APPLICABLE TO ALL LINES OF COVERAGE

GENERAL INFORMATION GUIDELINES – APPLICABLE TO ALL LINES OF COVERAGE
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Applicable to General Agents who have access to Contract
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TABLE OF CONTENTS
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1.14.2015
APPLICATIONS – BINDERS – BOR’S – CLEARANCE – QUOTES
o Applications
o Binders
o Broker of Record
o Clearance
o Quotes – Valid for 30 Days
o Submissions – Email Addresses
BANKRUPTCY
o Bankruptcy – Active Accounts
o Bankruptcy – New Business Quotes
CANCELLATION – LAPSE IN COVERAGE – NON-RENEWAL –
REINSTATEMENT – ALL TYPES EXCEPT PREMIUM FINANCE
o Cancellation, Non-Renewal, Reinstatement
o Cancellation Types
o Disclosure of Premium Refund – California Assembly Bill –
2404
o Lapse in Coverage
o Non-Payment – Cancellation Received Before Policy Issued
o Non-Payment – General Agent Has Not Been Paid by the
Retailer
o Non-Payment – Insured Has Not Paid Retail Agent
o Processing Guidelines for Cancellation, Non-Renewal or
Reinstatement
o Reinstatement Requests
CANCELLATION – PREMIUM FINANCE
o Cancellations – Premium Finance Only
CERTIFIED COPIES OF POLICIES
o Procedures to Obtain Certified Copy
CLAIMS – LOSSES – LOSS RUNS
o Claim Reporting
o Loss History
o Loss History – Accident Year, Calendar Year, Policy Year
o Loss Run Requests
o No Known Loss Letter Template
PROCESSING – CERTIFICATES AND ENDORSEMENTS
o Backdating
o Certificates of Insurance
o Endorsements
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Adding a New Coverage Part Midterm
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‘Fill-In’ Wording
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Mailing Address Change – Midterm
o Excluding Coverage – How to Indicate on Policy
o Forms
o Midterm Endorsements – State Specific Forms
PROCESSING – POLICY ISSUANCE
o Policy Issuance:
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Applications
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Company a Policy is to be Issued In
Page 1 of 36
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1.14.2015
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Copies of Company Approvals
Countersignatures
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Loss History
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Mandatory Entries on the Policy
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Multi-Peril Policy
Multi-State Guidelines
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Rating Documents
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Surplus Lines Data Form (SLB Data Form) Overview
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Surplus Line (SL) Warning Stamp
Terrorism / TRIA
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Emailing Policies and Related Underwriting Documents to the
Company
Excluding Coverage – How to Indicate on Policy
Forms
Moving an Account to a Different Business Unit within the
Company
Policy Fees, Expense Constants and Taxes
Policy Number Assignments:
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Adding a New Coverage Part Midterm
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Cancel and Rewrite
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Lapse in Coverage
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New Business
Package Policies – Line of Business Combinations
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that Create a Package
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Policy Prefixes
Renewals
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Obtaining New Blocks of Policy Numbers
Policy Term – Annual or Short Term
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RATING
o EDGE Online Rater
o Credit Authority – Subjective
o Commissions
o Endorsement – Edition Date for Rates that will be Applied
o Minimum Earned Premium
o Multi-Peril / Package Combinations Eligible for Package
Credits EDGE Online Rater
o Policy Level Coverage vs. Policy Level Premium Charges
o Premium Definitions
o Premium Rounding
o Renewal Rating
RULES FOR FORM ATTACHMENT, CANCELLATION OR NONRENEWAL, SLB DATA FORMS, TAXES AND FEES
o Attachment Rules
o Definitions:
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Home State
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Mailing Address
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Main State / Primary State
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State of Domicile
o SLB Data Form
TRIA
o Liability
o Property
UNDERWRITING
o Authority
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Backdating
Bulletins and Flyers
Forms including CX, NRN, State Specific, SLB Data
Named Insureds:
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Defined
Underwriting the Named Insured
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ATIMA
Combinability of Interests
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DBA’s
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First Named Insured
Holding Companies
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Named Insured Changes – Endorse or
Cancel/Rewrite
Types of Named Insured Entities
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New Ventures
Prohibits – All Lines of Business
Quote Status Documentation
Renewal Underwriting:
Renewal Certificates
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States East of the Mississippi vs. West of the Mississippi River
– Map
Submit Criteria – New or Renewal
Territory – International Exposures
Weather Related Bulletins – Cease Binding – Moratoriums –
Archives
GUIDELINES – ADMINISTRATIVE
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Applicable to General Agents who have access to Contract Binding Authority P&C
Click on any underlined entry to be taken to guide content
TABLE OF CONTENTS
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1.14.2015
Accounting:
o Payments to the Company
o Electronic Transfer of Funds
Advertising and Marketing
Agency Code Number
Agency Profile Reports – Premium and Loss Information
Agency Underwriting File Reviews
Annual Company Report
Company Help Desk
Complaint Handling Procedures
DocuCorp Download Instructions and Updates
Expiration / Renewal Lists
Hit Lists – Binding Success Stories
Licensing Requirements
Mailing Address
Office of Foreign Asset Control – OFAC
Password – Access to Online Contract Underwriting Guide
Privacy Policies
Product Navigator
Regulatory Compliance including Department of Insurance Complaints
Page 3 of 36
APPLICATIONS – BINDERS – BOR’S – CLEARANCE – QUOTES – TERRITORY / INTERNATIONAL
Applications:
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Applications:
o ACORD Application(s) - use for all commercial risks:
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ACORD 125 (or equivalent) - Applicant Information Section (to include
equivalent of ACORD’s “Fraud Provisions” and “Notice of Insurance
Information Practices”)
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ACORD 126 (or equivalent) – Commercial General Liability Section (if
liability coverage is being requested)
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ACORD 140 (or equivalent) – Property Section (if property coverage is
being requested)
o Farm/Ranch Application - use instead of ACORD for accounts that will be placed
on a Farm/Ranch Policy
o Supplemental Applications:
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If required, indication it will be indicated in the underwriting guidelines
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Competitor Supplementals accepted if they develop similar information
Original applications may be discarded once scanned into electronic records
Updated Applications:
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New or updated applications should be obtained every third year
Binders:
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Do not send copies of binders to Company
Issue policy and related documents and forward to Company within 30 days of policy
effective date
See additional guidelines under Policy Issuance and Processing Guidelines
Broker of Record:
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1.14.2015
New Business:
o True to our “binding” environment, Contract Binding will provide quotes to all
agents who submit risks, eliminating the “first in” rule
o No BOR Letters will be accepted
Existing Accounts:
o Master Policies
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BOR’s will not be accepted on existing Master Policies on Colony
Specialty paper
o Mid Term
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Mid-term BOR Letters will not be accepted
o Renewals
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On existing business the Producer controls the renewal. This can only
be changed with the receipt of an acceptable BOR Letter (see below).
The existing Producer will in turn be notified.
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One BOR Letter and one Rescission from the incumbent
General Agent.
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Multiple BOR’s and Rescissions will not be accepted
BOR Procedures:
o BOR Letter:
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Acceptance:
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New General Agent must submit new application(s) and if
applicable supplemental application(s)
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If General Agent on expiring policy has already released a
renewal proposal the Company will honor that proposal for the
new General Agent
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Conditional Acceptance:
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If the BOR is received within 5 business days of policy
expiration the Company cannot guarantee acceptance. An
attempt will be made to secure the controlling General Agent’s
approval to waive their rescission period and release the
account.
BOR Not Required:
o Expiring policy’s General Agent is no longer appointed for Contract
o Only the retail agent is changing (not the General Agent) on renewal
Requirements for BOR Letter:
o Change in General Agent Only:
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ACORD 36 – Agent/Broker of Record Change or a letter on Named
Insured’s and/or Retail Agent’s letterhead that confirms the Named
Insured, Insured’s address, policy number and policy effective dates
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Signature of the retailer and/or insured required
o Change in General Agent and Retailer:
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ACORD 36 – Agent/Broker of Record Change or a letter on the Named
Insured’s letterhead that confirms the Named Insured, Insured’s
address, policy number and policy effective dates
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Signature of the Named Insured required
Rescission Letters:
o 5 business days given to the controlling General Agent to obtain a rescinding
letter from the Insured/Applicant
Clearance:
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No clearance is performed in Contract until Agent is binding/issuing policy
Quotes – Valid for 30 Days:
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New or renewal quotes are valid for 30 days
If an ISO Form or Company Form has changed, for a period up to 30 days beyond the
original quote date, the old form may still be used
Submissions – Email Addresses:
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Commercial Auto: [email protected]
Contract – Arizona: [email protected]
Contract – Colorado: [email protected]
Contract – Virginia: [email protected]
Environmental: [email protected]
Excess Casualty: [email protected]
Garage – Arizona: [email protected]
Garage – Colorado: [email protected]
Primary Casualty: [email protected]
Property – Arizona: [email protected]
Property – Virginia: [email protected]
BANKRUPTCY
Bankruptcy – Active Accounts:
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1.14.2015
Bankruptcy Discovered or Notice of Bankruptcy Received:
o General Agents must contact the Company immediately when they become
aware of an insured that is in bankruptcy
Cancellation:
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If cancellation is being considered you must consult with the Company before
taking any action. Do not send out cancellation for nonpayment of premium on a
debtor-in-possession without first contacting the Company.
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Debtor-in-Possession defined: The bankruptcy case begins when a
debtor files a bankruptcy petition (or when one is filed against the
debtor). At this point, the debtor becomes a debtor who has declared
bankruptcy and is referred to as a ‘debtor-in-possession.
Non-Renewal:
o Non-renewal of a risk in bankruptcy is acceptable for underwriting reasonsprovided all state specific and policy form specific provisions and procedures are
followed
o The reason for non-renewal should be stated as “Failure to meet underwriting
criteria: Change in the insured’s financial condition.”
o Never state the reason for non-renewal as “bankruptcy”
o Consult with the Company as needed
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Bankruptcy – New Business Quotes:
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Bankruptcy (Chapter 7, 11, or 13), receivership or in foreclosure are aspects of new
business that usually mean there is no home for the risk in Contract Binding Authority.
Submit to the Company for an exception, but only if the following conditions have been
verified:
o The risk is to be written under the Bank’s name, or written under the name of a
court appointed entity in care of the owner
o There is verification of a third party that is tending to the property, including
regular inspection, with A.I. status granted to our insured on the Property
Manager’s policy
o Inspection is mandatory for all risks regardless of insured property values, and/or
general liability premium
o The Company does (for example) readily write vacant properties with a submit
CANCELLATION – LAPSE IN COVERAGE – NON-RENEWAL – REINSTATEMENT – ALL TYPES
EXCEPT PREMIUM FINANCE
Cancellation, Non-Renewal, Reinstatement:
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Backdated cancellations require Company approval
Cancellations and non-renewals must be processed in accordance with all applicable
state rules, regulations, laws well as the policy’s forms
Notice is to be mailed to the ‘first named insured’ in most cases with the following
exceptions:
o AK & CT only – the cancellation, non-renewal or reinstatement must go to ALL
Named Insureds shown on the common policy declarations
o See additional guidelines for policy form attachment rules – Underwriting –
Forms
External notifications must always include 3 additional days to accommodate mailing time
See also:
o Cancellation – Premium Finance – Honoring Cancellation Request Date
o Cancellation – Premium Finance – Notification Requirements
o Reasons for Cancellation or Non-Renewal (includes time requirements for
notifications)
o State by State CX and NRN Laws Table – Contact your Colony Specialty
underwriter
Cancellation – Types:
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1.14.2015
Flat:
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Company approval required
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If you have approval to flat cancel and have not yet issued a policy you
must ALSO get Company approval to cancel without issuing a policy
o Duplicate coverage will require proof be submitted
o Return premium – Total inception policy premium must be returned. No penalty
holdbacks allowed.
Pro Rata:
o Policy canceled after the effective date of coverage due to following:
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Company request, in this case waiving the Minimum Earned Premium
(MEP) is acceptable
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Non-payment of premium to General Agent or Premium Finance
Company
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Rewritten within another division of the Company
Short Rate:
o Policy canceled after the effective date of coverage at Insured’s request
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Must be allowed by state statute and policy verbiage
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Minimum Earned Premium (MEP) to be applied
o Returns only 90% of what would be returned on pro-rata basis unless applicable
state regulations dictate otherwise for an Excess and Surplus Company
Disclosure of Premium Refund – California Assembly Bill 2404:
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Effective 01.01.12 the California Insurance Code requires that any insurance policy that
includes a provision to refund premium on a basis other than pro rata disclose that fact in
writing
Disclosure must be provided prior to or concurrent with the application and prior to
renewal using Company notice CAPRNOTICE – 0911 – “California Notice – Premium
Refunds”
Notice must be provided to each applicant prior to, or concurrent with the application
Lapse in Coverage:
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If there has been a lapse in coverage of 30 days or less the Company must approve
binding. If the Company approves binding, the new General Agent must obtain (prior to
the bind date) a written and signed statement from the Insured confirming an awareness
of the lapse.
Reinstatements for nonpayment of premium, should the lapse be 10 days or more must
be approved by the Company. Lapses over 30 days will usually require a cancel and
rewrite if there has been no change in General Agent.
Non-Payment – Cancellation Received Before Policy Issued:
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Even though a binder carries the same terms and conditions as a policy, to avoid
controversy in the event of a loss, a policy must still be issued.
The only exception is when the Insured has never paid anything to the Retail Agent. In
these cases a policy will not be issued. See General Agent Has Not Been Paid by the
Retailer.
Non-Payment – General Agent Has Not Been Paid by the Retailer:
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Decline these requests since General Agents should not bind coverage before receiving
the deposit premium from the Retail Agent.
Non-Payment – Insured Has Not Paid the Retail Agent:
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1.14.2015
Rescission rather than flat’ cancellation is only allowed when the Insured failed to provide
any payment for the policy. Rescission is not allowed in situations where the Retailer has
simply failed to remit premium to the General Agent.
Company approval required and if approved the General Agent must complete the
following:
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Process a Policy Rescission notification rather than a flat cancellation.
Provide a letter to the prospective insured that explains that because no premium
was tendered, there is no contract. This is in lieu of a ‘flat’ cancellation because
no policy has or will be issued that could be cancelled.
o Process the rescission notification as soon as possible. Copies must be
provided all additional interests such as mortgagees or additional insureds.
These are to be processed via certified mail.
Company coding will document this as a ‘flat’ cancellation in CAPS for accounting
purposes (no notice). A copy of the rescission letter and proof of mailing must be retained
in the General Agent’s file.
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Processing Guidelines for Cancellation, Non-Renewal or Reinstatement:
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Company retains right to directly process and send DNOC, determine cancellation dates
and calculate return premium in the event of non-performance by General Agent or
disagreement between the parties involved
General Agent’s Responsibilities (unless directed otherwise by Company):
o Calculate return premium. The policy’s Minimum Earned Premium (MEP) must
be factored in as well. MEP’s can vary from 25% to 100%.
o Process Direct Notice of Cancellation (DNOC) and transmit to Named Insured
using certified mail procedures, within 24 hours of a Company directive.
o Maintain ‘proof of mailing’ and all applicable materials in General Agency file
o Within 30 days of requested cancellation date provide the Company with:
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Cancellation endorsement
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Cancellation notification to Insured (Company copy)
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Proof of mailing (copy)
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Submit endorsement with at least one of the following:
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Insured’s copy of declarations page accompanied by letter
requesting cancellation. Must be signed by Named Insured.
Copy acceptable if original on file with General Agent. If
DNOC or LPR is submitted with the cancellation endorsement,
then the Insured’s Dec page is not required.
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Letter from Insured requesting cancellation with proper release
from any mortgagee or lien holder for accounts with property
coverage
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Policy Release Form (ACORD 35) signed by Named Insured
or authorized representative. Mortgagee and/or Lien Holder
signature may also be required, if applicable.
Notification Requirements when Company/Agency Contract is being Terminated:
o When an Agency’s contract is being terminated nonrenewal/cancellation
notifications may be handled by the Company, or alternatively, if agreed to by the
Company, by the General Agent.
Notification Requirements To Policyholder:
o General Agent is solely responsible to notify Insured(s) of policy expiration and
send any required legal notice of non-renewal or cancellation
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Termination notifications must be mailed to the first Named Insured
(except AK and CT where they must go to all Named Insured shown on
the Declaration page
o Cancellation or non-renewals where a notification requirement applies require
external notice be sent even if the General Agent believes coverage can be
replaced with another carrier unless the Company has approved otherwise.
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If there is insufficient time left on the active policy the Policyholder
should be offered an extension of current policy terms, conditions and
pricing so adequate notice can be processed.
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Even if a state law does not require compliance with CX and NRN laws, many
policy coverage forms include cancellation notice provisions. In these cases the
General Agent must follow the policy’s provisions:
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General Liability coverage parts with CG0001 have policy language that
states an insurer must give no less than 30 days notification to an
insured if the policy is not going to be renewed (10 days for nonpayment
of premium).
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Property coverage parts with CP0010 do not have policy language that
addresses cancellation and non-renewal provisions to the insured. The
Company has taken the position we are to give 30 days notice (10 days
for nonpayment of premium) to the insured whenever possible.
Notification Requirements To Loss Payees and Mortgagees:
o Loss Payees (see CP1218 – Loss Payee) also have a cancellation notification
requirement of 30 days (10 days for nonpayment of premium).
o Mortgagees are to be given 30 day notification of cancellation (10 days for
nonpayment of premium).
Reasons for Cancellation or Non-Renewal:
o In states where there are no cancellation or non-renewal requirements that apply
to Surplus, the Company uses U173 – Cancellation form.
o State by State CX and NRN Laws Table – Contract your Colony Specialty
underwriter
o The U173 allows as little as 10 day (plus 3 day mailing) notifications for the
following reasons. One or more of these specific reasons must be typed on the
official external notice of cancellation. These are all within the General Agent’s
authority. Any reason not listed below requires a 30 day notification, as well as a
submit to the Company for approval.
o Company approval required if the reason for CX or NRN is not listed below:
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Cancellation is for all insureds under such policies for a given class of
insureds
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Crime(s) arising out of acts of an insured of which they are convicted
and in turn increase the hazard(s) insured against
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Facts – Omission or concealment relating to an insurance application,
rating, claim or coverage under the policy
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Fire, health, safety, building or construction regulation or ordinance
violations that are applicable and in turn increase the hazard(s) insured
against under the policy
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Information – Failure or refusal of insured to provide information
necessary to confirm an exposure or determine the policy premium, or
comply with underwriting requirements
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Insurance commissioner determined reasons
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Midterm addition of exposures in a state not on the policy at inception
that require endorsement of state specific forms (i.e.
cancellation/nonrenewal, signatures pages and/or declarations) that are
deemed essential which require cancellation of the existing policy and
thus a rewrite
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Omission, or willful /reckless act(s) by an insured increasing the
hazard(s) insured against
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Premium – nonpayment or failure to pay a premium when due
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Reinsurance loss or substantial decrease in reinsurance
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Risk changes that are significant or substantial that would be covered
by the policy
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Reinstatement Requests:
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1.14.2015
See separate guidelines for Premium Finance Company Reinstatements
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Documentation related to reinstatement must be maintained in General Agent’s file
Company approval required to reinstate if:
o File review uncovers adverse underwriting information, outstanding items or
policy already flagged for non-renewal
o More than 10 business days between cancellation and reinstatement dates:
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Seek Company approval if gap is a total of 30 days or less
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If more than 30 days, obtain Company approval to cancel and rewrite
(assuming account is in good standing)
o Request is third or more in a single policy period
Reinstatement endorsement is processed by General Agent but requires receipt of signed
‘no known loss letter’ first. Use ACORD 37 – Statement of No Loss
Reinstatement must be made without a lapse in coverage
CANCELLATION – PREMIUM FINANCE ONLY:
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Cancellation notices sent by Premium Finance Company are considered a cancellation
made on behalf of the Insured.
Cancellations are on a pro-rata basis.
Premium Finance Cancellation – Honoring Cancellation Request Date:
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Cancellation request date from Premium Finance Company will be honored unless it
violates notification requirements of a state’s cancellation laws and/or required
notifications mortgagees, lien holders, certificate holders, etc. Although the Premium
Finance Company request comes to the Company as if it were from the Insured, these
requirements take priority.
Premium Finance Cancellation – Notification Requirements:
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Insured:
o Do not send out any additional notices of cancellation to Insured subsequent to
the Premium Finance Company’s legal notice of cancellation. Any additional
notice to Insured only serves to extend Company’s liability on the policy.
o If no third parties listed on a policy the Company will accept the Premium
Finance Cancellation request date without providing additional notices
Third parties entitled to notice:
o Company will no longer cancel effective the Premium Finance Company (PFC)
cancellation request date. Advance notice of cancellation will be provided as
prescribed by the policy’s conditions.
o Nonpayment related to premium finance is no different than any other
nonpayment type of situation. Only 10 day notifications required for nonpayment
of premium.
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Additional Insureds should be notified if the A.I. agreement requires it.
If additional time must be provided to an A.I. the coverage under policy
would be extended to the A.I., but not to the Named Insured. Separate
notice required providing 10 days plus 3 additional days for mailing for
the A.I. but not the Named Insured.
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Mortgagees and loss payees are provided additional time if required
but not the Insured. Coverage under policy would then be extended to
mortgagee or loss payee and not the Named Insured. Separate notice
required providing 10 days plus 3 additional days for mailing for the
mortgagee or loss payee but not the Named Insured.
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Copies of cancellation endorsement and notice to A.I., Mortgagee or
Loss Payee must be forwarded to Company for processing within 30
days.
Return Premium Calculations:
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While not obligated to return pro rata in all states the Company has elected to
use a pro rata basis in all states, subject to the policy’s minimum earned
premium (MEP) provision
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When a minimum earned premium endorsement is attached to the
policy, the lesser amount of the two calculation methods is returned to
Insured
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State Exception:
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New York State – only a minimum earned premium (MEP)
amount of up to 25% can be retained for the TRIA portion of
the policy.
Reinstatements:
o The Company is not required to honor Premium Finance Company reinstatement
requests. Reinstatement is the sole discretion of Company and/or Company’s
authorized representative.
o Get Company approval to reinstate if:
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File review uncovers adverse underwriting information, outstanding
items or policy already flagged for non-renewal
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More than 10 business days between cancellation and reinstatement
dates
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Seek Company approval if gap is a total of 30 days or less
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If more than 30 days, cancel and rewrite if account in good
standing
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Reinstatement endorsement not to be processed until signed ‘no known
loss letter’ received. Use ACORD 37 – Statement of No Loss
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Reinstatement with a lapse in coverage not permitted
o Do not reinstate more than twice without approval of Company
o General Agent underwriting file must document actions taken, and when
requested forward copies to Company
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CERTIFIED COPIES OF POLICIES
Certified Copy Procedures:
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Requests to be directed to [email protected]
Requests must include the following:
o Delivery instructions
o Effective date of policy
o Need by date (please allow at least 5 business days to process)
o Policy number
CLAIMS – LOSSES – LOSS RUNS
Claim Reporting:
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1.14.2015
Agents, Brokers, and Producers do not have authority to adjust, compromise, or settle
claims and are not authorized to assign any loss or accident to an independent adjusting
firm
Company provides full claims related services for all claims and losses related to the
Company’s policies
Accidents or losses may occur at locations that are inconvenient or impractical for
Company Claims to handle promptly. In such cases the claim may be assigned to an
approved third party independent adjuster or adjusting firm.
All accidents, incidents, suit papers, or property damage must be reported the same day
received.
o How to report a claim: [email protected]
Do not send claims information to Company Underwriters
Claims Employee Directory is located within the Company website
Page 11 of 36
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Loss Notice Forms: https://www.argolimited.com/pages/our-companies/colonyspecialty/claims
o or click on the Loss Runs icon on the main page of the Contract Underwriting
Manual
Loss History:
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If more than 3 losses (paid or reserve) in three most recent policy terms, and/or any one
loss is $5,000 or above – Submit.
Loss History – Accident Year, Calendar Year, Policy Year:
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1.14.2015
Accident Year:
o Advantages include:
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Eliminating earned factored used to adjust policy year experience when
report as of 12 months
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Making it possible to give greater credibility to the latest year of
experience
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More readily understood
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Producing a more mature body of loss experience at each reporting
date
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Reduction in the lag between the experience period and effective date
of the rates, showing the trend in loss costs and frequencies more
accurately
o Accident Year Experience is created by matching all losses incurred (not
necessarily occurring) with a given 12 month period, usually beginning on
January 1, with all premium eared within the same period of time. Incurred
losses will include any changes in IBNR.
o Once calculated for the period, Calendar Year Experience never changes
o Accident year experience is fully earned in 12 months regardless of the effective
date of the underlying policies
o Accident Year Experience considers a specific group of losses that arise out of
accidents that occur during a given 12 month period
o Accident Year Experience places emphasis on losses
Calendar Year:
o A more simplistic approach that segregates all premiums and losses attributable
to policies having an inception or renewal date within a given twelve-month
period.
o More useful from an accounting perspective.
o The total value (losses paid plus loss reserves) of all losses arising from
(regardless of when reported) policies incepting or renewing during the year is
divided by the fully developed earned period for those same policies. The finally
developed ‘earned premium’ will always equal the ‘written premium’ for those
policies
Policy Year:
o Resembles Accident Year Experience in that, while the experience is developing,
the loss reserves are used in the calculation, but the ultimate result cannot be
finalized until all losses are settled.
o Different from Accident Year Experience in that premiums earned from policies
incepting during a one-year period of time will earn over the course of both the
year of inception and a later year(s). Similarly, losses to be included will be
occurring over the same extended period of time, also known as the Underwriting
Year.
o Everything that has developed is included (all losses, premiums, reserves,
expenses, allowances) etc.
Page 12 of 36
Loss Run Requests:
•
•
•
From General Agent:
o Access to loss runs is available directly from the website maintained for General
Agents

