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More than 400 property/casualty insurers throughout the United States use
AAIS's personal lines insurance programs, which provide standard forms,
manual rules, and loss cost rating information for insuring residential
property and personal liability.
Whether you are competing in standard markets or targeted ones (coastal,
urban, high-value, etc.), AAIS personal lines programs provide product
development and maintenance service that can be a very cost-effective
alternative to other providers or to the cost of maintaining your own
program.
The Homeowners Program,
a complete standard program, features the industry's
first standardized endorsements for adding equipment breakdown coverage
to a homeowners policy, and introduces new coverage provisions
addressing exposure to personal injury arising from electronic
communications. It's the alternative you can't afford to overlook. 
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The AAIS Homeowners Program features seven base forms (basic, broad,
special, contents/renters, special building and contents, unit-owners,
and limited perils) plus a variety of loss settlement options (actual
cash value, replacement cost for personal property, modified replacement
cost, and functional replacement cost).
The program includes several mandatory endorsements not available in
other programs; these exclude coverage for liability arising from lead,
pollutants, punitive and exemplary damages, and other causes of loss.
There are more than 75 other optional endorsements, including
endorsements limiting loss due to fungi (mold).
The AAIS Homeowners Program manual features countrywide rules that
include most rating factors, including multistate rating factors for
optional liability coverages. Individual state pages are provided with
state-specific rules and rating information, where applicable.
The manual provides factors for higher wind and hail
deductibles in most states, and the state pages provide
rating factors for new homes and age of home systems. The program's rating information incorporates modeled data from leading catastrophe modeling firms. |
The Mobile-Homeowners Program provides all the coverages needed for
insuring mobile homes along with rating information based on mobile-home
experience.
The Home-Based Business Coverage Part,
provided as part of the AAIS Homeowners, Mobile-Homeowners, and Farmowners programs, was the industry's first standard endorsement
developed to provide personal lines coverage for the property and
liability exposures of certain home-based businesses. It was
subsequently expanded to add a class for bed and breakfast operations,
and is scheduled for further revision.
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The AAIS Home-Based Business Coverage Part classifies eligible
home-based businesses into six categories, allowing personal lines staff
to underwrite and rate the entire policy without using commercial lines
procedures.
Regarding liability coverage, the endorsement replaces the personal
liability coverage in the base policy with commercial liability coverage
for business exposures.
Regarding property coverage, the endorsement does four things:
- It extends personal property coverage to business property on
the premises;
- It adds coverage for structures used to store business property,
- It increases the limit for business property away from the
premises; and
- It provides business-related incidental and optional coverages
such as accounts receivable.
Loss cost rating information is provided by category or risk and
amount of limit, and for coverage options. |
The
Personal Umbrella Program provides forms, and
sample manual rules for writing excess
coverage over the limits of underlying policies, plus "drop down"
coverage for personal injury liability.
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The Personal Umbrella Program (PUP) provides a base form, endorsement
options, state amendatory endorsements, and a sample manual,
declarations, and schedule of underlying insurance for writing an
umbrella policy over an AAIS-based homeowners policy and any underlying
auto, watercraft, or other personal liability policy. "Electronic
aggression" The latest update to the base form, filed in 2011,
introduces an exclusion of coverage for bodily injury, property damage,
or personal injury arising out of "electronic aggression," sometimes
referred to as "cyber-bullying."
The exclusion applies to any damage or injury arising from, but not
limited to, harassment or bullying committed by electronic means or
through an electronic forum. Aggregate limit
The latest PUP base form also includes an aggregate limit on coverage
that is subject to an aggregate limit in underlying insurance. This
avoids having the umbrella policy respond on a per-occurrence basis when
underlying coverage for an insured activity, such as home day care, is
capped by an aggregate limit.
Endorsements
The revised PUP forms include 23 endorsement
options that, among other things, address business and farm activities,
and provide exclusions for designated premises, drivers, vehicles,
watercraft, and more.
Among the program's 11 new multistate endorsements are the following:
- An option to provide "drop down" coverage for bodily injury or
property damage (BI/PD) arising from the use of a non-owned
recreational vehicle;
- An option to provide excess auto liability coverage for use of
certain vehicles outside the U.S. and Canada; and
- Two options for excluding coverage for claims arising from
canines. One endorsement excludes coverage for BI/PD arising from
direct physical contact with a canine, except to the extent that the
BI/PD is covered by underlying insurance. The other excludes the
coverage without exception.
