New Business Applications Deposit
Photos Payment Plans
Additional Service Fees Policy Cancellation Broker of Record Claim Reporting Inspection Audit Agents Responsibility / Page G 1
G 1
G 1
G 1
G 2
G 2
G 2
G 2
G 2
G 3
Ineligible Risks or
Risks Which May Not Be Bound / Property Exposures Liability Exposures Miscellaneous / P 1
P 1-2
P 2
Homeowner Program / General Guidelines/Eligibility Bed Breakfast Program Farm Exposures
Seasonal Dwellings
Double-wide Manufactured Homes ML-3
Tenants Condominiums Replacement Cost –Coverage A ACV- Coverage A
Market Value –Comparable Value Endorsement ML- 16
Minimum/ Maximum Coverage / P 3
P 3
P 3
P 3
P 4
P 4
P 4
P 4
P 4
P 5
P 5
Manufactured Home Program / General Guidelines/Eligibility / P 6
Farmowner Program / General Guidelines/Eligibility Bed Breakfast
Additional Farm Dwellings Barns and Other Structures Farm Personal Property Maximum Binding Authority / P 7
P 7
P 7
P 7
P 8
P 8
Farm Property / Fire Policy / P 8
7/05 i
PERSONAL LINES (continued)
Page
Owner Occupied Dwelling Fire General Guidelines/Eligibility P 9
Maximum Binding Authority P 9
Non-Owner Occupied Dwelling Fire
Rental Property (1-4 Family)
General Guidelines/Eligibility P 10
Property Considerations P 10-11
Liability Considerations P 11
Maximum Binding Authority P 12
Minimum Coverage A P 12
Replacement Cost-Coverage A P 12
Inland Marine Boat (Supplemental to HO, FO,MHO)
Ineligibility P 13
Underwriting Considerations P 14
Boatowners Program
(Stand Alone)
Ineligibility P 15
Underwriting Considerations P 16
Inland Marine
Landlord Package Policy
Personal Lines-General
General Guidelines Maximum Binding Authority Minimum Coverage
Replacement Cost Valuation-Coverage A
P 17-18
P 19-20
P 21
5/14 ii
ONTARIO INSURANCE COMPANY
UNDERWRITING GUIDELINES
TABLE OF CONTENTS
COMMERCIAL LINES / PageGeneral Information / New Business Applications Deposit
Photos Payment Plans
Additional Service Fees Policy Cancellation Broker of Record Claim Reporting Inspection Audit Agents Responsibility / G 1
G 1
G 1
G 1
G 2
G 2
G 2
G 2
G 2
G 3
Ineligible Risks or
Risks Which May Not Be Bound / Property Exposures Liability Exposures / C 1
C 1
Coverage or Type
Businesses, Classes, Products or Structures Miscellaneous / C 2
C 2-3
C 3
Additional Insured / Guidelines (All Commercial Risks) Certificates of Insurance / C 4
C 4
Inland Marine / Commercial Lines-General / C 5
Rental Property-Habitational
(5-20 Units) / General Guidelines /Eligibility Property Considerations Liability Considerations Maximum Binding Authority Minimum Coverage A Replacement Cost-Coverage A / C 6
C 7
C 7
C 8
C 8
C 8
Craftsman 12/Pak / General Guidelines/Eligibility / C 9
Food Service / General Guidelines/Eligibility / C 10
Home Based Business / General Guidelines/Eligibility / C 11
Liquor Liability / Binding Authority Ineligible Risks Limits / C 12
C 12
C 12
7/05 iii
STANDARD PROCEDURES FOR ALL POLICIES
New Business Applications
· Applications must be complete, signed by the insured and agent and sent to OIC within 3 business days of effective date or binding date, whichever is earlier.
· If a Binder or Certificate is issued, a copy must be sent to OIC the same day. (Completed application, deposit and photos must follow within 3 business days).
· Application must be complete in every respect and signed by agent applicant to be considered eligible to be bound for processing.
· Any special credits must have properly completed/signed Certification of Policy Credits Form accompanying the application for credit to be given.
· An Auxiliary Heating Device Supplement (Woodstove) must accompany all risks with woodstoves.
· Deposit required with each new submission (Appropriate Pay Plan deposit or $100 minimum).
· Agent must have seen all risks with building or structure coverage prior to binding.