If the system won’t allow access to the history the Company must verify
you were the Controlling Agent for any and all of the policy terms
requested

If you were the Controlling Agent for the periods of loss history you need
access to but cannot get or find the loss information in the Company’s
online loss history database please send your request to:
[email protected]
o If the incumbent General Agent is no longer in business, the Company will honor
the request submitted by a different General Agent if they forward permission
from the Insured to release loss runs to them
From Insured:
o If Named Insured sends written request for loss runs to Company they will be
mailed directly to the Insured address on record
o If Insured’s request includes Insured’s Letterhead and/or business card we will
be able to e-mail or fax loss history directly to Insured
From Retail Agent:
o The Company cannot honor requests from Retail Agents. Retail Agent requests
must be sent directly to General Agent.
No Known Loss Letter:
•
•
Use ACORD 37 – Statement of No Loss
This template has been approved by Corporate Legal and is the preferred format for use
in Contract Binding Authority.
PROCESSING – CERTIFICATES AND ENDORSEMENTS
Backdating:
•
Company approval required
Certificates of Insurance:
•
•
•
•
•
1.14.2015
Certificate Completion:
o Do not Indicate premium as ‘fully earned’
o Do not use a certificate as a replacement for a policy endorsement
Copies of Certificates:
o Please do not forward copies to the Company, just maintain in General Agent’s
file.
Form:
o ACORD Certificates are the only type that is acceptable, but since we are nonadmitted we will accept edition dates prior to September 2009.
Prohibited:
o Issuance of certificates directly from the Retail Agent’s office,
o Manuscript changes to certificate language
o Amendment of the notification requirements to the A.I. by striking out ‘will
endeavor’ becomes entirely your responsibility to manage, including any
consequences or obligations that result from striking out ‘will endeavor’
language.
Purpose:
o Tool to inform a third party of coverage or limits in force for an Insured.
Certificates are not an insurance policy and do not provide, endorse, amend,
Page 13 of 36
extend or alter in any way the terms of the actual insurance policy. Only an
endorsement or amendment to the policy can effect changes in coverage.
Endorsements:
•
•
•
•
•
Additional premium generated (if any) to be collected within 45 days from the issue date.
Return premium endorsements to be processed within 30 days.
Company approval required:
o Backdating from the date the General Agent actually approved and/or received
the request requires Company approval
o Exposure changes that do not fit within Company guidelines require Company
approval
o Named Insured changes that represent material changes in exposures. See
Named Insured guidelines.
o Policy period extensions
Liability limit increases remain in place until policy expiration
Mailing address change – midterm:
o A mid-term change in mailing address does not result in any changes to
signature pages, state specific forms, NRN or CX until the next renewal
Rates – edition date that will apply to endorsements – see Endorsement – Edition Date for
Rates that will be Applied
Endorsements – Adding a Coverage Part Midterm:
•
•
If additional coverage parts are added midterm, a new policy prefix change is applied at
renewal, not midterm
If the additional coverage part added midterm technically creates a package, package
credit is not applied until renewal. Contact the Company as needed.
Endorsements with ‘Fill-in’ Wording:
•
•
Some forms and endorsements require “fill-in” wording for everything from descriptions,
dollar amounts, limits, locations, etc. If the General Agent fails to complete these
endorsements properly it can create claim handling complications.
Whether policies are issued annually or by automated systems these forms still must be
filled in with all the required information.
Excluding Coverage – How to Indicate on Policy:
•
When guidelines advise to indicate ‘Excluded’ on a policy, do not use any variation other
than ‘Excluded’. It is not acceptable to instead indicate “Not Covered”, “O”, “Zero”, “Not
Applicable” or “N/A”.
•
See Underwriting – Forms
Forms:
Midterm Endorsements – State Specific Forms:
•
If an exposure is added midterm that is in a state that was not on the policy at inception
the related state specific forms (i.e. cancellation/nonrenewal, signature pages and/or
declarations) are to be added at the next renewal rather than mid-term. If there are state
specific forms deemed to be absolutely essential when the new state is added the policy
should be cancelled and rewritten.
PROCESSING – POLICY ISSUANCE
General Agents using the EDGE system to issue policies (i.e. not using DocuCorp):
•
1.14.2015
Forms with multiple selections will auto-complete for those issuing in the EDGE system
since those selections have already been made in the rating process. For non-premium
Page 14 of 36
bearing forms with drop down selection the EDGE user does not complete these until
policy issuance.
General Agents that issue policies using DocuCorp instead of the EDGE System:
•
•
Forms with drop down selections must be completed by non-EDGE users
Forms in DocuCorp are not password protected
Policy Issuance:
Application(s):
•
To be updated by the General Agent every 3 years:
o ACORD
o Supplemental Application (if applicable)
o Farm/Ranch Application
Company a Policy is to be issued in:
•
•
•
Colony Specialty Insurance Company – Virginia only
Colony Insurance Company – All states except Virginia
If the policy has exposures in Virginia, plus exposures in other states:
o Policies that have locations in states where we have different company authority,
e.g. if the named insured is located in VA but has locations in VA & MD, will
require writing separate policies if premium is to be allocated to both locations;
one in Colony Specialty Insurance Company (CSIC) for the VA exposure, and
the other Colony Insurance Company (CIC) for the MD exposure. With composite
rating, the guideline of using the insured’s state of domicile or headquarters
should be followed, and separate policies will not be necessary.

