March 2009, Volume 27
Time was on his side

Dr. Stratford wouldn’t respond. Continental Casualty Company received two claims against him in 1998 but couldn’t get him to cooperate. Continental wrote him letters that he ignored. Requests for dental records and documents were refused. Nothing happened, even when Continental made threats.

In 2004, Continental notified Dr. Stratford that it would neither defend him nor provide coverage because he had breached the responsibility to cooperate condition in the policy. The claimants in the case then took Continental to court.

Even though the court agreed with Continental's position that the dentist was totally uncooperative, it ruled that Continental had taken too long to notify him. It determined that the dentist and claimants should have been informed much earlier. As a result, Continental’s obligation to defend and indemnify continued.

Click here for more details on this court case.

Does your client understand what to do following a claim or loss?

The relationship between the insured and the insurance company should be one of honesty and cooperation. Communications between them should be done with utmost good faith. Insurance policy conditions are really communication tools that tell the insured exactly what the insurance company expects and also what the insured should expect from the insurance company. However, failure to meet these and other conditions can have serious consequences on both the insured and the insurance company.

Click here to review a PF&M analysis of the loss conditions section in CP 00 10–Business and Personal Property Coverage Form.

Is there a simple way to explain a complicated issue?

Most insurance policies are lengthy and many insureds have difficulty reading them. They trust their insurance agents to read and interpret the policies for them. However, every insured should be aware of the important role he or she plays when a loss occurs. A brochure highlighting the information could be very helpful in accomplishing this objective.

Click here to review the PF&M Brochure
"Understanding the ISO Commercial Property Program."

Are you ready to make a mailing?

Keeping in touch with your clients is especially important in tumultuous times. Providing some needed information and offering to help right now can help you guide a customer through the hard times and cement your relationship.

Click here for a letter you might think about sending offering to explain a particularly difficult coverage. You might also want to include a brochure.

Updates

A number of ACORD forms changed in 2008 and 2009. In addition to the changes in these countrywide forms, a number of state forms also changed.

1–Property Loss Notice 132–Truckers/Motor Carriers Section
2–Automobile Loss Notice 151–Miscellaneous Crime Coverage Section
3–General Liability Notice of Occurrence/Claim 160–Business Owners Application
4–Workers Compensation – First Report of Injury or Illness 175–Commercial Policy Change Request
25–Certificate of Liability Insurance 196–Medical Professional Liability Insurance
37–Statement of No Loss 301–Flood Insurance Application
38–Notice of Information Practices (Privacy) 302–Flood Insurance General Change Endorsement
60–Flood Insurance Notice/Rejection 303–Flood insurance Preferred Risk Policy Application
60 US–Insurance Supplement, Notice of Terrorism Coverage/Disclosure of Premium 304–Flood Insurance Cancellation/ Nullification Form
63–General Fraud Statement 781-Informal Inquiry Application – Part 2 Medical History
64 US–Insurance Supplement – Workers Compensation Only 782–Medical Examiner’s Report
74–Resident Based Business Supplement to Personal Property Applications 783–HIV Antibody/Antigen Consent and Testing Form
83–Personal Umbrella Application 784–Informal Inquiry Application – Part 2 Medical History Medication Conditions Details/Additional Care Providers
99–Personal Auto Application
Schedule – Additional Accidents/Convictions Section
807–Directors & Officers Liability Section
101–Additional Remarks Schedule 808–P&C Agency Appointment Form
103–Personal Auto Application Schedule – Additional Residents and Driver Information Section 825–Professional /Specialty Insurance Application
127–Business Auto Section 827–Employment Practices Liability Insurance Section
128–Garage and Dealers Section 828–Fiduciary Liability Coverage Section
129–Vehicle Schedule 830–Property Insurance Card
131–Umbrella/Excess Section  
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Have you found what you need in the Producer OnLine? Is there a classification
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