advice on the meaning of questions and what
            information is relevant or material.
            Elite should never sign the proposal unless he is acting with the express
            authority of the client, for example under a power of attorney.
            It can be simply said that Elite is laying itself open to both expensive legal
            action and accusations of bad practice.
            However, when assisting clients with proposal forms, particularly for motor
            and household and small commercial business, in practice Elite will often
            complete many of the questions and then ask the proposer to sign the
            completed form. In these circumstances it is vital that:
                Ø Each question is explained clearly and without ambiguity. For
                  example, on a household proposal from Elite must explain what
                  ‘standard’ construction means if not explained. Think of other
                  examples yourself;
                Ø Before asking the client to sign the proposal each of the questions is
                  reviewed again with the client.
                Ø The proposer’s obligations and duties in singing the proposal are made
                Ø A copy of the completed proposal is given to the client immediately,
                  preferably together with a written commentary of any important points
                  described during completion.
            Why do you think it is important for the broker to provide personal assistance
            in completing proposal forms? Perhaps you might respond that this is far too
            costly and time consuming, but there are many arguments in its favor.
            Here are some reasons for such assistance, you should think of others for
                Ø It reinforces the relationship with the client and emphasizes the value
                  of personal service;
                Ø It gives Elite the opportunity to explain the cover in detail and thus
                  ensure that he has an educated buyer;
                Ø Questions may stimulate other possible areas of risk; thus generating
                  more business. For example, completing a public and products liability
                  proposal may reveal a need for product guarantee or professional
                  liability insurance.
            In some cases, Elite may have special proposal forms overprinted with their
            own names, often in connection with special schemes. Here it is essential that
            the form makes clear that the contract is between the proposer and the
            insurer, and that the obligations of the client are made clear.

        b) Other Information:
            Proposals are not the only means by which information can be obtained. Other
            will include:’
                Ø insurer’s supplementary questionnaires;

ELITE Insurance & Reinsurance Broker                                          Page 18 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                Ø Elite’s questionnaires (Samples of Questionnaires are presented in
                  the Underwriting Manuals);
                Ø meetings with the client;
                Ø surveys (dealt with separately below);
                Ø telephone calls.
            An insurer’s supplementary questionnaire, for example an additional driver’s
            form for motor insurance, will often have the same function as the proposal
            form and the comments above apply.
            Elite prepares its own questionnaires as a means of gathering information
            from a large or multinational risk, where there are many individual sites or
            subsidiaries involved. These forms will vary from the prosaic, asking for
            straightforward information such as turnover, payroll, building values, etc., to
            much more complex forms asking for detailed information.
            There is more than one school of thought as to how these forms should be
            used. In some cases they can be a simple and efficient means of collecting
            basic information necessary for renewal. In others they may replace a face-to-
            face meeting with a subsidiary, perhaps to save costs.
            Although economy may be justified, it can be argued that Elite is failing in his
            duty to its client by using questionnaires in this way and is exposing itself to
            accusation of poor service. Why do think this may be? Consider the
                Ø by losing touch with subsidiaries, Elite may lose an important source
                  of contract with future developments;
                Ø inadequately completed forms may result in more costs than savings
                  by not making a service call in the first place;
                Ø questionnaires cannot cover every eventuality.
            Can you think of other problems? Cost is an important issue, but Elite has to
            remember that the function of obtaining the right information is a prime part
            of his service to the client.
        c) Surveys:
            Elite may undertake surveys for three reasons:
                Ø in support of a risk management exercise;
                Ø for the purpose of obtaining detailed underwriting information;
                Ø on behalf of insurers.
            The underwriting survey provides Elite with a valuable source of information
            and is important in obtaining the best terms. Most insurers feel more confident
            in providing their best terms when they have the fullest understanding of the

ELITE Insurance & Reinsurance Broker                                            Page 19 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            In the not too distant past such surveys were often dismissed as ‘fire bucket
            counting exercises’ repeated at regular intervals with no apparent benefit to
            the client.
            There is no doubt that some brokers and surveyors became complacent, and
            poor communications between service and survey teams caused this service to
            be undervalued.
            Some brokers attempted to reduce this aspect of their service in order to cut
            costs, unless the client was paying fees for a new-fangled risk control service.
            This led to some survey teams producing excellent risk identification reports
            that often did not provide the basic underwriting data required. Strange but
            However competition has changed these views to some extent. When
            attacking a new piece of business, particularly of larger size, Elite will carry
            out surveys both to obtain the underwriting information required and to
            demonstrate his prowess on risk management.
            The defending broker is left on the ‘back-foot’ when he discovers his
            underwriting information is not up to scratch or up to date.
            This underlines the value of the underwriting survey in Elite’s role in
            obtaining the best terms for his client.
        d) Presenting Information:
            In presenting a risk to the market Elite has several prime duties:
                Ø to present all material and relevant information;
                Ø to represent the client’s best interests;
                Ø to ensure that all information is eventually given in writing and
                  recorded and acknowledge by the insurers also in writing
            What are the means by which information may be presented to insurers and
            what is the scope of the information necessary? Most transactions will involve
            either a telephone conversation or a very brief meeting to establish whether an
            insurer may be interested in a particular risk. How should these be recorded?
            Here, the internal documentation systems and methods of the broker play an
            important part in the ‘hidden’ aspects of the broker’s service and the
            efficiency with which he conducts his business. What features must appear in
            these systems? They should include:
                Ø all telephone conversations and other ‘brief’ meetings with
                  underwriters must be accurately recorded. Particularly important
                  points should be subsequently confirmed by facsimile, letter or telex;
                Ø when dealing with volume type enquiries, for example, obtaining
                  quotations for a non-standard motor risk, it is beneficial to use a
                  checklist to ensure that all relevant facts, for example age, details of
                  past convictions, etc., have been conveyed to the insurer;

ELITE Insurance & Reinsurance Broker                                             Page 20 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                Ø when submitting proposal forms, copies must be retained, and they
                  must be accompanied in writing (handwritten ‘broker forms’ are
                  adequate) so that a proper record of the dispatch is kept;
                Ø other written presentations should be clear and precise, and vital
                  information must not be buried of lost;
                Ø the form of wording to be used should be specified as should any
                  variations to the insurer’s standard cover;
                Ø where cover is paced on the basis of a wording ‘to be agreed’ (such a
                  wording should be avoided), arrangements must be made for the cover
                  to be substantially agreed as soon as possible.
        e) Instructions to the Insurer:
            The insurer’s agreement to go on risk must always be recorded and confirmed
            in writing although for reasons of urgency cover may often be agreed over the
            telephone in which case Elite must:
                Ø make an immediate written record of the call;
                Ø dispatch written confirmation as soon as possible.
            Cover is normally placed on a slip but when a quotation is obtained the
            agreement of all insurers must be obtained before cover is confirmed. As the
            slip has set out the basis of cover, when urgent such instructions may be sent
            out by fax or telex.
        f) Confirming Terms to Client
            The objectives here are to:
                Ø convey the terms accurately and concisely to the client;
                Ø ensure that the client understands particularly important aspects of the
                  cover and terms and conditions;
                Ø provide a record of the advice to the client;
                Ø bring special payment or standard credit terms to the client’s attention;
                Ø provide full details of insurers.
            These eminently obvious points can be difficult to comply with in practice but
            are important particularly on the prevention of errors and omissions claims.
            All terms and conditions must be conveyed in writing even if they have
            originated over the telephone.
            The extent to which details of the cover are to be explained is a matter for
            Elite’s judgment. Conditions which are particularly relevant to the insured, for
            example, safety precautions in respect of a plumber under a public liability
            policy, must be explained in full.
            Record systems

