AAIS is preparing a
countrywide filing of a new earthquake rating
plan under its Homeowners Program. The filing
will consist of a revised earthquake coverage
endorsement, plus revised rules, rating zones,
loss costs, premium modification factors, and
supplementary rating information.
The new plan features state-wide loss cost base
amounts and factors that vary by rating zone to reflect a risk's
location, policy form, construction type, and deductible percentage.
Premium modification factors for the owners' forms (HO 0001, HO 0002, HO
0003, and HO 0005) also reflect a structure's age, number of stories and
(for certain structures) features designed to mitigate earthquake loss.
The earthquake loss costs and rating factors were
developed through use of the "USQUAKE" model developed by EQECAT.
USQUAKE is the only earthquake model that has undergone independent
review by the U.S. Geological Survey, California Geological Survey, and
Pacific Earthquake Engineering Center. The California Earthquake
Authority has declared the model to be "state of the art" and suitable
for public rate filings.
The new earthquake rating plan will be filed as
state-specific Homeowners earthquake supplements; AAIS Homeowners
affiliates will be notified by bulletin. Proposed effective
dates will range from Jan. 1, 2010 to July 1, 2010.
For information on affiliating with AAIS for use of
its Homeowners Program, contact Joyce Tignino, vice president of
marketing and industry relations, at
joycet@AAISonline.com, or by
calling 800-564-AAIS, ext. 236.
AAIS has filed a new mandatory endorsement in Nevada
that effectively extends coverage under AAIS personal, farm, and some
commercial lines programs to the parties of a domestic partnership.
Specifically, the endorsement includes a party to a
registered domestic partnership within the term "spouse," and includes
the family members of such partners within the terms "family member,"
"relative," and "family relationship." (AAIS inland marine and some
commercial lines forms do not use those terms, so the endorsement was
not filed under certain programs.)
The filing follows action by the Nevada legislature
to override Gov. Jim Gibbons' veto of the
Nevada Domestic Partnership Act, which states that registered
domestic partners "have the same rights, protections and benefits, and
are subject to the same responsibilities, obligations and duties . . .
as are granted and imposed upon spouses." The act takes effect Oct. 1,
2009, which is the proposed effective date of the endorsement.
In similar action, AAIS has made a filing in the
state of Washington to change the status of its domestic partnership
endorsement in that state from optional to mandatory.
This action is taken to comply with a
new insurance statute (see section 114 on page 61) that takes effect
July 26, 2009. That is the proposed effective date of the AAIS filing,
but companies should use the existing endorsement on all affected
policies if the filing has not been processed and approved by that date.
As of today, AAIS has endorsements filed in eight
states to extend coverage to partners of a legally-recognized civil
union or domestic partnership. Those states are: California,
Connecticut, Nevada, New Hampshire, New Jersey, Oregon, Vermont, and
Washington.
ECCA Business and Payroll Solutions, Erie, Pa., has
expanded its Mutual Expert Policy Management software to include an
option to provide fully automated AAIS statistical reporting. The
reporting module automatically generates AAIS statistical
submissions from data contained in a database, and also allows the
ability to view and edit the data prior to submittal.
The AAIS Statistical Reporting module is designed to
handle premium statistical reporting and claims statistical reporting
for all AAIS lines rated in the Mutual Expert software.
ECCA is an associate member of AAIS. For more
information, contact ECCA at 800-864-2843 or send an e-mail using the
company's online
submission form.
A recent
order from the Michigan Office of Financial and Insurance Regulation
(OFIR) reinstitutes requirements that personal automobile and homeowners
insurance policy forms be filed and approved before being marketed to
the public. The order amends a 1997 order that exempted most forms in
the state from prior approval requirements
In explaining the latest order, OFIR Commissioner D.
Joseph Olson explains that a 2005 Michigan Supreme Court ruling prevents
courts from amending insurance contracts based on "unreasonable"
clauses, and that the responsibility for reviewing policy provisions for
legality lies with the insurance commissioner. The clause at issue in
the case was a one-year deadline for submitting uninsured motorists
claims, a provision the OFIR is seeking to eliminate.
Under the order, insurers must submit personal auto
forms for review as of July 1, 2009; homeowners forms must be submitted
as of Sept. 1, 2009. OFIR has 30 days to disapprove a form. If no action
is taken before 30 days, the form is considered to be approved for use.
Forms must be submitted using "SERFF," the System
for Electronic Rate and Form Filing developed by the National
Association of Insurance Commissioners.
Under an arrangement with the Reinsurance
Association of America (RAA), staff from AAIS member companies can
attend reinsurance education programs at RAA member rates.
The 2009
program lineup includes:
-
Re Contracts: The Art of Designing Reinsurance Contracts and
Programs, July 14-17;
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Re Underwriting: An Educational Forum for Underwriting
Professionals, July 30;
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Re Claims: Reinsurance Claims Management, September 24-25; and
-
Re Finance: The ABCs of Financial Reporting & Analysis for
Property/Casualty Insurers and Reinsurers, October 7-8.
All of
these events are scheduled to be held in New York City.
For information about each program, or to register, go to
www.reinsurance.org/seminars. When registering, choose "member" as
your "registrant type" to get the tuition discount.