In the rare instance that policies are being issued in separate
Companies and you are technically not able to apply package credits
when they would otherwise be eligible had the exposures been written
on a single policy, contact the Company to see if subjective credits may
be applied to be equivalent to a package credit.
o There is one exception to the above and that is when you composite rate the
account. The exception that is applicable is as follows:

“Policies that have locations in states where we have different company
authority, e.g. if the named insured is located in VA but has locations in
VA & MD, will require writing separate policies if premium is to be
allocated to both locations; one in CSIC for the VA exposure, and the
other CIC for the MD exposure. With composite rating, the guideline of
using the insured’s state of domicile or headquarters should be
followed, and separate policies will not be necessary.”

When seeking an exception Company approval is required and all
rating will be done by the Company. All of the premium will go into one
liability class code, with all other class codes showing ‘included’
Copies of Company Approvals (if any)
•
Forward copies to the Company with Policy
Countersignatures:
•
Countersignature laws have been eliminated in all states
Loss History:
•
•
•
1.14.2015
3 years unless a new venture
If a new venture inquire about insured’s business background instead
If the account has been verified to be loss free for the 3 most current policy terms (or
longer) it is acceptable to just check the box for ‘No Losses’ on the application
Page 15 of 36
Mandatory Entries on the Policy:
•
•
•
•
•
Company:
o Select ‘Colony Insurance Company’ for all states except VA.
o Select ‘Colony Specialty Insurance Company’ for VA.
o If the exposures in VA and other states use the ‘State of Domicile’ to determine
which Company paper to issue the policy on
Fill-in forms:
o Be sure to send copies to the Company of all forms that have ‘fill-ins’
Forms List:
o ‘Schedule of Forms and Endorsements’ U001:

Use form U001 in lieu of listing forms on the declaration page and
individual coverage parts

Policy number must be indicated on U001

List all coverage parts and all forms applicable to the policy here

Notices to Policyholders – All statute mandated notices to
policyholders must be listed on Company Form U001 – Schedule of
Forms or Endorsements
Policy Number(s) on Common Declarations Page:
o If a renewal, list the prior policy number. If new business, type ‘New’ in prior
policy area.
Producer – Enter General Agent’s address and General Agent code
Multi-Peril Policy:
•
See guidelines for ‘Package Policy’ under ‘Rating’
Multi-State Guidelines:
•
•
•
See Underwriting – Forms
Company – Verifying the policy is correctly placed in the right Company (see above)
Forms – Designating all state specific forms that apply to the policy.
Rating Documents:
•
Forward copies of all rating worksheets that reflect the bound policy premium
Surplus Lines Data Form (SLB Data Form) Overview:
•
•
•
•
•
1.14.2015
Only insurance professionals licensed as surplus lines brokers may transact business
through a surplus lines company. All licensed surplus lines brokers are required to file
surplus lines tax reports and payments to the Departments of Insurance monthly, quarterly
or annually.
Several states require that insurance companies provide a listing of all policies written
through the company in that state for the calendar year with the name, address, and
license number of the licensee who paid the taxes. The States use this information for
audit purposes and make it a condition for an insurer’s continued eligibility to do business
in the state.
Generally, policies are written in a General Agent’s home state and the license used for
the transactions is in the General Agent’s home state.
For out of state policies, agents may either use a non-resident license, a branch office
license, or another agent to file the appropriate taxes.
In order to eliminate the paperwork after year end required to complete the surplus lines
tax reports, the Company now requests the licensee tax payer information on all policies
written outside of the agent’s home state at the time coverage is bound via the mandatory
SLB Data form. The form is forwarded when sending the completed policy to the
Company.
o SLB Data form SLBDATA – 0811 is only required when:
Page 16 of 36


•
Risk state differs from the agents “home state” (domicile state)
Risk is multi-state (involving locations in different states). This can be
either physical locations or mailing addresses in different states.

Even if taxes are being paid by the Insured an SLB Data form is still
required in the above two cases
o Exceptions for filing out SLB Data Forms each time a risk is written out of state:

If the General Agent consistently writes of their state of residence and
has a corporate non-resident SL license the Company may be
approached for exceptions. This will require Division Manager approval.
Corporate Regulatory Company must be contacted:
[email protected]
SLB Data Form and Risk State Election:
o The General Agent determines what is to be the ‘Home State’, the Company
can’t make this determination. The Department of Insurance may be able to
assist the General Agent when in doubt.
o If the SLB Data form is not forwarded, Contract Underwriting will make two
attempts to obtain the form. After that no further attempts will be made and
Corporate Underwriting will follow up with the General Agent for the data.

When the SLB Data form is received, in ImageRight, please add
completed form to “Data Entry Binding” and “Unassigned” for
processing.
Surplus Line (SL) Warning Stamp:
•
•
General Agents are required to affix, by stamp, or in writing, a statement on the
declarations page concerning the fact that the policy is a surplus lines policy and often, the
states require a signature of that statement (frequently termed the “SL warning stamp”)
Some states require the President or Vice President’s signature on the policy. This is
accomplished by the signatures being placed on the policy jacket. This is done to be in
compliance with the statutes.
Terrorism / TRIA:
•
•
1.14.2015
Quotes: New Business, Renewal, Midterm:
o Premium charge for Terrorism must be shown separately on the quote
o The appropriate Policyholder Disclosure Notice of Terrorism Insurance Coverage
must be attached to all quotes, including midterm quotes
o May be endorsed midterm with Company approval, but no pro-rata charge is to
be applied, flat premium charge applies
Issuance:
o The coverage for terrorism on the policy will be tailored to fit the insured’s
acceptance or rejection of the coverage
o The premium charge for terrorism coverage is to be shown on the Common
Policy Declarations Page
o The premium will never change during the policy term
o A signed copy of the Policyholder Disclosure Notice of Terrorism Coverage either
accepting or rejection should be forwarded to the Company when sending the
completed policy

Another Insurer’s Policyholder Disclosure Notice of Terrorism Coverage
cannot be accepted