· Photos (2) required for all structures insured ($3.00 reimbursement for photos of underwriting quality). Photos (2) must show all 4 sides of any structures insured and be taken within 100 ft. of the structure.
· Mailing of application should not be held up for development of photos. Indicate “photos to follow” on application to avoid unnecessary letters or calls.
· A diagram showing the buildings and distance between them is required on all risks insuring more than one building at a single location (needed for reinsurance underwriting purposes).
· Farm risks require 2 photos of each barn showing all sides along with complete & accurate diagrams.
· An existing policy cannot be assigned to a different named insured. Policy must be cancelled and rewritten.
Payment Plans
· Full Annual Premium Payment (1 payment) - Due as of effective date of policy
· Semi Annual Premium Payment (2 payments) -Available on policies with minimum annual premium of $200.
· Deposit - 50% of Annual Premium + $6 Service Fee + NYS Fire Fee (if applicable) due by effective date.
· Balance - 50% due 5 months after effective date of policy + $6 Service Fee.
· Trinary Payment (3 payments) Available on policies with minimum annual premium of $350.
· Deposit – 40% of Annual Premium +$6 Service Fee + NYS Fire Fee (if applicable) due by effective date.
· 3 Months 6 Months after effective date of policy (Each 30% due + $6 Service Fee).
· Bi-Monthly (4 payments) - Available on policies with minimum annual premium of $400.
· Deposit - 25% of Annual Premium + $6 Service Fee + NYS Fire Fee (if applicable) due by effective date.
· 2 Months, 4 Months 6 Months after effective date of policy (Each 25% due + $6 Service Fee).
· Bi-Monthly (5 payments) - Available on policies with minimum annual premium of $600.
· Deposit - 28% of Annual Premium + $6 Service Fee + NYS Fire Fee (if applicable) due by effective date.
· 2 Months, 4 Months, 6 Months 8 Months after effective date of policy (Each 18% due + $6 Service Fee)
· Monthly Payments (12 payments) –Available ONLY for ACH direct debit OR recurring credit/debit card payments
· Twelve equal monthly payments (8.33% of annual premium + $3 Service Fee + NYS Fire Fee (if applicable)
· NOTE: For 12 pay plan using debit/credit, insured must sign up for recurring payments. Please visit our website at www.ontarioinsco.com – Click on “Make a Payment” and follow the prompts at Xpress-Pay.com
7/15 G-1
STANDARD PROCEDURES FOR ALL POLICIES (continued)
Additional Service Fees
· Returned check or deposited item, redeposit of check/item ($25 Fee)
· Notice of Cancellation for Non Payment of Premium ($15 Fee)
· Cancellation applies when timely payment due is not received by the Invoice Due Date and Notice of Cancellation for Non Payment of Premium is issued.
· Reinstatement of Cancelled Policy ($30 Fee)
· Applies when payment is received after the effective date of cancellation and Company agrees to reinstate with a gap in coverage.
Policy Cancellations
Cancellation of a policy requires return of the policy with written cancellation instructions or Lost Policy Release signed by each named insured(s). Cancellation date can be no more than 30 days prior to the date a request is received in our office.
Broker of Record
· Change of Broker requests must be signed by new agent and insured and currently dated.
· Acknowledgement of request for Change of Broker will be sent to existing agent allowing 7 calendar days for receipt of a countermanding order.
· Requests received during the policy term shall not be made effective until the following anniversary/renewal date. Any exception to this will require a new application/effective date and cancellation of the old policy.
· The Company shall not be responsible for late or delayed requests in following the above procedures.
Claim Reporting Procedures
· All claims should be reported the same day that you are made aware of the loss.
· Do not hold up the notice of loss pending estimates from the insured.
· A written notice of loss (ACORD form) should be immediately sent to the Company even if it has also been reported by telephone. The Notice of Loss should be completely filled out, including phone numbers, where and how to contact insured, occupation, social security #, previous addresses if new to address (< 3 years), probable amount of loss, police department notified (theft), responding fire department, cause of loss, specific location of where loss occurred.
· Medical or Liability claims – Include the following:
· Name/address/telephone of claimant
· Name/address of hospital
· Name/address/telephone of physician
· Parents names/address/telephone if a minor
Inspections Audit
OIC will use employees or outside representatives to conduct underwriting, risk management, audit and claim inspections and investigations. From time-to-time, we may also send various questionnaires or self- audit forms directly to the insured. We will advise you of any development, which may require any action or change to the policy. If a self-audit form is not returned to the Company by the due date requested, we reserve the right to automatically increase the payroll and/or receipts by 10% on the renewal.
