Texas. June 17, Underwritten by Integon National Insurance Company

Transcription

1 Texas June 17, 2015 Underwritten by Insurance Company

2 Table of Contents Contact Information... 1 Unacceptable Risks... 2 Motor Carrier Compliance... 4 Coverages... 6 Discounts Surcharges Underwriting Transaction Guidelines Billing, Payments, and Fees Document Retention and Review Requirements... 30

3 Contact Information Customer Service Customer Service Phone Number Customer Service Fax Number Online Service... Your customers can View driver, vehicle, and coverage information Make a payment Request an ID Card Quote Assistance Claims Services Report a New Claim (Available 24/7) Discuss a Pending Claim Addresses Correspondence National General Insurance PO Box 3199 Winston-Salem, NC Payments National General Insurance PO Box Cleveland, OH Page 1

4 Unacceptable Risks Any person without a valid U.S. driver license or a valid foreign driver license. (A Matricula ID card is not considered a foreign driver license.) Vehicles with Gross Vehicle Weight (GVW) over 66,000 pounds. Vehicles garaged outside the state of Texas, not registered in the state of Texas, or regularly operated outside the state of Texas. Emergency vehicles. Courier/delivery vehicles operating under special time constraints (speedy, express, rush deliveries). Vehicles used for food delivery with orders placed with less than 1-day notice. Vehicles used to transport passengers. Steel, coal, log, or pulpwood haulers. Service vehicles for logging and pulpwood operations that do not haul logs are acceptable. Tank trucks with glass-lined tanks, or that transport milk, or with capacity greater than 1,400 gallons if not baffled. Vehicles used for septic tank waste removal. Vehicles with stated amount more than $150,000. Kit cars or vehicles with altered or modified suspensions. Salvage vehicles are allowed for Liability Only. Vehicles leased or rented to others by insured; leasing or rental companies. Personal use only vehicles unless accompanied by vehicles used in the operation of the business. Grey market vehicles (vehicles not manufactured for sale in the United States). Mobile equipment including power shovels, cranes, rollers, drills, forklifts, street sweepers, or other non-licensed equipment designed for use off of public roads. We will not list government entities as a named insured. We will list government entities as an additional insured. Security vehicles used to transport guard dogs or passengers carrying firearms. Standard pickup trucks that have been converted to wreckers. Tow trucks used in repossession. Vehicles used as a principal residence. Truck-mounted campers. Converted buses; homemade, constructed, or customized vehicles; motorhomes. Any tractor trailer risk regardless of gross vehicle weight. Mobile home toters. Escort vehicles are acceptable. Any policy with more than one corporation as a named insured. Vehicles used to haul garbage or recycling unless transported by a roll-on container vehicle. Any vehicle used for residential ice cream sales if requesting Liability limits more than 50/100/25 or 100 Combined Single Limits. Vehicles that are improperly used or poorly maintained resulting in an increased safety hazard (e.g., improper/excessive load; defective steering, brakes, or tires). Any single driver risk whose driver has a currently suspended driver license for any reason other than proof of financial responsibility. Any applicant or driver who has been convicted of or pled guilty, nolo contendere, or no contest to any felony offense other than alcohol-related driving offenses during the last ten years. Page 2

5 An individual, partnership, or corporation previously insured with National General Insurance and we non-renewed or canceled the policy. Cement trucks/concrete mixers. Any make/model listed below: Make ARO Aston Martin Audi Avanti Bentley BMW Bricklin Bugatti Callaway Checker Chevrolet Delorean Dinan Ferrari Ford Hennessey Jeep Jensen Lada Laforza Lamborghini Lotus Maserati Maybach McClaren Mercedes Morgan Mosler Nissan Panoz Pantera Pontiac Porsche Rolls Royce Roush Ruf Saleen Model Pure Electric Vehicles R8 Z8 C12 Lingenfelter, Hammer, and Mallet Corvettes All Saleen Mustangs, Ford GT All Viper Models Postal Units PSV-L4, except Elise SLR McLaren, CL 65 AMG All Stillen Z Models Lingenfelter Trans Am All Ruf Models, Carrera GT All Roush Mustangs Shelby Cobras and Series 1 Subaru Tesla Toyota Vector Postal Units All HKS Enhanced Supra Turbos Page 3

6 Motor Carrier Compliance If a vehicle is subject to the Federal Motor Carrier Safety Regulation and/or the Motor Carrier Safety Regulation of the state in which the vehicle is primarily garaged, then the risk must be in compliance with those regulations including but not limited to: Completing background checks to confirm there are no drivers with a driving history or criminal history that would disqualify them as a driver under the Federal (or state) Motor Carrier Safety Regulation. Maintaining log books for all drivers who drive vehicles that are subject to the Federal (or state) Motor Carrier Safety Regulation. Providing the required training for all drivers according to the Federal (or state) Motor Carrier Safety Regulation. Any risk that does not comply with any of the above regulations is unacceptable. Federal Truck Filing Forms BMC-91 and BMC-91X The BMC-91 is filed with the Federal Motor Carrier Safety Administration (FMCSA) to show proof of required Liability limits for transporting cargo or people across state lines. The BMC-91X is filed when multiple carriers are involved in providing coverage. MCS-90 The MCS-90 is an endorsement that must be attached to liability insurance and cargo liability insurance policies when a federal filing is required. The MCS-90 guarantees that the minimum Liability limits are in place to protect the public. This form is not filed with the FMCSA. The BMC-91 or BMC-91X is filed to show that the MCS-90 has been issued. Contact your Territory Sales Manager to request authority to sell policies requiring federal truck filing forms. Intrastate Truck Filing Forms Form E A Form E filing certifies that the liability insurance complies with the state's financial responsibility laws. The form is submitted to the department that regulates intrastate trucking. Form K A Form K filing is used to cancel a previous state filing. The form is submitted to the state agency that regulates motor carrier financial responsibility. Page 4

