Commercial Auto Training Web Cast

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Commercial Auto Training Web Cast

• Welcome!

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Todays Topics

• Eligibility For Non-Fleet Commercial Auto
  (Policies With 1-4 Vehicles)
• Coverage
• Quoting

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Eligibility

• Non-Fleet New Business Risk Mgmt Policy
• Allstate Insurance Company (Co 10)
• Processing Line 11
• Vehicle Type and Weight
• Driving Experience
• Prior Insurance
• Radius
• Hazard Grade/CIDUG (Eligibility of Business
  Operations)
• Driving Record

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Vehicle Type and Weight Trucks

• Light GVW
• Up to 10,000 lbs
• Medium GVW
• 10,001 to 20,000
• 750,000 Minimum Liability Limit Reqd
• Heavy GVW
• 20,001 to 45,000 lbs
• 750,000 Minimum Liability Limit Reqd
• Class B License 26,001 GVW

• Gross Vehicle Weight Weight of Truck Load
  Capacity
• Obtain VIN to Identify GVW

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Light GVW Truck Up to 10,000
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Medium GVW Straight/Box Truck 10,001 to 20,000
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Heavy GVW Straight/Box Truck 20,001 to 45,000
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Vehicle Type and Weight Medium Heavy Trucks
With Attached Equipment

• Dump Trucks
• Cherry Pickers
• Boom or Hoist Trucks
• Tank Trucks
• Water Trucks
• Scissor Lift Trucks
• Conveyor Belt Trucks
• Extra Heavy Trucks or Tractor-Trailer Trucks

• Ok when policy includes minimum of 4 vehicles
  and
• Trucks described do not exceed 25 of total
  vehicles
• Extra Heavy Trucks and Tractor-Trailer Trucks
  require Underwriter Approval

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Truck with Bucket Lift
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Dump Truck
11
Single Axel Tractor and Trailer 10 Tires Max!
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Tandem Axle Semi Truck/Trailer Ineligible
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Vehicle Type and WeightPrivate Passenger Types

• Corporate or Partnership Titled Only
• Does not apply to trucks
• Vehicles Up To 100,000 Original Cost New
• Over 100,000 contact Underwriting for approval

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Private Passenger Car (PPT)
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Vehicle Type and WeightNo Special Type Vehicles

• Airport Bus
• Ambulance
• Bus
• Cement Trucks
• Charter Bus
• Cranes
• Drilling Rigs
• Driving Training (Commercial)
• Driving Training (Educational)
• Fire Department
• Golf Mobile
• Inter-City Bus
• Law Enforcement

• Limousines
• Mobile Home
• Motorcycle
• Motor Home
• School Bus School District
• School Bus All Other
• Sightseeing Bus
• Snowmobile
• Taxis
• Urban Bus
• Van Pools Employee Furnished
• Van Pools All Other

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Driving Experience

• 3 Years U.S./Canada
• Driver experience calculated from age 16
• Driver under 19 is Inexperienced
• If 4 Drivers with 1 inexperienced driver refer
  to Underwriting
• 2 Years Driving Same Type Truck
• Applies to Medium GVW Trucks
• Verify experience with applicant
• Information entered in PQB

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Prior Insurance Radius

• Prior Insurance
• No prior applicants are ineligible
• Prior personal auto insurance on vehicles to be
  quoted ok
• New in business ok (no prior, no need)
• Lapse of prior coverage up to 30 days ok

• Radius
• Vehicles operated within 200 miles of garaging
  location

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Hazard GradeEligible Business Operations

• Contractors
• Plumbing
• Electrical
• Carpentry
• Heating A/C
• Painting
• Concrete
• Tile
• Drywall/Plaster
• Glass Installation
• Fence Installation
• Garage Door Installation
• Landscaping
• Pool Spa Installation
• Inland Marine Available For Tools/Equipment

• Services
• Carpet Cleaning
• Computer Repair/Installation
• Appliance Repair
• Locksmiths
• Janitorial
• Mobile Auto Service
• (No ENOC or Hired)
• Auto Glass Replacement
• Auto Detailer
• Dent Removal
• Stereo/GPS/Alarm Installation
• Also eligible business operation for Customizer
  Policy!

