AGRICULTURAL GENERAL LIABILITY PROGRAM APPROVED IN 49 STATES

The AAIS Agricultural General Liability Program (AgGL) is now available for use in nearly all states.

The AgGL, introduced in 2008, is the industry's first standardized program for writing general liability policies specifically designed for agricultural risks.

The program provides two base forms--a farm commercial liability form and an agribusiness commercial general liability form--plus a comprehensive set of optional endorsements.

Its rating plan introduces sales-based rating in several farm classes traditionally rated by acreage, and includes a commodity price stabilization plan to adjust the rating base for commodity price swings.

Forms, manual rules, and rating information for the program are approved and effective in 47 states. The AgGL forms are still under review in Connecticut (which has approved the rules and rating information) and the entire program is still under review in Massachusetts.

The program will not be filed in the District of Columbia or Puerto Rico, and only forms have been filed in Florida, where they have been approved.

For information on affiliating with AAIS for use of the AgGL, contact Rick Maka, director of marketing, at rickm@AAISonline.com, or by calling 800-564-AAIS, ext. 222.
 

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MANUAL REVISION FILED UNDER
FARMOWNERS PROGRAM

AAIS is initiating filing of a countrywide manual of rules, supplementary rating information, and state-specific loss costs and rating factors under its Farmowners Program.

The newly-reformatted manual updates rating information for principal farm dwellings to coincide with changes approved for the AAIS Homeowners and Mobile-Homeowners Programs.

In addition to rate level changes, the new manual pages incorporate the following features from existing AAIS programs:

• New and expanded premium credits for mobile homes that serve as principal farm dwellings.
  These credits apply to mobile homes that are tied down, have been manufactured and first occupied within the past 10 years, or have a composition shingle roof, enclosed masonry foundation, and/or a "skirt" (if the home rests on blocks or piers);

• Premium credits for newer homes and homes with newer heating, cooling, plumbing, and electrical systems;

• Rules and rating information for providing property and liability coverage for home-based businesses; and

• Expanded fire protection definitions.

In addition, the revision introduces a factor rating format for optional liability coverages.

Proposed effective dates for the manual revision in most states will be in the first half of 2011.

 

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AAIS WEIGHS ENDORSEMENT 
TO ADDRESS GEORGIA DIRECTIVE
ON DIMINUTION OF VALUE

A recent directive by Georgia Insurance Commissioner John Oxendine states that, unless they use specific policy language to the contrary, insurers must consider potential diminution of value when settling claims involving damage to commercial real property.

"In some cases, even with repair of the property, it is possible that the property will be worth less after the loss than it was prior to the loss," Oxendine writes.

In a subsequent communication with AAIS, an aide to Oxendine said that the directive applied to both first- and third-party insurance for property damage.

In response, AAIS is developing an endorsement for first-party property forms in Georgia clarifying that the actual cash value or replacement cost coverage provided does not include loss of market value.

A similar endorsement is not contemplated for commercial liability coverage, as commercial liability forms typically do not stipulate how a loss is valued.

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COMMERCIAL LINES HEATING OIL
ENDORSEMENTS TO BE FILED
IN MASSACHUSETTS