7 State and Federal Filing Requirements Filings National General Insurance will issue a filing after the risk is accepted for coverage and the proper information for the filing is received. A vehicle cannot be removed from the policy (excludes SR-22) unless it is sold or considered a total loss/salvage. Documentation of a vehicle total loss/salvage is required to remove the vehicle from the policy. The following minimum limits are required by filing type: Filing Type Company Requirement Minimum Limits Truck Cargo Towing SR-22 Filing Only provided for Listed drivers. State minimum limits are required Not applicable Not applicable State Filing All vehicles owned and operated must be insured on the National General Insurance policy. 100/300/50 or 300 CSL Available Available Federal Filing All vehicles owned and operated must be insured on the National General Insurance policy. 750 CSL *Must have MCS-90 Available Available Down Payment Requirement for Policies with a Filing A 20% down pay is required on all policies with any filing. The initial payment must be in the form of certified funds, cashier s check, or money order. Page 5

8 Coverages Our quoting system automatically displays available coverage limits. Liability Bodily Injury (BI)/Property Damage (PD) limits or Combined Single Limits (CSL) must be same for all motorized vehicles on policy. Limits must be equal to or higher than minimum financial responsibility limits required by law. If no pulling vehicles are insured, Liability coverage will not be provided for a trailer. Uninsured/Underinsured Motorist Bodily Injury Required on all motorized vehicles with BI/CSL coverage unless rejected for all vehicles. Limits cannot exceed BI/CSL limits. Limits must be same for all vehicles on policy. Uninsured/Underinsured Motorist Property Damage Required on all motorized vehicles with BI/PD coverage unless rejected for all vehicles. Limits cannot exceed PD limits. Limits must be same for all vehicles on policy. Medical Payments Limits must be same for all motorized vehicles on policy. This is an optional coverage. Personal Injury Protection Available on policies with BI/CSL coverage unless rejected. If selected, PIP must be on all motorized vehicles on the policy. Available limit is $2, per person. Physical Damage Not required on every vehicle on a multi-vehicle policy. Comprehensive or Fire and Theft with Combined Additional Coverage (FTCAC) must be written with Collision coverage. Where Comprehensive coverage is not available on certain types of commercial vehicles, FTCAC is available. Page 6

9 Fire and Theft with Combined Additional Coverage (FTCAC) A limited comprehensive coverage that only covers certain specified perils when loss is due to: Fire, lightning, smoke, smudge Theft, larceny, robbery, pilferage Windstorm, hail, earthquake Explosion Forced landing or falling of any aircraft or its parts or equipment Flood or rising waters Malicious mischief or vandalism External discharge or leakage of water except loss resulting from rain, snow, or sleet whether or not wind driven Collision with birds or animals. Drive Other Car Additional protection on an excess basis that provides coverage for an executive of a corporation or partnership (or their spouse) when driving a non-owned vehicle. The executive and their spouse must be listed on the endorsement for coverage to transfer. Policy must contain a private passenger-type vehicle that includes personal use. Liability, Medical Payments, Uninsured Motorist, PIP, and Physical Damage apply to the Drive Other Car vehicle. Drive Other Car is included at no cost for individual named insured risks. This is an optional coverage. Employer s Non-Ownership Liability Extends Liability coverage to apply to any non-owned vehicle that is used by an employee in the incidental operations of the business. Not available for any account that regularly uses employees vehicles for business use. Non-owned vehicles must be a type similar to the vehicles described in the Policy Declarations. This is an optional coverage. Hired Auto Liability Provides excess Liability coverage for vehicles that are hired by the insured for the incidental operations of the business. Not available for any account that regularly uses short-term rentals. Rental vehicles used continuously for 30 days must be listed as a named vehicle on the policy with the owner as an additional interest. This is an optional coverage. Page 7

10 Commercial Auto Broadened Coverage Provides a package of coverages in a single form. The following coverages are included in this endorsement: A single deductible applies to all vehicles involved in the same covered loss. Air bag replacement for accidental deployment. Up to $50,000 in Physical Damage coverage for a hired vehicle. $1,000 in Loss of Use coverage for a hired vehicle. Original Equipment Manufacturer (OEM) parts replacement. Up to $500 in Personal Effects coverage. Waiver of deductible for glass repair. Supplemental bail bond payments are increased from $200 to $2,500. Liability and Physical Damage coverages are required. Subject to a covered loss. A deductible may apply in some losses covered under this endorsement. This is an optional coverage. Motor Truck Cargo Coverage Provides Liability coverage for a loss due to theft, fire, or collision for the covered property in the care and control of the insured and being transported by an insured vehicle. Up to $50,000 in coverage with deductibles ranging from $250 to $2,500. Also includes $5,000 for removal/clean up expenses and $2,500 in additional loss protection. Coverage is available for risks rated as for-hire trucking and specific vehicle types trucks, straight trucks, flatbed trucks, stake trucks, dump trucks, and trailers. Not available for fleet policies (10 or more vehicles). Acceptable business types include: General Freight Machinery and Equipment Wholesalers Courier/Package Delivery Dirt, Sand, and Gravel Haulers Agricultural Haulers For-Hire Trucking A specific limit and deductible must be selected. Comprehensive and Collision coverages are required. step vans, box Page 8

