February 2011, Volume 50
Deep in the heart of Texas

Leonard climbed up on the roof and began to remove copper pipes and wiring from Frances and Morton’s air conditioning units. The police arrived midway through the event and arrested him. Leonard pleaded guilty to felony criminal mischief.

Nautilus Insurance Company denied Frances and Morton’s claim for damage because of the theft exclusion in the policy. The policyholders claimed the loss was caused by vandalism because the pipes had only been removed and never left the property.

Frances and Morton lost on appeal.

Click here to find out why the location of the loss made the difference.

Trying to herd cats

Explaining the difference in coverage between policies that cover named causes of losses and those that cover all causes except those excluded can be difficult. One way may be to point out the long list of exclusions. The insurance company is attempting to define coverage by exclusion which allows the policyholder to define coverage based on what the company neglected to exclude.

Click here to review the PF&M explanation of the ISO Commercial Property Program Causes of Loss Forms Comparison.

The time is right to improve coverage

Some of your commercial accounts may have named causes of loss coverage on their business personal property. This may be a great time to encourage them to think about broadening their coverage.

Click here for a letter you could use to recommend a change in coverage.

What about Difference In Conditions coverage?

Difference In Conditions (DIC) coverage might be a great alternative for your clients. It is an inland marine coverage form best described as property umbrella coverage. The coverage provided is very broad and often includes both flood and earthquake causes of loss. It is very flexible because it fills the gap between the underlying property coverage and the DIC coverage.

Click here to read about Difference In Conditions coverage.

Recent Producer Online updates

ACORD recently added or updated the following:

23–Vehicle or Equipment Certificate of Insurance

35–Cancellation Request/Policy Release

25–Certification of Liability Insurance

63–Fraud Statements

67–Illinois/Indiana/Kentucky/West Virginia Mine Subsidence Property Insurance Supplement

196–Medical Professional Liability Insurance Application

70–Personal Policy Change Request

301–National Flood Insurance Program – Flood Insurance Application

75–Insurance Binder

302–National Flood Insurance Program – Flood Insurance General Change endorsement

80–Homeowner Application

303–National Flood Insurance Program – Flood Insurance Preferred Risk Policy Application

88–Personal Insurance Application – Applicant Information Section

304–National Flood Insurance Program – Flood Insurance Cancellation/Nullification Form

89–Residential Section

808–P&C Agency Appointment Form

83–Personal Umbrella Application Section

817–P&C Agency Appointment Form – Appointment Section

105–Apartment Building Supplement

819–P&C Producer Appointment Form – Additional Appointment or Termination

126–Commercial General Liability Section

825–Professional/Specialty Insurance Application (For Use in Management, Executive & Professional Lines – Applicant Section)

127–Business Auto Section

140–Property Section

130–Workers Compensation Application

188–Employment-Related Practices Liability Section
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