MAPFRE INSURANCE COMPANY PERSONAL UMBRELLA RATE/RULE MANUAL Final Version February, 2012 Edition MAPFRE Insurance Co. Page 1 of 6
Table of Contents UNACCEPTABLE RISKS... 2 UNDERWRITING GUIDELINES... 3 UNDERLYING INSURANCE... 3 DEFINITIONS... 4 DESCRIPTION OF COVERAGE... 4 POLICY PERIOD... 4 CHANGES OR CANCELLATIONS... 4 EXCLUSIONS... 4 YOUTHFUL OPERATORS... 4 AVAILABLE LIMITS... 4 PAYMENT METHODS AND BILLING FEES... 4 ADDITIONAL FEES... 5 PROCEDURES... 5 SCHEDULE OF FORMS... 6 UNACCEPTABLE RISKS Before quoting a risk or binding coverage, the agent should refer to the Unacceptable Risks list to determine acceptability. 1. Underlying policies with an excluded operator. 2. Drivers over the age of 75 with any accidents or violations in the last three years, or with a limit in excess of 2,000,000. 3. Drivers with less than 9 years of driving experience with any accidents or violations in the last three years. 4. Drivers with a major conviction in the last five years (DUI, reckless driving, hit and run, suspended/revoked license, etc.) 5. Drivers with more than 9 years driving experience with a combination of at-fault accidents and violations in excess of two. 6. Aircraft exposure. 7. Motorcycle and Moped exposures for any operator with less than 9 years of motorcycle operating experience. 8. Rental property exposure in excess of four units. 9. Farm exposure unless incidental farming liability coverage is present. 10. Any underlying automobile exposures that include an ineligible vehicle under the MAPFRE AU guidelines. 11. Any underlying watercraft exposures that are ineligible for coverage under the MAPFRE HO guidelines. 12. Any commercial or business exposure. 13. An insured acting as director or officer of any organization. 14. Any exposure involving home day care. 15. Any fuel storage system exposures above or below ground. 16. Any insured that is not gainfully employed. MAPFRE Insurance Co. Page 2 of 6
17. Recreational/Unlicensed Motor Vehicles: No insured may: Own a three-wheel recreational vehicle; own a dune buggy. UNDERWRITING GUIDELINES If there are any questions regarding acceptability the agent should call Underwriting. The following risks may be eligible for coverage after review from underwriting. 1. Any risk with Umbrella limits in excess of the 1,000,000 base. 2. An insured with swimming pool, pet, or trampoline. 3. Any insured involved in a personal liability lawsuit in the past five years. 4. Any risk with more than two at-fault accidents in the household. 5. Any risk with a driver that has more than three minor convictions. 6. Any risk where the total number of minor incidents in the household exceeds five. 7. Any of the following occupations: a. Actors and entertainers b. Authors, newspaper and magazine publishers, editors, reporters, and writers. c. Media broadcasters, executives, and reporters. This includes television and radio station owners. d. State, federal, or local judges or public officers including lobbyists. e. Professional athletes f. Employment that requires serving of alcohol g. Labor Activist-Leaders/Negotiators h. Law enforcement official/officer i. Persons involved in a racing/speed contest with any type of vehicle or boat j. Persons operating a Day Care Center k. Politician, Political Activist, Public Officeholder l. Public Lecturer m. Bail Bondsperson n. Other individuals who are prominently recognized by the general public. 8. Split limits of 250/500/100 on underlying primary auto insurance may be acceptable on umbrella policies at the base limit. UNDERLYING INSURANCE All private passenger autos supplied for regular use by a customer must be insured by MAPFRE as part of a personal auto policy and all residences listed in the declarations for this Umbrella policy must be insured by MAPFRE as part of a personal homeowners policy. Any underlying primary policy that excludes coverage or drivers, or provides reduced coverage is ineligible for an umbrella policy. The primary underlying insurance must be maintained without interruptions in coverage for the duration of the umbrella policy and must meet or exceed the limits given in the table below. Primary Underlying Insurance Minimum Limits Automobile and Motor Homes / Travel Trailers Split Limits of 250/500/100 Comprehensive Personal Liability Premises Liability Incidental Farm Recreational Vehicles Watercraft Liability MAPFRE Insurance Co. Page 3 of 6
