At the end of August, AAIS will expand the Motor
Truck Cargo (MTC) section of the
Inland Marine Guide by
adding several new forms, endorsements, and schedules for writing
coverage on "contingent cargo."
The contingent cargo materials are designed for
insuring transportation brokers for exposures they have that may be
different from those of the motor carriers they utilize for shipments.
The new Contingent Cargo Coverage base form covers
an insured broker for its subcontractor's legal liability as a common or
contract carrier.
Insured cargo is covered while in "due course of
transit," including loading and unloading, and while at terminal locations.
Coverage is provided only if the insured is unable to collect the amount
of a loss from its subcontractor or the subcontractor's insurer.
Coverage for defense costs is provided as a coverage extension.
The endorsements provided are analogous to those
provided for direct coverage of motor carriers, but modified to be
suitable for transportation brokers. They include a named perils
endorsement, refrigeration breakdown coverage, a reporting conditions
endorsement, and exclusions for parked trailers, specified property,
unattended vehicles, and theft. (An endorsement for providing limited
theft coverage is also available.)
The new forms, endorsements, and schedules will be
available for use in most states on Aug. 28. In states that do not
exempt MTC forms from filing requirements, the forms will be filed with
a proposed effective date of January 1, 2010.
For information on affiliating with AAIS for use of
the Inland Marine Guide, contact Joyce Tignino, vice president of
marketing and industry relations, at
joycet@AAISonline.com, or by
calling 800-564-AAIS.
Larry Thill, manager of AAIS's data management
department and longtime manager of its
statistical reporting service,
has left AAIS to pursue another career. Larry started with AAIS in 1988
and advised countless AAIS affiliates on data reporting during his
tenure here.
Larry's role will be assumed by
Janice Nieman, director of technical product support and former manager
of commercial liability.
Janice holds a degree in actuarial science from
the University of Illinois, Urbana, an MBA from Northern Illinois
University, DeKalb, and the designation of Chartered Property Casualty
Underwriter. She, too, has been with AAIS since 1988.
Insurers writing "home insurance" in Michigan have
until Monday, Sept. 14 to submit forms they use for review by the
state's Office of Financial and Insurance Regulation.
Companies affiliated with AAIS do not have to submit
forms filed on their behalf by AAIS, but they must report by the
deadline that they use AAIS forms. They must also submit any forms they
use that are not filed in Michigan by AAIS or the Insurance Services
Office, Jersey City, N.J.
According to an Aug. 14 letter from the office, the
directive extends to "all home insurance policy forms including condo,
renters, applications, supplemental applications, declarations pages
with sample completed declarations pages, and termination forms."
A new Alabama
law requires insurers to provide a premium discount when a dwelling
located in a county along the Gulf of Mexico or Mobile Bay has been
built or remodeled to resist a catastrophic windstorm event.
AAIS has been advised by the Alabama Department of Insurance
that it will issue a bulletin regarding steps needed
to comply with the new law. AAIS will take appropriate filing action
shortly after receipt of the bulletin. The department expects all companies to
comply no later than May 1, 2010.
To qualify for the
credit, a dwelling must be:
-
Constructed in
accordance with the 2006 International Residential Code (IRC),
including all hurricane mitigation construction requirements, or
Fortified For Safe Living Standards (FFSLS); or
-
Retrofitted in
accordance with the Fortified Existing Home requirements or other
mitigation standards submitted by the insurer and approved by the
insurance commissioner.
Based on input from the
Alabama Department of Insurance,
this credit must be provided for one- or two-family owner-occupied
dwellings insured under the AAIS Homeowners and Dwelling Properties
programs. The credit is not required for an owner-occupied condominium,
or for dwellings insured by the Farmowners or Farm Properties programs.
To be eligible for the
credit, a certified or licensed building inspector or FFSLS certified
inspector must certify that the dwelling, newly constructed or
retrofitted, meets or exceeds applicable standards. To actually receive
the credit, an insured must maintain records of certification and
provide copies to the insurer.
For the Mobile-Homeowners
program, U.S. Department of Housing and Urban Development (HUD) Zone 3
code manufactured homes are also eligible for a credit when retrofitted
per Fortified Existing Home requirements as adopted by the Institute for
Business and Home Safety.
Under an arrangement with the Reinsurance
Association of America (RAA), staff from AAIS member companies can
attend reinsurance education programs at RAA member rates.
The remaining 2009
programs are:
-
Re Claims: Reinsurance Claims Management, September 24-25; and
-
Re Finance: The ABCs of Financial Reporting & Analysis for
Property/Casualty Insurers and Reinsurers, October 7-8.
Both of
these events are scheduled to be held in New York City.
For information about each program, or to register, go to
www.reinsurance.org/seminars. When registering, choose "member" as
your "registrant type" to get the tuition discount.
