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Companies writing insurance on owner-occupied 1-4
family residential properties have until July 1 to notify the West
Virginia Department of Insurance of their choice between two permitted
approaches to non-renewals.
Currently, a residential policy in force for four
years or more can be non-renewed only for certain specified reasons.
Under a new law that takes effect July 8, a policy can be non-renewed for
any reason consistent with the company's underwriting standards, subject
to a limitation on the number of non-renewals in a county per year.
A form
is available for companies to indicate their choice between the two
approaches; the choice will be in effect for five years. A company will
automatically be subject to the older, more restrictive approach if it
fails to make its selection by July 1. AAIS is filing new and revised
state amendatory endorsements, and related rules, for the affected lines
of insurance.
The bill
authorizing the new approach is available online. Also available is the statute
stating the old requirements. (For the relevant section of statute, scroll
down to WVC 33-17A-4.)
AAIS has released revised rating rules for the Motor
Truck Cargo (MTC) section of the Inland Marine
Guide. Simultaneously, AAIS
released a series of MTC rating worksheets that provide step-by-step
procedures for rating risks under the revised rules.
The revised rules contain rating steps for new
coverages, additional risk modification criteria, and expanded risk
characteristics. More details are available in a press
release.
For information on affiliating with AAIS for use of the
Inland Marine Guide, contact Rick Maka, director of marketing, at rickm@AAISonline.com,
or by calling 800/564-AAIS.
Three organizations have
signed up to become the newest associate members of AAIS. They are:
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ECCA, a computer
service bureau and systems developer based in Erie, Pa.;
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Mutual Boiler
Re, an equipment breakdown reinsurer based in Malvern, Pa.; and
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Travelers Boiler Re,
an equipment breakdown reinsurer based in Hartford, Conn.
To date, 11 organizations
have signed up for the AAIS Associate Membership program. The program
allows companies that support AAIS members through reinsurance, software,
or other services to access AAIS information and market themselves to AAIS
members.
For information on
becoming an AAIS associate member, contact Rick Maka at rickm@AAISonline.com
or by calling 800/564-AAIS.
The state of Minnesota has implemented expedited rate
and form filing requirements for homeowners and personal auto
insurance.
Under a law
enacted in May, insurers can immediately begin using a new or revised form
after filing a written certification of compliance with state
requirements, along with a description of the form and the form itself.
The law also includes new criteria for implementing rate changes and
retention of records.
Another section of the law, which takes effect Aug. 1,
clarifies that an insurer need not issue a new policy when a policy is
renewed, as long as the policy is available on a Web site or the insured
is notified that a copy is available on request. (NOTE: An optional
addendum to the AAISdirect
license allows companies to post AAIS forms for policyholder access to a
password-protected company Web site.)
The law also exempts
coverage provided under the federal terrorism reinsurance program from
requirements that commercial policyholders be notified of rate changes.
AAIS is preparing filing action as needed to address
the changes.
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