7/15 G-2
AGENTS UNDERWRITING RESPONSIBILITY
The underwriting of a risk begins with you, our Agent. You are responsible for the initial evaluation of the risk. Though you are not expected to deal with all of the aspects of underwriting, you should satisfy yourself that each risk you solicit meets requirements in the following:
Moral Character
The greatest single factor to be considered in risk selection is the character of the prospective insured. Is he a responsible individual? Does he meet his obligations? What is his reputation? Does he do business safely, carefully and take pride in the quality of his work? Responsibility is a principle condition of insurance. If, after investigating and considering the following, you find you do not have confidence in the moral responsibility of the individual, the risk should be avoided:
· Management attitude
· Management reputation for honesty and integrity
· Financial condition
· Type and class of business
· Loss or accident record
Physical Characteristics of Building and Equipment
While the age of the buildings and equipment is important, the condition and maintenance of the buildings, equipment and premises is more indicative of the general character of the risk. In addition, the location of the building, particularly in a deteriorating area, may indicate a questionable risk. The housekeeping of the risk may be an indicator of the entire operation, attitude of the insured and the likelihood of potential claims.
Operations
Are the principals experienced in the operation? Are the employees well trained? Do the principals believe in safety and practice accident prevention throughout the operation? Is there evidence of safety practices in the form of physical safeguards? Are safety rules in writing, posted and enforced?
Insurance History
Unfavorable insurance history as indicated by prior cancellations,, non-renewal and/or poor loss experience does not conclusively indicate that a risk cannot be written. However, it is strong evidence that a very thorough investigation must be made before the coverage can be written.
Successful underwriting is based on good teamwork… with Agent and the Company Underwriter working as a team. The Agent’s team assignment is to handle the first phase of the selection process through exercise of good Agent Underwriting in the areas of Moral Character, Physical Characteristics, Operations and Insurance History. The Agent needs to provide the Company underwriter with the results of Agent Underwriting which should include any additional information which will help carry out the assignment.
We need to recognize that the primary responsibility of the Agent is to efficiently handle the insurance needs of the individual insured. The primary responsibility of the Company is to provide insurance using underwriting practices in risk selection, acceptance and pricing which are fair to its collective policyholder base as well as the preservation of the Company’s financial strength and stability.
2/02 G-3
AGENTS UNDERWRITING GUIDELINES
Ineligible Risks
or
Risks Which May Not Be Bound
(Personal Lines Farmowner Policies)
Property Exposures
· Vacant, unoccupied or under renovation/restoration/rehabilitation. May be submitted for consideration if seen by agent along with photographs. Coverage and limits may be restricted.
· Property under foreclosure.
· For sale more than 12 months.
· Policy in the name of a mortgagee, or interest other than the owner/occupant.
· More than two (2) mortgagees on property.
· Unsatisfactory financial condition, reputation or attitude of insured.
· Cancelled, non-renewed or refused coverage by any company within past 3 years.
· Cancelled for non-payment by any company within past 12 months or a history of late payments.
· No prior insurance in effect
· More than one loss in past 3 years.
· Any loss $10,000 or greater in past 5 years.
· Remote locations or not easily accessible to emergency vehicles year-round.
· Risks not meeting building or municipal codes in all respects.
· Structures which appear to be in below-average condition and/or inadequately constructed.
· Below-average housekeeping, maintenance or upkeep of premises, structures or equipment.
· Residential property without central heating.
· Dwellings in which central heating system is not the main heat source.
· Property with space heater, evidence of kerosene or similar type heating.
· Auxiliary Heating Devices using solid fuels not professionally installed and/or not approved by local building inspector or unsatisfactory Auxiliary Heating Devices (Woodstove) Questionnaire information.
· Manufactured Homes with Auxiliary Heating Devices not installed by the manufacturer.
· Electrical Service of less than 100 AMP service.
· Inadequate roof, electrical, plumbing or heating system.
· Adjacent exposures increasing the hazard (Vacant buildings, high crime or vandalism, brush or debris, flammable storage material or operations, etc.).
· Evidence of mold or conditions conducive to mold development.
Liability Exposures
· Any liability claim/reserve of $10,000 or more in past 5 years.
· Any liability claim in past 3 years.