ELITE Insurance & Reinsurance Broker                                            Page 21 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Records for new and renewal of existing risks should be entered as quickly as
            possible and after no more than fifteen days. The sooner debits are sent to the
            client the sooner he will pay.
            Where the policy is prepared by the insurer Elite should maintain a diary
            system so that the insurer can be chased for the document.
            He should also maintain a checking system to ensure that when the policy is
            received it is correct. When an incorrect policy is received it can often be wise
            to send a copy the insured pointing out the reasons for the document having
            been returned for correction. This at least provides the insurer with evidence
            of the main terms of the cover and demonstrates that Elite is working for the
            Elite should prepare registers or summaries of cover which provide brief
            details of each policy, contract names, claims procedures and other relevant
            When summarizing cover it can be difficult to decide what facts to include
            and what not. Where policies are issued this should cause few problems as all
            such registers should state that brief details have been provided and the policy
            should be referred to for the exact basis of cover.
            However, where there is a delay in issuing a policy the client may rely upon
            the summary, and this has led to errors and omissions claims. The scope of
            cover description is therefore important. There are no fixed rules but the
            following are minimum requirements:
                Ø schedules of values should be included;
                Ø abbreviations except where they are in common use, for example N.B.,
                  must not be used;
                Ø any variations to standard policy cover must be repeated in full and not
                Ø basis of rating where relevant should be shown;
                Ø there should be a general and where necessary specific statement
                  concerning claims notification procedure;
                Ø wherever possible the summary should be checked by a different
                  person from the one that prepared it before it is issued.
            Debit and credit notes
            These must be accurate and issued with dispatch and again should be checked
            by a different person. Where appropriate, reference to special payment terms
            should be repeated.
            Credit terms
            Many firms bill clients by statement of account on which will be stated the
            time to pay, normally on more than 30 days from the date of the statement.

ELITE Insurance & Reinsurance Broker                                             Page 22 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            It is good practice prior to each renewal to remind the client of these terms
            and ensure that they are acceptable and will be complied with.
            Where Elite gives additional credit beyond standard terms, Elite should obtain
            written agreement from the client which gives the Company Power to cancel
            the policy if the credit agreement is not honored.
            In any circumstances where the client has difficulty in making payment the
            insurer should be advised immediately so that the position may be reviewed.
        g) Life and Pensions:
            The method of placing life and pensions business by Elite is basically the
            same as that for non-life business. There is, however, one major difference in
            that Elite does not at any time carry a credit risk since the cover is not brought
            into force until the first premium is actually paid to the assurer.
            Elite undertakes the initial negotiations, may assist in completion of the
            proposal form and, under the guidance of the assurer, may arrange for any
            necessary medical examination of the life to be assured.
            Thereafter it will collect the cheque, normally made payable to the insurer, for
            the first premium for immediate onward transmission unless a direct debit
            order has been made by the client.
        h) Reinsurance:
            Elite may undertake both direct and reinsurance business.
            Differences in the method of placing reinsurance business arise largely from
            the fact that whereas in placing direct insurance the broker stands between a
            client with little or no knowledge of the subject and an insurance company, in
            the case of reinsurance both his client (the ceding company) and the reinsurer
            are professional experts in the business. As a result, direct insurers commonly
            place their reinsurance business, particularly excess of loss treaties and
            proportional reinsurance, through the agency of brokers in the hope that some
            reciprocal business will result. In fact, insurance companies generally obtain
            the greater part of their incoming reinsurance business through the efforts of
            International scope
            All reinsurance activities are essentially international in scope and are
            therefore in accord with the basic principle of spreading risks as widely as
            possible. Thus, business may be ceded to or received from reinsurers in many
            parts of the world and it may be that in a particular location the direct insurer
            has no suitable qualified resident representative. In these cases, Elite with
            local connections may be appointed as underwriting agent and be given wide
            powers as regards both the acceptance and underwriting of reinsurances and
            the settlement of Claims.
            Facultative cover

ELITE Insurance & Reinsurance Broker                                              Page 23 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Whilst most of the reinsurance business handled by brokers is in respect of
            treaty reinsurance, they may also be required to arrange facultative
            reinsurance cover. This need might arise, for example, if a direct insurer found
            it necessary or expedient to accept a large risk beyond the capacity of his own
            retention and his treaty facilities. Here the experience, expertise and facilities
            of Elite could prove of immense value.
            Risks of potentially catastrophic proportions may require the assistance of
            Elite to ensure acceptably wide coverage, as will specialist covers which,
            being generally of a non-proportional type, will demand detailed negotiation
            with reinsurers in order to establish terms.

        The insurance policy is a promise that the policyholder will be indemnified for
        losses resulting from a specified event. It is the duty of Elite to ensure that this
        promise is kept.
        On receiving notification of a claim the first action of Elite will be to confirm
        from his records that the loss falls under a policy he has arranged. The procedure
        then varies according to the nature and probable size of the claim but in all cases
        it is essential to give immediate notification to the insurer. In the absence of some
        special arrangement between Elite and underwriter, notification to Elite is not
        deemed to be notification to the insurer as required by a policy condition.
        Throughout all claim negotiations it is Elite’s duty to see that the insured is
        treated fairly so that he receives a true indemnity in accordance with the terms of
        his policy. Whatever the type of claim, Elite must monitor closely and, so far as it
        is able, guide the progress of the parties towards a settlement which is fair and
        acceptable to both.
        The basic duties of Elite in relation to claims may be summarized as follows:
            Ø   giving immediate notification of losses to insurers;
            Ø   advising the insured of his rights and obligations under the policy;
            Ø   arranging for the completion of appropriate claims forms;
            Ø   ensuring that, where necessary, adjusters are appointed and briefing the
                client on the role of the adjuster;
            Ø   assisting the insured in preparing the necessary documents and
                information in support of the claim;
            Ø   collecting claims from insurers;
            Ø   in the case of major losses, attending site meetings with both the adjuster
                and the insurer’s personnel.
            Ø   post-loss surveys;
            Ø   providing staff, experienced in the adjustment of complex claims, to assist
                the client in negotiations.
        We will now look more closely at the role of Elite in respect of certain aspects of
        claims negotiations.

