GEOVERA INSURANCE COMPANY RESIDENTIAL EARTHQUAKE

Transcription

1 GEOVERA INSURANCE COMPANY RESIDENTIAL EARTHQUAKE UNDERWRITING MANUAL CALIFORNIA

2 TABLE OF CONTENTS Subject Page Underwriting Guidelines.. UW-1 Introduction and General Description... 1 Description of Coverage. 1 Binding Authority and Policy Issuance. 2 Policy Terms and Premiums.. 2 Description of Payment Plans 2 Transfer or Assignment... 2 Property Address Changes. 3 Application. 3 Backdated Cancellations. 3 Retrofit Credit 3 Forms and Endorsements Listing.. 4 (i)

3 UNDERWRITING GUIDELINES 1. Coverage is available to residential properties with an approved site location; the Company reserves the right to offer this product in any location based on geographic policy concentration by zip code. 2. Occupancy is owner, tenant, vacant, unoccupied, seasonal or secondary. 3. Wood frame or metal frame construction only (metal frame construction is acceptable for single family residences only). Stucco or 30% or less masonry veneer over wood frame studs or metal frame is considered eligible. 4. Residential dwellings/buildings must be 1-4 units. 5. No subterranean, tuck under, or open first floor parking. 6. No mobile, modular, pre-fabricated, adobe or log homes. 7. No dwellings under the course of construction. 8. No high-rise buildings (4 or more levels). 9. No unknown foundations. 10. No more than one earthquake loss in the past 3 years is eligible; any unrepaired earthquake damage is subject to underwriting review. 11. Minimum Single Limit is $100,000 for all policies except renter s policy; renter s policy Single Limit is $6, Coverage is available up to $1,500,000 on new business; coverage is available up to $2,000,000 on renewal business. UW-1

4 1. INTRODUCTION AND GENERAL DESCRIPTION This program is intended to provide coverage for the peril of earthquake to individually-owned residential properties. A renters program is also offered. This manual provides a description of the program; all terms and conditions of the coverage are contained in the policy itself. The coverage is written on one of two policy forms with mandatory endorsements and a declarations page which provides a description of the terms. A listing of the policy forms and endorsements is included in this manual. 2. DESCRIPTION OF COVERAGE Coverage is provided in one of two programs as described below. Program: Comprehensive Standard Policy Form: MEQ1 MEQ3 Eligible Locations: Coverage Description: Minimum Combined Single Limit (Owners): Maximum Combined Single Limit (Owners): The Company reserves the right to offer this product in any location based on geographic policy concentration by zip code Dwelling Other Structures Personal Property Loss of Use Additional Coverages The Company reserves the right to offer this product in any location based on geographic policy concentration by zip code Dwelling No Coverage For Other Structures Limited Personal Property Limited Loss of Use Additional Coverages $100,000 $100,000 New Business $1,500,000 Renewals $2,000,000 New Business $1,500,000 Renewals $2,000,000 Deductible (Owners): 10% to 25% 15% Combined Single Limit Coverage Available Not Available $6,500 (Renters): Deductible (Renters): Not Available $750 PAGE 1

5 3. BINDING AUTHORITY AND POLICY ISSUANCE Binding authority rests with, and policy issuance is done by, the Company. The Company reserves the option to suspend binding of new applications after the occurrence of a seismic event. 4. POLICY TERM AND PREMIUMS A. Annual policies (12 months) are issued, and may be extended for successive policy periods by renewal based upon the premiums, forms and endorsements then in effect for the Company. B. A minimum annual premium of $150 or $200 applies based on the policy form and deductible. Comprehensive policies with a deductible of 15% or higher are subject to a $150 minimum premium. All Standard policies and Comprehensive policies with a 10% deductible are subject to a $200 minimum premium. 5. DESCRIPTION OF PAYMENT PLANS The Company will offer three billing options. A. Full Payment: Full annual premium due at inception. B. Installment billing option: plan 40% is due at inception Customer makes two installments of 30% each The second installment is due in 90 days; the third in 180 days The Company will invoice each installment due The Company will add $10.00 per installment for the cost of financing and additional handling C. Monthly-Pay Plan: 12-pay plan Available to customers whose payments are remitted via credit card, debit card, or ACH (automated clearing house network) There is no installment fee 6. TRANSFER OR ASSIGNMENT A policy may not be endorsed to effect assignment from one insured to another. Name changes due to marriage, divorce, or death are permitted if accompanied by supporting legal documentation. PAGE 2

6 7. PROPERTY ADDRESS CHANGES Changes to the Property Address are not permitted, except for corrections as a result of typographical errors or address changes stipulated by the United States Postal Service (USPS). Requests must be in writing with reason given for the address change. If the change is a result of the USPS, then a copy of the USPS documentation must be provided. The policy will be re-underwritten based on the corrected Property Address, and any resulting premium changes will be charged or credited as appropriate. If the policy is ineligible based on corrected Property Address information, the policy will be cancelled back to the current term effective date. 8. APPLICATION A. The Company requires a completed application submitted on-line via the Quakebroker (RQQ) website. B. The Company also requires a signed copy of the Quote and Enrollment Form which is printed in the broker s office. 9. BACKDATED CANCELLATIONS Backdated cancellation for duplicate coverage is limited to 1 year with adequate proof. 10. RETROFIT CREDIT A. The premium will be discounted for pre-1997 structures evidencing completion of adequate seismic retrofitting in all of the following respects: 1. Compliance with the foundation anchor bolt requirement of Section of Chapter 18 of the 1997 edition of the Uniform Building Code (UBC) of the International Conference of Building Officials, or with any local government modifications to those requirements; and 2. Compliance with the bracing requirements for cripple walls of Section of Chapter 23 of the 1997 edition of the Uniform Building Code (UBC) of the International Conference of Building Officials, or with any local government modifications to those requirements; and PAGE 3

7 3. All water heaters are adequately braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion. Evidence for proof of this discount may be in the form of an affirmative report from any of the following sources: a. from a California-licensed geotechnical, civil, or structural engineer; b. from an AIA architect; c. from a FEMA-certified building contractor or inspector; or d. from an inspector showing training and certification as a seismic risk evaluator The applicable discount is 10%. 11. FORMS AND ENDORSEMENTS LISTING Number Title Description MEQ 1 Comprehensive Residential Coverage form for the Comprehensive level of coverage Earthquake Protection MEQ 3 Standard Residential Earthquake Protection Coverage form for the Standard level of coverage CAEQ Special Provisions California California state specific amendatory endorsement GVPRIV Privacy Policy GeoVera Insurance Company s privacy policy INS DISCLOSURE California Residential Property Insurance Disclosure Section compliance RO 1 Signatures Contains officers signatures RO 2 Fraud Warning Required fraud warning (Div 1, Pt 2, Chapter 12, para compliance) RO 3 CIGA Statement Contains the CIGA explanation PAGE 4