AAIS is
initiating a countrywide filing of a new experience rating plan
as a separate manual supplement to its
Commercial Liability
Program.
The plan, which has a proposed
effective date of April 1, 2011 in most states, will enable
users of the program to modify the premium for a risk based on
its recent loss history.
The plan provides a
four-step procedure for determining a premium modification
factor that reflects a risk's premium volume and loss ratios
over the previous three or five years.
To be
eligible for consideration under the plan, risks must provide
premium and loss data for three or five years, generate a
minimum of $6,000 in premium for the years included in the
experience period, and generate at least $2,000 in premium for
the year to which the experience modification will apply.
AAIS is also filing a revision to its countrywide Commercial
Liability manual, with a proposed effective date of Jan. 1, 2011
in most states.
Among other things, the
manual revision adjusts factors pertaining to the aggregate and
"Other Each Occurrence" limits, and revises state-specific loss
costs for the classifications currently on file.
For information on affiliating with AAIS for use of its
commercial lines programs, contact Rick Maka, director of
marketing, at
rickm@AAISonline.com or by calling 800-564-AAIS, ext. 217.
The Mississippi
Insurance Department recently approved an endorsement and a
corresponding manual rule providing for an "Absolute Windstorm
or Hail Exclusion" under the AAIS Homeowners Program in that
state. The effective date of the exclusion is Sept. 1, 2010.
In Mississippi, homeowners coverage for loss due to wind or hail
can be excluded when the insured has purchased a separate policy
covering such loss from the Mississippi Windstorm Underwriting
Association (MWUA).
In addition to the
"absolute" exclusion, AAIS also has a windstorm-hail exclusion
on file in Mississippi that does not apply to coverage for
additional living costs and loss of rent. The exclusion with
that exception is made available because MWUA polices provide
more limited coverage for those exposures than standard
homeowners or dwelling policies.
In Alabama,
the Alabama Department of Insurance has approved wind loss
mitigation credits and supplementary rating information under
AAIS personal, commercial, and farm programs.
The credits, which apply to property coverage for structures in
two coastal counties, take effect on Oct. 1, 2010.
In response
to a 2009 Connecticut statute granting legal status to same-sex
marriages, AAIS is withdrawing endorsements under personal,
commercial, and farm programs that extend coverage under certain
policies to partners in same-sex "civil unions."
Withdrawal of the endorsements takes effect Oct. 1, 2010, the
date when partners in same-sex civil unions entered into in
Connecticut will automatically become married couples, with each
partner considered a spouse under insurance contracts.
Robert Guevara, AAIS
vice president of inland marine, will speak on "Trends in
Inland Marine Coverage" at an upcoming seminar
sponsored by the Midwest Advisory Committee of the Inland Marine
Underwriters Association (IMUA).
The seminar
will be 8:30-10 a.m., Wed., June 9, in the UBS Tower, One North
Wacker Dr. in downtown Chicago. Registration begins at 8 a.m.;
the cost is $35 beforehand, $40 at the door; breakfast will be
provided.
In his address, Guevara will concentrate on topics in builders'
risk and installation floater coverage. He will discuss important court rulings,
"green" coverages, equipment breakdown coverage, coverage for
historic preservation tax credits, and the important distinction
between "delay in construction costs" and "soft costs."
To register for the seminar, see the
registration form.
Direct questions to Scott Gennusa at
sgennusa@harleysvillegroup.com.