ELITE Insurance & Reinsurance Broker                                              Page 24 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        a) Domestic Claims:
            For relatively small or domestic type property claims Elite will forward any
            necessary claim from and will advice the client how this should be completed.
            It may send the form partially completed from its records and on the basis of
            the information supplied, although it should ask its client to confirm the
            accuracy of the details. The client will be instructed to obtain estimates for the
            repair of damage or the replacement of the property and to retain damaged
            property in case the insurers wish to examine it. If the insurer has indicated
            where an item should be taken for repair the client will be advised
            The completed claim form together with any supporting documents will be
            assembled by Elite and on submission to the insurer a cheque in settlement
            should be received for onward transmission.
            If any question arises regarding the validity of the claim or the extent of the
            loss Elite must exercise his skill and knowledge in negotiation with the
            insurers so that a fair and amicable solution may be found.
        b) Documentation:
            The client must be advised of any special documentation which may be
            required or action which must be taken by him. For example:
                Ø In the event of a death claim under a life assurance or accident policy,
                  the insurers will require the death certificate or other acceptable proof
                  of death.
                Ø In the event of a personal accident or sickness claim, medical
                  certificates must be obtained.
                Ø In the event of a theft claim, the client should be instructed to give
                  immediate notification of the incident to the police.
            There are many other circumstances in which particular action is to be taken
            by the insured, and Elite must be careful to see that he is suitably informed.
        c) Motor Insurance:
            In motor insurance, in the event of an accident, completion of an accident
            report form is necessary and this will indicate when and where a damaged
            vehicle may be inspected by the insurer’s engineer if he so wishes. The
            insured will be asked to obtain estimates for the repairs and submit these as
            soon as possible so that the work can be authorized.
            The insured should be instructed to forward any communications from a third
            party immediately without acknowledgement on his part of any kind.
            Elite’s responsibility is limited to ensuring that a satisfactory settlement is
            made within the terms of the policy although it may consider it expedient to
            do more in the interest of good relations with its client. If it undertakes such
            third party recoveries it must advise the insured of any charge it proposes to
            make before the work is undertaken.

ELITE Insurance & Reinsurance Broker                                              Page 25 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Settlement of the repairer’s account may be made by Elite on behalf of the
            insurer or may be settled direct by the insurer.
            Elite itself generally takes no part in the negotiation of a claim made by a third
            party unless this is of a relatively minor nature: major third party claims are
            left in the hands of the insurer although Elite will give his client whatever
            guidance he may require.
        d) Specialist Risks:
            In the case of certain specialist risks, such as professional indemnity, Elite
            generally plays little part in claims negotiation which is commonly in the
            hands of legal advisors, but it naturally keeps itself advised of progress and
            makes certain that the insured understands his position under the policy and
            complies with any conditions or other specific contractual requirements.
        e) Major Property Losses:
            Major property losses will require the appointment of a loss adjuster by the
            leading insurer. The adjuster will visit the insured premises to examine the
            damage, and after detailed discussions with the insured and the receipt of
            repair or rebuilding estimates will in, due course, issue his report as approved
            by the leading insurer indicating the settlement as agreed by the insured.
            Adjuster’s reports are normally confidential to the insurers although on large
            scheduled risks Elite may be asked to circulate the report to following
            Elite will accompany the adjuster on his visits and will keep a watchful eye on
            the negotiations to ensure the satisfaction of his client.
            Where a number of co-insurers are involved in the loss a copy of the
            adjuster’s report will be sent to each indicating their respective proportions in
            the settlement and setting a date for simultaneous payment to Elite. A separate
            report will be made in connection with the related consequential loss claim.
        f) Claims Recording:
            Elite will maintain a register of claims for each of his clients containing full
            details of the agreed settlements. This will be of assistance when considering
            extensions or improvements in cover, and will be of value when negotiating
            future premium terms since the claims experience necessarily has a bearing on
            rating levels.
            For liability risks, particularly employers liability risks it is particularly
            beneficial to keep continuing records of the past claims experience. Such
            records are useful in monitoring the progress of outstanding claims and
            obtaining a truer picture of the insurer’s actual experience bearing in mind the
            often long period before claims are settled.

ELITE Insurance & Reinsurance Broker                                             Page 26 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:             Title:                                        Print Date:
SBD803                  POLICY FORMS AND RATES
Revision #:             Prepared By:                                  Date Prepared:
1.0                     Sami Abdelnour                                06/1/2009
Effective Date:         Reviewed By:                                  Date Reviewed:
10/1/2009               Mr. Elias Chamoun                             05/01/2011
                        Approved By:                                  Date Approved:
                        Mr. Elias Chamoun                             06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           Each of Elite's policies must adhere at a minimum to the following
Purpose:          To provide a consistent, organized system for identifying Elite's services.
Scope:            This procedure applies to all policies distributed by Elite.
1.1       The wording of the insurance policy application and contract forms must adhere,
          at a minimum, to the following:
              a) Written in both Arabic and English.
              b) Use simple language and sentence structure, when possible.
              c) Printed in clear, readable text, with no fine print.
1.2       The printed insurance policy application and contract forms must specify the
          following as a minimum:
              a) Policy number, which must also be provided in all related document to
                 this policy.
              b) Policyholder’s name and mailing address.
              c) Coverage period.
              d) Coverage descriptions and limits.
              e) Deductibles and Retentions.
              f) Endorsements, Warranties, and Riders.
              g) Conditions and Exclusion.
              h) Insurance rates and premium amounts, basis of premium calculation and
                 the amount of commission paid under the policy.
              i) Identification of the property or activities to be insured.
1.3       The standard text of the policy shall contain the type of coverages, general terms,
          conditions, and exclusions.
1.4       Endorsements and riders shall indicate additional coverages, conditions, and
          exclusions not mentioned above and which are different from the main agreement.
1.5       The Company’s signature and seal shall be on the policy and its attachments.
1.6       In addition it must include:

ELITE Insurance & Reinsurance Broker                                                Page 27 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            a) A disclosure statement indicating that the policy contract is the entire
            b) A description of the insured’s duties after a loss has been incurred.
            c) A description of the claims handling and dispute handling procedures.

2.1     An insurance policy contract shall be amended only after a written request
        submitted by the policyholder and/or the authorized member on behalf and to
        which the insurance company agrees followed by an endorsement issued by the
        insurance company to the policyholder.
2.2     For spelling mistakes and changes in the regulations, the policy contract can be
        modified without a written request as long as the customer is notified in writing.

        Companies should include cancellation terms that are fair to customers and are
        reasonable and appropriate with regard to the product. The cancellation
        conditions must be clearly stated in the policy contract, including:
            a) Conditions permitting the insurance company to cancel the policy.
            b) Conditions permitting the policyholder to cancel the policy.
            c) Cancellation notice requirements, including notice period. In any case, the
               policyholder should be afforded a minimum period of thirty (30) days
               before the effective date of cancellation by the companies (as per article
               54 of the Implementing Regulations).
            d) A description of the refund of premium due to the policyholder on
               cancellation of the policy and when it would be payable.
            e) For Protection and Savings insurance, in addition to (D) above, a
               description and illustration of the cash surrender value, if applicable, for
               each year of the plan.