11 Motor Truck Cargo Coverage (continued) Unacceptable cargo/freight includes: Household Goods Movers Goods owned by the insured Refrigerated/perishable foods Jewelry Money Legal papers Mobile or modular homes Animals Electronics Scrap metal Tobacco Alcohol Medicine or pharmaceuticals Explosives, combustibles, or radioactive items Any illegal items Any items that will be stored more than 72 hours Coverage is subject to Underwriting review. This is an optional coverage. unless due to weather Contact your Territory Sales Manager to request authority to sell Motor Truck Cargo Coverage. Any Auto Coverage Extends Liability coverage to any vehicles acquired/purchased during the policy term and non-owned vehicles until the end of the current policy term. including hired Any newly purchased vehicle(s) must be added to the policy within 30 days of purchase. Any unlisted vehicle(s) must be added at the next policy renewal to ensure they have Liability coverage. A contractual agreement is required from the insured s customer(s) stating that this type of coverage is needed. Proof of contractual requirement must be submitted to National General Insurance at the time of referral to a Company Underwriter. Proof of contractual requirement must be submitted to National General Insurance. All owned vehicles including all personal and commercial vehicles used in the business must be insured with the National General Insurance Commercial Vehicle Program. Coverage is available for the following business categories: Construction / Tradesmen (General Contractors unacceptable) Farming Hauling / Furniture Moving/Wholesale Delivery Land Services Does not include Physical Damage coverage. This coverage must be purchased at the vehicle level. Coverage is subject to Underwriting review. Contact your Territory Sales Manager to request authority to sell Any Auto Coverage. Page 9

12 Owned Auto Coverage Provides Liability coverage for vehicles owned by the named insured and any vehicles acquired during the policy period. Any newly purchased vehicle(s) must be added within 30 days of purchase. Any unlisted vehicle(s) must be added at the next policy renewal for coverage to apply. Any newly purchased vehicle(s) must be added to the policy at the beginning of the next term in order for coverage to apply. A contractual agreement is required from the insured s customer(s) stating that this type of coverage is needed. Proof of contractual requirement must be submitted to National General Insurance at the time of referral to a Company Underwriter. All owned vehicles including all personal and commercial vehicles used in the business must be insured with National General Insurance Commercial Vehicle Program. Coverage is available for the following business categories: Construction / Tradesmen (General Contractors unacceptable) Farming Hauling / Furniture Moving/Wholesale Delivery Land Services Liability coverage applies to trailers owned and non-owned attached to the insured vehicle. Does not include Physical Damage coverage. This coverage must be purchased at the vehicle level. Coverage is subject to Underwriting review. Contact your Territory Sales Manager to request authority to sell Owned Auto Coverage On-Hook Towing Only available on tow trucks and car carriers. Provides Property Damage Liability coverage for the vehicle being towed. Coverage is provided on a specified perils and collision basis and does not include any premises policy exposure. Transmission/transaxle damage is specifically excluded. Limits must be same for all towing vehicles on policy. This is an optional coverage. Rental Reimbursement Reimburses the insured for each qualified disablement of a covered vehicle. Qualified disablement means a loss covered by the Liability, Other than Collision (Comprehensive), or Collision coverage sections of the policy. Available on PPA-type vehicles, pickup trucks, and vans with Physical Damage coverage. Limits must be same for all vehicles on policy. This is an optional coverage. Page 10

13 Roadside Assistance A 24/7 roadside assistance program that includes: Towing Flat tire repair Emergency fuel and other fluids Battery jump starts Locksmith services Available for private passenger-type vehicles and trailers. Private passenger-type vehicles include cars, pickup trucks, and vans. Physical Damage coverage is required. Limits must be same for all qualified vehicles on policy. Insureds are reimbursed up to the limit shown on the Declarations Page. This is an optional coverage. Page 11

14 Discounts The system automatically requests proof documentation required to retain discount. Affiliated Package Available when an insured has an additional Commercial lines policy (such as Workers Comp, General Liability, Business Owners Policy [BOP], Inland Marine, Boiler and Machinery, or Commercial Umbrella) that has been underwritten by a company affiliated with National General Insurance. Proof document is a copy of the policy Declarations Page and must be retained in the Agent s office. When an insured has an additional Commercial lines policy underwritten by a non-affiliated company, see Package discount. Association Available when an insured is a member of a nationally recognized business or trade association such as the National Small Business Association or the National Association of Home Builders. Proof of membership is required and must be retained in the Agent s office. Farming / Ranching Available on policies when: The occupation is Farming or Ranching. Drivers have limited driving record activity. GMAC Family Available when the named insured has one or more of the following: GMAC/Ditech Mortgage GMAC Auto Loan GMAC Auto Lease GM Business Credit Card GM Personal Credit Card GMAC Demand Note or Smart Note Or when insured is: GM Employee or Retiree GM Dealer Employee Package Available when an agency writes an additional Commercial lines policy for the insured (such as Workers Comp, General Liability, Business Owners Policy [BOP], Inland Marine, Boiler and Machinery, or Commercial Umbrella.) A copy of the applicant s active, participating policy must be kept in the Agent s office. When an insured has an additional Commercial lines policy underwritten by a company affiliated with National General Insurance, see Affiliated Package discount. Page 12

