When does an insurance brokerage company provide the client to insurer then how underwriter generate Debit & Credit Notes? And to whom?

When the underwriter accept the risk that provided by the broker he acts as follows :-

1/ Provides the client a required coverage and charge the correspondence premium by debiting the client's account and therefor submit the insurance policy together with debit note to the insured via the brokerage company.

2/ To pay the brokerage i.e ( commission )  the underwriter should issue a credit note in favor of the brokerage company.

Best wishes.

A debit note is issued to clients when charging premium, and a credit note is issued when refunding premiums to clients.

Moreover, in case broker is involved , a credit note is issued to broker for their brokerage, and in case of reinsurer's support, debit notes are issued to RI for their RI share of the premium.

 

This is the elemental financial record that is the core of the underwriting accounting function of Fle xibroker. This tutorial assumes that the user is familiar wit h loading clients and policies as well as with Agen ts and Insurer records. Note: Flexibroker handles Debit Notes and Credit No tes in the same way. In this guide references to De bit Notes apply equally to Credit Notes unless specific ally stated otherwise. The term Debit Note will be used to indicate either a Debit Note or a Credit Note. The Debit Note The Debit Note is a composite record containing all the financial and underwriting information as well as details of the distribution of values between The P olicy the Client the Insurer and the Agent. This information is held on the Debit Note in minut e detail down to the premium, fee and commission va lues in respect of each risk item on the policy. Debit Notes are accumulated to Client, Insurer and agent accounts, yet each Debit Note remains an accounting entity in its own right. So, as with any accounting record, an outstanding balance and deta ils of receipts and journals are attached to Debit Notes. The processes that take place when a Debit Note is created Financial values - These are determined from policy records and record ed in the Debit Note Client Debits - The amount due by the client is charged to the clie nt account Insurer Credits - The amounts payable to insurers are credited to the Insurer accounts. Agent credits – Agents are credited with their shares of commission s and fees. Broker credits - The remaining commissions and fees due to the broke r are recorded and credited to the Broker’s control accounts. Risk item information – Each Risk item’s premiums and fees are recorded. Bordereaux – Bordereaux Schedules are produced in the layout req uired by individual Insurers. VAT - VAT is calculated and apportioned to the various en tities on the Debit Note. Dates - Due dates for payments to Insurers will be calculat ed in accordance with the Policy Type and the Broker Header parameters. Payment type - The agreed method of payment as set up in the Debit Note will be applied. Debit Note Numbers - Informative numbers will be assigned to debit notes identifying the client, the policy and the endorsement number if relevant. Debit Orders Debit Notes – These will be numbered so as to identify the Month and the Year of processing the debit order. Printing Debit Notes - Debit Notes may be printed at the time of productio n, or as a subsequent batch process. Debit Note Reporting - Debit Notes will be included in the Debit Note Audi t Trail and the Debit Notes Raised reports. Debit Note financial values are ac cumulated and held available for the production of financial reports and reconciliations. Policy update - The Debit Note details are attached to the policy a nd held available for examination

Agree with the Answer added by Mr. Mamoun elbaghir abdalla mhamad Eltayeb

after determine the likelihood and magnitude of a payout over the life of the policy. Higher-risk individuals and assets will have to pay more in premiums to receive the same level of protection as a (perceived) lower-risk person or asset.