A new signed TRIA form is required at each renewal

Do not hold up sending issuance documents if you’re only waiting to get
the TRIA form signed
•
The U.S. Treasury Department has been reasonable about
allowing companies to rely upon documented established
business practices, rather than specific risks, to demonstrate
Page 17 of 36
compliance. As such, we are relaxing our approach. A
reasonable attempt to obtain the signed disclosure notice
should still be made but it is no longer necessary to follow up
continuously.
•
•
Cancellation:
o Cancellation – Requires Company approval. Pro-rata return applies
o Endorsement – TRIA may be endorsed midterm with Company approval, but no
pro-rata charge is to be applied
Unpaid Terrorism Premium:
o In the event Terrorism coverage is accepted and the policyholder does not remit
the Terrorism premium, the policy will be cancelled for non-payment of premium
following our normal procedures. See separate guidelines for Cancellation.
o NY State only: TRIA – MEP endorsements above 25% are ok, as long as the
TRIA portion is only held to 25%. Doesn’t apply to special event, seasonal or
exempted lines.
Emailing Policies and Related Underwriting Documents to Company:
•
•
•
•
Send only one policy per email and related attachments do not combine multiple policies
in same email.
o Policy documents (see section above) that apply to the same policy may be
attached as separate attachments
o File names for these separate attachments should NOT include any numbers
Emailing:
o Arizona:
[email protected]
o Colorado:
[email protected]
o Virginia:
[email protected]
Items specifically needing an UW’s response or attention should be sent to that particular
UW’s attention. The above listed email boxes are for completed policies only, without any
follow-up actions or items needed.
Questions? Contact Business Support Services at 1-800-456-8458 extension 7281 or
email: [email protected]
Excluding Coverage – How to Indicate on Policy:
•
When guidelines advise to indicate ‘Excluded’ on a policy, do not use any variation other
than ‘Excluded’. It is not acceptable to instead indicate “Not Covered”, “O”, “Zero”, “Not
Applicable” or “N/A”.
•
See Underwriting – Forms
Forms:
Moving an Account to a Different Business Unit within the Company:
•
Changes over time may result in the need to move an account to another underwriting
department. Contract Binding Authority must be contacted for approval.
Policy Fees, Expense Constants and Taxes:
•
•
•
Policy fees are charged by the General Agent, not the Company.
General Agent responsible for collecting and reporting all surplus lines taxes to
appropriate regulatory authority
All fees and surplus line taxes must be indicated on the Declaration page on all copies of
policy. Do not combine the policy fee with the inspection fee on the Declaration page.
Policy Number Assignments:
•
1.14.2015
If using EDGE to rate, quote and bind your policies the system will automatically
assign a policy when you go to policy issue. See policy numbering schema below.
Page 18 of 36
•
If you are not using EDGE to rate, quote and bind your policies you will need to obtain
a block of policy numbers from Patty Runnels at 1-800-456-8458 or
[email protected]. The block of policy numbers will follow the policy
numbering schema below.
Adding New Coverage Part to Policy Midterm:
•
If additional coverage parts are added midterm, a new policy prefix is applied at renewal,
not midterm.
Cancel and Rewrite:
•
Should a policy be canceled and rewritten, a completely new policy number is assigned
Lapse in Coverage:
•
If there is a lapse in coverage, then an entirely new policy number must be assigned.
New Business:
•
Policy numbering schema – example: 102 GL 1200101-02
o Business Unit = 102
o Cov. Symbol = GL
o Digits = 1200101
o Renewal term = 02
Package Policies – Line of Business Combinations that Create a Package Policy
•
•
•
•
•
•
•
•
•
•
Property + Liability
Property + Crime
Property + Inland Marine
Inland Marine + Crime
Property + Liability + Inland Marine
Property + Liability + Crime
Property + Liability + Crime + Inland Marine
Liability + Crime
Liability + Inland Marine
Liability + Inland Marine + Crime
Policy Prefixes:
•
•
•
•
•
•
•
The following will be preceded by the three digit designation for Contract
CP – Monoline Property
IM – Inland Marine
FO – Farm & Ranch
GL – Monoline General Liability Policy
OCP – OCP Policies
PKG – Multi-Peril Policy (Package)
Renewals:
•
•
Policy numbers should be carried forward from one renewal to the next. When doing so
the suffix should be incremented forward. For example if the policy was -00, it should
change to -01 at renewal.
Entirely new policy numbers may be assigned at renewal, although this is highly
discouraged. If an entirely new number is assigned the suffix will be -00 at renewal.
Policy Numbers – Obtaining New Blocks of Numbers:
•
1.14.2015
Applicable only when not using the Company’s EDGE system to issue your policy. If
issuing within the Company’s system the policy number will automatically be assigned.
Page 19 of 36
•
Contact the Company for new blocks of policy numbers. Each agent is assigned a block of
policy numbers to assign to policies they issue, and it is important not to assign numbers
that go beyond the block you’ve been given.
Policy Term – Annual or Short Term:
•
•
12 months except where noted as exceptions in underwriting guidelines for risks such as
OCP, Special Events or Vacant. Submit all others.
Policy extensions beyond 12 months require Company approval
RATING
EDGE Online Rater:
•
•
•
•
•
•
1.14.2015
Advantages of the EDGE rater:
o Simplified rating
o Policy specific forms list created for each quote
o Even if you are not going to use EDGE to issue your policy, you still must use the
EDGE Online Rater. The only exception is for those General Agents who have
made prior arrangements with the Company to load our rates into their own
proprietary rating system.
Credit Authority:
Subjective:
o All available subjective credit authority is built into the EDGE Rater based on
your individual user I.D. when you log into the system. If you have questions
about your subjective credit authority contact your assigned Company
Underwriter.
Overrides for MEP or MP:
o Agents have authority to increase the MEP, or the MP without Company approval
o Authority to reduce the standard applicable MEP or MP resides with Company
Underwriters only
Quotes are retained for 120 days in the EDGE system
Rating detail in EDGE
o Step 1

Two Business Categories drive separate rating systems. You must
select one or the other when entering the EDGE rater:
•
Farm and Ranch
•
Standard Lines of Business
o Step 2

Each Business Category has a unique set of rating choices to select
from:
•
Farm and Ranch
o Farm Liability
o Farm Property
o Additional Policy Coverage
o Premium Summary
•
Standard Lines of Business
o Liability (if you have liability rate this line-of-business
first)
o Property
o Inland Marine
o Crime
o Additional Policy Coverage
o Premium Summary
Page 20 of 36
Commissions:
•
•
Refer to your General Agency Agreement or contact the Company
General Agents do not have authority to override standard commissions. Non-standard
commissions require Company approval.
Endorsement – Edition Date for Rates that will be Applied:
•
•
Endorsement of changes to exposures in place at policy inception will have the rates in
effect at inception applied to the endorsement
Endorsement of brand new exposures not in place at policy inception will have the rates in
effect as of the effective date of the endorsement applied
Minimum Earned Premium:
•
1.14.2015
25% Minimum Earned Premium applies unless you have any of the following exceptions:
o All States:

OCP Policies (class code 16292) – 100% MEP

Policies with the Snow & Ice Removal – Contractors (class code 99310)
– 50% MEP

Short-Term Policies (i.e. policy term is less than six months) – 50%
MEP

Vacant Building Policies:
•
Vacant Building – Factories (class code 68604)
•
Vacant Buildings – Not Factories – Not-For-Profit Only (class
code 68607)
•
Vacant Buildings – Not Factories – Other Than Not-For-Profit
(class code 68606)
o 3 month policy term – 100% MEP
o 6 month policy term – 50% MEP
o 12 month policy term – 25% MEP
o Texas only:

Policies with one of more of the following Restaurant Class Codes:
•
Restaurants Buffets – With No Sale of Alcoholic Beverages
o (class code 16952) – 50% MEP
•
Restaurant Buffets – With Sale of Alcoholic Beverages that are
Less Than 30%
o (class code 16950) – 50% MEP
•
Restaurants – Operated by Concessionaires – Not-For-Profit
Only
o (class code 16820) – 50% MEP
•
Restaurants – Operated by Concessionaires – Other Than
Not-For-Profit
o (class code 16819) – 50% MEP
•
Restaurants – with No Sale of Alcoholic Beverages – with
Table Service
o (class code 16900) – 50% MEP
•
Restaurants – with No Sale of Alcoholic Beverages – without
Seating
o (class code 16902) – 50% MEP
•
Restaurants – with No Sale of Alcoholic Beverages – without
Table Service with Seating
o (class code 16901) – 50% MEP
•
Restaurants – with Sale of Alcoholic Beverages that are Less
Than 30% of the Annual Receipts of the Restaurants – with
Table Service
Page 21 of 36

o (class code 16910) – 50% MEP
Policies with one of more of the following Roofer class codes:
•
Roofing – Commercial or Residential over Three Stories
o (class code 98677) – 50% MEP
•
Roofing – Residential – Three Stories & Under
o (class code 98678) – 50% MEP
Multi-Peril / Package Combinations Eligible for Package Credits:
•
A 10% credit applies to Multi-Peril / Package Policies with the following line-of-business
(LOB) combinations, and the policy prefix is ‘PKG’:
o Property + Liability
o Property + Crime
o Property + Inland Marine
o Inland Marine + Crime
o Property + Liability + Inland Marine
o Property + Liability + Crime
o Property + Liability + Crime + Inland Marine
o Liability + Crime
o Liability + Inland Marine
o Liability + Inland Marine + Crime
Policy Level Coverage vs. Policy Level Premium Charges:
•
•
TRIA is a policy level premium charge, but the coverage forms are separately specific to
the property line-of-business and the liability line-of-business.
Identity Recovery is a policy level coverage, but the premium charge is made at a line-ofbusiness level. For risks that are not on farm policies the charge is made on the property
line-of-business. For risks that are on a farm policy the premium charge is made on the
farm liability line-of-business.
Premium – Definitions:
•
•
•
Annual Premium – Premium for Annual
Term Premium – Actual Premium for the Term.
o Example: Annual Premium is $100 – Six Month Term Premium is $50
Written Premium – the amount of premium recorded for a policy at the time it is issued
o Earned – Part of a policy’s written premium is expressed as earned premium.
This is the part of the premium that corresponds with the expired portion of the
policy – the amount of coverage the policyholder has already used.
o Unearned – The part of the policy overage that has not yet expired corresponds
with unearned premium. In most cases, the unearned premium has been paid
for, but has not yet been used
Premium Rounding:
•
•
Within the rating algorithm programs in the background rounding is to 3 digits
Final rate is rounded to 2 digits
Renewal Rating:
•
1.14.2015
Those who actually issue their policies through the online rating system can easily pull
forward their expiring exposures. The EDGE system will apply the most current rates and
pull the most current forms. You are not allowed to carry forward the expiring policy rates
and apply them to a renewal whether you issue through the EDGE system or not.
Page 22 of 36
RULES FOR FORM ATTACHMENT, CANCELLATION OR NON-RENEWAL, SLB DATA FORMS, TAXES
AND FEES
Form Attachment Rules:
•
•
All forms except CX and NRN:
o Based on whatever states the insured has exposures in. If there are multiple
states then all forms for those states are to be attached.
CX and NRN:
o The insured’s mailing address determines which CX and NRN forms are
attached
Definitions:
Home State:
•
•
The General Agent determines which state will be the policy’s designed ‘Home State’
Taxes and fees are paid to the ‘Home State’
Mailing Address:
•
•
•
May or may not be where the business is located
Determines which CX and NRN forms are attached to the policy
Mid-term changes to the insured’s mailing address:
o Will not result in changes to state specific forms on the policy until the next
renewal. If state specific forms must be changed before then, then a cancelrewrite is the only way to accomplish this.
Main State / Primary State
•
•
•
This designation is for reporting purposes only
Primary State defaults to the state designed in the ‘Location 1’ address on the policy
General Agent has the authority to change the Primary State
State of Domicile
•
•
•
•
EDGE does not have a “Sate of Domicile” filed, but does have a Primary State” field (see
above)
Because applications do not provide ‘state of domicile’ information the insured’s mailing
address is used to determine which CX and NRN forms are attached to the policy
Corporations:
o State of incorporation
All Others:
o State where the company is headquartered, or the location that is the principle
place of business or the hub of operations
SLB Data Form:
•
General Agents with a home / main office and branch / satellite office(s):
o Branch / satellite has their own separate agency code:

