Pre-Bind Compliance Management

Overview

The Pre-Bind Compliance Management workflow ensures that all regulatory, carrier, and client requirements are met before binding a policy. This protects both the agency and the insured from compliance failures, underinsurance, or disputes. The process includes compliance verification, coverage adequacy checks, disclosure documentation, audit trail retention, and completion of required forms.

Verify Policy Regulatory Compliance

Purpose: Confirm that all carrier and regulatory requirements are satisfied before binding.

Workflow Goal: Ensure that no binding occurs with missing documentation, unresolved underwriting issues, or regulatory noncompliance.

AMS Steps:

• Open the Opportunity or Policy for the insured.

• In Momentum AMS, check that required documents are uploaded under Documents tab: applications, loss runs, supplemental forms, or underwriter confirmations.

• Review carrier portal or underwriting guides for binding restrictions and approval requirements.

• Confirm regulatory rules:

  • Verify mandatory state forms or notices (e.g., Surplus Lines disclosures).

  • Confirm minimum coverage standards.

• In AMS:

  • Add a Note to the Opportunity/Policy record:

    “Pre-bind compliance check complete for [Carrier/LOB] on [Date]. No outstanding underwriting issues.”

  • Tag as Compliance – Pre-Bind or Regulatory – Verified.

• If ready: update the Opportunity Stage to Ready to Bind and assign a Task for the binder/CSR to finalize.

Verify Policy Coverage Adequacy

Purpose: Ensure the proposed policy sufficiently protects the insured’s exposures.

Workflow Goal: Protect the client and agency from underinsurance or coverage disputes.

AMS Steps:

• Open the Quotes tabin the Opportunity or Policy record.

  • Check Quotes Received for submissions returned from carriers or MGAs.

• Compare Coverages

  • Review against agency standards (e.g., liability minimums, property valuation).

  • Note potential gaps such as flood, earthquake, or higher liability needs.

• Document Client Discussion

  • In the Notes tab, add an entry such as:
    “Coverage adequacy reviewed with client on [Date]. Discussed umbrella need; client declined.”

• Tag for Tracking

  • Apply a tag such as Coverage – Adequacy Verified.

Document Policy Disclosures

Purpose: Record all required client disclosures and acknowledgments prior to binding.

Workflow Goal: Create a defensible record of what was disclosed and agreed upon.

AMS Steps:

• From the Policy → Documents tab, upload disclosure forms (e.g., surplus lines, terrorism rejection).

• Use Smart Forms / mapped PDFs where available for pre-filled disclosures.

• Collect acknowledgments:

  • Upload signed copies to Documents tab.

  • If verbal/email, add a Note:

    “Surplus lines disclosure explained and acknowledged by client on [Date] via phone/email.”

• Tag documents and notes as Disclosure – Completed.

Retain Policy Audit Trail

Purpose: Maintain a clear audit trail of all pre-bind compliance actions for carrier audits and E&O protection.

Workflow Goal: Organize all binding documents in AMS for transparency and easy retrieval.

AMS Steps:

• In the Policy → Documents tab, upload:

  • Quote checklists

  • Carrier confirmation emails

  • Signed applications and disclosures

• Organize by document type:

  • Use clear names like Disclosure_Terrorism_[Date].pdf

  • Use AMS folder structure (e.g., Compliance → Pre-Bind).

• Add a Note:

  “Pre-bind audit file complete for [Policy/LOB] on [Date]. Documents stored in Compliance folder.”

• Tag as Audit – Pre-Bind Complete.

Complete Policy Forms

Purpose: Ensure all required forms are signed and submitted before binding coverage.

Workflow Goal: Accurately prepare and submit state and carrier binding forms.

AMS Steps:

• From the Policy → Forms tab, select required forms (e.g., state affidavits, terrorism election, surplus lines).

• Use Smart Forms / mapped PDFs for pre-fill where available.

• Send for signatures via integrated e-sign tools or upload signed wet copies to Documents tab.

• Submit completed forms through carrier portal or directly to underwriter.

• In AMS:

  • Upload final signed copies to Documents tab under Compliance folder.

  • Add a Note:

    “All binding forms submitted to [Carrier] on [Date]. Confirmation received.”

  • Tag as Forms – Binding Complete or Compliance – Submitted.

✅ Outcome: Following this workflow ensures every bound policy in Momentum AMS meets carrier, regulatory, and client requirements, with a complete audit trail stored in AMS for accountability and protection.