TOI: 17.2 Other Liability-Occ Only Sub-TOI: Commercial General Liability

Transcription

1 / Filing at a Glance Company: Great American Spirit Insurance Company SERFF Tr Num: GRTA State: Wisconsin TOI: 17.2 Other Liability-Occ Only SERFF Status: Closed State Tr Num: Sub-TOI: Commercial General Liability Co Tr Num: State Status: Filing Type: Rate/Rule Co Status: Sent to State Reviewer(s): Stephanie Cook Author: Dawn Bell-Gardiner Disposition Date: 04/07/2008 Date Submitted: 04/07/2008 Disposition Status: Filed Effective Date Requested (New): On Approval Effective Date (New): Effective Date Requested (Renewal): On Approval Effective Date (Renewal): General Information Project Name: Project Number: Reference Organization: Reference Title: Filing Status Changed: 04/07/2008 State Status Changed: Corresponding Filing Tracking Number: Status of Filing in Domicile: Authorized Domicile Status Comments: Reference Number: Advisory Org. Circular: Deemer Date: Filing Description: The Great American Spirit Insurance Company wishes to place on file a new Commercial General Liability rate/rule filing. Enclosed you will find the explanatory memorandums and all the necessary components required for a new program rate/rule filing. The forms for this program are being filed separately. We propose an effective date concurrent with your approval or as soon thereafter as permissible by the laws of your state. Sincerely, Dawn Bell-Gardiner ACS Product Technician

2 / Product Development and Compliance Ph: (513) or Fax: (513) Company and Contact Filing Contact Information Dawn Bell-Gardiner, Product Technican 49 East 4th street (513) [Phone] Cincinnati, OH (513) [FAX] Filing Company Information Great American Spirit Insurance Company CoCode: State of Domicile: Ohio 580 Walnut Street Group Code: 84 Company Type: P&C Cincinnati, OH Group Name: State ID Number: (513) ext. [Phone] FEIN Number: Filing Fees Fee Required? Retaliatory? Fee Explanation: Per Company: No No No

3 / Correspondence Summary Dispositions Status Created By Created On Date Submitted Filed Shasta Hoffhein 04/07/ /07/2008

4 Disposition / Disposition Date: 04/07/2008 Effective Date (New): Effective Date (Renewal): Status: Filed Comment: Filed is used with rates, rules and advertisements. For property/casualty filings, this disposition applies only to rates/rules. Forms must be submitted separately for approval. Company Name: Great American Spirit Insurance Company Overall % Rate Impact: Written Premium Change for this Program: # of Policy Holders Affected for this Program: Premium: Maximum % Change (where required): Minimum % Change (where required): Overall % Indicated Change: 0.000% $0 0 $ % 0.000% 0.000%

5 / Item Type Item Name Item Status Public Access Supporting Document Rate Explanatory Memorandum Yes Rate Base Rate Schedule Yes

6 Rate Information Rate data applies to filing. / Filing Method: Use & File Rate Change Type: Neutral Overall Percentage of Last Rate Revision: 0.000% Effective Date of Last Rate Revision: Filing Method of Last Filing: N/A--New Program Filing Company Rate Information Company Name: Overall % Indicated Change: Overall % Rate Impact: Written Premium Change for # of Policy Holders Affected for this Premium: Maximum % Change (where required): Minimum % Change (where required): this Program: Program: Great American Spirit Insurance Company 0.000% 0.000% $0 0 $ % 0.000%

7 Rate/Rule Schedule / Review Status: Exhibit Name: Rule # or Page Rate Action Previous State Filing Attachments #: Number: Base Rate Schedule 1 Page New POAL Base Rates Schedule FINAL.pdf

8 GREAT AMERICAN SPIRIT INSURANCE COMPANY Liability Rate Schedule Lease Broker Financed Equipment Liability Insurance Policy Rate per $100 of Original Equipment Cost Low Risk Medium Risk High Risk X-High Risk Printing Equipment Automotive Repair Equipment Construction Equipment Laptops ($2,000 deductible) Graphics Equipment Medical Equipment Agricultural Equipment Amusement Equipment Binding Equipment Dental Equipment Outdoor Recreational Carnival Equipment Audio & Visual Equipment Veterinary Equipment Lawn Maintenance Inflatable Equipment Photography Equipment Restaurant Equipment Golf Carts External ATM Broadcasting Equipment Manufacturing Equipment Survey Equipment External Vending Equipment Radio Equipment Welding Equipment Waste Removal Mobile Offices Telecommunication Molding Equipment Salvage, Recycling Trailers (non-trucking) Office Equipment Machine Tool Equipment Miscellaneous Equipment Server Computers Laundry Equipment Greenhouses Desktop Computers Salon Equipment Fencing Embroidery Equipment Fitness Equipment Portable External Equipment Point of Sale Equipment Banking Equipment Tanning Equipment Retain Equipment Security Equipment HVAC Systems Office Furniture & Fixtures Annual Rate Per $100 in Equipment Value Coverage Low Risk Medium Risk High Risk X-High Risk Liability Rates $0.10 $0.69 $1.31 $1.86 $75 annual minimum premium Base Rates Represent: $1,000,000 liability coverage per lease per occurrence $2,000,000 annual aggregate liability coverage (sum of all claims incurred in a single policy year) o Unused amount does not carry forward to the next policy year Sample Calculation: Medium Risk Equipment 60 month term Billing quarterly Equipment value: $30,000 (30,000/100) x $.69 = $207/annual $207 / 12 = $17.25/monthly $17.25 x 60 months = $1,035/full term $17.25 x 3 months = $51.75 quarterly billing Effective: Lease Broker Financed Equipment Liability Insurance Policy Program Rate Schedule Page 1 of 1

