Personal Lines Program

UNDERWRITING GUIDELINES PERSONAL LINES PROGRAM

NEW HIGHLIGHTS NEW The Point of Sale Product is READY!!!!!

WITH EVEN BETTER COVERAGES NOW AVAILABLE:

Jewellery $10,000, Bicycles $5,000, Bylaws $50,000 First Claims Forgiveness

$50,000 strata ded limit Option to increase liability to $5 Million

New Travel Endorsement now available

GOALS OF THE PROGRAM

To offer a Branded product for the Intercity Group of Companies in order to earn a profit through increased sales, reduced costs, account underwriting and flexibility.

BENEFITS OF THE PROGRAM

Flexibility
Unique identity for the Intercity Group of companies
Enhanced Special Limits:

FUTUREGUARD SPECIAL LIMITS
Jewellery, Watches Gems, Furs / $10,000.00
Coins & Stamps / $5,000.00 / coins & stamps - One limit
Business Books, Tools / $10,000.00
Securities, Manuscripts / $6,000.00
Money or Bullion / $1,000.00
Collectible Cards / $10,000.00
Bicycles / $5,000.00
Watercraft / $5,000.00
Spare Automobile Parts / $1,000.00
By-Laws / $50,000.00
Safety Deposit Box / 100% of C
Trailers and their equipment / $3,000.00
Student's property away / 100% of C
Credit Card / $15,000.00
Identity Fraud / $15,000.00 / $30,000.00 Aggregate
Food Freezer / Included
Headstones / $1,000.00
Personal Data / $10,000.00
Disappearing Deductible / $10,000.00

UNDERWRITING THE PROGRAM

UNDERWRITING

A strong underwriting strategy is required to succeed:

A fully completed CSIO Habitational application must be completed on all new applicants.
CSIO Habitational application is produced and underwritten by the producer. If the risk falls outside the binding authority of the producer it must be referred to InsureBC.
The producer has the authority to issue policies within their binding authority.
A HITS report will be generated when the risk reaches InsureBC. This will verify the accuracy of the losses. If the applicant has misrepresented his loss history, the application will be voided and a registered letter will be sent to the address shown on the application.
Only InsureBC has the authority to deviate from the program. To adjust the quote, please contact InsureBC

THE RISKS WE WANT TO INSURE

Applicants are three years claims free.
Well constructed dwellings showing pride of ownership.
Above average valued dwellings.
Dwellings 40 years old or less. Updates are required for homes 30 years and older.
Occupied by named Insured as their principal residence and used for private residential purposes.
Approved central heating system. Oil tanks are acceptable. If the oil tank is older than 25 years and above ground, an Absolute Pollution Exclusion will apply. For all in-ground oil tanks, an Absolute Pollution Exclusion will apply.

RISKS THAT REQUIRE FURTHER CONSULTATION WITH INSUREBC:

Dwellings insured for less than minimum amounts.
Risks that are outside your binding authority limits.
Risks with more than one loss (except glass claims) in the past three years. If insured has had one loss over $20,000 or one loss within the past six months, refer to InsureBC.
Risks that have been cancelled or declined in the past 5 years.
Risks with more than one self-contained secondary suite.
Buildings under renovation or construction.
Any business being conducted on premises.
Dwellings over 40 years old.
Buildings not insured for 100% of replacement cost as determined by a recognized evaluation method or a professional appraisal.
Risks with more than two mortgages.
Risks that are written in a company name.
Risks that have multiple ownership of unrelated individuals.
Hobby farms.
Log Homes are acceptable – Not eligible for Guaranteed Replacement Cost or Single Limit Endorsement
Knob & Tube wiring

RISKS THAT WE PREFER NOT TO INSURE:

Heritage Homes.
Vacant Dwellings
Rooming Houses
Farm property, equipment, or liability
Risks with primary wood or solid fuel heat or any unapproved heating (see: Heating)
Mobile Homes
Floating Homes.
Tenants in Mobile or Floating Homes.
Outbuildings not structurally sound.
Dwellings older than 40 years old without full updating
Any dwelling that cannot be rebuilt to similar size or occupancy or cannot be rebuilt on the same location due to a known building code, by-law or community plan.
Risks that include commercial activity unless declared and approved by InsureBC.
Seasonal dwellings written without supporting business.
Risks with known hazardous exposures ( adjoining commercial risk; vicious dog etc)
Risks that are not well maintained.
Risks that have been cancelled or refused by another insurance carrier.
Dwellings converted to apartments or rooms.
Buildings not built on a solid concrete foundation or built on hollow concrete blocks.

GENERAL GUIDELINES

ADDITIONAL PREMIUMS

Any additional premium of $5.00 or less is waived.

ADDITIONAL INSURANCE

Additional coverages are added on a pro rata basis subject to the current rates in effect at the time.

APPLICATIONS

CSIO Habitational Applications must be completed for all applications and endorsements. A signature is preferred on new business, especially un-referred, new customers.

