MAIN EVENT EARLY-BIRD
DISCOUNT DEADLINE
EXTENDED ONE WEEK

The deadline for the "early-bird" discount on registration fees for the 2009 AAIS Main Event has been extended one week to Friday, March 13. The new deadline gives potential attendees an opportunity to take advantage of reductions in air fares announced this week, along with the registration discount.

This year's Main Event is April 26-28 at The Ritz-Carlton in Half Moon Bay, Calif. A description of the conference program and a hotel reservation form are available online. You can also register online and pay by credit card.

In addition to the usual lineup of speakers and social events, the 2009 Main Event features an important presentation by AAIS staff members on new initiatives to incorporate multivariate analysis, catastrophe modeling, and predictive analytics into AAIS rating plans.

After that, attendees will have an opportunity to share ideas with AAIS staff and managers from other companies during roundtable discussions. Registrants can choose among four roundtables: executive (focusing on predictive analytics), farm & ag, personal lines, or inland marine.

The program will also feature a panel of company CEOs. So far, the panelists include Stuart Henderson, president and CEO of Western National Ins. Co., Edina, Minn., and Judy Jackson, president of NLC Insurance Companies, Norwich, Conn. We are awaiting confirmation from other invited panelists.

For more information, contact Joseph Harrington, director of corporate communications, at joeh@AAISonline.com, or by calling 800-564-AAIS.

ENHANCEMENTS FILED UNDER
MOBILE-HOMEOWNERS PROGRAM

AAIS has initiated a countrywide filing of new and revised rules, factors and loss costs for basic and optional coverages under the AAIS Mobile-Homeowners Program. The program enhancements include:

• Credits for mobile homes built and first occupied within the last 10 years;

• An experience rating plan which provides credits and surcharges based on an insured's claims payment history and tenure with the insurance company;

• Modified tie-down credits dependent on the quality and type of tie-downs installed;

• A surcharge for a mobile home that is unoccupied for three or more months; and

• Credits for a composition shingle roof, enclosed masonry foundation, or full skirt covering.

In addition, the enhancements provide a revised premium calculation rule to support separate rating procedures for windstorm or hail (wind) and all other perils (non-wind), along with:

• Expanded wind and non-wind deductible options and factors;

• Revised policy form relativities that apply to the non-wind basic policy premium;

• Revised fire protection definitions and protection relativities that apply to the non-wind basic policy premium; and

• Revised wind and non-wind amount of insurance relativities.

For information on affiliating with AAIS for use of its Mobile-Homeowners Program, contact Rick Maka, director of marketing, at rickm@AAISonline.com, or by calling 800-564-AAIS.

REVISED BUSINESSOWNERS MANUAL
INCLUDES FACTOR RATING OPTION

AAIS has initiated a countrywide filing of a revised manual that introduces factor rating into the AAIS Businessowners Program. The proposed effective date for the first states being filed is Sept. 1, 2009.

The newly revised program manual features a new format consisting of countrywide rules, classifications, and rating information, plus state pages with territorial definitions, state-specific rating information, and state-specific exceptions to countrywide materials.

The revised manual will give affiliates a choice between using pre-calculated loss costs or factor rating information to determine the basic policy premium for buildings and business personal property.

The factor rating information consists of base loss costs and relativity factors that pertain to construction, protection, territory, rate group, and liability limits. Upon approval of each state filing, the base loss costs and relativity factors will be posted to AAISdirect as data sets that can be readily downloaded to automated policy rating systems.

The revised manual also incorporates rules previously found in the manual supplement for recent endorsement options.

New endorsements

In a separate countrywide filing, AAIS is introducing several new Businessowners endorsements:

• One would implement functional replacement cost valuation for building property, and another would implement such valuation for business personal property;

• One could be used to implement percentage deductibles of 1%, 2%, or 5% for windstorm or hail losses, subject to a $1,000 minimum deductible; and

• One would allow coverage for property damage liability to apply to scheduled premises rented or occupied by the named insured with the owner's permission.

The proposed effective date for the first endorsement filings is also Sept. 1, 2009.

IOWA RESTRICTS NON-RENEWALS
AND CANCELLATIONS
BASED ON FLOOD CONDITIONS

In a recent bulletin, Iowa Insurance Commissioner Susan Voss ordered insurers writing residential or commercial property in the state to cease cancelling or non-renewing policies on certain properties in counties declared disaster areas after flooding in 2008.

The prohibition applies to properties damaged by the flood, if a cancellation or non-renewal would be based on a condition resulting from flooding. The prohibition will be in effect until an insured property is repaired or reconstructed, or until the order is rescinded.

Insurers can still cancel or non-renew accounts for non-payment of premium, fraud or material misrepresentation, violations of material provisions of a policy, or if the insured has no intention of repairing or constructing the insured property. 

COLORADO REMINDS INSURERS
OF OBLIGATIONS REGARDING APPRAISALS

A recent bulletin from the Colorado Division of Insurance expresses concern that some insurers may not always be using fair and impartial appraisers to carry out their obligations under standard appraisal provisions of property insurance policies.

The bulletin states that persons with a material interest in the outcome of an arbitration cannot serve as neutral arbitrators. It adds that there must be full disclosure of any financial or personal interests or relationships, past or present, between an appraiser and a party to an appraisal arbitration.

The bulletin also adds that an insurer must not have any ex parte communications with an appraiser or umpire during the appraisal process.

While the bulletin addresses insurer obligations under standard appraisal provisions, it calls for no changes in those provisions themselves. AAIS therefore does not contemplate any filing action in this regard.