SLB Data Form rules apply using the branch / satellite location address
o Branch / satellite does not have their own separate agency code:

SLB Data Form rules apply using the home / main office location
address
•
Quotes: New Business, Renewal, Midterm:
o Premium charge for Terrorism must be shown separately on the quote
o The appropriate Policyholder Disclosure Notice of Terrorism Insurance Coverage
must be attached to all quotes, including midterm quotes
TRIA
1.14.2015
Page 23 of 36
May be endorsed midterm with Company approval, but no pro-rata charge is to
be applied, flat premium charge applies
Issuance:
o The coverage for terrorism on the policy will be tailored to fit the insured’s
acceptance or rejection of the coverage
o The premium charge for terrorism coverage is to be shown on the Common
Policy Declarations Page
o The premium will never change during the policy term
o A signed copy of the Policyholder Disclosure Notice of Terrorism Coverage either
accepting or rejection should be forwarded to the Company when sending the
completed policy
o Another Insurer’s Policyholder Disclosure Notice of Terrorism Coverage cannot
be accepted
o A new signed TRIA form is required at each renewal
o Do not hold up sending issuance documents if you’re only waiting to get the TRIA
form signed

The U.S. Treasury Department has been reasonable about allowing
companies to rely upon documented established business practices,
rather than specific risks, to demonstrate compliance. As such, we are
relaxing our approach. A reasonable attempt to obtain the signed
disclosure notice should still be made but it is no longer necessary to
follow up continuously.
Cancellation:
o Cancellation – Requires Company approval. Pro-rata return applies
o Endorsement – TRIA may be endorsed midterm with Company approval, but no
pro-rata charge is to be applied
Unpaid Terrorism Premium:
o In the event Terrorism coverage is accepted and the policyholder does not remit
the Terrorism premium, the policy will be cancelled for non-payment of premium
following our normal procedures. See separate guidelines for Cancellation.
o NY State only: TRIA – MEP endorsements above 25% are ok, as long as the
TRIA portion is only held to 25%. Doesn’t apply to special event, seasonal or
exempted lines.
o
•
•
•



U884 – is a mandatory Conditional Terrorism Exclusion for the
following:
• CGL LOB
• Farm/Ranch Liability LOB
• OCP
U885 – is a mandatory Conditional Terrorism Exclusion for the
following:
• Commercial Property LOB
• Farm/Ranch Property LOB
• Commercial Inland Marine
Based on the above this is how the rules would work:
• Pkg Policies – U884 and U885
•
•
•
•
1.14.2015
Farm/Ranch – U884 and U885 (we would just attach both
forms regardless since the policy prefix for farm is the same
whether monoline or package)
Monoline GL – U884
OCP – U884
Monoline CIM – U885
Page 24 of 36

For policies where TRIA was rejected the ILP001-0104 – U.S. Treasury
Department’s OFAC Advisory Notice should have been issued.
UNDERWRITING
Authority:
•
•
General Agent Authority Grant is defined within the guidelines found within the online
Contract Underwriting Guide, the General Agency Agreement and/or any other written
agreements
Transfer of Authority:
o Any authority granted herein or contained in the General Agency Agreement is
not transferable to any other party without the express written consent of the
Senior Marketing Officer of the Company.
Backdating:
•
General Agents do not have authority to backdate unless the EDGE system allows
backdating. An example of that is a binder received over the weekend and the need to
bind coverage back to the previous Friday. This can also occur with reinstatements
related to payment of premium. In most other cases Company Underwriter approval will
be needed to backdate. In general Contract does not approve backdates.
Bulletins and Flyers:
•
A list of all bulletins and flyers are found by accessing the Company portal’s Contract
section
Forms including CX, NRN, State Specific, and SLB Data:
•
•
•
•
•
•
1.14.2015
De-selection of pre-checked forms on an EGDE form’s list related to a specific quote
require Company Underwriter approval in all cases
Forms (ISO or Company), including the specific edition date must be listed in the most
current Contract forms library. If not Company approval is needed to use a form not listed
or a form with an edition date not listed.
Use of available forms from the Contract forms library on a specific account must be per
all of Contract’s attachment rules and guidelines. If the form is not normally available for
the type of business in question you must get Company approval for non-standard use of
the form.
Changing the terms and conditions of any form by deleting or adding manuscript
language is prohibited
Form attachment rules are based upon whatever states are included in the coverage
grant. If there are multiple states on the coverage grant, then all forms for those states
are to be attached to the policy with the sole exception of cancellation/nonrenewal forms.
Cancellation/Nonrenewal Forms:
o Only the Cancellation and Non-renewal forms that are tied to the insured’s ‘state
of domicile’ are to be attached to the policy. The EDGE system will attach either
the mailing-address-state related forms, or at least one risk-state (i.e. a state on
the location list) for the applicable forms.
o The ‘state of domicile’ is defined as:

Corporations or LLC’s
•
State where the business is incorporated or chartered

Joint Ventures, Non-Profits, Partnerships, Sole Proprietors, Trusts
•
State which is the principal place of business, meaning the
location of its day-to-day operations
•
When the day-to-day operations are conducted fairly evenly in
more than one state, the principal place of the business is the
commercial domicile.
o Mailing Address:
Page 25 of 36


