(June 2022)
ACORD forms are designed for use with products associated with standard industry rating and forms organizations such as the Insurance Services Office (ISO) with its coverage forms and policies, manuals, rules, and rating plans. One of them is the Commercial Property Program. For the most part, ACORD forms are relatively generic in nature. The Building and Personal Property Coverage Form may be written in combination with a specific independent specialty or company program. In that case, company specific forms may be needed for that account instead of (or in addition to) the usual ACORD forms that apply. That is because more information, detail, or in-depth hazard analysis is needed than what the corresponding ACORD form provides.
Note: Only countrywide forms are listed in this section. State specific ACORD forms are not listed.
Form
45–Additional Interests
This form is comprehensive and is an excellent way to provide information on mortgageholders and lienholders. Mortgageholders have many rights that can be exercised only if they are notified properly. This application provides spaces so that the precise information can be provided, and the policy issued correctly.
Form
125–Commercial Insurance Application
All information is relevant and important. The appropriate boxes should be checked, so the insurance company underwriter understands the lines of insurance being submitted for consideration. Both the first named insured, and all insureds must be listed for coverage to apply. Loss information on larger accounts should probably be submitted in the form of copies of currently valued loss runs for the past five years, as well as for the current year to date.
Form 140–Property Section
This form is very comprehensive and is designed to provide the insurance company with as much relevant information as possible about the coverages selected, classifications, and rating. As a result, most of the large amount of information requested has a direct impact on the manual rating. Inaccurate or incomplete information leads to an incorrectly rated and priced account.
Form
159–Schedule of Property Limits
This form is used when there are more locations than Form 140 can accommodate.
Form 190–Supplemental Property Application
The supplement provides details that could assist in identifying both moral and morale hazards. It asks in-depth questions about property ownership, liens, payment history, and maintenance items.
Form
60 US–Federal Insurance Supplement–Offer of Terrorism Coverage
The customer uses this form to either accept or reject terrorism coverage. If terrorism coverage is rejected, this form should be signed and included in the named insured’s file.
ACORD Forms 125 and 140 are very comprehensive and detailed with respect to the type and amount of information requested. However, no single application can respond to every question that may arise for every risk, especially large and complex commercial businesses. In cases like these, it is best if the agent includes a detailed cover letter, brochures, supplemental applications where needed and any other relevant information that gives complete details about the operations and exposures involved for the business being considered.