4.0     “FREE LOOK” CLAUSE (Protection & Savings Insurance Products)
        Every policy for protection and savings insurance should provide at least a
        twenty-one (21) day Free Look period from the date of delivery of the insurance
        contract for the policyholder to review the contract to assess its suitability and
        whether it provides the benefits described by the agent or broker.
        The policy will be deemed to be fully in force and this provision will be deemed
        to be waived by the policyholder, if the policyholder does not inform the
        insurance company within the period that the policy will be returned.
        If the policyholder deems the policy unsuitable, the insurance company must be
        notified in writing within the Free Look period and a refund of premiums paid to
        the customer subject only to the following:

ELITE Insurance & Reinsurance Broker                                           Page 28 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            a) Deduction of the expenses incurred by the insurance company on medical
               examination of the customer.
            b) Deduction of a proportionate risk premium for the period of cover.
            c) In respect of a unit linked plan, the insurance company shall also be
               entitled to make an appropriate adjustment to take account of changes in
               the unit price.

5.0     PRICING
        Companies must apply the pricing structure submitted to and approved by SAMA
        as part of the product approval application.
        Elite should be assured that the Insurance Company comply with the minimum
        and maximum limits as determined by the Agency for each class of insurance as
        well as insurance contributions and premiums.

ELITE Insurance & Reinsurance Broker                                        Page 29 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 30 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:                                                           Print Date:
                        CLIENT CODE & POLICY NUMBER
Revision #:             Prepared By:                                  Date Prepared:
1.0                     Sami Abdelnour                                06/1/2009
Effective Date:         Reviewed By:                                  Date Reviewed:
10/1/2009               Mr. Elias Chamoun                             05/01/2011
                        Approved By:                                  Date Approved:
                        Mr. Elias Chamoun                             06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           Each of Elite's policies will be assigned a unique number to assist with
                  data processing and to avoid mix-ups.
Purpose:          To provide a consistent, organized system for identifying Elite's services.
Scope:            This procedure applies to all policies distributed by Elite.
1.0       CLIENT CODE             &     POLICY       NUMBER         DESIGNATION           AND
          Client Code is assigned automatically and in an orderly manner to each new client
          entered into Elite sales system. Policies numbers will consist of seven (7)
          character numeric body for specific options. Each insurance company designates
          a specific code according to its system but in general the first two numbers of the
          policies number imply as follows:
          Sequence       1st       2nd            3rd, 4th, 5th, 6th & 7th
          Digit          X         X              X X X X              X
                         Broker    Individual/    Sequential
                         Code      Corporate Code

          For the first number, each broker is assigned a unique number which is his code
          designating that the policyholder has come through him. The second number is
          specified to designate if the policy comes under individual or corporate business.

          The Customer Service department shall record policy numbers and maintain a
          master catalog of the numbers, which shall include "obsolete" numbers. Obsolete
          policy numbers will not be reassigned.

ELITE Insurance & Reinsurance Broker                                                Page 31 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 32 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:                                                          Print Date:
                         SALE OF INSURANCE PRODUCTS
                         AND SERVICES
Revision #:              Prepared By:                                Date Prepared:
1.0                      Sami Abdelnour                              06/1/2009
Effective Date:          Reviewed By:                                Date Reviewed:
10/1/2009                Mr. Elias Chamoun                           05/01/2011
                         Approved By:                                Date Approved:
                         Mr. Elias Chamoun                           06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:            To assure accurate disclosure and confirmation to customers of sales and
                   coverage and assure a well-organized premium collection.
Purpose:           To describe the actions and documentation for the receiving, processing
                   and collecting of sales by Elite.
Scope:             This procedure applies to the Sales department.
1.1       Prior to accepting an application for an insurance contract, Elite must provide
          customers with the key terms and conditions of the product and service to be
          purchased, including but not limited to:
              a)  The name of the insurance company underwriting the policy.
              b)  Benefits, exclusions, and deductibles.
              c)  The coverage period.
              d)  All related costs, including premiums and any other fees.
              e)  The terms of payment covering the periodicity of payment, grace period,
                  implications of discontinuing the premium and any other related details.
              f) The claims handling procedure.
              g) The complaints handling procedures.
              h) The obligations of each party under the insurance policy.
              i) The cancellation rights and conditions.
              j) The renewal rights and conditions.
              k) The requirements for carrying out policy alterations.
              l) Any aspect of the policy where the insurance company has the right to
                  change something once cover has commenced such as benefit charges and
                  policy fees on protection and savings business.
              m) Any unusual restriction or condition attaching to the customer.
              n) The postal address, telephone, fax and email contact details of the
                  insurance company.
1.2       In addition to the above, Elite must provide the following information with regard
          to protection and savings insurance products:
              a) Whether the plan is participating, non-participating or an investment
                  linked plan.

ELITE Insurance & Reinsurance Broker                                               Page 33 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            b) In case of participating, the basis of participation in profits i.e., cash
                bonus, deferred bonus, reversionary bonus, terminal bonus etc.
            c) Plan illustration providing the sum insured, surrender value and paid-up
                value over the term of the plan. The illustration should show these values
                at the end of each of the first five (5) policy years, five (5) yearly
                thereafter, and at maturity date if appropriate or up to age eighty-five (85)
                if not.
            d) If benefits are not fully guaranteed, the customer should be provided with
                three illustrations with gross investment return rates of 3%, 5% and 7%
            e) The extent of any investment or expense guarantees. It should be clearly
                stated that values shown are for illustrative purposes only unless the
                investment and expense charges are fully guaranteed.
            f) For non-linked plans, where applicable, a breakdown of the premiums and
                charges by main cover, supplementary cover and any other cover or
                services provided.
            g) When presenting information related to past performance, the basis on
                which the performance was calculated together with a statement that past
                performance is not indicative of future performance.
            h) If the policyholders’ funds may be invested in a range of linked
                investment funds, a description of the investment funds, which should
                include, at a minimum:
                        1. A description of the asset classes the fund may invest in.
                        2. A risk or volatility rating for each fund.
                        3. If the fund is measured against a benchmark, details of that
                        4. Geographical spread of the investments.
                        5. A statement of any concentration of investments into particular
                        types of investments.
                        6. The currency that the fund is priced in.
                        7. The frequency that the fund is priced.
                        8. The name of the fund manager, if the fund is external to the
                        insurance company.
                        9. Past performance of the fund, subject to the same comments as
                        stated in (g) above.
1.3     Elite selling savings and protection contracts should complete a client fact find
        containing sufficient information to fully back-up the product recommendation
        made. The fact find must be signed by the client, and retained on the clients file.
        In the event of any dispute over the appropriateness of the contract sold, the
        contents of the fact find will be taken fully into account. If the fact find is not on
        the file, or is poorly or partially completed, this is likely to lead to the dispute
        being resolved in favor of the client.
1.4     Elite should disclose to the customer at the point of sale the full commissions
        and/or fees earned for the services provided from all sources.
1.5     Insurance cover may not be back-dated on any insurance product. No insurance
        company or employee of an insurance company may provide evidence of cover

ELITE Insurance & Reinsurance Broker                                             Page 34 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        on a product unless the customer has committed to taking out a full annual policy
        that complies with the minimum standards set for that policy.

        Prior to entering into an insurance contract, sales agent should demand the
        customers to fill and sign the form of Customer Needs Assessment very clearly
        and completely and he must inform customers of their key obligations under the
        insurance contract to pay premiums in a timely manner and to provide full and
        honest disclosure of all relevant information needed to determine the insurance
        needs and underwrite the risk.

