PLUS RISK SELECTION GUIDE AND ELIGIBILITY REQUIREMENTS The following guidelines are designed to assist you in identifying risks that are eligible for our Personal Liability Umbrella of Security Policy (PLUS standalone) and Personal Liability Umbrella Supplement to Homeowners (PLUS supplement). These guidelines will not be applied in any manner that conflicts with the insurance laws or regulations of the state. Submit referrals to Travelers prior to binding. If any of the following guidelines are not met, the risk may be submitted to Travelers unbound for consideration. These guidelines are not inclusive as other factors may warrant consideration in the underwriting process. We reserve the right to make exceptions when justified. PLUS coverage will be written only for insureds having a current Travelers Automobile policy, and the driver characteristics and driving record of all operators in the household meet the underlying automobile requirements set forth in the Auto eligibility rules and referral guidelines as well as the requirements shown below in the Driver Characteristics/Driver Record section of these guidelines. Primary insurance for all exposures other than Auto is encouraged to be written in Travelers. Homeowners and other underlying exposures (e.g. watercraft, rental dwelling, motor home) not written by Travelers must meet our underwriting requirements for those individual product lines. Copies of declarations pages for any primary insurance where Travelers is not the insurer must be retained with the signed application. An underwriting questionnaire for any primary insurance where Travelers is not the insurer may be required at the discretion of the company. (Note: When a limit of $10 million is requested, PLUS coverage will be written only for insureds having a current Travelers Automobile policy and a current Travelers Homeowners policy, and it is only available with the PLUS standalone policy.) CATEGORY ELIGIBILITY Limits Agents who have been granted binding authority may bind PLUS policies with limits not greater than $1,000,000 subject to these guidelines. Driver Characteristics / Driver Record Households with safe, responsible, experienced drivers are eligible. Drivers whose characteristics do not meet the new business eligibility criteria for a primary Travelers Auto Policy are ineligible. PLUS coverage will be written only for insureds having a current Travelers Automobile policy. In addition, the following are ineligible: 1. PLUS Limit of $1 million: Any risk not meeting the underlying automobile requirements set forth in the Auto eligibility rules and referral guidelines for Auto new business in the state. 2. PLUS Limits of $2 million up to and including $5 million: A. Any operator insured: 1) By a nonstandard company or in a nonstandard program; 2) In any of the following Travelers programs: a) Travelers Auto policy written in a nonstandard price track or company; b) Policies written in the Travelers Specialty Product (e.g. form 102) or AIP Takeout Program (e.g. form 103); c) Mendota Policies; d) Under a policy with restrictions on the driver or a named driver exclusion; e) Under a policy with restricted limits of liability; or f) In an Assigned Risk Plan, Facility Market, or other similar residual auto insurance plan. B. Any operator/risk having the following incident and liability claim activity in the past 3 years: {Incidents include: at-fault (AF) accidents, not-at-fault (NAF) accidents, and major and minor moving violations}. 1) Conviction of the applicant or any other resident operator for a motor vehicle violation of the type shown below: a) Driving while under the influence of alcohol or drugs; 15PS.DOC Kansas - PLUS - Eligibility Guidelines -04/15/07 [5A] KSEG - 1
b) Refusal to take a sobriety test; c) Illegal possession of alcohol or drugs in a motor vehicle; d) Drinking while driving; e) Reckless driving; f) Failure to stop for school bus; g) Careless driving; h) Inattentive operation; i) Speeding 21 mph or more over the limit; j) Any operator who has had their driver s license or registration suspended or revoked, other than an administrative suspension or revocation, in the past 60 months; k) Criminal negligence, homicide, manslaughter, assault or any felony arising from the use of an auto; l) Failure to stop and report an accident; m) Attempting to elude a police officer; n) Making false statements in an application for a driver s license or registration; o) Theft or unlawful taking of an auto, or operating a vehicle without permission; p) Unlawful driving during suspension or revocation of license or registration; q) Illegal use of or loaning a license to an unlicensed person; r) Altering, forging or counterfeiting license, title, registration or plates; or s) Racing or participating in a race or timed/speed event. 2) Any operator with 2 or more incidents in the past 3 years and the risk has a total of 3 or more incidents in the past 3 years; 3) The risk has a total of more than 3 incidents in the past 3 years, regardless of the number of operators. Risks meeting any of the criteria in 2A or 2B above are ineligible regardless of the Travelers Auto program in which they are written. 