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For decades, AAIS has been the recognized industry leader in the
development and maintenance of inland marine and output coverage programs.
In particular, AAIS forms have been the ones presented in industry
references as the models for nonfiled inland marine and output policies.
Whether you write such programs as a specialty or as components of
commercial packages, AAIS forms, rating information, and other resources can
be used on their own or combined with those from other providers.
The Boatowners Program,
which is undergoing its third comprehensive revision since being
introduced in the early 1990s, is the industry's first standardized program for insuring
small, privately owned watercraft. Companies can use this program as the
basis for a watercraft specialty line, or as an accommodation to their
homeowners and auto accounts. 
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Filed countrywide, the Boatowners Program provides forms, manual
rules, and rating information for
insuring privately owned pleasure craft, plus motors and trailers.
Coverage extends to personal watercraft such as "Jet Skis," but personal watercraft
coverage can be excluded by endorsement.
Under the program, coverage can be written for property only,
liability only, or property and liability; policies can either stand
alone or be endorsed onto another personal lines policy. The manual
features an expanded but still simplified rating procedure that can be
utilized by most personal lines underwriters.
Eligible property
Privately owned watercraft (including personal watercraft) that
are 30 feet or less in overall length, 20 years or less in age,
valued at $75,000 or less, with a maximum speed not greater than 50
mph.
Additional property coverages
- Boating equipment
- Newly acquired property
- Emergency service
- Optional personal effects coverage available by endorsement
Perils
Open perils coverage subject to standard exclusions plus
exclusions for certain boating practices and hazards.
Property loss settlement
Property losses covered on an actual cash value basis; agreed
value coverage available by endorsement.
Personal liability coverage
Coverage for damages for which an insured is legally liable and
which arise out of the use of covered property and non-owned boats.
Medical payments coverage
Coverage for medical expenses arising out of covered property or
a non-owned boat.
Additional liability coverages
Additional coverage for:
- Claims and defense cost
- Coverage for removal of wrecked or sunken property provided
for up to 25% of the personal liability limit
Liability exclusions
Coverage subject to standard liability exclusions, plus
additional exclusions for:
- Business exposures with the exception of entertainment of
business clients
- Kite skiing
- Non-permissive use
- Racing or speed contests
Uninsured boater coverage
$10,000 included in policies providing liability coverage;
higher limits available for an additional premium.
Deductibles
Several deductible options available:
- Flat deductible from $100 to $5,000
- Split deductibles $50/100 to $250/$5000
Coverage territory
Coverage extends up to 100 miles from coast. Coverage for
personal watercraft limited to 10 miles from coast.
Rating components (partial list)
- Eleven navigational territories
- Type of boat
- Age of boat
- Navigational training and experienced operator credits
- Multi-owner surcharge
- Navigational, safety equipment credits
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The Inland Marine Guide
is used by more than 300 companies, including some of the largest carriers
in the U.S., as their source for forms, rating procedures, underwriting
guidelines, and other information for the nonfiled classes. As an added
value to users, some of its components have been filed in states that do not
exempt inland marine from filing requirements.
Whether you use its resources as your product base or
simply as a point of reference for proprietary products, the Guide
helps you write more business more effectively.
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The Guide provides more than 200 forms and endorsements for
nonfiled classes. Common inland marine coverage conditions are written
into the main coverage forms for each class, eliminating the need for
bridge endorsements and simplifying the task of packaging AAIS and
non-AAIS forms. The forms can also be written as stand-alone policies.
With the Guide, you get product resources for a wide range of
diverse classes:
Construction: Builders' Risk, Contractors Combination,
Contractors' Equipment, Installation Floaters, Riggers' Liability
Electronic Data Processing: EDP coverage for mainframes and PCs
Floaters: Bailee, Exhibition, Processing Risks, Sales
Representatives' Samples, Scheduled Property, Mobile Equipment
Legal Liability: Motor Truck Cargo, Warehouse Operators
Communications: Radio and TV Towers and Equipment
Transit: Transportation, Trip Transit, Owner's Cargo
Watercraft: Yachts
Other: Difference in Conditions and Bailees' Customers
The Inland Marine Guide also provides:
- Detailed explanations of coverages, including coverage intent,
property covered, property not covered, additional coverages, perils
excluded, valuation, coinsurance, and more;
- Underwriting guidelines that address risk selection, hazards,
optional coverages, and loss control;
- Sample rating procedures with detailed guidelines for selecting
loads and factors, applying IRPM modifications, and determining a
final premium; and
- Side-by-side comparisons of coverage forms within several
classes, so you can readily assess, compare, and modify your options
for providing coverage.
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Together with the Guide, the
Commercial Inland Marine Program
(for filed classes) gives insurers a comprehensive
collection of commercial inland marine products that can be packaged
with other AAIS or non-AAIS forms, or written as stand-alone policies.
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The format and language of the AAIS filed commercial inland marine
forms are consistent with those found in the Inland Marine Guide.
Like the Guide forms, the filed commercial inland marine forms
have common inland marine conditions built in, eliminating the need for
bridge endorsements.