9 / Supporting Document Schedules Review Status: Satisfied -Name: Rate Explanatory Memorandum 04/07/2008 Comments: Attachment: REVISED POAL Liab Rate Memo MB.pdf

10 OTHER LIABILITY GREAT AMERICAN SPIRIT INSURANCE COMPANY LEASE BROKER FINANCED EQUIPMENT LIABILITY INSURANCE POLICY LIABILITY PROGRAM EXPLANATORY RATE MEMORANDUM Program Description This program is in response to perspective insureds that frequently request an insurance program that provides liability coverage for financed equipment portfolios that is deliverable at the point of sale, thus satisfying the requirements to complete the financing process. The finance document governs that amount and type of liability coverage required. This program is designed for commercial equipment lessors and their lease brokers initiating small and mid-ticket equipment financing. This program insures the broker and assigned interest in the financed equipment. Standard finance agreements require the lessee to provide proof of liability insurance coverage naming the broker and assigned interest as additional insureds. At the time of entering into the finance agreement, the lessee has the choice to provide proof of their own insurance or to voluntarily enroll the financed asset under the lessor s insurance program. The lessee makes this choice in writing at the point of sale. If the lessee chooses to have the lessor insure the equipment, then the lessor requests coverage from the insurance company. The lessee also has the choice at any point in time during the finance agreement to provide proof of their own insurance and to un-enroll from this program. This program is offered on a wide range of commercial equipment assets. The coverage on this program will be available from the effective date displayed on the Declarations page, and is continuous until cancelled by the Lessor. The coverage on a specific financed asset is in force the earlier of: Lease inception date; or Delivery date of the equipment to the lessee; or Reported coverage effective date Coverage The coverage in this program is determined on a lease enrollment basis. Liability Coverage: the broker and assigned interest are protected from damages because of Bodily Injury or Property Damage caused by an accident occurrence from the operation, use, or existence of the financed equipment. This policy s coverage includes defense costs of any Suit seeking these damages. This coverage is primary position coverage. Rate Development The premium rates for this program are based on loss cost experience from similar property insurance programs, with equipment classed group by similar loss costs into four general risk categories. Each categories weighted loss costs is then divided by the permissible loss ratio to reach the necessary premium level for the risk group. 1. California approved rates under filing reference # (IM-CA-9805-SMLT) 2. Georgia approved rates under filing reference # (IM-GA-9801-SMLT) Projected Loss Ratio, Expenses, and Profit & Contingencies Category Expense % Loss Adjustment Expense 2.00% General & Administrative 15.50% Tax, Licenses, and Fees 2.50% Commission 10.00% Underwriting Profit & Contingencies 5.00% Total 35.00% Permissible Loss Ratio 65.00% POAL Rate Explanatory Memorandum Page 1 of 2

11 OTHER LIABILITY GREAT AMERICAN SPIRIT INSURANCE COMPANY LEASE BROKER FINANCED EQUIPMENT LIABILITY INSURANCE POLICY LIABILITY PROGRAM EXPLANATORY RATE MEMORANDUM Base Rate Represents Standard Set of Risk Classes Minimum coverage term: 12 months Maximum coverage term: 84 months Minimum Equipment cost: $500 Average Equipment cost: $35,000 Maximum Equipment cost: $1,000,000 No adverse selection No special administrative services A grade credit Rates are fixed for the term of the lease Premium collected upfront Rate Modification Factors Factor Description Rate Impact Low risk: < 1% Frequency.75 Average risk: 1% - 3% Frequency High risk: >3% Frequency 1.25 Individual Risk Modification Factor This factor is based on the overall mix of assets in the portfolio and the frequency of losses in each mix. Portfolio Size Factor This factor is granted to portfolios of exceptional volume based on annual earned premium. Special Service Charge Factor This factor is for customers requesting additional services over and above the standard offering: Increased Term Factor If the average term in the portfolio is longer than the average, it results in more severity on depreciated equipment Payment Frequency Payment terms determine the available cash flow stream and required amount of service related activities Blanket Portfolio Factor This factor is for covering a portfolio of homogeneous equipment types Premium Calculation <$1,500,000 $1,500,001 - $3,000,000 $3,000,001 - $5,000,000 >$5,000,000 Standard Service Levels One additional Service Two additional Services Three or more additional services <12 Months Months >60 Months Full Term paid upfront Annual Payments Semi Annual Payments Quarterly Payments Monthly Payments <75% Homogeneous 75% - 100% Homogeneous The premium calculation is based on a monthly pro-rata insurance rate. The full term premium cost will be calculated based on the total number of months of coverage and will be billed based on the lessor chosen billing option. Partial month coverage will be billed for the complete month Lease maturity on the 1 st day of the month does not cause billing for that same month Calculation: (Equipment Value / 100) x Premium Rate = Annual Premium Annual Premium / 12 = Monthly Premium Monthly Premium x Total number of coverage months = Full Term Premium Monthly Premium x Billing frequency (months) = Invoice Premium POAL Rate Explanatory Memorandum Page 2 of 2