        The customer should fill out, sign and stamp Elite BOR (SBD805 – ELITE BOR)
        mentioning also the date of assignment to certify that Elite insurance brokers Co.
        is his only assigned insurance brokers to obtain the requested insurance proposals
        from licensed insurance companies in the kingdom of Saudi Arabia followed by a
        census and data of the members that to be insured.

        The customer should only be expected to advise the companies of information
        that a reasonable person would regard to be relevant.

3.1     Upon entering into an insurance contract, Elite must promptly provide customers
        with official written confirmation of the insurance coverage. In case the full
        documentations are not available, Elite must issue temporary evidence of
        coverage confirmation, which can be legally used as a proof of coverage.
3.2     When an application for a compulsory insurance product such as motor or health
        is taken with a premium payment, a receipt should be provided to the customer
        indicating that coverage commences at the date the application was completed.
3.3     When an application for insurance is taken without a premium payment, a receipt
        should be provided to the customer indicating that coverage will commence at the
        date the policy is issued and the first premium is paid.

        Elite must promptly provide the full policy documentation to customers after
        entering into an insurance contract. Delivering the policy documentation could be
        through Delivery Admin or Sales Agents. Elite must obtain the customers’
        signature confirming their revision, understanding, and receipt of the full policy

        No insurance policy shall be issued or renewed by an insurance company to any
        of the owners or members of the Board of Directors, Senior and Executive

ELITE Insurance & Reinsurance Broker                                          Page 35 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        Managers, and their related parties except after the payment of the full premium.
        Related parties shall be taken to mean close family members, wives, husbands,
        children, parents, brothers and sisters. Claims submitted for payment on their
        behalf shall be treated in accordance with procedures and rules set forth by the
        Company without any exception or preference. The Compliance Officer shall be
        notified of any related claims payment.

6.1     Elite must not collect premiums or fees for transactions that are not in the process
        of being provided or have not yet been provided.
6.2     Insurance companies are considered to have received the premiums once the
        premiums are received by Elite.

7.1     Elite shall not deal with any unlicensed Person Providing Insurance and
        reinsurance Services. A signed written agreement outlining the scope and
        relationship between Elite and Insurance and Reinsurance Companies is required.
7.2     Elite and their employees shall not deal with an unlicensed Company, and they
        shall not prejudice other company’s products when providing insurance services
        to the consumers.
7.3     Elite shall have a valid contract with any Person they are dealing with.


ELITE Insurance & Reinsurance Broker                                               Page 36 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                                 SBD805-1 – ELITE BOR
Dear Sir,                                                                             ،‫ﻋﺰﻳﺰﻱ ﺍﻟﻌﻤﻴﻞ‬
                                                                                         ،،‫ﺑﻌﺪ ﺍﻟﺘﺤﻴﺔ‬

We appreciate your trust and interest in        ‫ﻧﺸﻜﺮ ﻟﻜﻢ ﺛﻘﺘﻜﻢ ﻭﺭﻏﺒﺘﻜﻢ ﺑﺎﻟﺘﻌﺎﻣﻞ ﻣـــﻊ ﺷﺮﻛـــﺔ ﺍﻟﻨــﺨﺒﺔ‬
giving us the opportunity to provide you        ‫ﻟﻮﺳﺎﻁﺔ ﺍﻟﺘﺄﻣﻴﻦ ﻭﺇﻋﺎﺩﺓ ﺍﻟﺘﺄﻣﻴﻦ، ﻭﻋﻠﻴﻪ ﻧﺄﻣﻞ ﻣﻦ ﺳﻌﺎﺩﺗﻜﻢ‬
with our Services; you are kindly requested                   :‫ﺗﻌﺒﺌﺔ ﺍﻟﻨﻤﺎﺫﺝ ﺍﻟﻤﺮﻓﻘﺔ ﻭﺍﻟﺘﻲ ﻫﻲ ﻋﺒﺎﺭﺓ ﻋﻦ‬
to fill the attached forms, which are:

1- Authorization for elite insurance                 ‫1- ﺧﻄﺎﺏ ﺗﻔﻮﻳﺾ/ﺗﻌﻤﻴﺪ ﻟﺸﺮﻛــﺔ ﺍﻟﻨــﺨﺒﺔ ﻟﻮﺳﺎﻁﺔ‬
   brokers Co. on your letter head and to           ‫ﺍﻟﺘﺄﻣﻴﻦ ﻭﺇﻋﺎﺩﺓ ﺍﻟﺘﺄﻣﻴﻦ ﺣﺴﺐ ﺍﻟﻨﺺ ﺍﻟﻤﺮﻓﻖ ﻭﻧﺮﺟﻮﺍ‬
   be signed and stamped (as indicated in                ‫ﺃﻥ ﺗﺘﻢ ﺍﻟﻄﺒﺎﻋﺔ ﻋﻠﻰ ﺍﻟﻮﺭﻕ ﺍﻟﺮﺳﻤﻲ ﻟﺸﺮﻛﺘﻜﻢ‬
   the attached form).                                      ‫ﺍﻟﻤﻮﻗﺮﺓ ﻭﺃﻥ ﺗﻮﻗﻊ ﻭﺗﺨﺘﻢ ﻣﻦ ﻗﺒﻞ ﺍﻟﺸﺨﺺ‬
2- Census & data of your members to be
   insured (as explained in the attached                   ‫2- ﻗﺎﺋﻤﺔ ﺑﺄﺳﻤﺎء ﺍﻷﺷﺨﺎﺹ ﻭﺍﻟﻤﻮﻅﻔﻴﻦ ﺍﻟﺬﻳﻦ‬
   form) preferably to be on excel sheet.                 ‫ﺗﺮﻏﺒﻮﻥ ﺑﺎﻟﺘﺄﻣﻴﻦ ﻋﻠﻴﻬﻢ ﺣﺴﺐ ﺍﻟﻨﻤﻮﺫﺝ ﺍﻟﻤﺮﻓﻖ‬
                                                      ‫ﻭﻧﻔﻀﻞ ﺃﻥ ﻳﺘﻢ ﺍﺩﺧﺎﻝ ﻫﺬﻩ ﺍﻟﺒﻴﺎﻧﺎﺕ ﻋﻠﻰ ﺑﺮﻧﺎﻣﺞ ﺍﻟـ‬
The forms mentioned above can be emailed
or faxed to us, or to be collected personally
by one of our employees.                            ‫ﻳﻤﻜﻨﻜﻢ ﺍﺭﺳﺎﻝ ﺍﻟﻨﻤﺎﺫﺝ ﺍﻟﻤﺒﻴﻨﻪ ﺃﻋﻼﻩ ﺑﺎﻟﻔﺎﻛﺲ ﺃﻭ ﻋﻦ‬
                                                     ‫ﻁﺮﻳﻖ ﺍﻟﺒﺮﻳﺪ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﺃﻭ ﺗﺴﻠﻴﻤﻬﺎ ﺷﺨﺼﻴﺎً ﻷﺣﺪ‬
Sincerely yours,