15 Paid In Full Applied when 100% of the total premium is submitted with the application. Premium financed policies are not eligible for the discount. Preferred Business Available when the insured meets the following conditions: Is a partnership or corporation. Has minimum 12 months continuous coverage on a Commercial Vehicle or Personal Auto policy. Current minimum Liability limits of 100/300 or 300 CSL. Has been in business 36 months or longer. No bankruptcies or liens in the past 36 months. Drivers have limited driving record activity. Renewal Available to renewal policies with no at-fault accidents in the past 12 months. Tradesman Available for policies when: Occupation is Contractor or Tradesman. At least 50% of the vehicles on the policy are vans, pickup trucks, or small commercial vehicles. Drivers have limited driving record activity. Transfer Available on new business policies with six months continuous Liability coverage on a Personal Auto or Commercial Vehicle policy. Cannot have any at-fault accidents in the past 12 months. Proof must be submitted with the application. Acceptable proof includes: Declaration Page(s) Commercial Vehicle or Personal Auto policy. Letter (on company letterhead) from prior insurance carrier. Page 13

16 Surcharges Extra Vehicle Applied to any vehicle without a known driver. Personal Use Applied to any vehicle used for personal use. Physical Damage Only Only applied to polices with Comprehensive and Collision coverages, i.e., policies without any Liability coverage. State and Federal Filings Applied when a state or federal filing is required for a vehicle and National General Insurance issues the filing on behalf of the insured. National General Insurance must insure all vehicles in order to obtain a filing. The vehicle may not be removed from the filing is required to have the vehicle filing removed. Undeclared Driver unless it is sold or considered salvaged. Documentation If we incur a claim involving a driver who is not listed on the policy regardless of permissive use a surcharge will be applied to the policy effective the day after the loss. This surcharge will apply in addition to any points that may apply as a result of the accident. Page 14

17 Underwriting National General Insurance offers coverage for a wide range of businesses, vehicles, and drivers. Our success and the success of your agency depend on our abilities to select business that fosters a book portfolio that has the propensity for profitable results. As such, there are certain cases where National General Insurance will perform a complete review of a risk to determine acceptability. Proof of Business Proof of business is required when all vehicles on the policy are PPA-type vehicles (cars, pickup trucks, and vans) and must be retained in the Agent s office. Acceptable Proof includes: Company Letterhead / Invoice Business Card Business License / Tax ID Professional License Tax Records Deposit Slip For Checking Account Yellow Page Ad Utility Bill Web Site or Proof of Business from Internet Proof of Prior Verification of prior insurance is an important component of our rating. We look to verify the following prior insurance information: Liability limits and length of coverage for the named insured. Note: We accept both Commercial and Personal Auto as proof of prior; be sure to select the proper option in the drop-down list. Date that prior insurance policy expires. Acceptable Proof includes: Declarations Page ID card showing Liability limits and effective dates Non-Renewal Notice Renewal offer Other insurance documentation showing Liability limits and effective dates Proof of prior insurance must be submitted to National General Insurance. Page 15

18 Use Class Vehicles are rated according to how they are used. Use is based on occupation, product, commodity hauled, and manner of operation. Use of a vehicle, as well as occupation, determines Use Class. Vehicles are classified into one of the following Use Classes. Heavy/Special Usage Vehicles that represent a high degree of risk because of size, load, manner of operation, or type of risk. Size or Load: Examples include: Ash Removers Livestock Haulers Rock, Sand, Dirt, and Gravel Haulers Scrap Iron Dealers Lumber Delivery Residential Snow Plowing Any vehicle requiring a Form E or a PUC filing Manner of Operation: Vehicles whose manner of operation requires numerous stops and starts and considerable time on the road. Examples include: Couriers Magazine, Newspaper, and Rural Mail Carriers Ice Cream Vendors Type of Risk: Any risk will be rated Heavy/Special if they fail to report new drivers within 30 days of hire or if they fail to report a claim within seven days of occurrence unless for medical reasons the insured/driver is physically unable to do so. Service Usage Vehicles used exclusively in a business to transport equipment, tools, and incidental supplies to and from a job location or used primarily on a farm. The vehicle must remain parked at the job location for the major part of the working day and may not visit more than two job sites a day. Commercial Usage Vehicles that do not qualify for Service or Heavy/Special classifications. Examples include: Linen Delivery Trucks Beverage Delivery Trucks Tradesman Professions Tradesman Professions encompass occupations where a skill or craft is required. This includes, but is not limited to, electricians, painters, plumbers, HVAC technicians, locksmiths, and carpenters. Page 16

