FIRST COMMERCIAL INSURANCE COMPANY USED AUTO DEALER PROGRAM UNDERWRITING GUIDELINES

Transcription

1 FIRST COMMERCIAL INSURANCE COMPANY USED AUTO DEALER PROGRAM UNDERWRITING GUIDELINES SCOPE OF PROGRAM This program is specifically designed for Non-Franchised Auto Dealers located in the State of Florida. COVERAGES Liability- Limits up to $1,000,000/1,000,000 Personal Injury Protection- Statutory Uninsured Motorist Lower of equal to the Liability limits OPTIONAL COVERAGES Dealers Physical Damages (Specified Causes of Loss and Collision with $1000 Deductible) Deductibles apply to all type of losses. Garagekeepers Legal Liability- Limits up to $100,000 Medical Payments- $2,000- Premises and Auto Additional Insured s Pick up and Delivery up to 300 miles(within the State of Florida) Drive away Collision up to 300 miles (within the State of Florida)- There is no charge for this additional coverage Fire Legal Liability up to a limit of $100,000 RATING The Garage Premium is based on Rating Units, which are determined as follows: 1.00 Owners and Partners-Officers and employees of the corporation with a furnished auto 1.00 Salesperson with a furnished auto.50 Salesperson without a furnished auto.40 All other employees (full time) including clerical.20 All other employees (part time) including clerical.50 Family member over 25 years of age with a furnished auto.50 Inactive partner/owner 1.00 Buyer full time.50 Buyer part time Page 1 of 5 1

2 UNACCEPTABLE RISKS Drive-away contractors Dealers traveling outside of the State of Florida Auctions Extra Heavy Truck Dealers Motorcycle Dealers Motor Home Dealers Dealerships that sell Limousines, Antiques, Classics, Lamborghini s, Maserati s, Ferrari s, ATV s, Moped s or Boat s. Car Rental or Leasing Operations, unless separate entity and insured elsewhere. (need copy of policy) Auto Dealers operating in conjunction with any salvage/dismantling operation or used parts sales, unless separate entity and insured elsewhere (copy of policy required) Risk with guard dogs (unless kept in enclosed area caged away from public during business hours) Firearms on premises (if inspection reveals firearms, they must be removed or notice of cancellation will be mailed). Auto or van conversion operation Risks that do their own repossession Commercial or contract towing. Risk with car haulers. Consignment vehicles will not be covered UNDERWRITING REQUIREMENTS All risks will be quoted subject to favorable inspection (a detailed inspection will be performed by our loss control department). This inspection will be reviewed and matched to quote. Discrepancies and/or unusual hazards will be addressed at the time and can produce an additional premium or a notice of cancellation. Copy of Dealers License must be submitted with application. Number of drivers listed should be equal to or more than number of dealer plates. Copy of registration for all dealer plates must be submitted with application. New dealerships must submit copies within thirty days of effective day of policy For Physical Damage coverage the following protection is required around the lot: Six feet or more chain link fence Metal Post (must be set in concrete less than 4 feet apart) Metal Post (must be set in concrete) more than 4 feet apart (1 inch thick heavy chain or wire required) Page 2 of 5 2

3 Entrances or exits must be protected by a gate or a heavy duty chain across and properly anchored to a post. After inspection if the lot is not fully protected (as per guidelines) Physical Damages Coverage will be deleted. All vehicles must be securely locked for Physical Damage Coverage Owner must sign the application and the drivers information must be listed. We need Drivers license information on all employees whether they drive or not. Risk may not have 3 or more paid or reserves during the past five years, or any one claim paid in excess of $10,000 Dealer must not loan, rent or sell any dealer plates. Copy of automobile inventory list should be available to be reviewed by a First Commercial Insurance Company representative at any time. NO PHYSICAL DAMAGE ON ANY LOCATION LESS THAN ½ Mile FROM THE OCEAN OR GULF. All employees/ drivers must have a valid Florida Drivers License Dealers must have satisfactory key control Combination auto dealer and repair shop will be rated as Auto Dealer Drive away collision and pick up and delivery (up to 300 miles) can be added for an additional charge. UNINSURED MOTORIST If Uninsured Motorist coverage is not desired, insured must sign the rejection of coverage Uninsured Motorist will be written NON STACKED QUOTING A RISK For quoting a new risk the following minimum information is mandatory. Broker s name, code number, telephone and fax number. Name and address of applicant, including zip code. Nature of insured s business and years of experience. Previous policy information. Loss history for past three (3) years, date, cause of loss amount paid and amount reserve (the prior Company s hard copy loss runs may be required) Description of operations Limits of Liability and Physical Damages desired Driver / employee (s) information Once a risk is quoted by the underwriter, a quote number will be assigned. Page 3 of 5 3

4 BINDING A RISK Fax Binding is the only acceptable method to bind. You may fax at anytime-24 hours/7days a week. Please keep copy of the fax confirmation for your records and you MUST receive a binder confirmation from us.fax NUMBER: (786) A BINDER CONFIRMATION with all the necessary information (binder number, policy limits, etc) will be faxed to you upon receiving your binder request. Coverage is not bound unless you have a Binder confirmation from us The fully completed First Commercial Insurance Company application and Uninsured Motorist Form must be received by the Company within seven (7) calendar days.the assigned binder number must be shown on the application. If the above application and payment is not received within seven (7) days, a ten (10) day notice of binder cancellation will be mailed. NEW BUSINESS All applications must be fully completed and signed by an officer, partner or owner of the business to be insured and also signed by the Brokering agent. These signatures attest to the accuracy and correctness of all the information therein. The requested policy will be issued in accordance with that information. A draft/check for the net premium plus the $25.00 policy fee must be received with application. You may finance the premium with a finance company of your choice UNACCEPTABLE OPERATORS Any operator convicted of the following major violations : Driving under the influence of intoxicants, or drugs. Driving while drinking Driving with an unlawful alcohol balance Any drug or alcohol related violation Leaving the scene of an accident Convicted of a felony Driving while license suspended or revoked Racing on a public highway or road Open container (operator) Refusal to submit Page 4 of 5 4

5 Any operator who has been involved in three (3) or more at fault accidents within the past 36 months. Any operator with more than 6 or more points Any operator who requires an SR-22 filing Any operator whose license has been suspended or revoked for points ANY OPERATOR LESS THAN 21 YEARS OLD Any operator between 21 and 23 that does not have a clean driving record (no points) Any operator with a suspended driver s license Any operator with less than 1 year Florida Driver s License(submit if the operator has a verifiable 3 years record from another State) Any operator age 70 or older will not be considered for coverage unless we receive a medical statement signed by a physician, indicating that the driver is clear to operate a motor vehicle. POLICY WILL BE CANCELLED IF THE BUSINESS OWNER IS AN UNACCEPTABLE OPERATOR. NO REINSTATEMENT. IF THE UNACCEPTABLE OPERATOR IS A DRIVER/EMPLOYEE, HE/SHE WILL NOT BE LISTED AS A DRIVER AND WILL NOT BE INCLUDED ON THE POLICY. ALL DRIVERS MUST BE REPORTED TO THE COMPANY WITHIN TEN (10) DAYS AFTER EMPLOYMENT BY THE INSURED. THE REQUEST MUST BE ACCOMPANY BY THE EMPLOYEE MOTOR VEHICLE RECORD. FAILURE TO REPORT NEW DRIVERS WILL BE GROUNDS FOR A POLICY CANCELLATION. Page 5 of 5 5