CANCELLATIONS

By the Policyholder

The policyholder may request cancellation by signing the cancellation on the back of the policy and returning it to InsureBC, by completing and signing a Lost Policy Voucher, or by sending a signed letter advising when cancellation is to take effect.
Where a policy includes a mortgage clause, the request for cancellation must include a release from the mortgagee or send out a registered letter advising of the cancellation.
Unearned premium is returned on a short-rate basis.
On a renewal, the policyholder has 30 days to cancel the policy without charge. If cancellation is requested after 30 days, there will be a short-rate charge for time on risk subject to a minimum premium of $25.00

B. By the Company

The Company may cancel a policy by providing 15 days notice to the policyholder, sent by registered mail.
Notice may be reduced to 5 days if it is provided by hand delivery. Two people are required when hand delivering a cancellation, for purposes of verification.
Unearned premium is returned on a pro-rata basis.

C. Reinstatement

We will not reinstate the policy if is has been cancelled more than once in 3 years.
Reinstatement is permitted only if reinstatement has been requested before the cancellation date.
After the cancellation has been in effect, a new application must be submitted as new business.

DEDUCTIBLE CLAUSE

The standard deductible is $500 on all losses except:

Personal Liability & Legal Liability
Voluntary Medical Payments
Voluntary Payments for Damage to Property
Some Scheduled Personal Article Riders and some miscellaneous multi-peril forms.
Special Deductibles for Earthquake
Where there has been no previous insurance

DELETION OF COVERAGE

When deleting coverage, the premium adjustment is made on a pro rata basis.

DISCOUNTS & SURCHARGES

HOW TO APPLY DISCOUNTS

Add all discounts together and apply to basic premium. Please refer to the discount/surcharge schedules following each risk category for maximum allowable discounts.

HEATING SYSTEMS

A. Primary Heating Systems

A permanently installed central hot air or hot water furnace fueled by natural or propane gas or oil.
A permanently installed, public utilities commission approved electrical heating system.
Solar Heat.
Solid fuel heat, including a combination furnace is acceptable as primary heat, subject to 100% surcharge. Inspection, Solid Fuel Heating questionnaire and photo is required. Solid Fuel is considered primary if used more than 50% of the time to heat the entire dwelling. Primary heat non-standard surcharge applies.
An outdoor wood furnace/underground water heating system installed to specifications.
Geothermal Heat

B. Auxiliary Heating Systems

All auxiliary heating units must be CSA, ULC, or Warnock Hersey approved.

All auxiliary heating units must be professionally installed or professionally inspected.

Each auxiliary heating unit must use its own chimney.

A supplementary solid fuel heating questionnaire must be submitted with every unit.

Premium surcharges may apply to auxiliary heating units (see Discounts & Surcharges)

Pellet stoves are surcharged as a wood stove.

Standard masonry/brick fireplaces and zero-clearance fireplaces, if professionally installed, are allowed without any surcharge.

MORTGAGES

A risk with more than two mortgages is generally not acceptable. Exception: A risk with three mortgages where all three are with the same recognized Chartered Bank or Credit Union may be acceptable - please refer to InsureBC for approval. A completed mortgage detail questionnaire will be required.

POLICY PERIOD

The premium and rates in this manual are on an annual basis.

PRIOR INSURANCE

Prior carrier information is required on all applications: prior insurer, policy number, and expiry date.

PROCEDURE WHEN INSURED MOVES

Personal property is insured for all policy perils while at the old location, at the new location and while in transit between the two for a period of thirty (30) days.

Provide full details of the new location on a new application.

If the move is to a different province, the policy may continue until expiry. Additional premiums may result from increases in limits or from different geographic locations.

For out of province rates, refer to InsureBC.

GUARANTEED REPLACEMENT COST ON DWELLING

Coverage for Guaranteed Replacement of the building regardless of the policy limit is subject to:

A fully completed, recognized Replacement Cost Guide worksheet submitted when policy is issued and every three years thereafter.

Sum insured is not less than the amount calculated using the Replacement Cost Guide.

Any alteration to the dwelling which increases the value by $10,000 or more must be endorsed immediately.

Renewals will be automatically increased based on the current inflation factors.

There is no coverage under this endorsement with respect to earthquake coverage.

REPLACEMENT COST ON PERSONAL PROPERTY

There is automatic coverage under Comprehensive Homeowners, Condos & Tenants

Replacement cost on Personal Property is available on Broad Form Seasonal or Rented Dwellings.

SEWER BACK UP

This coverage is included at no charge on Homeowners or Condominium package policies. This coverage may be purchased on a Tenant or Rented dwelling policy. Not available on Fire & EC Seasonal Dwellings.

TERRITORY LIMITS

We expect to insure risks within our office trading area. If you have a risk outside of your trading area, please refer to InsureBC.

VACANT BUILDINGS

We do not insure vacant buildings as new business. (Unless the owner is moving in within 30 days.)

Vacancy permit can be endorsed on to existing policies for 90 days subject to changes in coverage and additional premium.

Vacant building must be checked every 72 hours by the insured or a competent person the insured has elected to ensure the premises is well maintained.

BINDING AUTHORITY

Risks beyond your authority must be authorized by InsureBC.