                                                                     ،،،،‫ﻭﺗﻘﺒﻠﻮﺍ ﻓﺎﺋﻖ ﺍﻹﺣﺘﺮﺍﻡ ﻭﺍﻟﺘﻘﺪﻳﺮ‬

ELITE Insurance & Reinsurance Broker                                                   Page 37 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

ELITE Insurance & Reinsurance Broker                           Page 38 of 55
         SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

         Company name:                                                                                     :‫ﺍﺳﻢ ﺍﻟﺸﺮﻛﺔ‬

 ‫ﺭﻗﻢ‬                                 ‫ﺗﺎﺭﻳﺦ‬                                                                                ‫ﺭﻗﻢ ﺍﻟﺤﺴﺐ‬
         ‫ﺍﺳﻢ ﺍﻟﻤﻮﻅﻒ‬   ‫ﻣﻮﻗﻊ ﺍﻟﻤﻮﻅﻒ‬    ‫ﺍﻟﻤﻴﻼﺩ‬
                                              ‫ﺭﻗﻢ ﺍﻟﻬﻮﻳﺔ‬     ‫ﺍﻟﺠﻨﺴﻴﺔ‬     ‫ﺍﻟﺠﻨﺲ‬    (‫ﺍﻟﻌﻼﻗﺔ)ﺍﺑﻦ، ﺑﻨﺖ، ﺯﻭﺟﺔ‬   ‫ﻓﺌﺔ ﺍﻟﺘﺄﻣﻴﻦ‬
Member   Member        Member       Date of    Iqama                             Relation (spouse, son,    Insurance      Sponsor
                                                           Nationality   Sex
number    name         location      birth    number                                   daughter)             class          no.

         ELITE Insurance & Reinsurance Broker                                                                        Page 39 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 40 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:             Title:                                      Print Date:
SBD806                  PRODUCT DEVELOPMENT
Revision #:             Prepared By:                                Date Prepared:
1.0                     Sami Abdelnour                              06/1/2009
Effective Date:         Reviewed By:                                Date Reviewed:
10/1/2009               Mr. Elias Chamoun                           05/01/2011
                        Approved By:                                Date Approved:
                        Mr. Elias Chamoun                           06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           An organized system for product development and discovering improved
                  and new products.
Purpose:          Finding improved and new products which will match customers’ needs
                  and wants..
Scope:            This procedure applies to Sales and Customer Service departments.

1.1       Product development is concerned with finding improved and new products
          which will match customers’ needs and wants.
          Sometimes a product idea will originate from market research which discovers a
          new want or alternatively it may be a development from within the business
          which can bring additional benefits to the consumer.
          Elite has small specialist teams that attempt to develop new ideas.
          What is important is that new product ideas are thoroughly reviewed before
          expense in incurred in developing them. This might be done by informal
          conversation with insurers or by taking the views of disinterested colleagues. It is
          important to find out the flaws before it is too late.
1.2       First we need to develop a plan. Plans do not happen by themselves and therefore
          the plan has to be someone’s responsibility. This may be a single person or a
          small team. The important point is to ensure that this person or team has the
          authority to implement the plan.
          All this stage we cannot write the whole plan as information will be needed but
          key tasks and targets can be established. These will include:
              Ø   identification of a list of suitable clients and prospects;
              Ø   deciding on nature of publicity material for example a brochure;
              Ø   reviewing ‘packaging’ of product;
              Ø   identifying existing staff skills in the area;
              Ø   identifying additional staff required and training needed;

ELITE Insurance & Reinsurance Broker                                              Page 41 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            Ø review with client servicing staff best method of presentation to clients,
              for example meetings, mail shots, seminars;
            Ø set deadlines and responsibilities for these tasks .
        Assuming an ideal world the team reconvenes one month later to review the
        information obtained which might be:
            Ø target list of clients and prospects categorized by business, size and
            Ø draft publicity material;
            Ø draft policy wording;
            Ø 7 staff with industry expertise and 3 staff with specialist knowledge of the
            Ø additional staff required deferred until review of prospect list complete;
            Ø consensus view of servicing staff is a mail shot followed by a seminar.
        The meeting reviews the information and decides to defer further decisions until a
        projection has been made of potential revenue based on the target list and
        estimated premiums. This is to be available for a meeting a week later.
        At that meeting
            Ø costs are agreed on the basis of a take-up of x%;
            Ø the target list confirms that seminars X will cover a substantial number of
              clients and prospects;
            Ø meetings are to be arranged with a selected number of existing clients to
              review their plans in relation to preventing contamination and their wants
              in relation insurance;
            Ø a decision is taken to use the ‘slot’ in X’s seminar so final deadlines are
              agreed based on that date;
            Ø sales staff training and briefing to take place as soon as possible;
            Ø general training staff will be achieved by seminars at the three nominated
              branches one week before the client/prospect seminars;
            Ø team members are given specific tasks for organization of seminars and
              producing brochures, mail shots and policy wording;
            Ø team leader to speak to PR department about potential publicity and press
        The project now becomes one of maintaining progress and of organization. Each
        member of that team knows his or her responsibility.
        Team members should meet regularly to monitor progress. For example the
        results of the client meetings may indicate a need for a change in the products or
        for emphasis to be given to certain benefits.
        Note that the case study is concerned with the promotion of the product not the
        sale. This exercise is the first stage of the process and demonstrates the use of a
        marketing led approach.
        Note at this stage we have not made a thorough investigation on needs and wants.
        We have assumed a need. However this will affect the way of the product is

ELITE Insurance & Reinsurance Broker                                           Page 42 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        portrayed both in the mail shots and the seminars where emphasis can be placed
        on the benefits.

ELITE Insurance & Reinsurance Broker                                       Page 43 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 44 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:             Title:                                         Print Date:
SBD807                  SALES LEADS
Revision #:             Prepared By:                                   Date Prepared:
1.0                     Sami Abdelnour                                 06/1/2009
Effective Date:         Reviewed By:                                   Date Reviewed:
10/1/2009               Mr. Elias Chamoun                              05/01/2011
                        Approved By:                                   Date Approved:
                        Mr. Elias Chamoun                              06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           To assure a timely information response to sales prospects and an
                  organized system for follow-up of leads.
Purpose:          To describe the actions and documentation for the receiving and
                  processing of sales leads by Elite.
Scope:            This procedure applies to the Sales department.

1.1       The receptionist shall receive incoming calls and, where appropriate, forward to
          sales representatives on a rotating basis (e.g., if a representative is unavailable, the
          call is transferred to the next available sales rep).
1.2       The representative handling the call shall fill out a SBD807-1 – SALES LEAD
          TRACKING FORM as completely as possible.
          ·   At a minimum, the sales rep shall try to obtain the customer name, address,
              telephone number(s), and a description of the customer’s need(s).
          ·   Advertising source, application details, time frame, budgeted amounts, and
              other information are not required but are desirable.
1.3       The sales rep shall forward the SBD807-1 to Sales Administration, signaling them
          to send out the appropriate product information packet and enter the lead in Elite's
          marketing database. Sales Administration shall then return the SBD807-1 to the
          appropriate sales rep for follow-up.

