What is an annex?

The annex to the insurance contract is an official additional document issued by the insurer.It changes, supplements or specifies clauses of the already existing insurance contract with the original conditions of the insurance.It has the same legal force as the contract and allows, apart from the basic conditions, to make corrections to certain clauses or data according to changes or new requirements of the insured or the insurer.It does not require the issuance of a new policy.The addendum must be signed by both the insurer and the insured to become effective.Annex ofthe insurancemay be issued for various reasons.

Reasons for issuing an annex

One of the most common cases is a change in the ownership or data of the insured object, or correction of technical characteristics.An annex is also required when expanding or limiting coverage, increasing or decreasing the insured amount, adding or removing risks.It is also used when extending or terminating the insurance period or changing the method of premium payment.In some cases, changes in legislation require an update to the contract, or if the insurer introduces new terms, an addendum may be required to reflect these changes.

Specific use cases of annex

In business insurance, annexures are often issued when the business expands, new assets are acquired, or risk exposure changes.Insurances „Liability“are also subject to annexation in the event of a change in the number of employees or in the nature of the activity performed.

Procedure for issuing an annex

The procedure for issuing an annex usually begins with the submission of an application by the insured, accompanied by documents proving the need for a change.The insurance company reviews the claim and assesses whether the new circumstances change the risk profile.Depending on the nature of the change, it may be necessary to pay a premium or, in some cases, return part of it.

Mandatory annex

It is important to note that in certain situations, issuing an annex is not just an option, but an obligation of the insured.Failure to notify the insurer of changes in circumstances can lead to problems when an insured event occurs.

Entry into force of the Annex

The addendum is effective from the date specified in it and all other terms of the main contract that have not been expressly modified continue to apply.

What is an insurance addendum and when is it needed?

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