19 Fleet Underwriting Fleets consist of 10 or more vehicles. We target fleets up to 20 vehicles, but will write a maximum of 30 vehicles. All fleet risks must be submitted by the Agent and reviewed by a National General Insurance Underwriter prior to binding coverage. The system will notify us of your quote submission. The Underwriter will notify you via regarding the quote status. Fleets requiring a filing must pay the initial payment with a certified check, cashier s check, or money order. You can enter the quote information and send a complete fleet submission to a Company Underwriter. You will receive a response within three business days. Our Fleet Support Team can help quote a risk. A request for a quote may take up to five business days to complete once we receive all required information for a complete fleet submission. A complete fleet submission includes: A complete system quote or ACORD application Three years of loss runs A complete list of drivers and their MVRs A complete list of vehicles with stated amounts for commercial vehicle-type trucks and any additional equipment that is permanently attached Support for any state or federal filings Any other information requested by the Underwriter In addition to the discounts and surcharges that may apply, our Underwriter will use Schedule Rating debits and credits along with Experience Rating in evaluating all fleet accounts. Schedule Rating includes reviews of equipment quality, maintenance and safety, driver experience and stability, financial stability, business experience, and management of firm. Experience Rating is based on the loss ratio over the past three years. Non-Fleet Underwriting In most cases, we have a price for every customer. On occasion, there are higher risk exposures that need to be referred to our Underwriting Team for prior approval. The system will notify you when a quoted risk is being referred to our Underwriting Team, as well as the decision made by the Underwriter. If additional information is required, we will contact you. If you have questions regarding an account that is being reviewed, contact our Customer Service Team. Our goal is to minimize the delay in your quoting process and provide a decision as quickly as possible. When the Underwriter has received all required documents, you will receive a response within 24 hours. Named Driver Exclusions National General Insurance will exclude any driver from a policy except those requiring a Financial Responsibility filing (SR-22) provided we receive a completed and signed Driver Exclusion form. The driver license number of the individual to be excluded must be included on the form. Individuals who have a permanently revoked driver license are unacceptable risks excluded. unless they are Page 17

20 Stated Amount When determining stated amount, consider the current market value of the vehicle with any improvements to the vehicle other than additional or customized equipment. For any additional/customized equipment that is permanently attached, enter the value in the Attached Equipment field. The vehicle will be rated on the total amount of the vehicle value and the custom equipment. The minimum stated amount for any vehicle is $5,000. The minimum stated amount for any trailer is $2,000 ($5,000 for livestock trailers). The stated amount is determined by the condition of the vehicle, improvements or rebuilds, mileage, and location. Value information can be obtained from NADA, Truck Blue Book, trucks.com, internet sites, dealerships, and banks. The stated amount should be reviewed at least every two years to ensure continued accuracy of value. The customer is responsible for maintaining the accuracy of the stated amount. In the event of a loss, the policy pays the least of the stated amount, actual cash value, or cost to repair or replace. Radius of Operation Radius is the farthest one-way distance of business travel from primary garaging location. Verify that the correct radius of operation is listed on the application. Radius for personal travel does not apply when personal use is included on the policy. Territories Rating territories are defined by ZIP Code. Use the territory in which vehicle is primarily garaged. If mailing address and garaging address differ, list both on the application and provide a clear explanation. A Post Office Box is not acceptable as a garaging address. Note: If the insured moves out of state during the policy period, we recommend rewriting the policy in the new state. If rewritten with National General Insurance, we will cancel current policy pro rata. Out-of-State Garaging When there are multiple vehicles on a policy, it is permissible to garage a vehicle in a state that borders the policy state as long as this garaging address is within the declared radius and an out-of-state registration is not required. Rate Evasion Review Each policy is reviewed to verify the accuracy of the listed policy garaging address and the actual garaging address of the risk. If we determine a difference between the addresses and it is not noted in the policy details, the garaging territory will be revised and the policy premium may change. If we determine that any rate evasion was intentional, we may elect to cancel or non-renew the policy. Additional Insureds Additional insureds may be listed on the policy. This coverage does not increase the limits of National General Insurance liability and will be excess insurance over any other valid and collectible insurance. Certificate of Insurance A Certificate of Insurance is available online for active, in-force policyholders. This certificate does not extend coverage or protection under the terms of the policy. If you issue Certificates of Insurance on behalf of your National General Insurance insureds: Properly list the coverages and limits. Do not change the cancellation language of the standard ACORD certificate. Send National General Insurance a copy of all certificates. Page 18

21 Waiver of Subrogation Upon request, we will issue a Waiver of Subrogation. Rounding of Premiums Premiums are rounded up to the next whole dollar if cents are 50 or greater and down to the next whole dollar if cents are 49 or less. Experience Period Violations are charged when the conviction date is within 35 months prior to the policy effective date. Accidents are charged when the occurrence date is within 35 months prior to the policy effective date. Loss Control Program National General Insurance is committed to providing loss control information and services at no additional charge to its Texas commercial vehicle liability policyholders in an effort to prevent and reduce potential claims and losses as required by Texas Administrative Code 5.303(4)(B), (4)(B), and (4)(B). If you or your customer would like more information, please visit us at or contact us at and ask for the Commercial Loss Control Department. Underwriting Tiers National General Insurance competitively prices risks for all categories from low risk to higher risk. All risks are written in the lowest priced underwriting tier for which they qualify. Any risk submitted for a tier for which it does not qualify will be issued in the lowest tier for which it does qualify. At the inception of the policy, National General Insurance considers factors for rating auto Liability insurance. Those factors include, but are not limited to: Length of prior coverage Prior coverage type Total number of occurrences Prior and current Bodily Injury Liability limits Acceptable proof includes: Declaration Page(s) Commercial Vehicle or Personal Auto policy. Letter (on company letterhead) from prior insurance carrier. Note: Be sure to submit proof of prior. Failure to provide proof could impact the quoted premium. SR-22 Financial Responsibility Filings An SR-22 is required under certain circumstances, e.g., as a result of a DUI, DWI, or other serious moving violation. National General Insurance files an SR-22 form with the state to confirm Liability coverage for a specified driver. Texas DOT Filing National General Insurance will issue a Texas DOT filing on behalf of our insured to confirm that the state s minimum financial responsibility has been met as follows: Household goods carriers in vehicles with a Gross Vehicle Weight (GVW) less than 26,000 pounds must have a minimum limit of 300 CSL. Vehicles with a GVW of 26,000 pounds or greater must have a minimum limit of 500 CSL. National General Insurance must insure all owned and operated vehicles to issue a Texas DOT filing. Page 19