The filed program features these standard filed classes:
- Accounts Receivable
- Camera and Musical Instrument Dealers
- Floor Plan Merchandise
- Jewelry Dealers
- Mobile Equipment Dealers (formerly Implement Dealers)
- Musical Instruments
- Negative Film
- Photographic Equipment
- Physicians and Dentists Equipment
- Signs
- Theatrical Property
- Valuable Papers and Records
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The Commercial Output
Program (COP) is a highly regarded property
program used by nearly 100 insurers, also including some of the largest
carriers in the U.S. For years, this program has set the standards for
output coverage, incorporating broad property and inland marine coverage
into a few coverage parts and featuring a flexible rating procedure
developed for commercial, institutional, and industrial risks.
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The COP has served as the basis for property programs covering
everything from metalworking operations to school districts to golf
courses. It is ideally suited for large, multi-site risks with transit
exposures.
Property
The base property form provides blanket coverage for all insured
locations, but an endorsement option allows users to write scheduled
coverage, or some combination of blanket and scheduled. For example, one
could combine scheduled coverage for a manufacturing plant with blanket
coverage for its dealerships. Also, the COP property form can be
packaged with non-AAIS forms in a commercial package.
By eliminating the need to add numerous endorsements, the COP
provides a streamlined policy and minimizes the possibility of coverage
gaps. For example, the base property form includes a wide range of
built-in supplemental coverages, including those commonly found in
standard commercial property forms, plus additional inland marine
coverages, all at relatively high limits. The limits on supplemental
coverages and coverage extensions can be adjusted without a separate
endorsement by entries on the declarations.
Similarly, the equipment breakdown coverage part, developed in
conjunction with the Hartford Steam Boiler Inspection and Insurance
Company, includes built-in options (activated by dec page entries) for
additional income, spoilage, utility interruption and other coverages
typically added by endorsement.
Crime
For crime coverage, users have a choice for each risk between using a
"loss sustained" form, under which the insurer pays recovery for losses
that actually occurred during the policy period, or a "discovery" form,
under which the insurer pays recovery for any loss discovered during the
policy period, regardless of when it occurred.
Each of these forms provides a choice of six commercial crime
coverages: employee fraud and dishonesty; computer/telecommunications
fraud; counterfeit money; forged credit card written instruments; forged
checks; and money and securities.
In addition, the program provides a third, simplified crime form that
offers a choice of coverage for employee fraud and dishonesty, money and
securities, or both.
Rating
Companies highly value the systematic but flexible COP rating
procedure that allows them to rate a risk as a single entity, rather
than as the sum of disparate coverages. For each major coverage part
(property, crime, equipment breakdown, and income) the COP manual
provides sample deficiency point rating scales that underwriters can use
to modify loss loads to reflect relevant risk characteristics of an
insured (construction, fire protection, age of equipment, number of
employees, etc.). |
The Commercial Output XL
(COP-XL) addresses the property insurance
needs and expectations of the largest commercial accounts. In
particular, the COP-XL provides built-in coverage for several exposures
that are covered by endorsement under the standard COP.
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The COP-XL provides built-in coverage for equipment breakdown, "Web
Site Interruption," "Overseas Transit and Location;" and other exposures
that are insured by endorsement under the standard COP.
As with the COP, a COP-XL policy can be written on a blanket or
scheduled basis, or some combination of the two. Rating is done through
the popular deficiency point rating procedure.
Click here
to see how the COP-XL compares with the standard COP. |
The Developers Output Program (DOP)
adapts output coverage and rating to the unique needs of building
contractors by integrating builders risk, mobile equipment, and other
construction-related inland marine coverages with commercial property
coverage in a single policy form.
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As with the COP, this program allows an insurer to offer blanket or
scheduled property coverage for buildings and personal property,
including temporary storage and transit.
The base property form includes built-in supplemental coverages for
construction exposures, such as contract penalty, employee tools,
expediting expenses, and others. Coverage for "soft costs" and leased
equipment can be added by endorsement. Commercial crime and income
coverage parts are also provided.
The DOP uses the same systematic but flexible rating procedure as the
COP, but the deficiency point criteria are adjusted to reflect
construction exposures. |
The Personal Inland Marine Program
Provides a wide range of personal "floaters" that allow carriers to
write specific insurance for valuable personal property.
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This program includes forms, rules, and rating information for 12
personal classes. The forms can be written as monoline policies or
packaged with other personal lines forms.
- Bicycles
- Boat and Outboard Motor
- Cameras
- Coin Collections
- Fine Arts
- Furs
- Golf Cart
- Golf Equipment
- Grounds Care Vehicle
- Jewelry
- Mobility Assistance Vehicle
- Musical Instruments
- Personal Effects
- Personal Property
- Silverware
- Snowmobile
- Stamps
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American Association of
Insurance Services
1745 S. Naperville Road | Wheaton, IL 60189-5898
630-681-8347 | 800-564-AAIS | Fax 630-681-8356
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