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Hazard GradeEligible Business Operations

• Wholesale Distributors
• Clothing
• Furniture and Home Furnishings
• Office Equipment, Stationery, Supplies
• Motor Vehicle Supplies and Parts
• Sporting and Recreational Goods
• Flowers, Nursery Stock Florists Supplies
• Plumbing and Heating Equipment/Supplies
• Toys, Hobby Goods and Supplies
  Electrical Appliances, TVs and Computers
• All are eligible businesses for Customizer!

• Retailers
• Bakeries
• Furniture Stores
• Grocery Stores
• Electrical Appliances(TVs etc)
• Flooring Showrooms
• Auto Parts
• Household Appliances
• Meat/Fish Markets
• All are eligible businesses for Customizer!

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Hazard GradeIneligible Business Operations

• Local and Long Haul Trucking Couriers
• Passenger Transportation - For Hire and Not for
  Hire
• Tow Truck Operations
• Auto Repair Operations Providing Road Side
  Assistance
• Chemicals/Flammables/Fertilizers/Waste
• Hauling

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Driving Record

• 1 Operator Eligibility
• Up to 2 At-fault/minor incidents in 3 years ok
• Multiple Operator Eligibility
• 2 drivers Up to 3 total at-fault/minor
  incidents ok
• 3 drivers Up to 4 total at-fault/minor
  incidents ok
• 4 drivers Up to 7 total at-fault minor
  incidents ok
• All drivers cannot have 2 incidents and be
  eligible!
• All Drivers
• No Majors in 5 years
• No Current License Suspensions
• Closed license suspensions have no impact on
  eligibility
• No Expired License
• Incident date used to determine age of minor and
  major violations
• At-fault accidents and minor violations are not
  surcharged

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Coverage

• Annual Policy
• Combined Single Limit of Liability
• Broader coverage with no per person or property
  damage sub limit
• Higher limits available to protect the business
  owner
• Loading and Unloading Coverage
• Liability protection for bodily injury or
  property damage from the loading onto or
  unloading from a covered vehicle
• Medical Payments Coverage
• Can be selected by vehicle
• Does not coverage 1st party injury to employees
  while driving covered vehicles for business
  purposes

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Coverage Endorsements

• Non-owned Auto
• Liability coverage for vehicles not owned by the
  insured when used by others in the business like
  employees
• Hired Auto
• Liability/physical damage coverage for vehicles
  the insured rents or borrows
• Additional Insured
• Liability protection for other entities the
  insured does work for
• Rental Reimbursement
• Reimbursement for cost of renting a replacement
  vehicle when a covered vehicle is out of service
  after a covered coll/comp loss.
• Flexible choices available for per day and number
  of days reimbursement
• Drive Other Car
• Provides coverage for the insured and specified
  persons in a business for vehicles rented or
  borrowed for personal use.
• Added when insured does not personal auto
  insurance to cover this exposure

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Coverage For Passenger Vehicles Only

• Waiver of Collision Deductible
• Uninsured Motorist for Property Damage
• Towing Coverage
• These coverages are not available for trucks

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CoverageWhy Should I Put My Vehicles on a
Commercial Policy?

• The Right Coverage
• Business pursuits may be excluded from a personal
  auto policy
• More Coverage to Protect the Business Owner
• Higher limits of liability available (up to 2
  million combined single limit)
• Business vehicles can be a target for higher
  losses, especially with signs on vehicles
• Coverage Available Not Provided on Personal Auto
  Insurance
• Loading and Unloading
• Employers Non-owned Auto Liability
• Hired Auto
• Additional Insured Endorsements and Certificates
  of Insurance Available at No Charge

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Quoting

• Alliance or ALSTAR?
• Information Gathering
• Rating Basics
• Live Quote Example

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QuotingAlliance or ALSTAR?

• Either system can be used for quoting
• Alliance has quote capability only
• ALSTAR must be used to complete PQB, Risk Assess
  and Application
• Alliance has features not available in ALSTAR
• Fewer input screens
• Down payment information
• E-mail/FAX capability
• Alliance and ALSTAR Systems are Linked
• Quote saved in one system is automatically saved
  in the other system

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QuotingInformation Gathering

• Meet with your prospect to gather quote
  information
• Description of Business Operations
• Ownership Entity
• Number of employees
• Rent vehicles for business?

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QuotingInformation Gathering

• Request a Copy of the Prior Ins Dec
• Vehicle VINs and Yr/Model Information
• Current Coverage
• Renewal Date
• Develop Additional Vehicle Information
• Usage
• Garaging zip code
• Attached equipment on trucks? Value?
• Radius
• Any vehicles leased?