22 Accidents and Violations All drivers of the vehicles on the policy including the named insured must be listed on the application as a driver. Premiums are surcharged for drivers with violations or accidents. Points are assigned to the accident/violation rating group. Group A violations include major violations and alcohol- / drug-related convictions. Group A violations do not include any violations or convictions under Subtitle C, Title 7 Transportation. The following driver/violation ratios are unacceptable in this program: Driver Rule Minor Violation Types s 1 2 No more than 1 in the past 12 months and 2 in the past 35 Failure to Yield months per policy for any of the listed minor violations. Illegal Passing Improper Backing/Lane Change Driving on Wrong Side of Road Speeding License Use Violations 3 5 No more than 2 in the past 12 months and 3 in the past 35 months per policy for any of the listed minor violations. 6+ No more than 3 in the past 12 months and 4 in the past 35 months per policy for any of the listed minor violations. Failure to Yield Illegal Passing Improper Backing/Lane Change Driving on Wrong Side of Road Speeding License Use Violations Failure to Yield Illegal Passing Improper Backing/Lane Change Driving on Wrong Side of Road Speeding License Use Violations Fleets Fleet risks are exempted from these rules, but reviewed by Underwriting. Reviewed by Underwriting Page 20

23 Chargeable Accidents All accidents are chargeable unless proof of not-at-fault is provided. Acceptable proof of not-at-fault is: A copy of the police report or court documents clearly indicating not-at-fault. A letter from the previous carrier. Any other documentation that exonerates the applicant from fault and that is not rebutted by information in our file. No points are assigned for accidents occurring under the following circumstances: Vehicle involved in the accident was lawfully parked at the time of the accident. (If a parked vehicle rolls from the parked position, the accident is charged to the person who parked the vehicle.) Insured was reimbursed for the property damage loss by, or on behalf of, the person responsible for the accident or has judgment against such person. Vehicle was struck in the rear by another vehicle headed in the same direction and the insured has not been convicted of a moving traffic violation in connection with this accident. Driver of the other vehicle involved in the accident was convicted of a moving traffic violation in connection with the accident and the insured was not convicted of a moving traffic violation in connection with the accident. Vehicle driven by the insured was struck by a hit-and-run driver and the accident was reported by the insured to the proper authority within 24 hours. Accidents involving damage by contact with animals or fowl. Exception: Accidents involving hitting another vehicle or object as a result of swerving to avoid an animal or fowl are at-fault. Accidents involving physical damage limited to and caused by flying gravel, missiles, or falling objects. Accident occurred when using vehicle in response to an emergency when the driver of the vehicle at the time of accident was a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any law enforcement agency. This exception does not include an accident occurring after the vehicle ceases to be used in response to such emergency. Keep these documents in your agency files. Page 21

24 Transaction Guidelines Binding New Policies The application will be bound as of the date on the application or the request for endorsement provided: Risk meets acceptability guidelines. Note: See the Underwriting section in this Guide regarding risks that require prior approval. The application and all other required forms are completely filled out and are signed by the applicant. Required down payment accompanies the application. Agents do not have authority to issue policies, endorsements, or cancel notices or to permit a solicitor to bind coverage. Backdating is unacceptable. All applications must be submitted within 96 hours of the policy effective date. MVR Chargeback Each month, we will count each agency s MVR orders from the prior month. Then compare the total number of MVRs ordered to the total number of new business policies written by the agency. If 70 percent of the MVRs ordered for the month can be matched to the new policies, we will pay 100 percent of the cost of all MVRs ordered for that month. If less than 70 percent of the MVRs ordered for the month are matched to new policies, the agency will be charged for all ordered MVRs not matched to a new policy. The agency monthly commission statement will reflect any MVR charges. Financial Responsibility Score A customer s financial responsibility score is used in developing the premium for the risk. An applicant may choose not to have the financial responsibility score used in the rating of the risk, but the returned rate will be the highest rate based on the information provided. Helpful Hints: For an individual / sole proprietor, use the primary named insured. For a partnership or corporation, use the name of the person responsible for the daily operations of the concern. For a partnership, the managing partner is typically the person to use. The president or CEO will usually be the person for a corporation. Be sure to enter the person s full name, home address (not the business address, if different), and social security number if provided. Note: The customer has the right not to provide their social security number, but it could negatively impact the results of the search and impact the premium. Page 22

