AAISalert  SEEKS INPUT
ON EMERGING EXPOSURES

AAIS invites property/casualty professionals to submit their observations and concerns regarding emerging exposures through our new AAISalert web page.

The AAISalert online submission form asks users to describe new exposures they are concerned about, indicate how they address the exposure or plan to address it, and how it is likely to affect AAIS programs. One need not be a member of AAIS to participate.

Ideas generated through AAISalert may be incorporated into AAIS's program revisions, and may also become topics for the AAIS Main Event, an executive-level conference devoted to product-related issues of strategic importance to property/casualty insurance companies. The 2007 Main Event is scheduled for April 22-24 in Charleston, S.C.

NEW CONTRACTORS' COMBINATION CLASS
INTRODUCED IN INLAND MARINE GUIDE

AAIS has introduced a new Contractors Combination class of nonfiled inland marine insurance in the Inland Marine Guide. The new class provides coverage under a single policy form for several types of construction-related exposures:

• Contractors' equipment and tools;

• Builders risk;

• Installation floater; and

• Electronic business equipment.

A press release provides more details on the forms, which have been distributed to all companies affiliated with AAIS for use of the Inland Marine Guide, a leading source of forms, rating procedures, and underwriting guidelines for the nonfiled classes.

For information on affiliating with AAIS for use of the Guide,  contact Rick Maka, director of marketing, at rickm@AAISonline.com, or by calling 800/564-AAIS.

NEW BOP EXCLUSION DISCLOSURES
FOR ASBESTOS, SILICA, AND
ELECTRONIC COMMUNICATIONS

Later this week, users of the AAIS Businessowners Program (BOP) will receive sample disclosure notices to be used along with optional exclusions for liability arising out of asbestos, silica, and violations of federal laws regarding electronic communications.

Asbestos, silica, and electronic communication exclusions have been filed and approved under the BOP in all states except Florida, Hawaii, and Louisiana.

In all other states except Texas, the sample disclosure notices are provided on an advisory basis and can be modified to create company-specific disclosures.  In Texas, the asbestos and silica exclusions accompanied the filing of their respective exclusions, and must be used as filed.

Companies affiliated with AAIS for its Commercial Liability and/or Artisans programs will be also be receiving advisory disclosure notices by bulletin in the near future.

MARYLAND PROVIDES GUIDANCE
ON COVERAGE NOTICES

A recent bulletin from the Maryland Insurance Administration provides sample notices insurers can draw upon to comply with new homeowners insurance notice requirements.

Under a law enacted this year, carriers writing homeowners insurance in Maryland are required to issue three written notices to homeowners applicants and/or policyholders:

• An annual statement summarizing the coverages and exclusions under the policy, and identifying the method for paying losses;

• A statement indicating that the standard homeowners policy does not provide flood coverage; and

• A statement listing all additional optional coverages available to be purchased.

For purposes of the requirements, "homeowners insurance" is interpreted to entail several types of  personal residential property coverage, including "non-commercial farmowners policies," a term AAIS is seeking clarification on.

 The Maryland bulletin provides samples of required notices which companies must modify to reflect variations in their own forms. For the summary of coverages and statement of optional coverage, AAIS will be developing samples that reflect policy language in AAIS forms and options in AAIS manuals.

AAIS is also seeking to ascertain if it is permitted to take filing action on the notices on behalf of the insurers that have granted it filing authorization.

WISCONSIN RELAXES UM/UIM REQUIREMENT
FOR COMMERCIAL LIABILITY POLICIES

An emergency order from the Wisconsin Office of the Commissioner of Insurance exempts commercial liability policies from a requirement to offer coverage for uninsured and underinsured motorists (UM/UIM, see a previous Advisory). The order also expands an existing exemption for umbrella policies to apply to underinsured motorists coverage.

AAIS still has endorsements on file in Wisconsin to comply with previous directives that required UIM coverage under personal, farm, and commercial umbrella policies. If the office's latest position is determined to be permanent, AAIS will withdraw the UIM endorsements.

MICHIGAN SAYS STANDARD FIRE POLICY RULES
DO NOT APPLY  TO INLAND MARINE

In recent correspondence with AAIS, the Michigan Office of Financial and Insurance Services issued a determination that the state's Standard Fire Policy (SFP) requirements do not apply to inland marine insurance.

The interpretation does not affect coverage under any AAIS programs currently filed in Michigan, or that provided in the Inland Marine Guide to nonfiled classes. The interpretation could affect coverage under some independent programs, however.

The interpretation has no impact on an insurer's obligations following an act of terrorism, as Michigan had already enacted a statute exempting terrorism coverage from Standard Fire Policy requirements. The relation of individual state SFP requirements to terrorism coverage is shown in a table maintained by AAIS and accessible to all.

"AAIS MAIN EVENT" BOOKED FOR
APRIL 22-24 IN CHARLESTON, S.C.

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.