UNIGARD INSURANCE COMPANY ARIZONA PERSONAL UMBRELLA MANUAL

Transcription

1 Arizona Personal Lines Personal Umbrella UNIGARD INSURANCE COMPANY ARIZONA PERSONAL UMBRELLA MANUAL

2 Arizona Personal Lines Personal Umbrella Application Binding Authority Coverage Increased Limits Introduction Limits of Liability Minimum Premium Policy Term Premium Determination Requirement Limits of Underlying Insurance Retained Limits Retained Limit Credit Uninsured and Underinsured Motorist Coverage

3 Arizona Personal Lines Personal Umbrella 1 An insured doesn't have to own a yacht or a castle in Spain to need Personal Umbrella coverage. Today it is common for jury awards and out of court settlements to routinely run into hundreds of thousands and even millions of dollars. A large judgment against your client may place his or her assets in serious jeopardy. You can take steps to protect them with a Personal Umbrella Liability Policy. While existing auto, homeowner and watercraft policies may seem adequate, the limits they provide may prove insufficient in the event of a catastrophic loss. Pool accidents, dog bites, boating mishaps and head-on collisions are all examples of incidents that regularly result in large awards to an injured or deceased party. By supplementing existing coverage with a Personal Umbrella Liability Policy, your client's protection can be increased by up to $5 million. Offering the Personal Umbrella Liability Policy also helps protect you. Unfortunately, in today's litigious society, insurance agents are sued with alarming frequency. Commonly, the reason for this stems from failure to advise clients of all available coverages and limits. To protect yourself against potential E & O losses, offering a Personal Umbrella Liability Policy may provide the right answer. This policy is for personal liability and does not extend to professional or business activities other than the type of business liability normally covered by the liability section of a homeowner policy. Examples are activities incident to employment by another or activities of an incidental business nature not conducted in conjunction with a regular business, profession or occupation. Coverage The Unigard Personal Umbrella Liability Policy will provide up to $5 million in protection over an insured's primary insurance program. This complements and expands his or her basic insurance program by: 1. Providing personal liability coverage above the limits of liability carried on the primary policies. 2. Providing umbrella or blanket protection beyond the normal coverage provided by the primary policies through a drop-down deductible feature. The policy applies in excess of a $250 retained limit in the self-insured area where the Unigard Personal Umbrella Liability Policy is broader than the underlying coverage. Some of the examples of the coverage that may not be provided by primary underlying insurance are as follows: Personal injury protection including libel, slander, false arrest, humiliation, defamation of character, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution, etc. Worldwide coverage of autos and watercraft. 3. Providing following form coverage for items such as business pursuits, owned watercraft and recreational vehicles. Full defense coverage is provided in the drop-down deductible area from the first dollar of legal cost where coverage is not provided by underlying policies.

4 Arizona Personal Lines Personal Umbrella 2 Application A Personal Umbrella Application must be completed and signed by the insured for all risks. Policy Term All policies are written for a term of one year. Limits of Liability Personal Umbrella coverage limits up to $5 million are available. The single liability limit is applicable to each occurrence in excess of the underlying primary insurance or the specified self-insured retained limit. Uninsured/Underinsured Motorist Coverage Uninsured/Underinsured Motorist Coverage is not available as a coverage option. Binding No coverage may be bound by the agent without prior authorization by Unigard. Increased Limits The rates shown are for a $1 million limit of liability. The premiums for higher limits are obtained by applying the appropriate factors below to the $1 million premium. The increased limit factor is applied before credits are deducted. Limit of Liability $2,000,000 $3,000,000 $4,000,000 $5,000,000 Factor Retained Limits The minimum self-insured retention by the insured for exposures not covered by underlying insurance is $250. If the retained limit is higher than $250, a reduction in the premium is applicable. See Premium Determination, Retained Limit Credit.

5 Arizona Personal Lines Personal Umbrella 3 Required Limits of Underlying Insurance The following minimum underlying limits of insurance are required before a Personal Umbrella Liability Policy will be issued: Coverage Auto Liability (including licensed recreational vehicles)... Unlicensed Recreational Vehicles... Required Limits of Underlying Insurance $250,000/500,000 BI $100,000 PD or $500,000 Single Limit $500,000 Single Limit Comprehensive Personal or Homeowner Se Section II)... $500,000 Watercraft Liability... $500,000 Territory Definitions County of Maricopa... Territory A Remainder of State... B

6 Arizona Personal Lines Personal Umbrella 4 Premium Determination (See page 3 for Territory Definitions). (The rates displayed are for $1 million base limit, one-year term) Territory Personal Liability A B Initial residence For each additional residence occupied by the insured Dwelling Rentals: One family unit Two family unit Three family unit Four family unit Business Exposure Incidental office or studio in dwelling) per office charge) Watercraft Liability Each watercraft under 26 in length Motorboat, not including sailboats Personal Watercraft Watercraft feet in length Watercraft feet in length Auto Liability Each auto Each motorcycle Drivers under age 26 (per policy charge) For each unlicensed or antique auto Not owned or not regularly furnished auto

7 Arizona Personal Lines Personal Umbrella 6 Retained Limit Credit For policy limits in excess of $1,000,000 apply the credit after applying the increased limits factor. Deduct For a $500 Retained Limit... $5 For a $1,000 Retained Limit For a $2,000 Retained Limit For a $5,000 Retained Limit For a $10,000 Retained Limit Minimum Premiums The following are the minimum premiums for which coverage can be written. The minimums shown are not subject to any premium credits or increased limits factors. Territory A B $1,000, $2,000, $3,000, $4,000, $5,000,