'DIRECT TIPS' AUDIO
ADDED TO AAISdirect

A new service has been added to AAISdirect, the online library of AAIS policy forms, manuals, bulletins, and other resources.

"Direct Tips" are brief audio commentaries written and narrated by AAIS staff specialists and embedded in documents. Some commentaries provide quick summaries of more detailed information; others direct users to additional resources on AAISdirect and elsewhere.

By directing users to relevant information, the tips will reduce or eliminate the need to search for such information. In addition, users will be prompted to consider other value-added steps, such as adding a coverage option, that they may not have considered otherwise.

For information on licensing use of AAISdirect, including a free two-week trial, contact Rick Maka, AAIS director of marketing, at rickm@AAISonline.com, or by calling 800-564-AAIS, ext. 222.

MASSACHUSETTS ENACTS REQUIREMENTS
REGARDING HOME HEATING OIL REMEDIATION

AAIS will be developing an endorsement to respond to a Massachusetts law, effective July 1, 2010, requiring residential insurers to offer coverage for certain costs arising from remediation of home heating oil spills.

Under an act signed this week by Gov. Deval Patrick, insurers in Massachusetts must make the following coverages available to homeowners and mobile-homeowners policyholders:

• First-party property coverage up to at least $50,000 for the costs of assessment, containment, and removal of an actual or threatened leak of home heating oil. The coverage must extend to costs of public response actions incurred to assess and remediate a spill threatening environmental damage.

• Liability coverage up to at least $200,000 for defense and indemnity of third-party claims arising from a release of heating oil into the environment.

Each coverage can be subject to a deductible not to exceed $1,000.

AAIS Homeowners and Mobile-Homeowners affiliates in Massachusetts will be advised of filing action by bulletin.

KENTUCKY COUNTY ADDED TO
MINE SUBSIDENCE INSURANCE FUND

A bulletin from the Kentucky Department of Insurance announces that the fiscal court of Laurel County has voted to make the county a qualified participant in the state's Mine Subsidence Insurance Fund.

With that, insurers issuing property policies in Laurel County must amend their property contracts covering “structures” to include premium and coverage for losses arising out of mine subsidence.

Insureds within Laurel County have the option to sign a written waiver if they do not want mine subsidence coverage, and insurers are allowed to refuse coverage on a structure that has evidence of unrepaired subsidence damage.

AAIS property programs have the necessary endorsements filed and approved in Kentucky to comply with these requirements.

MASSACHUSETTS REQUIRES FILING FEE
FOR EACH SEPARATE BASE FORM

AAIS filings staff has received clarification from the Massachusetts Division of Insurance regarding a provision of a recent bulletin concerning the application of filing fees. (See the first full paragraph on page 4.)

According to division staff members, each base form filed with the department (e.g., HO 0001, HO 0002, HO 0003, etc.) must be accompanied by a filing fee of $75, even if multiple base forms are submitted in a single filing.

Each filing of an endorsement, disclosure notice, or other filed material must also be accompanied by a $75 fee. However, if multiple endorsements, disclosures, etc. are filed together, or with one base form, a single fee of $75 will apply.

To illustrate, consider the following examples:

• A filing of three base forms would require $225 in filing fees ($75 for each form).

• A filing of one base form and three endorsements would require a single $75 filing fee.

• A filing of two base forms and three endorsements would require $150 in filing fees ($75 for each base form).

LATEST CAUSE OF LOSS REPORTS
FOR HOMEOWNERS INSURANCE
POSTED ON AAISdirect

AAIS has posted updated and expanded reports on causes of loss in homeowners insurance.

The reports indicate the percentage and average severity of losses due to property perils (fire, wind, theft, etc.) and liability claims (bodily injury, property damage, med pay, and other) for accident years 2005-07, and for the 3-year combined period.

The introduction of accident-year data in place of calendar-year data will make these AAIS reports more valuable to company personnel charged with underwriting, pricing, and loss reserving.

For each state, four tables are provided:

• Incurred loss distributions including catastrophe losses;

• Incurred loss distributions excluding catastrophe losses;

• Severity distributions including catastrophe losses; and

• Severity distributions excluding catastrophe losses.

Companies interested in affiliating with AAIS for use of its Homeowners Program and AAISdirect Internet service can contact Rick Maka, director of marketing, at rickm@AAISonline.com or by calling 800-564-AAIS.

PROGRAM PLANNING UNDERWAY
FOR 2009 AAIS 'MAIN EVENT'

AAIS is now evaluating topics for its 2009 Main Event conference, April 26-28 in Half Moon Bay, Calif.

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 risks 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.

WEB SEMINAR RECORDINGS AND
BUILDERS' RISK PRESENTATION
NOW AVAILABLE

Recordings of two recent AAIS web seminars are available at www.AAISonline.com, AAIS's public website. The two presentations include:

• The recording of an October web seminar featuring Pam Nykaza, senior product development specialist for inland marine, describing the latest revision to the AAIS Boatowners Program.

• A slide presentation, with audio commentary by Robert Guevara, AAIS vice president of inland marine. on the latest revision to the Builders' Risk section of the AAIS Inland Marine Guide.

In addition, a recording is available of a November web seminar featuring Sherry Taylor, manager of farm and agribusiness, and Deborah Summerlin, vice president of insurance lines, describing the new AAIS Agricultural General Liability (AgGL) Program.

Companies interested in using the AgGL can get a link to this recording by contacting Joyce Tignino, vice president of marketing and industry relations, at joycet@AAISonline.com, or by calling 800-564-AAIS.

For each of these presentations, you will need a computer with speakers to hear the audio commentary.