PROGRAM PLANNING UNDERWAY
FOR 2008 AAIS 'MAIN EVENT'

AAIS is now evaluating topics for its 2008 Main Event conference, April 20-22 in Ponte Vedra Beach, Florida.

This executive conference focuses on product-related issues of strategic importance to property/casualty insurers. To that end, AAIS is seeking speakers on trends in science, technology, law, economics, and other fields that will impact property and liability risk and, consequently, the design and development of P/C insurance products.

There are two ways to submit ideas for topics:

• Use the AAISalert online submission form. This web page 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 property/casualty insurance.

• Contact Joseph Harrington, AAIS director of corporate communications, at joeh@AAISonline.com, or by calling 800-564-AAIS.

SOUTH CAROLINA ISSUES
IMPLEMENTATION REQUIREMENTS
FOR WINDSTORM MITIGATION

The South Carolina Department of Insurance (DOI) has issued two bulletins for implementing new requirements concerning windstorm coverage in coastal areas.

The first bulletin details steps insurers must take to implement premium discounts and credits (or surcharges and debits) reflecting the presence or absence of factors found to mitigate windstorm damage.

Those factors include, among others, use of storm shutters and roof tie-downs, applicable building codes and construction standards, and elevation and distance from water. The bulletin also states how policyholders can certify that mitigation measures have been implemented on their properties.

The second bulletin provides draft forms for notices insurers are required to provide policyholders indicating that they may qualify for premium discounts or credits, or reductions in deductibles, if they implement mitigation measures.

AAIS preparing response

AAIS is finalizing rules and rating factors required to address windstorm mitigation features and will submit filings on behalf of its affiliates well before the Jan. 1, 2008 effective date of the new law.

Companies affiliated with AAIS for programs that provide property coverage in South Carolina should watch for upcoming bulletins.

LATEST HOMEOWNERS AUDIO FILE
DISCUSSES PERSONAL INJURY

In the second of a series of audio files on refinements to the AAIS Homeowners forms, Susan Luecke describes how new policy provisions address exposure to personal injury arising from growing use of Internet communications.

In a series of short interviews being posted over coming weeks, Sue describes how AAIS has developed or modified provisions related to water loss, personal injury, business activities, motorized vehicles, equipment breakdown, and new family structures.

Sue is AAIS's assistant vice president of personal lines and the principal developer of the revised Homeowners forms filed countrywide and now approved in 28 states.

AAIS HELPS COMPANIES COMPLY WITH
FLORIDA MITIGATION MANDATE

Insurers writing residential property coverage in Florida may have received a recent bulletin reminding them of a requirement that they notify policyholders of the availability of premium discounts for hurricane loss mitigation measures.

Earlier this year, AAIS filled out most of the state-prescribed notice form on behalf of its Homeowners and Dwelling Properties affiliates. A copy of the partially completed notice was attached to bulletin 07-1984. Companies must prepare a final version of the notice by filling in certain sections and filing it with the Florida Office of Insurance Regulation.

SAMPLE FUNGI EXCLUSION
AVAILABLE UNDER HOMEOWNERS

A countrywide AAIS Homeowners bulletin issued last week makes available a sample exclusion for fungi that is more restrictive than the exclusion built into the newly revised Homeowners forms.

Whereas the built-in exclusion preserves coverage for damage arising from fungi and bacteria (including mold) that arises from a covered peril, the sample endorsement excludes coverage for all mold-related losses except those identified in the endorsement. The sample endorsement excludes property coverage for all fungi losses except those arising from fire or lightning. The endorsement also excludes liability losses arising from fungi except for those involving food poisoning, slips and falls on slick surfaces, or bodily injury to farm employees.

As drafted, the sample endorsement can be used with the revised and filed Homeowners forms, but companies will have to file the sample endorsement themselves.