The mailing address state may or may not be the state where the
insured has exposures or interests, and/or pays taxes and fees
See additional guidelines under “Endorsements – Changes in Mailing
Address – Midterm”
Named Insured:
Defined
•
Persons or organizations to which insurance coverage is expressly provided. Name
Insureds are listed on the relevant block of the policy’s declarations page. Although the
named insured is commonly one person, partnership, corporation or other entity with
insurable interests, multiple insureds may be included.
Underwriting the Named Insured:
•
General Agent’s must underwrite each of the Named Insureds and understand the full
scope of their operations and exposures
ATIMA – Prohibited for use in the Named Insured
Combinability of Interests on the same policy:
•
•
•
Avoid issuing more than one policy for the same Named Insured unless you have
Company approval. It is within your authority to issue a monoline commercial property
policy and separate farm liability policy for the same Named Insured.
Combinability requires that majority common insurable interests exist between the various
entities, majority meaning 51% or more ownership in each entity (with an exception for
Joint Ventures)
More than one Named Insured may be included on a policy, and they may consist of any
single or combination of business entity types (individuals, partnerships, joint ventures,
corporations, associations, limited liability corporations or some other type of legal entity)
DBA’s:
•
•
A ‘DBA’ is not a legal entity.
The Named Insured should never just be the DBA alone. The DBA is just a business
name that is shown in ADDITION to the legal entity that is the Named Insured.
First Named Insured:
•
The ‘first named insured’ is the first name listed on the policy declarations (the front page
of the policy). This designation creates the following rights and responsibilities associated
with “first named insured” status that do not apply to other “‘named insureds”:
o Ability to act as the legal agent for all the ‘named insureds’ on the policy with
ability to cancel, request policy changes including adding additional entities
(subject to Company approval) or accept return premiums (if any)
o Notice of loss requirements
o Receive copies of the policy
o Receive notifications of CX or NRN
o Receive return premiums obligations to the Company including additional
premiums related to premium audits or endorsements. The failure of the first
named insured to pay the premium can result in coverage being cancelled for all
named insureds, not just the first named insured.
Holding Companies:
•
•
1.14.2015
In general we are not a market for holding companies, nor do we normally approve adding
a holding company as a ‘named insured.’ Including a holding company as a ‘named
insured’ requires Company approval.
Background:
Page 26 of 36
o
o
o
A holding company is a parent company that owns enough voting stock in a
subsidiary to dictate policy and make management decisions. This is generally
done through influence of the company’s board of directors. This doesn’t mean
that the holding company owns all of the subsidiary’s stock, or even a majority of
it. Holding corporations are typically created to protect business assets,
including equipment, machinery or intellectual property. In this arrangement, the
holding company actually owns the business’s assets, but leases them to the
operating company.
Responsibility – The subsidiary and holding companies are separate legal
entities; each may be sued by other companies or may sue others. However,
the parent company has the responsibility of acting in the best interest of the
subsidiary by making the most favorable decisions that affect the management
and financials of the subsidiary company. The holding company may be found
guilty in a court, for breach of fiduciary duty, if it does not fulfill its responsibilities.
The holding company and the subsidiary are perceived to be one and the same if
the holding company fails to fulfill its fiduciary duties to the subsidiary company.
Both companies would share liabilities incurred by the other.
In the event of a serious loss incurred by one of the companies being held, it is
not unusual for the Holding Company to be named in the suit resulting in
potentially high defense costs if nothing else.
Named Insured Changes – Endorse or Cancel/Rewrite – See instructions below:
Scenario
Example
Endorsement or Cancel/Rewrite
Corporate or LLC name
addition
“ABC, LLC” to “ABC, LLC and XYZ
Construction Management, LLC”
Endorsement if common ownership, and
insurable interest – Verify combinability –
Underwrite the new entity’s operations
Corporate or LLC name
change with
the same ownership.
“ABC, Inc.” to “XYZ Construction
Management, Inc.”
Cancel/Rewrite – Underwrite as a new
account
Corporate or LLC name
change with
different ownership.
“ABC, Inc.” to “XYZ Construction
Management, Inc.”
Cancel/Rewrite – Underwrite as a new
account
DBA Change
“John Smith DBA XYZ Construction”
to “John Smith DBA JKL
Construction”
Endorsement – Underwrite operations of
the new DBA name
Individual Change
“Frank Smith DBA XYZ Construction”
to
“Paul Jones DBA XYZ Construction”
Cancel/Rewrite – Underwrite as a new
account
1.14.2015
Page 27 of 36
Scenario
Example
Endorsement or Cancel/Rewrite
Partnership Name
Change with
ownership remaining the
same
“Rivertown Properties” to
“Rivertown Management”
Endorsement – Underwrite the operations
of the new entity
Partnership Name
Change.
New partners or different
partners.
“Rivertown Properties” to
“Rivertown Management”
Cancel/Rewrite – Underwrite as a new
account.
Typo Correction
“Smit Construction, Inc.” to
“Smith Construction, Inc.”
Endorsement
Types of Named Insured Entities:
•
•
•
•
•
1.14.2015
Corporation:
o The most formal type of business organization requiring registration with the
state and certificates of authority to do business in that state. The corporation is
considered by the law to be a separate legal entity, a separate ‘person’.
Shareholders are the owners but are not personally liable for the actions of the
corporation.
o The Named Insured should only indicate the corporation and any DBA name of
their operation. Do not list the individual officers as Named Insureds
Joint Venture:
o Association of one or more persons or corporations to carry out a single business
enterprise for profit without actual formation of a legal partnership or corporation.
They are established for a definite period and for a definite deal or purpose.
Most often used in construction development projects. Named Insured should
not list individual names unless the name of the joint venture includes their
names.
Limited Liability Company (LLC):
o Business structure allowed by state statute, which is more like a hybrid entity of a
corporation and a partnership. LLC’s are popular because, similar to a
corporation, owners have limited personal liability for the debts and actions of the
LLC. Other features of LLC’s are more like a partnership, providing management
flexibility and the benefit of pass-through taxations. Owners of an LLC are called
members. Members may include individuals, corporations, or other LLC’s and
even foreign entities. Most states also permit “single member” LLC’s, those
having only one owner. Coverage extends to members, but only with respect to
the conduct of the insured’s business. Coverage also extends to managers but
only with respect to their duties as the insured’s managers. Do not list these
individuals as Named Insureds.
Partnership:
o Exists when two or more persons agree to enter business together on negotiated
terms. Most partnerships are a business entity which is separate from the
activities of the individual partners. Do not list individual names unless the name
of the partnership includes their names.
Sole Proprietorship:
Page 28 of 36
o
o
•
Trust:
o
The simplest and most common form of business enterprise. It is owned and
managed by one person and exists as an extension of the personal life of that
person. The sole proprietor is personally liable for all business liabilities.
The sole proprietor’s wife or husband do not need to be listed as part of the
Named Insured since he/she will be considered to be insured, but only insured in
relation to conduct related to the business.
An arrangement where one person or entity has the legal title to property under
an agreement to administer the property for the benefit of someone else (termed
the beneficiary) who has equitable title to it.
New Ventures:
•
•
In most cases new ventures are acceptable. New ventures are defined risks whose
operation(s) have been in existence under the same ‘named insured’ for less than 3 years.
Sometimes guidelines will indicate a need for an insured to have at least 3 years prior
related business experience in order to be acceptable as a new venture. An example of
this would be a roofer.
Prohibits – All Lines of Business:
•
•
•
•
•
•
•
•
•
•
•
Any classification or exposure listed as prohibited in the underwriting guide
Bridge or tunnel exposures
Electrical wiring if aluminum (including pigtailed, fuses instead of circuit breakers; or
knob and tube wiring
Fireworks or pyrotechnics
Marine exposures if they include:
o Barges
o Ocean Marine
o Submarines
Manufacture of herbal dietary or medicinal products, neutra-ceuticals, topical products
applied to skin or hair
Offshore exposures
Property in a deteriorated condition, condemned or has unrepaired damage
Towers exposures if they exceed 76 feet
Wind – property that does not qualify based on territory specific guidelines
Wood stoves used as primary or supplemental sources of heating
Quote Status Documentation:
•
1.14.2015
In the EDGE system you may indicate the status of a quote as any of the following:
Lost
BOR
Lost
Broker didn’t submit requested materials
Lost
Broker lost
Lost
No response
Lost
Pricing
Lost
Terms / Conditions
Page 29 of 36
Declined
Can’t complete
Declined
CAT load – Cost prohibited / Exposure Undesirable
Declined
Loss prevention concerns
Declined
Need admitted paper
Declined
Risk characteristics
Declined
Risk unacceptable – claims activity
Not Quoted
BOR
Not Quoted
Broker lost
Not Quoted
Incomplete Submission
Not Quoted
Need admitted paper
Not Quoted
No response
Not Quoted
Placed elsewhere
Not Quoted
Referral to another Division
Not Quoted
Risk unacceptable – claims activity
Not Quoted
Stayed with incumbent
Not Quoted
Submission received by another ARGO Business Unit
Renewal Underwriting:
•
Rating:
o Do not carry rating worksheets from prior term forward, always re-rate renewals
using most current rates.
o Using the Company’s rating program allows you to import all expiring rating data
to speed the creation of a renewal quote
o Consult with the Company on the application of any subjective rate credits.
Renewal Certificates are not used in Binding Authority
•
•
•
•
1.14.2015
General Agent is to check in with insured prior to each renewal to see if there are any
changes in exposures and/or rating bases used for premium calculations
A renewal quote should be generated if for no other reason than to generate a list of the
most current forms (including edition dates) that will apply to the renewal
Submit Required:
o Any A&B claim (paid or not)
o Guideline changes have resulted in the risk falling outside of General Agent
authority and thus requiring submit for the renewal
o Loss frequency exceeds 3 losses in 3 years and/or any one loss exceeds $5000
Submit Not Required:
o Underwriting guideline exceptions already on file from the prior term may be
carried forward without re-referral. An exception to this would be if the Company
is exiting a class of business, such risks cannot be renewed
Page 30 of 36
States East of the Mississippi vs. West of the Mississippi:
•
When underwriting guidelines are noted as applying east vs. west of the Mississippi River
this map shows which side a state is on. The only exception is that IL and WI are
considered western states in Contract.
Submit Criteria – New or Renewal:
•
•
•
•
•
•
•
Cancelled or non-renewed in the past 3 years
Government (including Military) entity exposures
Losses but only if there are:
o In the past 3 years:

Claim(s) above $5,000

Three or more
o In the past 5 years claims involving the following regardless of size:

Abuse or Molestation

Assault and Battery
Payrolls exceeding $250,000, unless noted otherwise in class code guidelines
Receipts over $5,000,000, unless noted otherwise in class code guidelines
Remodeling or renovation exposures unless notes otherwise in class code specific
guidelines. All renovation prohibited in Five Boroughs of NYC.
o Risk characteristics do not meet all underwriting guidelines
o Structures over 6 stories
o Subcontractor exposures exceeding 25% of total operations, or subcontractor
costs exceeding $1,000,000 unless noted otherwise in class code guidelines

Any risk where insured will be acting as their own General Contractor
See also ‘Renewal Guidelines’ above
Territory (including International Exposures):
•
•
•
1.14.2015
General Agent’s underwriting territory is defined in the General Agency Agreement
The Company writes in all 50 states with restrictions that are noted in the underwriting
guidelines
International exposures for property and/or liability are not written in Contract.
o Places like Canada, Puerto Rico and the U.S. Virgin Islands are all considered
“international”
Page 31 of 36
•
U.S. based risks that manufacture products that meet our underwriting criteria and happen
to sell products to ‘international customers’ are acceptable subject to the following:
o Verification that all overseas exposures are covered by another carrier with
potential exceptions for product liability per the below:

If the product meets Contract’s underwriting guidelines for domestic
sales it will be acceptable for product liability related to international
sales

If international sales are covered by another policy be sure to delete
those receipts in the rating process, if not then international receipts
would be rated for under Contract’s policy
o A Company Underwriter has approved
Weather Related Bulletins – Cease Binding – Moratoriums – Archives:
•
•
•
•
•
•
1.14.2015
No new business or increased amount of insurance shall be bound or written when a
hurricane or tropical storm is within 200 miles of the location’s State coastline
During a catastrophe the Company may issue Cease Bind bulletins if the catastrophe
might have severe loss potential. The bulletins will have specification information
regarding the type of catastrophe and the state/country(s) impacted.
Moratoriums remain in effect until officially withdrawn.
The following are triggered during a cease bind period:
o New business:

Binding authority suspended in the impacted area for the line or lines of
business indicated in the bulletin.
o Active Business:

Endorsement of increased amounts of insurance or additional coverage
suspended. Exception would be if General Agent has quoted and
received payment prior to receiving the cease binding notification.
o Renewal Business:

Terms and conditions must remain unchanged with no increase in limits
unless General Agent has quoted and received payment prior to
receiving a cease binding notification.