3. PLUS Limit of $10 million: A. Any operator insured: 1) By a nonstandard company or in a nonstandard program; 2) In any of the following Travelers programs: a) Travelers Auto policy written in a nonstandard price track or company; b) Policies written in the Travelers Specialty Product (e.g. form 102) or AIP Takeout Program (e.g. form 103); c) Mendota Policies; d) Under a policy with restrictions on the driver or a named driver exclusion; e) Under a policy with restricted limits of liability; or f) In an Assigned Risk Plan, Facility Market, or other similar residual auto insurance plan. B. Any operator/risk having the following incident and liability claim activity in the past 3 years: {Incidents include: at-fault (AF) accidents, not-at-fault (NAF) accidents, and major and minor moving violations}. 1) Conviction of the applicant or any other resident operator for a motor vehicle violation of the type shown below: a) Driving while under the influence of alcohol or drugs; b) Refusal to take a sobriety test; c) Illegal possession of alcohol or drugs in a motor vehicle; d) Drinking while driving; e) Reckless driving; f) Failure to stop for school bus; g) Careless driving; h) Inattentive operation; i) Speeding 21 mph or more over the limit; j) Any operator who has had their driver s license or registration suspended or revoked, other than an administrative suspension or revocation, in the past 60 months; k) Criminal negligence, homicide, manslaughter, assault or any felony arising from the use of an auto; 15PS.DOC Kansas - PLUS - Eligibility Guidelines -04/15/07 [5A] KSEG - 2
Losses l) Failure to stop and report an accident; m) Attempting to elude a police officer; n) Making false statements in an application for a driver s license or registration; o) Theft or unlawful taking of an auto, or operating a vehicle without permission; p) Unlawful driving during suspension or revocation of license or registration; q) Illegal use of or loaning a license to an unlicensed person; r) Altering, forging or counterfeiting license, title, registration or plates; or s) Racing or participating in a race or timed/speed event. 2) Any operator with any at-fault accidents; 3) Any risk with a total of 2 or more incidents, regardless of the number of operators. 4) Any operator licensed less than 3 years with any incidents; 5) Any operator over age 70 with any incidents; 6) Any operator under age 25 with any incidents and a car away at school; or 7) Any operator licensed less than 5 years with any incidents and the risk involves: a) Any snowmobile, regardless of engine size; b) Any miscellaneous vehicle (e.g., ATV, motorcycle) for which coverage under endorsement PLUS 05 is requested; or c) Any personal watercraft (e.g., Jet Skis, Sea-Doos, etc.) for which coverage under endorsement PLUS 05 is requested. Risks meeting any of the criteria in 3A or 3B above are ineligible regardless of the Travelers Auto program in which they are written. PLUS Limits up to and including $5 million: New business risks that have had a legal judgment against any household member or have had a liability loss (other than auto liability) in the last 3 years must be referred to the Travelers with complete particulars. PLUS Limits of $10 million: New business risks that have had a legal judgment against any household member or have had a liability loss (including auto liability) in the last 5 years are ineligible. Applicant An individual, a married couple, or domestic partners if residing in the same household. "Domestic partners" means two adults, of the same or opposite sex, engaged in a spouse-like relationship, whether recognized by law or not, characterized by mutual caring and dependency. Risks involving trustees and other additional interests may be submitted for consideration. Corporations or other entities (e.g. Sole Proprietorships, Partnerships, LLCs) are ineligible. Application A completed ACORD Personal Umbrella Application, signed by the applicant, is required for all submissions (Note: This applies to both PLUS standalones and PLUS supplements). Automobiles Refer to the vehicle description section of the eligibility rules and risk selection guide in the Personal Auto Manual to determine eligibility for PLUS. Motor homes are included under the definition of Auto and are eligible. Note: Policy language does not cover all motorcycles, motor vehicles with less than four wheels, and certain other vehicle types (except those specifically defined as "recreational vehicles" in the policy or endorsed thereon). Motorcycles and other vehicles that may not be bound in the Auto program may be submitted for consideration. See also the Other Miscellaneous Vehicles and the Recreational Vehicles sections below. 15PS.DOC Kansas - PLUS - Eligibility Guidelines -04/15/07 [5A] KSEG - 3