DEFINITIONS DESCRIPTION OF COVERAGE This Umbrella policy provides liability coverage at a limit in excess of a customer s primary underlying insurance. In the case where an exposure is not covered by underlying insurance and the insured is not in violation of his or her duty to maintain underlying insurance, then coverage is excess over a retained limit of $250 per occurrence. The base policy includes coverage for one auto and one primary residence at a limit of 1,000,000. Additional charges apply for other exposures. POLICY PERIOD The policy period is one year. CHANGES OR CANCELLATIONS A. It shall not be permissible to cancel any of the mandatory coverages in the policy unless the entire policy is cancelled. B. If insurance is increased, cancelled or reduced, the additional or return premium shall be computed on a pro rata basis, subject to the minimum premium requirement. EXCLUSIONS Any driver or operator exclusions or any exclusions affecting liability coverage on underlying insurance policies apply to the umbrella policy as well. A personal umbrella should not be written if an Excluded Operator Endorsement is attached to an underlying personal automobile policy. YOUTHFUL OPERATORS Any operator with less than 9 years of driving experience. AVAILABLE LIMITS Coverage is available in increments of one million dollars up to a maximum limit of five million dollars, however, there is no binding authority on limits in excess of one million dollars. PAYMENT METHODS AND BILLING FEES Payment in Full Option - 100% of the policy term premium is due at inception for new business and by the renewal date for renewal business. All renewal offers for payment plans will be offered the Paid in Full premium and payment as well as the minimum amount due. Annual Two Payment Option The policy premium is divided into two equal payments. Annual Four Payment Option The policy premium is divided into four equal payments. An EFT option with the same installment schedule is available for this bill plan. Payment Types Credit Card, Debit Card, Checks (includes payments swept from an agency account), Escrow/Mortgagee Bill and Electronic Checks (ACH) payments are accepted for down payments and subsequent payments. Insureds may make payments via: Telephone (VRU) Invoice (standard mail) Online (MAPRE website) EFT from a checking or savings account is available for those selecting the EFT payment plan. MAPFRE Insurance Co. Page 4 of 6
ADDITIONAL FEES Non Sufficient Funds (NSF) Fee - All policies will be null and void if the original payment is returned due to non-sufficient funds. After the first policy payment is made, the Non Sufficient Funds ($20) fee will apply for each check returned to the company for non-sufficient funds. This fee will be triggered by the billing code. A cancellation notice will be sent when the check is returned to the company. To avoid cancellation the insured must pay the original payment amount, the fee and any additional installment payment currently due. Installment Fees (Non EFT) - An installment fee is a service charge that is applied to each installment payment other than the initial down payment of the new business term. The fee will not apply if the insured pays in full at the beginning of a renewal policy term. This Installment ($6) fee will be triggered by the billing system when an additional bill is sent due to the payment plan chosen along with the percentage of the premium total paid. PROCEDURES The company reserves the right to rescind all coverage when statements on the application are found to be fraudulent and material to the acceptance of the risk and, if the true facts had been know by the company, the application would not have been accepted. New Business New business submissions may only be submitted by electronic MAPFRE Umbrella Insurance Application that is fully completed and signed by the applicant and the Producer. MAPFRE Umbrella Insurance applications and all required forms and documentation are to be electronically submitted, facsimiled or postmarked to MAPFRE no more than three (3) days after the effective date of the application. Endorsements Endorsement request may be mailed, faxed or sent by electronic mail (e-mail) to MAPFRE Underwriting. Endorsement request submitted on an ACORD Change Request form must be dated and signed by the Producer. Endorsement Request forms along with all required supporting documents must be facsimiled or postmarked to MAPFRE within three (3) days of the Producer s receipt of the Insured s request for endorsement. Facsimile transmission of the Endorsement Request form is acceptable. Endorsement request sent by electronic mail must be sent within (3) days of the Producer s receipt of the Insured s request for endorsement. Any required supporting documentation must be mailed or faxed to the company within (7) additional days. MAPFRE Insurance Co. Page 5 of 6
SCHEDULE OF FORMS The MAPFRE Property Insurance program uses both Insurance Services Office (ISO) coverage forms and manuscripted coverage forms using copyrighted material from Insurance Services Office. See MAPFRE Property Forms Schedule for a complete listing of coverage forms. MAPFRE Insurance Co. Page 6 of 6