AAIS is introducing a newly
developed experience rating plan as part of a
countrywide filing of Homeowners state manual
pages. That filing is scheduled to start later in June.
A version of the experience rating plan was
filed in Louisiana in May, and is still being
reviewed by regulators there.
Under the experience rating procedure, insurers that
use the AAIS Homeowners Program can modify the premium charged to an
insured based on the number of certain paid claims over a three-year
period, and on the length of the insured's tenure with the company.
Also, a claim-free discount is available to qualifying policyholders.
More information is available in a
press release.
For information on affiliating with AAIS for use of
its Homeowners Program, contact Rick Maka, director of marketing, at
rickm@AAISonline.com or by
calling 800-564-AAIS.
Independent adjustors that
manage claims for AAIS-affiliated companies can now
have access to AAIS forms through the
AAISdirect
Internet service. This service will streamline the
claims handling process by giving adjustors instant
access to forms from any location.
Adjustors seeking to utilize this service should
contact Rick Maka, AAIS director of marketing, at
rickm@AAISonline.com, or by
calling 800-564-AAIS. Also, AAIS member companies are encouraged to
contact Rick with names and contact information for their independent
adjustors, so AAIS can inform them of this opportunity.
Adjustor licenses for AAISdirect will be
limited to those lines and states for which an adjustor represents an
AAIS member company.
AAIS is submitting a manual filing under its
Businessowners Program (BOP) in Louisiana that will introduce
factor rating for separate pricing of losses due to direct physical loss
caused by windstorm or hail and other losses.
The separation of perils for pricing purposes
maximizes the benefits of using modeled data to estimate wind
losses, facilitates the introduction of wind loss mitigation credits,
and allows for more rating territories and wind/hail deductible options.
Under the new manual, AAIS affiliates will use an
‘ex-wind’ base amount that is subject to adjustments for fire
protection, construction, and rate group, as well as a business income
relativity factor for wind exposure that varies by territory. The
‘ex-wind' base amount will also be subject to a deductible factor and a
variety of rating factors that apply to many of the BOP coverage
options.
(NOTE: Insurers in Louisiana are allowed to exclude
coverage for direct damage by windstorm or hail to property that is
eligible for coverage under the state's wind pool. Such exclusions do
not apply to business income, however.)
When the policy is not endorsed to exclude coverage
for direct physical loss caused by windstorm or hail, a separate wind
base amount will be subject to adjustments for construction and rating
factors for a wind/hail deductible percentage, along with other BOP
rating factors that apply.
When coverage for wind is not excluded, the policy
premium will be based on the sum of the wind premium and the ex-wind
premium.
Insurers interested in using the newly revised AAIS
Boatowners Program, now being filed countrywide, can learn more about
the program in an article published in AAIS's quarterly magazine,
Viewpoint.
The Spring 2008 edition of the publication includes
a feature article on the revision, including tables that list key
program features and describe how AAIS-based Boatowners, Homeowners, and
Personal Umbrella policies might respond to common claims.
