The AAIS
Combination Policy Program (CPP) manual is being revised and filed
with a proposed effective date of April 1, 2007. The CPP is a program of
manual rules and premium modification factors for packaging monoline
coverage parts into a single policy.
As with the previous version, the revised manual
will provide premium modification factors for several general
classifications: apartments, contractors, institutional, manufacturing
or processing, mercantile, motel-hotel, office, and service.
In the revised manual, however, factors for a
classification may differ for each of the following types of coverage:
property (including inland marine and crime), liability, boiler and
machinery, and all other.
For information on affiliating with AAIS for use of
the CPP, contact
Rick Maka, director of marketing, at
rickm@AAISonline.com or by
calling 800-564-AAIS.
Several new forms addressing cold storage and
processing risks have been added to the AAIS
Inland Marine Guide. The Guide
is a leading resource of forms, rating procedures, underwriting
guidelines, and other information for the traditionally nonfiled classes
of inland marine insurance.
In the Miscellaneous Forms section of the Guide,
two forms have been added for providing Cold Storage Locker Coverage;
one provides coverage on open perils basis, the other on a named perils
basis. Both forms provide coverage for direct damage or legal liability
for loss to perishable food that belongs to renters of the insured's
cold storage lockers. The forms can also be used to provide coverage for
loss to perishable food of others the insured is processing.
In the Guide's Warehouse Legal Liability
section, a Processing Work Coverage endorsement has been introduced to
cover loss to property in the insured's care, custody, or control for
processing work. Schedules are provided for both the cold storage and
processing work forms.
The forms are being filed in 20 jurisdictions which
require filing of inland marine forms, including those for traditionally
nonfiled classes; the proposed effective date is March 1, 2007.
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.
AAIS is filing a revised state amendatory endorsement
for programs in California to address provisions in state law and
regulations. The filing has a proposed effective date of Feb. 1, 2007.
Among the topics addressed by the revisions are:
-
Domestic partners: California
law provides that registered domestic partners shall have the
same rights, protections, and benefits as spouses, so language is
added to the endorsement to equate references to "spouse" and
"domestic partner."
-
Actual cash value: A
new
requirement states that labor costs are not to be subject to
depreciation in actual cash value settlements, and the endorsement
is amended accordingly.
-
Notice of adverse underwriting action:
The endorsement is amended to reflect a California
law requiring companies to give notice of the reason(s) for an
adverse underwriting decision or advise the insured that the
reason(s) will be provided in response to a written request.
-
Cancellation: The endorsement is revised
to comply with a
provision in the California insurance code requiring refund of
premium within 80 business days after cancellation of a policy by
either party.
A recent
bulletin from the Tennessee Department of Commerce and Insurance
clarifies the application of a recent law requiring coverage for
sinkhole collapse in "homeowners property insurance." In the bulletin,
Commissioner Paula Flowers states that the requirement applies to
insurance on all 1-4 family owner-occupied residences, including those
insured by farmowners, mobile-homeowners, dwelling fire, or other types
of policies.
Sinkhole collapse is already a covered peril for the
following
AAIS programs on file in Tennessee: Homeowners (Primary program),
Mobile-Homeowners (Primary program), Dwelling Properties, Farmowners,
and Farm Properties.
A recent
bulletin from the South Carolina Department of Insurance describes
in detail the level of review insurers should expect for both prior
approval and file and use filings. It also outlines the information
required for personal auto and homeowners insurance rate filings under
the state's "flex-band" rating system.
Under the system, enacted in 2004, personal lines
property insurance rate filings with an increase or decrease of less
than 7% from previous rates may take effect without prior approval.
AAIS has received approval from 48 jurisdictions
for new
terrorism endorsements developed this year to comply with the extension
of the Terrorism Risk Insurance Act (TRIA) enacted by Congress in
December 2005.
The new terrorism endorsements, described in a previous
Advisory, combine exclusions for "certified" terrorism losses
that may be eligible for federal terrorism reinsurance coverage with
exclusions for "non-certified" losses that are not eligible for
federal reinsurance.
The endorsements and accompanying
disclosure notices took effect for most AAIS commercial lines programs
on Sept. 1, 2006. Similar endorsements and disclosures are currently
being filed countrywide under the Commercial Umbrella/Excess Liability
Program, with a proposed effective date of Oct. 1, 2006.
The Mills House
Hotel in Charleston, S.C., has been selected as the site for the "AAIS Main Event," an updated successor to
AAIS's annual conference, scheduled for April 22-24, 2007.
The full name of the enhanced meeting--"The AAIS
Main Event:
Where insurance
leaders come together to explore product issues, discuss solutions,
exchange ideas"--signifies the importance of this
event
as a venue for AAIS customers and other insurance professionals to network with each other and share
ideas.
Among other things, the program content and format
will be designed to strengthen the connection between AAIS and its
member companies, prospective new members, and business partners. The
program will focus on product-related issues of strategic
importance to company CEOs and heads of operational units. AAIS also
plans to vary the format with concurrent sessions and small group
discussions to provide more opportunity for exchanging ideas.
For more information, contact Joseph Harrington,
director of corporate communications at
joeh@AAISonline.com or by
calling 800-564-AAIS.
