Property Not Covered

1
AAIS Boatowners Program 05 08 Revision
Pam Nykaza, Senior Product Development
Specialist October 9, 2008
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About this seminar

• Todays discussion is general in nature.
• Not all policy and manual provisions are covered.
• Policy provisions are abridged for brevity.
• It does not alter, supplant, or supersede AAIS
  policy forms, manuals, bulletins, and other
  sources of advisory information.
• Consult the authoritative sources of AAIS
  information when addressing specific coverage
  questions.

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Boat Market Facts

• There were nearly 17 million recreational boats
  in the U.S. in 2007
• Florida, California, and Minnesota lead in the
  number of registered boats
• 59 million American adults participated in
  boating in 2007

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Boatowner Demographics

• 84 of boatowners 35 years old or older
• 56 have college education or advanced degree
• 29 have household income of 60k to 100k
• 23 have household income greater than 100k

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Boatowners Program 05 08 Revision

• Process
• Review current form
• Affiliate interviews
• Review boat insurance program offerings
• AAIS homeowners review
• Industry Research

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Program Features

• Comprehensive Program
• Forms and endorsements
• Rules, rating factors and loss costs
• Supporting material including educational
  material
• Written monoline or as endorsement

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Boatowners Manual

• Countrywide Rules and Factor Rating
• Eligibility
• Program Description
• Premium Determination
• Deductible Options
• Premium Modifications
• Coverage Options
• Navigational Territories
• State Exception Pages

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Eligibility

• Eligible Property
• Owned by individuals for personal pleasure use
• 30 feet or less in overall length
• Capable of maximum speeds not greater than 50
  MPH, however, this does not apply to "personal
  watercraft"
• 20 years old or less and
• Worth 75,000 or less.

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Eligibility, cont.

• Ineligible Property
• Boats powered by converted automobile engines
• Converted military surplus vessels
• Home-built or kit-built boats
• House boats used as year-round or seasonal
  residences
• Ice boats
• Power boats owned for racing purposes
• Property used for business, charter, or other
  commercial purposes and
• Sailboards or windsurfers.

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Agreement

• Coverage provided during policy period
• Coverage applies only if a limit is shown on the
  declarations

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Definitions

• Actual cash value
• Boat
• Boating equipment
• Business
• Personal Watercraft

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Property Coverages

• Principal Property Coverages
• Boats
• Motors
• Boat trailers
• Property Not Covered
• Business
• Racing And Stunt Activity
• Residential Use

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Additional Property Coverages

• Boating Equipment
• Newly Acquired Property
• Emergency Service
• Note The "limit" available for each Additional
  Property Coverage is the only "limit" available
  for the described coverage.

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Covered Losses

• We cover direct physical loss or damage to
  "covered property" and "boating equipment" except
  as limited or excluded in this form.

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Property Exclusions

• Animals And Marine Life
• Bubbling And Delamination
• Contamination Or Deterioration
• Freezing Or Overheating
• Maintenance And Repairs
• Mechanical Breakdown
• War Or Military Action

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Liability Coverages

• Principal Liability Coverages
• Coverage X Personal Liability
• Coverage Y Medical Payments
• Additional Liability Coverages
• Claims And Defense Cost
• Removal Of Wrecked Or Sunken Property

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Exclusions Personal Liability and Medical
Payments

• Business Pursuits
• Criminal Acts
• Land Transportation
• Non-Permissive Users
• Parasailing Or Kite Skiing
• Pollution Damage
• Racing Or Speed Tests

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Personal Liability Exclusions

• Employees
• Insureds
• Property Owned, Occupied, Used, Or Rented
• Workers Compensation

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Medical Payments Exclusions

• Trespassers
• Workers Compensation

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Uninsured Boater Coverage

• Coverage
• Compensatory damages
• Bodily injury only
• Uninsured Boat Is
• No liability policy in force
• Hit and run or unknown owner/operator
• Insurer becomes insolvent or denies coverage
• Uninsured Boat Is Not
• Insured under Coverage X
• Owned by government agency

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Uninsured Boater Exclusions

• Business Pursuits
• Criminal Acts
• Owned Or Rented Property
• Racing Or Speed Tests
• Trespassers

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Arbitration Uninsured Boater

• Conditions
• Selecting An Arbitrator
• Location And Rules For Arbitration
• Arbitrators Decision Is Not Binding
• Expenses

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What Must Be Done In Case Of Loss

• Duties All Coverages
• Notice To Us
• Notice To Others
• Cooperation
• Volunteer Payments

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What Must Be Done In Case Of Loss

• Other Duties Property Coverages
• Proof Of Loss
• Repairs
• Examination Under Oath
• Show Damaged Property
• Records And Documents
• Assistance With Enforcing Right Of Recovery

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What Must Be Done In Case Of Loss

• Other Duties Personal Liability And Uninsured
  Boater
• Notices, Demands And Legal Papers
• Assistance With Claims And Suits
• Other Duties Medical Payments
• Give "us" written proof of claim
• Authorize "us" to get copies of medical records
• Submit to physical examinations

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How Much We Pay Property Coverages

• Actual Cash Value lesser of
• Actual cash value" of the property
• Amount spent to repair or replace property
• Any policy limits that apply.
• Deductibles

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How Much We Pay Liability Coverages

• Personal Liability
• Limit
• Medical Payments
• Limit
• Reduction Of Amounts Payable
• No Admission Of Liability
• Uninsured Boater
• Limit
• Reduction Of Amounts Payable

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Payment Of Loss Or Claim

• Your Property
• When We Pay
• Our Options
• Payment Made To You
• Personal Liability
• Medical Payments

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Additional Limitations And Exclusions

• Fines, Penalties, Or Tax Liens
• Seaworthiness Warranty

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Conditions All Coverages

• Assignment
• Change, Modification, Or Waiver Of Policy Terms
• Conformity With Statute
• Death
• Liberalization
• Misrepresentation, Concealment, Or Fraud
• Recoveries
• Subrogation
• Territory

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Conditions

• Conditions That Apply Only To Property Coverages
• Abandonment Of Property
• Appraisal
• Inspections
• No Benefit To Bailee
• Suit Against Us
• Conditions That Apply Only To Liability Coverages
  
• Bankruptcy Of An Insured
• Suit Against Us

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Endorsements

• BT 0900 Policy Conditions -- Cancellation and
  Nonrenewal
• BT 1301 Punitive Damages Exclusion
• BT 2000 Lay-Up Period Limitation
• BT 2001 Personal Watercraft Exclusion

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Endorsements, cont.

• BT 2500 Expanded Emergency Service
• BT 3000 Personal Effects Coverage
• BT 4500 Named Storm Deductible
• BT 4800 Agreed Value Settlement Provision
• BT 6001 Additional Insured

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For Additional Information

• For existing affiliates
• Pam Nykaza, Senior Product Development Specialist
• 800/564-AAIS (2247), ext. 275
• pamelan_at_AAISonline.com
• For a new affiliation
• Rick Maka, Director of Marketing
• 800/564-AAIS (2247), ext. 222
• rickm_at_AAISonline.com