25 Hazardous Weather Binding Restrictions If a hurricane, tropical storm, tornado, hail storm, or flood occurs or a warning is placed in effect, do not bind any new Physical Damage coverage. Physical Damage coverage can be added when the moratorium or warning is lifted. When binding coverage within 48 hours after a warning or occurrence has been lifted, the vehicle must be inspected before initiating Physical Damage coverage. Message the application that an inspection was completed. New Business Do not bind any new policies with Physical Damage coverage. Liability Only policies can be bound. Endorsements Do not add or replace a vehicle with Physical Damage coverage. Do not add Physical Damage coverage to an existing Liability Only vehicle. Do not lower a Physical Damage deductible for an existing vehicle. All other types of endorsements can be bound. Reinstatements Policies with Liability Only coverage are eligible for reinstatement. Misrepresentation of Risk Misrepresentation of a risk is insurance fraud. Each applicant has the responsibility and obligation to truthfully complete an application for insurance and to inform National General Insurance of any and all changes during the policy period. Failure to do so could result in denial of a claim. The Agent is responsible for helping the applicant fully disclose all material facts. To avoid possible misrepresentation and to ensure the accuracy of quoted premiums: Verify the vehicle(s) or driver(s) is not listed in our program as an unacceptable risk. Make sure the applicant understands and answers all questions. Ask the applicant all questions on the application concerning business use, prior vehicle damage, past insurance fraud, and felonies. Inform the applicant that National General Insurance uses MVRs, CLUE, credit reports, and other available reports to assist in verifying information and rating the policy. All losses and accident activity both at-fault and not-at-fault must be disclosed. Verify the garaging address of all vehicles. Verify that vehicle use matches described business description. Verify that all residents of the household and employees of the business who are of eligible driving age or permit age (whether they drive or not) and all drivers who regularly drive the insured vehicles are listed and rated on the application. Page 23

26 Agent of Record New Business We believe that insureds and Agents are best served by honoring the Agent of Record at the point when a new business policy is bound not at the initiation of a quote. Renewal Business We believe that insureds and Agents are best served by renewing existing policies with the Agent who produced the policy; therefore, we do not encourage changing Agent of Record. When an insured insists on changing Agents, we require a request to change the Agent of Record signed by the insured prior to the renewal effective date. Agent of Record changes will be effective at renewal and cannot be made midterm. Policies written directly through National General Insurance cannot be transferred to an agency policy via an Agent of Record form. The policy must be written as a new business policy in your Agent code and in a company in which you are licensed to write business. Endorsements Endorsement requests should be submitted using our agency policy system at Normal binding rules apply to endorsements and all endorsements are subject to the guidelines established for new business. Premium adjustments resulting from changes to the policy will be made at time of endorsement or incorporated into future installment bills. If all installment payments have been received or if the policy is premium financed, premium adjustments will be billed or credited directly to the insured. Certain types of endorsements will be reviewed by National General Insurance and additional information may be requested as a result of the transaction being performed. Cancellations Cancellation dates will be extended to meet any statutory requirements. Flat Cancellations Flat cancellations after policy inception are only permitted for one of the following reasons: National General Insurance is notified within 30 days of the policy effective date that there is duplicate coverage on the vehicle(s) equal to or greater than the National General Insurance policy. A copy of the Declarations Page from the other policy and the named insured s written request must be submitted. The named insured did not take possession of the vehicle during a vehicle purchase and there are no other vehicles listed on the policy. The named insured must request the cancellation. A cancellation fee is not charged for a flat cancellation. Page 24

27 Insured Requested Insured requested cancellations are calculated pro rata. A written request from the named insured or receipt of the named insured s copy of the National General Insurance Declarations Page is required. The cancellation effective date may not be earlier than the date National General Insurance receives the cancellation request. When Claims declares a vehicle is a total loss and National General Insurance retains the salvage vehicle, we will delete the vehicle from the policy the day after the loss. If the total loss vehicle is the only vehicle on the policy, we will send a letter to the insured requesting them to provide replacement vehicle information or advise if they wish to cancel the policy. Policies with State and Federal Filings will be canceled 35 days after we receive the request. Flat Cancels are permitted if we receive proof of other insurance within 30 days of the policy effective date. We will advise additional insureds, loss payees, and premium finance companies (provided we have been notified of them). Company Requested Cancellation for Underwriting Reasons National General Insurance may cancel a policy pro rata for underwriting reasons within 21 days of the policy inception date. Cancellation for Non-Payment When the initial down payment is non-sufficient or dishonored, the National General Insurance policy becomes null and void. If payment for a billed installment is not received by the due date, a notice of cancellation may be sent to the insured, Agent, and any loss payee or additional interest. If payment is received before the cancellation effective date, the cancellation will not take effect and the policy will remain in-force. If payment is received on or after the cancellation effective date, the cancellation will take effect. Cancellations for non-payment of premium are calculated pro rata. Premium Finance Requested Cancellations requested by a premium finance company are calculated pro rata. Page 25

28 Reinstatements Policies may be eligible for reinstatement provided certain criteria are met. depending on number of days since expiration or cancellation Company cancellations or non-renewals are not eligible for reinstatement criteria for the risk are met. unless the underwriting A 6-month policy that has previously cancelled two times or a 12-month policy that has previously cancelled three times will not be eligible for reinstatement. All reinstatements require a National General Insurance signed Statement of No Loss and any money due. A policy may be rewritten within 14 days if the insured meets current guidelines and satisfies any outstanding balance. If a rate change occurred during the lapsed period, the renewed policy will reflect the new rate. Higher limit policies may not be rewritten with a lapse in coverage. Renewals A renewal offer will be sent to the named insured approximately 64 days prior to the policy expiration date. The insured must pay all balances due before money received can be applied to the renewal. Renewal Down Payments The renewal down payment must be received prior to the renewal effective date to ensure no lapse in coverage. A policy can be renewed with or without a lapse in coverage if the customer makes the renewal down payment within 30 days after the renewal effective date. If payment is received after 30 days, National General Insurance will write another policy with a current effective date. Page 26

