Wheaton, Ill., June 19, 2007—Property insurers now have access to an updated set of forms and endorsements, along with updated rating information, for writing difference in conditions (DIC) coverage.

The new resources are provided in the Inland Marine Guide, a standard resource of policy forms, underwriting guidelines, and rating procedures for the traditionally nonfiled classes of inland marine insurance. The Guide is developed and maintained by the American Association of Insurance Services (AAIS), a national advisory organization that develops policy forms and rating information used by more than 600 property/casualty insurers throughout the U.S.

DIC coverage, which can be written as a stand-alone policy or in conjunction with a commercial property policy, generally provides property and income insurance for perils, such as flood and earthquake, that are commonly excluded under a standard property policy. DIC policies commonly exclude coverage for named perils insured under property policies (fire, wind, etc.).

The revised DIC section of the Inland Marie Guide introduces two new forms that allow Guide users to write DIC property or income coverage on an excess basis over underlying property and/or income forms. Those new forms allow carriers to participate in providing "layers" of coverage for a property account.

Among other things, the updated DIC rating information incorporates use of the Modified Mercalli Intensity (MMI) scale, a measurement of the intensity of an earthquake. MMI intensities have been grouped into six categories that correspond with US Quick Quake Scores.

Insurers using the Guide can obtain a location's MMI assigned intensity zone and US Quick Quake Scores from Risk Meter, an online risk mapping available over AAISdirect, the online service the provides direct access to AAIS resources and complementary risk information services.