(November 2022)
ACORD forms are designed
primarily for use with standard insurance manuals, rules, rating plans, and
policy forms. This includes the Underground Storage Tank Policy–Designated
Tanks. For the most part, ACORD forms are relatively generic in nature. If the Underground
Storage Tank Policy–Designated Tanks is written in combination with a specific
independent specialty or company program, company specific forms may be needed
for that account instead of, or in addition to, the normal ACORD forms that
apply.
Note: Only
countrywide ACORD forms are listed in this section. State specific ACORD forms
are not listed.
Form 125–Commercial Insurance
Application
All the information
requested in this form is relevant. Be sure to check the appropriate boxes so
the insurance company underwriter understands the lines of insurance being
submitted for consideration. The first named insured and all insureds must be
listed. The applicant information is important for both coverage issues and to
provide the contact information for inspection, financial, and premium audit
functions. The locations where coverage is to apply and the nature of the operations
at each of them are extremely important items of information for the insurance
company underwriter. This form contains a number of questions of a general
information type that helps all parties understand the nature and extent of a
number of important issues that affect or involve most risks. 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. Accurate and currently valued loss information for the latest three full
and complete years is required for experience rating on larger accounts for
some lines of insurance. However, experience rating does not apply to the Underground
Storage Tank Policy–Designated Tanks.
Note: Previous
loss information for this policy should include any suits, claims, allegations,
or incidents related to any release of petroleum products from any owned or
operated tank.
Form 126–Commercial
General Liability Section
This form is very comprehensive
and designed to provide the insurance company with as much relevant information
as possible with respect to the coverages selected, classifications, and
rating. It includes detailed questions that make it very helpful as a risk
management and underwriting tool. Most of the information requested will have a
direct impact on the manual rating. Inaccurate or incomplete information can
lead to an incorrectly rated and priced account.
Note: There is no specific ACORD form to use
for underground storage tank exposures. Form 126 is used but the following
additional underwriting information must be provided for each insured tank:
Note: The
Defense Expense Amount must be selected in addition to the Per Incident Limit
and the Aggregate Limit.
Each of these forms is
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 larger and more complex risks.
It is always in the best interests of both the insured and the agent or broker
to provide a cover letter that includes complete details of the operations and
exposures involved, especially if the risk has characteristics and features
that cannot be brought to the insurance company’s attention in any other way.