Sample manual, and more
The AAIS Personal Umbrella Program also includes a sample manual,
policy declarations, and schedule of underlying insurance. These
resources are not filed, but can be used by insurers as the basis
for proprietary resources they file with regulators, if required.
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AAIS
Personal Monolines provide a range of
booklet-style forms that can be written on a stand-alone basis or
packaged with other forms to insure residential property, personal
property, and personal liability.
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The Dwelling Properties Program includes three residential property
forms--basic, broad, and open perils--that each provides the four
principal coverages--residence, related private structures, personal
property, and additional living cost/fair rental value.
The Landlord's Package, provided as part of the Dwelling Properties
Program, consists of the industry's first standard endorsement option
for insuring a landlord's premises liability exposure for small rental
units (1-4 families).
The Personal and Premises Liability Program provides three principal
coverage forms--personal liability, farm personal liability, and
premises-only liability--whose coverage are analogous to those provided
in liability sections of homeowners forms. Options are available for
excluding coverage for lead liability, pollution liability, and punitive
damages. |
The Boatowners Program,
revised twice since being introduced in the 1990s, is the industry's first standardized program for insuring
small, privately owned watercraft. Companies can use this program as the
basis for a watercraft specialty line, or as an accommodation to their
homeowners and auto accounts.
The Yacht Program, introduced in 2010, is
designed to insure craft at least 26 feet long and $50,000 in value.
Both the Boatowners and Yacht programs allow insurers to insure
watercraft for property only, liability only, or property and liability.
Also, both programs are available for no additional charge to companies
with paid affiliations for use of either of them.
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Filed countrywide, the Boatowners Program provides forms, manual
rules, and rating information for
insuring privately owned pleasure craft, plus motors and trailers.
Coverage extends to personal watercraft such as "Jet Skis," but personal watercraft
coverage can be excluded by endorsement.
Under the program, coverage can be written for property only,
liability only, or property and liability; policies can either stand
alone or be endorsed onto another personal lines policy. The manual
features an expanded but still simplified rating procedure that can be
utilized by most personal lines underwriters.
The Yacht Program provides coverages comparable to those in the
Boatowners Program, although broader in some respects.
Boatowners eligible property
Privately owned watercraft (including personal watercraft) that
are 30 feet or less in overall length, 20 years or less in age,
valued at $75,000 or less, with a maximum speed not greater than 50
mph.
Boatowners additional property coverages
- Boating equipment
- Newly acquired property
- Emergency service
- Optional personal effects coverage available by endorsement
Perils
Open perils coverage subject to standard exclusions plus
exclusions for certain boating practices and hazards.
Property loss settlement
Property losses covered on an actual cash value basis; agreed
value coverage available by endorsement.
Personal liability coverage
Coverage for damages for which an insured is legally liable and
which arise out of the use of covered property and non-owned boats.
Medical payments coverage
Coverage for medical expenses arising out of covered property or
a non-owned boat.
Additional liability coverages
Additional coverage for:
- Claims and defense cost
- Coverage for removal of wrecked or sunken property provided
for up to 25% of the personal liability limit
Liability exclusions
Coverage subject to standard liability exclusions, plus
additional exclusions for:
- Business exposures with the exception of entertainment of
business clients
- Kite skiing
- Non-permissive use
- Racing or speed contests
Uninsured boater coverage
$10,000 included in policies providing liability coverage;
higher limits available for an additional premium.
Deductibles
Several deductible options available:
- Flat deductible from $100 to $5,000
- Split deductibles $50/100 to $250/$5000
Coverage territory
Coverage extends up to 100 miles from coast. Coverage for
personal watercraft limited to 10 miles from coast.
Rating components (partial list)
- Eleven navigational territories
- Type of boat
- Age of boat
- Navigational training and experienced operator credits
- Multi-owner surcharge
- Navigational, safety equipment credits
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American Association of
Insurance Services
1745 S. Naperville Road | Wheaton, IL 60189-5898
630-681-8347 | 800-564-AAIS | Fax 630-681-8356
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