29 Billing, Payments, and Fees Do not retain commission from premium collected from insureds. All payment invoices are billed directly to the insured except the down payment which must accompany the application. All refunds are mailed directly to the named insured(s) at the address on the application or any change of address provided to us in writing or to the premium finance company if applicable. Policy Period Semi-annual and annual policies are offered and will display in the system when available. Outside Premium Financing We will accept premium financing for payment of policies. Payments All National General Insurance payment invoices are billed directly to the insured except the down payment which must accompany the application. Each invoice will contain a schedule of remaining payments. All refunds are mailed directly to the named insured(s) or to the premium finance company when applicable. When an Agent accepts an insured s check, it should be made payable to National General Insurance or the agency. If an insured's check is made payable to National General Insurance, the check should be endorsed to the agency account by signing or stamping the check and indicating For Deposit Only. Acceptable methods of payment are: Down Payment VISA and MasterCard credit card or debit card, Agent sweep, or electronic check. Note: Risks requiring any state or federal filing must pay the initial payment with certified check, cashier s check, or money order. Installment Payment VISA and MasterCard credit card or debit card, Agent sweep, or electronic check. Automatic Payment VISA or MasterCard credit card, checking account, or savings account. Page 27

30 Automatic Payment If the Auto Pay payment method is available, an insured may complete a National General Insurance Automatic Payments Authorization Agreement at new business or at renewal and choose to have monthly installments electronically withdrawn from one of the following: Personal checking account or savings account or Credit card or debit card Note: The Auto Pay discount is not available with recurring credit card or debit card payment method. National General Insurance will provide the named insured a schedule of automatic payment transactions. If a change occurs on the policy resulting in a premium change, a revised statement will be issued in advance confirming the new amount to be drafted. Agents should notify insureds that National General Insurance will continue drafting based on the current draft schedule until the revised statement is issued. Requests to change account information or draft dates must be received by National General Insurance at least ten business days prior to the next draft. Requests to stop automatic payment must be received by National General Insurance at least five business days prior to the next draft date. For account information changes, a new Automatic Payments Authorization Agreement is required. Renewal down payments will be drafted automatically from the named insured s account written request to stop the draft is received. unless a Page 28

31 Fees All fees are fully earned in the event of cancellation. Additional Insured A $25.00 fee will be charged for each additional insured listed on the policy $ per policy. with a maximum fee of Automobile Theft Prevention Authority A $2.00 fee will be charged on 12-month policies and a $1.00 fee will be charged on six-month policies for each vehicle on the policy. Note: This fee is collected for and paid to the state of Texas. Convenience A $3.00 fee will be charged to process payments taken over the phone by a Customer Service Representative rather than using one of the several other payment options we provide. Federal Filing A $50.00 fee will be charged for each BMC-91 filing. Installment A $1.00 fee will be included in the installment amount for Auto Pay Checking/Saving payment method and a $10.00 fee will be included in the installment amount for Auto Pay Credit Card and all other payment methods. Late A $10.00 fee will be charged for payments received after the due date. Non-Sufficient Funds A $25.00 will be charged on all returned checks that were not honored by the bank. Reinstatement A $20.00 fee will be charged to reinstate a canceled policy. SR-22 Financial Responsibility Filing A $50.00 fee will be charged for each person on a policy whom an SR-22 Financial Responsibility filing is made. Texas DOT Filing A $50.00 fee will be charged for each Form E filing. Page 29

32 Document Retention and Review Requirements It is important to maintain complete and accurate records on all insurance transactions conducted on behalf of National General Insurance. When you complete a sale or policy endorsement, an Agency To Do list prints a list of documents required to be submitted to National General Insurance or to be retained in your customer file. These documents, whether paper or electronic form, should be retained for at least five years from the policy expiration date (or if coverage was never bound, from the date on which the quote was rejected). If State Law requires such documents be retained longer than five years, comply with the state requirement. All agency records pertaining to the business of National General Insurance are open for evaluation and inspection during routine reviews. Upon request, you will be required to present specific documentation. Failure to provide the documentation within the allotted time period will result in a failed review. Uploading Policy Documents When a Policy To Do requires documentation be submitted to National General Insurance, uploading documents through the system is the fastest and easiest way to ensure we receive the customer s documentation immediately. Click the green Upload button beside the ToDo item on the Policy Summary screen. A separate Choose File to Upload window displays for you to select the document to upload. The preferred method is to use PDF as the format for documents uploaded and sent to National General Insurance. Other acceptable formats are TIF, BMP, and JPG. When unable to use the agency policy system upload functionality, you can fax signed forms to or to [email protected]. The agency policy system, as well as the Agent s dashboard, will show which policy documents need to be submitted to National General Insurance. Go Paperless Enroll your National General Insurance customers in paperless document delivery customer and reducing calls to your office. adding value for your Paperless document delivery provides the insured immediate access to Declaration Pages, Policy Booklets, endorsements, renewals, invoices, and other documents. Note: The insured will continue to receive a printed cancellation notice delivered by the U.S. Postal Service. The only requirement for an insured to Go Paperless is a valid address. When the insured chooses to Go Paperless, they will receive a welcome from [email protected] advising them to complete the self-service registration. If the insured does not complete the self-service registration and accept the terms and conditions within seven days, they will be removed from Go Paperless and all policy documents will be sent to them by the U.S. Postal Service using the address on their policy. Page 30