2.1       All business reply cards (BRC) from Elite's direct mail efforts shall be forwarded
          to Sales Administration, according to the instructions on each card.
2.2       Sales Administration shall send the appropriate product information packet, enter
          the lead in the Company's marketing database, and appropriately distribute BRCs
          to sales reps.
2.3       The sales rep shall complete a SBD807-1 and follow up appropriately with the
          prospective customer.

ELITE Insurance & Reinsurance Broker                                                 Page 45 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

3.1     Upon returning to Elite office from a conference or seminar, the conference
        Coordinator or seminar leader will forward all SBD812-5 – SHOW
        REGISTRATION forms to Sales Administration.
3.2     Sales Administration shall send the appropriate product information packet to the
        prospective customer, enter the lead in Elite's marketing database, and
        appropriately distribute all SBD812-5 forms to sales representatives for
        completion of SBD807-1s and appropriate follow up.

ELITE Insurance & Reinsurance Broker                                         Page 46 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                    SBD807-1 – SALES LEAD TRACKING FORM

Address:                                              Preferred Follow-Up
                                               Send Literature:
                                               Sales Call:
Telephone:                                     Not Interested:
Fax:                                           Other:
                                             Date       Notes or Results
                 Lead Source
  Ad In:
  Product Release:
  Direct Mail:


Price Range Desired:
Need is:
  Immediate                3 to 6 months     Total Sales Resulted: $
  1 to 3 months            Longer
Also Considering (Competition):

ELITE Insurance & Reinsurance Broker                                       Page 47 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

                             [This page intentionally left blank]

ELITE Insurance & Reinsurance Broker                                Page 48 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

 Document #:              Title:                                      Print Date:
 SBD808                   SALES ORDER ENTRY
 Revision #:              Prepared By:                                Date Prepared:
 1.0                      Sami Abdelnour                              06/1/2009
 Effective Date:          Reviewed By:                                Date Reviewed:
 10/1/2009                Mr. Elias Chamoun                           05/01/2011
                          Approved By:                                Date Approved:
                          Mr. Elias Chamoun                           06/30/2011
 Standard: Saudi Arabian Monetary Agency

Policy:            Customer orders will be processed in an efficient and organized manner to
                   ensure and promote customer satisfaction.
Purpose:           This procedure summarizes the preparation of documents, paperwork
                   flow, and responsibilities by individuals and departments from obtaining a
                   sales order from a customer through billing.
Scope:             This procedure applies to all individuals and departments involved in the
                   sales process; specifically, Sales, Customer Service, Credit, and Billing.
1.1       The Sales Representative shall normally initiate the sales process and
          obtain/provide and review all documents and information from a customer, in
          order to complete the sales order. The validity and efficiency of the entire Sales
          Order Entry process is dependent on starting with accurate information – this
          information can include completed Elite Order Forms, a customer's purchase
          order, and credit card orders.
1.2       Payment terms for the customer must be in accordance with Elite's credit policies.
          In the event the customer requires credit financing, the Sales Representative will
          work with the Credit Department to obtain credit pre-approval and facilitate
          processing of applicable paperwork.
2.1       Sales Administration will be responsible for facilitating the sales order entry
          process and sales record keeping. Upon receipt of a complete sales package with
          all supporting documentation from the Sales Representative, Sales Administration
          will prepare the Sales Order and a customer file (if a file does not already exist for
          that customer), which file shall include copies of all orders, documentation, and
          customer correspondence.
          ·   The customer file may be a letter-size manila type folder, labeled with the
              name of the organization and the contact’s name (last name first), if possible.
              Such a file should be two-hole center punched on both sides with prongs for
              holding documentation. Customer ordering information should be on the right
              side of the folder and all customer service correspondence and documentation
              should be on the left side of the folder. If the sale is to an existing customer,

ELITE Insurance & Reinsurance Broker                                                Page 49 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

            sales administration will prepare only a temporary file for routing purposes.
            Upon completion of the order, the new sales order information will be filed
            into the pre-existing customer file.
        ·   The customer file may also be automated (computerized), in which case order
            forms and sales-related documentation should be referred to and indexed in
            the customer database.
2.2     Upon completion of all required information for the customer file, Sales
        Administration will forward all documents, except for any credit financing
        documentation, to the Credit Department for processing and approval of the Sales
        If applicable, credit financing documentation will be forwarded directly to
        Accounting/Billing where it will be held for processing upon receipt of the
        Accounting copy of the completed sales order.
3.1     The Credit Department will be responsible for facilitating financing of customers
        and approving terms of all sales in accordance with applicable Elite policies.
3.2     If the Customer is financing the order, Credit will process and forward all
        applicable credit documents to the third party financing source.
3.3     If Credit rejects the terms of the customer's order, Credit will notify the Sales
        Representative and the customer as appropriate.
3.4     Credit will review the customer's order package and if approved will authorize the
        Sales Order.
4.1     Upon receipt of the customer file, Customer Service will then log the customer
        information into Elite's customer list database and file the customer file.
4.2     Customer Service will be responsible for maintaining all customer files. Filing
        will be done alphabetically and all information within the files shall be kept
        chronologically, front-to-back, the front being the most current.
4.3     Customer Service will also be responsible for Post-Sale Customer Follow-Up and
        sending out Customer Satisfaction Surveys (See applicable standard operating
5.1     Upon receipt of the completed Sales Order, Billing will prepare an invoice from
        the information provided on the Sales Order. Distribution of the invoice will be
        as follows:
                Copy 1:         Customer
                Copy 2:         Sales Journal (Accounting)
                Copy 3:         Customer File (Customer Service)

ELITE Insurance & Reinsurance Broker                                          Page 50 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Document #:             Title:                                      Print Date:
SBD809                  SALES TRAINING
Revision #:             Prepared By:                                Date Prepared:
1.0                     Sami Abdelnour                              06/1/2009
Effective Date:         Reviewed By:                                Date Reviewed:
10/1/2009               Mr. Elias Chamoun                           05/01/2011
                        Approved By:                                Date Approved:
                        Mr. Elias Chamoun                           06/30/2011
Standard: Saudi Arabian Monetary Agency

Policy:           To ensure our customers’ satisfaction, Elite salespeople and customer
                  service representatives will be properly trained on the company's products,
                  product pricing, sales techniques, customer credit terms and service
Purpose:          To provide an outline for sales training and content requirements.
Scope:            This statement applies to all inside and outside sales representatives and
                  customer service representatives.
1.1       The Sales Manager will be responsible for planning and coordinating training
          programs for any new employee or independent sale representative that will be
          involved in the sales process and for maintaining continual training to all sales
          representatives on an on-going basis as necessary.
          Initial and ongoing training will encompass all pertinent areas and be
          comprehensive to ensure adequate knowledge by sales representatives in these
          ·   Products: Thorough understanding of the industry and the
              needs/requirements of all market segments, how the company's products
              function and their features and benefits, comparison of competitive products
              with strengths and weaknesses, total familiarity with product literature and
              specification sheets.
          ·   Pricing: Pricing and allowable discounting policies, price catalog and order
          ·   Credit and Financing: Credit terms, credit applications.
          ·   Customer Service: Customer service programs.
          ·   Sales Lead/Order Processing: Advertising and lead generation, lead follow-
              up and sales order entry procedures.
1.2       The Sales Manager shall prepare and update Sales Manuals (in three-ring
          notebook or other form), as well as ensure their distribution to all sales
          representatives. The Sales Manuals should include the above categories of