BINDING AUTHORITY – DWELLING/CONTENT LIMITS

HOMEOWNER POLICY - Minimum $100,000

Hydrant protected $ 700,000

Fire Hall within 8 km by road $ 500,000

Unprotected $ 300,000

CONDOMINIUM POLICIES Minimum $40,000

All territories $ 150,000

TENANT POLICIES - Minimum $35,000

All territories $ 100,000

SEASONAL DWELLINGS Minimum $10,000

Hydrant protected $ 250,000

Fire Hall within 8km by road $ 150,000

Unprotected $ 100,000

RENTED DWELLING Minimum $80,000

Hydrant protected $ 500,000

Fire Hall within 8km by road $ 250,000

Unprotected $ 150,000

RENTED CONDOMINIUMS Minimum $5,000

All territories $ 50,000

SCHEDULED ARTICLES

Without Appraisal $ 2,000/item

With Appraisal $ 15,000/item

Total Maximum schedule $ 50,000

PERSONAL LIABILITY $2,000,000

BOATS INCLUDING MOTORS & EQUIPMENT

Powered $ 50,000

Non-powered $ 100,000

AMOUNTS EXCEEDING THE ABOVE MUST BE REFERRED TO INSUREBC.

HOMEOWNERS

ELIGIBILITY

Occupied by the named insured as a principal residence and used for private residential purposes.

Single or two-family, owner-occupied dwellings.

A self-contained unit is permitted subject to the appropriate surcharge.

No roomers or boarders.

Well maintained buildings insured to 100% of the replacement value. (RCT)

Incidental office use is permitted however a Home Based Business endorsement may be required. Please refer to InsureBC for approval.

No more than 2 mortgages.

Must be a detached building

Dwelling is 40 years old or less. Dwellings older than 30 years will require a photo and details of updating.

Approved primary heating (see guidelines)

No more than one loss (Excluding glass claims) in the past 3 years.

Homes with two or more self-contained suites rented to others are not eligible.

Permanent concrete foundation.

NAMED INSURED

The policy should be in the name of the registered owner/owners of the property. Business or Trust Names to be referred to InsureBC.

AGE

Homes 30 years and older require the following updating:

Roof must be less than 20 years old

100 amp electrical service ( no fuses )

copper or plastic plumbing

central heating system serviced within 3 years

HOW TO APPLY DISCOUNTS AND SURCHARGES – HOMEOWNERS

Start with the published Aviva base premium. Total the percentage of all applicable discounts and surcharges listed below and apply this factor to the base premium.

The maximum allowable discount is 50%.

NEW HOME DISCOUNT

A 10% discount is allowed on any dwelling built within the last 20 years.

A 5% discount is allowed on any dwelling built within the last 21 - 40 years.

MORTGAGE FREE DISCOUNT

A 10% discount is allowed.

CLAIMS FREE DISCOUNT

A 10% discount is allowed on policies where no claims have occurred in the previous three (3) years.

The discount is available to an applicant who has been insured continuously with any insurer for the last three (3) years. The name and policy number of the previous insurer must be declared on the application.

ALARM DISCOUNT

A 10% discount is allowed where a UL or ULC approved fire and burglar alarm system has been installed in the insured’s dwelling and is centrally monitored by an approved station. The alarm company’s confirmation or installation certificate must be on file.

A 7% discount is allowed on UL or ULC approved burglar alarm installed on the insured’s premises and it is centrally monitored by an approved station.

A 5% discount in allowed on UL or ULC approved local burglary alarm.

SPRINKLER DISCOUNT

A 5% discount is allowed where a professionally installed sprinkler system has been installed in the insured’s premises.

MATURE DISCOUNT – Applies if Named Insured living at the insured dwelling or a relative who is a permanent resident living at the insured dwelling qualifies.

45 – 49 years of age - 10%

50 – 59 years of age - 15%

Over 60 years of age – 20%

MULTI-LINE DISCOUNT

A 5% discount is allowed if the insured has two policies with the agency.

A 10% discount is allowed if the insured has three policies with the agency.

This discount can be applied if the Homeowners policy has more than one location or has watercraft coverage added.

DEDUCTIBLE DISCOUNT

A 10% credit can be added to a maximum of $100.00 to increase the basic deductible from $500 to $1,000. This discount is not affected by the maximum discount of 50% as indicated above and is applied to the basic premium after discounts and surcharges have been applied and before Optional Coverage premiums have been added. There will be no discount given for the $1000 deductible when given due to no previous insurance.

LOYALTY DISCOUNT

A 5% discount is allowed for all policy holders who have held a Personal Property policy with your agency for 2 consecutive policy terms.

A 10% discount is allowed for all policy holders who have held a Personal Property policy with your agency for 3 consecutive policy terms.

SURCHARGES

HEATING

Primary Heat Non-Standard - 100%

Combination Furnace – 10%

Auxiliary Heat – 10%

Log Home – 25%

Claims – 2 Claims in 3 Years – 10%

Multi-Family Dwelling – 8%

CONDOMINIUM UNIT OWNERS