Business (Incidental) Incidental Business An incidental business occupancy of the named insured or family member located in a residence premises with a minimal exposure to public traffic is eligible. Exposures involving any form of retail sales and/or where there is a nursery school, private school, or day care center are ineligible. Coverage must be provided for the business occupancy on the underlying Homeowners policy using Endorsements HO- 42, HO-43, 58147, or their equivalent to meet the deductible requirements. Use Endorsement PLUS 03 Permitted Incidental Occupancies. Rental Properties Up to nine eligible rental properties are acceptable. Eligible rental properties include nonowner-occupied condominium units and 1-, 2-, 3-, or 4-family dwellings. Business Pursuits Business pursuits are generally eligible for coverage provided the Homeowners policy is endorsed with HO-71 or the equivalent to provide primary coverage to meet the deductible requirements. Use Endorsement PLUS 04 Business Pursuits. Civic Activities Individuals involved in nonprofit civic, religious, or charitable organizations who do not receive remuneration or financial gain, and are not providing professional services are covered. Individuals who do provide professional services or who are paid for work for nonprofit organizations may still be eligible, but there is no coverage for such activities. Refer these risks to Travelers. Farming Risks involving incidental farming on the residence premises are eligible for coverage provided the Homeowners policy has Endorsement HO-72 (or the equivalent) attached and the risk meets the following criteria: 1. Does not involve the employment of others for farm work, either full or part time; 2. Does not produce more than $5000 in gross annual revenue; and 3. Does not include riding stables, animal breeding, or pick-your-own produce exposures. Foreign Exposures Risks involving owned foreign auto and residence exposures are eligible for the PLUS program. However, these exposures are excluded. Applicants engaged in foreign travel exceeding 6 months per calendar year are ineligible. Occupation No applicant will be ineligible due solely to their occupation. Agents should closely evaluate individuals in the following occupations. Such occupations should be referred to Travelers: 1. Authors, editors, or publishers; 2. Actors, athletes, or entertainers; 3. Broadcasters or telecasters; 4. Public lecturers, politicians, or political activists; or 5. Any other person well known to the general public because of their position, occupation, or activities. PLUS Limits of $10 million: Applicants with any of the occupations shown above are ineligible. 15PS.DOC Kansas - PLUS - Eligibility Guidelines -04/15/07 [5A] KSEG - 4
Other Miscellaneous Vehicles The policy does not cover the following: All-terrain vehicles (ATVs), Amphibious Vehicles, Dirt Bikes, Dune Buggies, Mini Bikes, Motorcycles, Swamp Buggies, Trail Bikes Such vehicles may be referred to Travelers. However, the vehicle is ineligible if it is rated or advertised by the manufacturer as a performance, high performance, racing model, or its equivalent. The driver characteristics and driving record of all other miscellaneous vehicle operators in the household must meet the underlying automobile requirements set forth in the Auto eligibility rules and referral guidelines, as well as the requirements shown above in the Driver Characteristics / Driver Record section of these guidelines. Use Endorsement PLUS 05 Miscellaneous Vehicles and Watercraft. See also the Recreational Vehicles section below. Recreational Vehicles The PLUS policy defines "recreational vehicle" as any motorized golf cart or snowmobile. Applicants owning snowmobiles with motors that are classified by the manufacturer as a "performance", "high performance", racing model, or its equivalent are ineligible. The driver characteristics and driving record of all recreational vehicle operators in the household must meet the underlying automobile requirements set forth in the auto eligibility rules and referral guidelines, as well as the requirements shown above in the Driver Characteristics / Driver Record section of these guidelines. See also the Other Miscellaneous Vehicles section above. Watercraft Boats meeting the following criteria must be referred to Travelers: 1. Used for other than recreational purposes; 2. Capable of speeds in excess of 50 mph; 3. Over 15 years old (new exposures, unless we write the underlying); 4. Having any operators who exceed driving record eligibility requirements as described in these guidelines; or 5. 30 feet and over in length. The following types of watercraft are ineligible: 1. Watercraft having engines that exceed the manufacturer's recommended horsepower limits; 2. Watercraft that are not well maintained; 3. Any of the following types of watercraft: Airborne Airpowered, Amphibious, Ducks, Homemade, Hovercraft, Hydrocycles, Hydrofins, Hydroplanes, Ice Boats, Kit Boats, Kites, Land/Sea Campers, Marshcraft, Sea Mobile, Sea Scooters, Sea Wing The policy does not cover the following: Airboats, air cushioncraft, hovercraft, hydrofoils, personal watercraft, or similar type watercraft. Personal watercraft (e.g. jet skis, sea-doos, wave runners, wetbikes) may be referred to Travelers. Use Endorsement PLUS 05 Miscellaneous Vehicles and Watercraft. 15PS.DOC Kansas - PLUS - Eligibility Guidelines -04/15/07 [5A] KSEG - 5