ELITE Insurance & Reinsurance Broker                                              Page 51 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        information and any other pertinent sales aids or information. The Sales Manuals
        are to serve as a textbook or documentation tool during sales training and as a
        handy reference guide for day-to-day activities by all sales personnel.
2.1     Unfortunately, there are too many sales books that propose high pressure tactics,
        sales gimmicks, games and other obvious and insulting sales techniques. These
        transparent methods are usually geared toward “one-shot” sales and look upon
        sales as a game.
        These books seem to equate sales to sport fishing in which the customer is
        "played," then "hooked" and finally "landed." Most times, these approaches
        border on deceit and unnecessary manipulation – they should never be used by a
        competent, respectable salesperson.
2.2     Elite salespeople and sales representatives should always avoid these approaches
        for two reasons; one, they simply don't work well as many people in this day and
        age are too well informed and educated about sales gimmicks; second, Elite is in
        the business of satisfying our customer's needs and earning their repeat business
        and the only way we can get this repeat business is by working "with" our
        customers not by playing games with them. Remember, without the customer, we
        have no company or jobs. The customer is truly our most important boss and
        should always be treated in that manner. All sales approaches used should be
        honest, straightforward attempts to answer questions, resolve problems/objections
        and assist customers with purchasing our products.
3.1     The term "selling" has often been defined as merely helping the customer to buy.
        However, every rational human being is filled with built-in sales resistance. If we
        weren't, we would all be bankrupt. When subjected to a buy-don't-buy decision, it
        is human nature to resist buying even when we have a "need" for the product or
        We don't want to buy because we fear that someone will challenge our buying
        decision, we don't know the consequences involved with a new vendor or an
        unknown product, we don't want to admit that we are not current with new
        advancements and techniques, and a host of other reasons that can be valid or
        invalid. Most of the sales process is simply figuring out a way for the customer to
        buy our products that he or she needs.
        In order to achieve a sale, the salesperson and the customer must mutually
        proceed through a sales process or decision path to a successful and desirable,
        conclusion. Although the customer is capable of negotiating through the sales
        process or down the decision path alone, the salesperson on the other hand can
        neither lead nor lag behind the customer through this natural process or the
        salesperson will be of little assistance or perhaps even a hindrance to the
        successful consummation of a sale.
        The pathway of each sales process can be identical in many ways and totally
        unique and different in other ways. The duration and variations of the sales

ELITE Insurance & Reinsurance Broker                                           Page 52 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

        process is dependent on the customer. However most sales processes should
        contain the following elements:
3.2     Creating the Selling Climate - In order to create a good selling/buying climate and
        begin the sales process, the salesperson must first determine the customer's needs
        but just as important is assessing the customer's responsibilities, knowledge or
        experience, abilities, confidence, flexibility, attitudes, moods, rationality,
        comprehension speed and purchasing authority. These characteristics will affect
        and determine the course of the sales process. Whenever practical, the
        salesperson can use small talk and probing but non-threatening type questions to
        try and determine as many of these characteristics as necessary.
        The next step is to establish the customer's true needs. There often can be three
        different needs at the beginning of this stage. The customer's needs as the
        salesperson sees it, the customer's needs as the customer sees it, and the
        customer's needs as they really exist. It is important that the salesperson and the
        customer mutually transpose these three images into one need.
        This can be accomplished by asking the customer simple, open-ended questions
        such as, "How are you planning to use the product?" or "What is your time
        frame?" These questions should not be fired off in rapid succession but rather
        phrased in an interactive, conversational style to reveal what the customer is
        looking for, features and benefits that are important, requirements or uses,
        diagnosis of problems and/or opportunities, budget constraints, etc.
        Remember, people don't really buy products – they buy the benefits they expect to
        receive by owning the products.
3.3     The Sales Presentation - Once the customer's needs have been established, the
        salesperson can then begin to discuss our products and how they will satisfy these
        needs. The salesperson should make a complete presentation on the "points the
        customer wants to hear about." Again it is the customer that determines the sales
        process, which is why "canned talks" will rarely work well. Many professional
        salespeople will modularize sales presentations and thoroughly present those
        modules which are of the greatest interest to the customer. Salespeople should be
        careful to avoid allowing their sales presentations to turn into a monologue with
        the customer just listening.
        During the presentation, many salespeople will induce the customer into making
        objections, asking questions or getting their concerns out on the table. This
        provides an opportunity for the customer to progress through the decision path
        faster by allowing the salesperson and the customer to mutually explore and
        locate the best solutions for the customer.
        It is a good idea to transpose the customer's sales resistance into legitimate,
        definable obstacles early on so that these obstacles can be resolved or overcome
        and not hamper or sidetrack the sales process.
        This question/objection stage will also allow the customer and the salesperson to
        evaluate how well they established the customer's needs earlier and to adjust

ELITE Insurance & Reinsurance Broker                                           Page 53 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

3.4     Closing the Sale - Salespeople must learn to recognize when a customer is leaning
        toward making a purchase. The following can be signs that a customer is ready to
            ·   They reexamine the product or return to a point in the sales agreement
                with evident interest.
            ·   They say they want to buy but follow with an emotional reason why they
                can't. For example, "It's a good product, but too expensive."
            ·   Begin to agree with sales points.
            ·   Ask about details of service.
            ·   Spar for a concession or start to ask hypothetical questions.
        If the customer begins to hesitate, seem to stall, or say they need to consult a third
        party, they can often be won over by a repetition of the product's strong points
        and the key reasons to buy.
        Although many books on sales techniques provide numerous types and examples
        of sales closes, if the salesperson and the customer have progressed satisfactorily
        through the sales process, usually a simple and straightforward close is the best.
        The "assumptive close" usually involves no words and transmits the attitude, body
        language and inner confidence of the salesperson that the company's products are
        excellent, that the price is just, that the Company and the salesperson are ethical
        and will meet all commitments and support the customer in every way and that
        the customer is a rational, intelligent individual who will buy once he or she hears
        all the aspects and judges them properly. The assumptive close basically assumes
        the customer wants to buy because he or she probably does and that he or she is
        going to buy and probably will.
        Once the salesperson has answered or resolved all questions/obstacles and
        determined the order configuration, the salesperson simply follows through with
        processing of the paperwork to finish the transaction.
        Another simple but effective close is to "ask for the order". Studies have shown
        that 25% of people will give their order to a salesperson who simply asks for it.

ELITE Insurance & Reinsurance Broker                                              Page 54 of 55
SALES & BUSINESS DEVELOPMENT Policies, Procedures, and Forms

Revision History:

       Revision         Date       Description of changes         Requested By
           0.0       09/1/2009     Initial Release
                                   Functions and Tasks of Elite   Mr. Elias
           0.1      09/28/2009
                                   1.0 Main Functions             Chamoun
                                   Fine-tuning to management
           1.0       05/1/2011     feedbacks & workflow on the    The Board

ELITE Insurance & Reinsurance Broker                                          Page 55 of 55

To top