Moratoriums remain in effect until officially withdrawn. See Company
website: www.colonyspecialty.com. If uncertain whether moratorium is
still in effect contact Company.
National Hurricane Center updates: www.nhc.noaa.gov
Moratorium of Coverage – Archives:
o To locate the ‘Moratorium Archives’ login to the Company website. In the upper
right corner of the first screen is a ‘quick-link’ ‘PRODUCTS & SERVICES.’ Click
here there and then look for ‘DIVISIONS’ on the next screen (near the top).
Links to bulletins, fliers and editable fliers, hit-lists and histories of on-line guide
changes also here.
Page 32 of 36
GUIDELINES – ADMINSTRATIVE, GENERAL, MARKETING, REPORTS
Accounting – Payments to Company:
Payments:
•
You must pay the premium due Company within terms of the Agency Agreement. Unless
otherwise stated, the following apply:
o Payment must be on net basis with commissions retained by the Agent.
o Payment on account current is due in Company’s office within 45 days after the
end of the month in which the premium was entered on agent’s account current
statement. Example: premium for all policies and endorsements issued between
September 1 and September 30 is due to Company by or before November 15.
If the 15th of the month falls on a holiday or weekend, premium is due the
preceding Friday.
o Omission from account current of any items due Company will not modify or
affect the responsibility of the Agent to account for and pay Company any and all
net premiums.
Electronic Transfer of Funds:
•
•
•
Available but you must instruct your bank to electronically transfer the Account Current
balance to the Company's bank each month.
You control the amount and the date of funds transfers.
Contact Company’s Agency Accounting Department for additional information.
Advertising and Marketing:
•
•
Refer to your General Agency Agreement for details relating to broadcasting, publishing or
distributing materials or other matter, including marks or logos. The Company offers many
ways to advertise and market Company products to customers.
To locate marketing brochures login to the Company’s Website. In the upper right corner
of the first screen is a ‘quick-link’ ‘PRODUCTS & SERVICES’. Click your mouse there
and then look for ‘DIVISIONS’ on the next screen (near the top). Links to bulletins, fliers
and editable fliers, hit-lists, histories of on-line guide changes and moratorium archives
also here.
Agency Code Number:
•
A unique agency code is assigned by the Marketing Department to all Contract Binding
Authority eligible Agents. This code must be indicated on all policies issued on the
Company’s behalf.
Agency Profile Reports – Premium and Loss Information:
•
Special access code required. Contact Marketing for access:
o Midwest – Dave DeCosta – [email protected] – 312-849-6989
o Northeast – Jennifer Sanchez – [email protected] – 212-607-8882
o Southeast – Mark Rooker – [email protected] – 804-560-3580
o Texas – Sam Anderson – [email protected] – 804-560-3003
o West – Tanisha Woodard – [email protected] – 303-773-7327
Agency Underwriting File Reviews:
•
•
•
At the Company’s discretion there may be reviews of your General Agency account files.
When completed, copies of the review will be provided to you.
Reviews may be conducted on your premises and/or ours.
Annual Company Report:
•
1.14.2015
https://www.argolimited.com/static/annual_report/
Page 33 of 36
Company Help Desk:
•
If you are having problems with the Company website and/or Contract’s underwriting
guide please call 866-487-8287 or email [email protected]
Complaint Handling Procedures:
•
•
•
•
The Argo Group Corporate Legal Department advises that all of the insurers within Argo
Group US, Inc’s corporate structure are required by certain state statutes/regulations to
maintain a record of all complaints that are received by an insurer and the responses to
such complaints that are submitted to a regulatory authority by an insurer.
The Regulatory Compliance Management for the Argo Group Corporate Legal
Department has been established as the only point of contact for the receipt of all
complaints and inquiries from various regulatory authorities and agencies, including
Departments of Insurance and the state Offices of the Attorney General. If you receive this
type of complaint or inquiry, please immediately forward it to:
o [email protected]
When a complaint is forwarded, you should also request a confirmation by reply e-mail
that it has been received by Regulatory Compliance Management.
Please do not contact the Departments of Insurance or other regulatory authorities or
agencies directly. Upon receipt of a complaint or inquiry an Argo Group Corporate Legal
Department Regulatory Compliance Specialist is assigned to coordinate the preparation
and submission of each complaint or inquiry response. Each complaint or inquiry
response is also reviewed and approved by the SVP – General Counsel and Chief Claims
Officer Legal prior to submission to the regulatory agency or authority. If you are contacted
by a Department of Insurance or other regulatory authority or agency, please refer the
individual who has made the contact to:
o AVP, Sr. Regulatory Counsel
[email protected]
PO Box 469011
San Antonio, TX 78246
(Phone) 210-321-6817
DocuCorp Download Instructions and Updates:
•
•
•
DocuCorp updates will be announced 60 days prior to implementation.
Instructions for downloading individual DocuCorp updates are released the same date the
form changes are effective.
History of DocuCorp updates is found under the ‘Forms’ icon of this guide.
Expiration / Renewal Lists:
•
•
Contact your Company underwriter for questions about expiration lists.
General Agent is solely responsible to notify Insured(s) of their policy expiration and send
any required legal notification on nonrenewal.
Hit Lists – Binding Success Stories:
•
To locate ‘Hit Lists’ login to the Company’s website. In the upper right corner of the first
screen is a ‘quick-link’ ‘PRODUCTS & SERVICES.’ Click your mouse there and then look
for ‘DIVISIONS’ on the next screen (near the top). Links to bulletins, fliers and editable
fliers, histories of on-line guide changes and moratorium archives are also here.
Licensing Requirements:
•
•
1.14.2015
General Agent’s responsibilities are found in the General Agency Agreement.
The Company’s Regulatory Compliance Department will request copies of all licenses to
be maintained in the General Agency Contract file.
Page 34 of 36
Mailing Address:
•
Regardless of location all incoming USPS mail should be sent to:
o P.O. Box 469012, San Antonio, TX 78246
Office of Foreign Asset Control – OFAC:
•
•
•
•
•
•
ILP001 – U.S. Treasury Department’s Office of Foreign Assets Control (i.e. OFAC) –
Advisory Notice Policyholders
o EDGE automatically includes this notice on all policies issued out of Contract
Binding as it is a mandatory notification
In 2001, the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC),
issued regulations prohibiting insurers, brokers, and agents from engaging in transactions
with individuals and entities appearing on the “Specially Designated Nationals and
Blocked Persons List” (SDN list) published by OFAC.
OFAC regulations prohibit insurers and agents from providing any service to an “SDN” or
Blocked Person. All property, including insurance contracts, in which there is direct or
indirect interest with any person or entity on the blocked list, is considered “frozen”. Any
funds involved in these transactions must be deposited into a special account arranged for
by the insurer with OFAC. This includes unearned premiums and claim payments.
Company requires that prior to binding coverage you will check the Treasury’s SDN list to
ensure the applicant’s name does not appear. Should your office receive an applicant that
has an exact name match to an “SDN”, you are prohibited from binding coverage or
issuing a policy until you receive further direction from Colony Specialty’s Regulatory
Compliance staff.
The “SDN” list is available for download directly from the Department of Treasury’s
website, www.treas.gov/ofac, in the following formats: PDF, delimited, fixed-widths, CSV
and XML. The Treasury updates the list periodically. If the list is downloaded onto your
proprietary system, you need to download the updated list monthly to ensure the most
current information is on file. The list is also available thru the Agents’ Area of Colony
Specialty’s website. Please note there are vendors such as Bridger Insight and ISO that
can automate the process of detecting potential blocked persons.
Direct questions or comments to our regulatory compliance staff at 800-577-6614.
Password – Access to Online Contract Underwriting Guide:
•
•
Passwords are required to access the Company’s website.
A unique password is provided to the Agency by the Company’s Marketing Department.
Distribution and control of passwords among individual Agency staff is controlled by the
Agency.
Privacy Policies:
•
Information about the Company’s privacy policies and requests to see and/or correct a
customer’s personal information are available by writing to Privacy Coordinator, Colony
Specialty, P.O. Box 469012, San Antonio, TX 78245.
Product Navigator:
•
Product Navigator offers a searchable database that covers all segments of ARGO Group
including products, services and contact information.
o http://www.argolimited.com (Portal to entire ARGO organization)
o https://www.argolimited.com/pages/our-companies/colony-specialty (Portal to
Colony Specialty)
Regulatory Compliance:
•
1.14.2015
Department of Insurance (DOI) Complaints:
o Complaints received from the Department of Insurance must be referred to the
Company prior to any response to the DOI.
Page 35 of 36
Fax or email a copy of complaint and your draft response to the Company’s
Regulatory Compliance Department at: [email protected] or 804-327-3173.
State Reporting Requirements:
o The Departments of Insurance in many states require that our companies file an
annual report of written premiums by broker, with an indication of the name,
address and license number of the broker who paid the surplus lines tax on each
policy.
o For business written in your home state (domicile state), we report your agency
as the surplus lines broker. For business written outside of your home state, or
risks having locations in multiple states, we must obtain a SLB form (see below)
so that we can accurately report this information.
o If we do not receive the completed SLB form as required, in January our
Compliance Division will send you a listing of such policies and request that you
indicate through whom the taxes were paid. If we report that your agency paid
the taxes, when in fact they were paid by another broker, the Department of
Insurance will no doubt be contacting you to resolve the discrepancy.
o If your agency consistently writes outside of your home state, please contact us.
Writing Admitted Business:
o If you are a General Agent with binding authority to write business with a licensed
ARGO Group Company, in addition to holding the required P & C license, the
General Agent will need to maintain an appointment by the Company with the
State Department of Insurance.
Writing Surplus Lines Business as a Non-Resident Broker:
o State laws require that the Company accept business only from properly licensed
surplus lines brokers in the states where risks are located. If uncertain about a
state’s requirements, contact the applicable Department of Insurance before
placement of coverage with the Company.
o Wyoming – Reasonable policy fees may be charged in the state of Wyoming and
shown on the Declarations page. Fees are treated as a premium and applicable
taxes apply.
o
•
•
•
1.14.2015
Page 36 of 36