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QuotingInformation Gathering

• Driver Information (optional for quoting)
• Obtain for owners employees that drive vehicles
• Name, license number, date-of-birth
• Field Underwrite Drivers
• All drivers have 3 years experience?
• Any drivers with tickets/accidents/major
  violations?

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QuotingRating Basics

• Set Coverage Pre-Sets Prior to Quoting
• Quote in Allstate Insurance Company
• Obtain Vehicle VIN Numbers
• Understand Rating Selections for Trucks Vs PPTs
• Vehicle Usage
• Driver Class
• Industry Code
• Radius Classification

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QuotingRating Basics

• Trucks
• Vehicle Usage
• Service Intended for contractors and service
  businesses
• Retail - Home deliver/pick-up
• Commercial - Transporting property other than
  defined by service or retail
• Driver Class
• Always None

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QuotingRating Basics

• Trucks
• Industry Code (Most Common Choices)
• Contractors
• Common Special Trade Contractors-830
• All Other Contractors-890
• Businesses Other Than Contractors-990
• Other Codes Used
• Locksmith 920 (account code required)
• Carpet Cleaning 960 (account code required)
• Eligible Dump Truck -790
• Food Delivery Various 300 codes
• Radius
• Local Up to 50 miles
• Intermediate 51 to 200 miles

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QuotingRating Basics

• Private Passenger Types
• Vehicle Usage
• Business (most common choice) Used for
  business purposes including sales calls,
  appointments, deliveries, errands, etc.
• To and From Work Used to drive to and from work
  only.
• Pleasure Not used for business or to and from
  work.

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QuotingRating Basics

• Private Passenger Types
• Driver Class
• Adult (most common choice) Vehicle driven by
  drivers over 21 for business, to and from work or
  pleasure.
• Basic Vehicle not used in business, over 25 of
  annual mileage driven by drivers under 21.
• Restricted Vehicle not used in business, 25 or
  less of annual mileage driven by drivers under
  21.
• Industry Code
• Does not apply
• Radius
• Does not apply

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Quoting

• Live Quote Example

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PQB/Risk Assess/Application

• PQB
• Start PQB From ALSTAR Action Menu at the end of
  ALSTAR quote
• Commercial Auto is processing line 11
• Run PQB separate from risk assess (enter no to
  risk assess)
• Interactive MVR ordering for up to 9 drivers
• Reconcile MVR activity then complete Risk Assess
• SSN/Tax ID not needed. Ok to enter dummy
  number
• Loss information system report (LIS) run for
  individual and partnership entities only

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PQB/Risk Assess/Application

• Risk Assess
• Time Frame to Complete
• Same day in 2-3 hours to next day within 24 hours
• CIDUG
• Numeric code that represents business operations
  being quoted
• Contact underwriting for assistance if unable to
  find code that matches business operations
• Risk Assess Result
• Accept risk is ok for binding
• No decision contact underwriting for approval
• Reject risk ineligible, contact underwriting
  with questions

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PQB/Risk Assess/Application

• Application
• Slot completed risk assess to new business
• 80 of completed applications with accept risk
  assess decision are issued by the processing
  system in 24 hours
• TDOCs
• Uninsured motorist waiver only (4-5 pages)
• No registrations or vehicle inspections required
• Fax UM Waiver with Commercial separator page
• Need a separator page? Contact the Commercial
  Auto Growth Team
• Retain signed application/binder in agency

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Whats NextTime to Prospect!

• Suggestion - Complete 15 minute LRN course Tips
  For Selling a Commercial Auto Policy (code
  73267)
• Set a premium goal and begin prospecting for
  Commercial Auto Business!

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Whats NextTime to Prospect!

• Look For Business Owners Among New Customers and
  Existing Insureds
• Consistently ask customers what they do for a
  living looking for self-employed customers
• Consider Prospects in Your Circle of Influence
• Businesses youve used
• Friends and family
• Telemarket businesses from the Target Classes
  list
• Use internet phone directories for free leads
• Scrub phone numbers on DNC tool
• Daytime activity
• Carry a recorder and record prospects while
  driving for telemarketing leads
• Measure activity weekly - contacts, x-dates,
  quotes, policies sold

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43
Thank You For Attending!

• Questions?
• I will mail you Commercial Auto reference guide.