Property Not Covered

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Welcome to AAIS Interactive Web Seminar
BoatownersProgram
Jeff Holaway, CPCU - Manager of Personal Lines
Pricing Joe Harrington, CPCU - Manager of
Communications April 3, 2003 Audio
877/326-2337 Conference ID 7077619
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Before We Begin

• Will adhere to antitrust guidelines sent to you
  prior to todays seminar
• Please observe these guidelines throughout
  seminar, including time while participants are
  logging on and off
• Guidelines apply to both phone and chat room
  communications

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Seminar Agenda

• About AAIS
• Presentation of Materials
• Overview
• Eligibility
• Forms and Endorsements
• Countrywide Manual
• Questions and Answers
• Phone
• Chat Room

4
Core Services

• Advisory organization
• 20 Line of Insurance Programs
• Forms and Endorsements
• Manuals Rules and Loss Costs
• Filing Authorization
• Statistical Reporting

5
Technical Support Services

• Educational Materials
• AAIS State Filings Guide

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Technical Support Services

• Actuarial
• Analysis of company data
• Development of loss costs multiplier
• Premium Comparisons
• Customized Programs
• Research Development
• Production
• Filing Services

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Standard Programs

• Personal Lines
• Dwelling Properties
• Farm Properties
• Homeowners/Home-Based Business
• Mobile-Homeowners
• Personal Inland Marine (Filed)
• Personal Premises Liability
• Commercial Lines
• Businessowners
• Commercial Inland Marine (Filed)
• Commercial Liability
• Commercial Properties - class rated risks
• Crime
• Glass

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Specialty Programs

• Agricultural Output
• Artisans
• Boatowners
• Commercial Output
• Commercial Output XL
• Commercial Umbrella
• Developers Output
• Farmowners
• Farm Umbrella
• Inland Marine Guide (Non-filed)
• Landlords Package (Part of Dwelling Properties)
• Personal Umbrella

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Overview

• National Marine Manufacturers Association
• 68,873,000 - Recreational Boaters (Year 2000 -
  72,269,000)
• 17,353,400 - Boats in Use (Year 2000 -
  17,032,400)
• 11,853,900 Power Boats
• 1,612,800 Sailboats
• 1,353,700 Personal Watercraft (Year 2000 -
  1,239,400)
• 2,533,000 Miscellaneous Craft
• 7,683,900 - Boat Trailers Owned
• Boating 2002 At A Glance Facts Figures -
  http//www.nmma.org/facts/boatingstats/2002/
• AAIS is the only national advisory organization
  to offer a personal lines Boatowners program

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Overview

• The Boatowners basic form can be issued as a
  monoline policy or as part of a package policy
• Easy to follow rating methodology
• Personal Watercraft eligibility
• (Jet Skis, Waverunners, Skidoos, etc.)
• Affiliation costs are very reasonable
• Rick Anderer, ARM - AAIS Marketing Director
• (1-800-564-2247 _at_ ext. 222 or richarda_at_AAISonline
  .com)

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Eligibility

• Owned by individuals for personal pleasure use
• 30 feet or less in overall length
• 15 years or less in age
• Valued at 75,000 or less
• Maximum speed not greater than 45 MPH (does not
  apply to Personal Watercraft)

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Eligibility

• Ineligible Property
• Includes, among others
• House boats used as year-round or seasonal
  residences
• Hovercraft
• Property used for business, charter, or other
  commercial purposes
• Sailboards or windsurfers

• AAIS Yacht Program
• Alma Gordon-Smith, AMIM - Manager of Inland
  Marine
• (1-800-564-2247 _at_ ext. 235 or almag_at_AAISonline.co
  m)

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Forms and Endorsements

• BT 0100 - Boatowners Special Form
• Mandatory Endorsements
• State Amendatory Endorsement
• CL 0400 - Additional Policy Conditions
• BT 0010 - Punitive Damage Exclusion
• Optional Endorsements
• BT 0001 - Change Endorsement
• BT 0002 - Installment Premium Payments
• BT 0003 - Renewal Plan
• BT 0004 - Lay-Up Period
• BT 0005 - Loss Payee
• BT 0006 - Additional Interests
• BT 0007 - Emergency Service
• BT 0008 - Personal Watercraft Towing Exclusion
  Deleted
• BT 0009 - Coverage for Personal Watercraft
  Excluded

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BT 0100 - Boatowners Special Form

• Agreement
• Coverage applies only if a limit is shown on the
  declarations for a specific coverage
• Coverage applies only to damage which occurs
  during the policy period
• Coverage applies only to damage which occurs upon
  land, coastal waters, tributaries, and inland
  lakes and rivers of the United States and Canada
• Defined Terms
• Boat
• Boat Business
• Boat Trailer

• Non-Owned Boat
• Personal Watercraft
• Substitute Boat

• Coastal Waters
• Covered Property
• Motor

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BT 0100 - Boatowners Special Form

• Principal Property Coverages
• Boats, Motors, and Boat Trailers
• Perils Covered
• Open Perils or Risks Not Excluded Coverage
• Specific situations in which only the perils of
  fire and lightning apply
• Perils Excluded
• Typical Personal Lines Exclusions
• Boating Exposure Exclusions

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BT 0100 - Boatowners Special Form

• Additional Property Coverages
• Miscellaneous Property
• 500 Limit for Personal Watercraft
• 1,500 Limit for all other types of watercraft
• Substitute Boats
• Excess Coverage and Equivalent Limit
• Non-owned Boats
• Excess Coverage and a 10,000 Limit
• Newly Acquired Property
• Coverage provided up to 30 days after acquisition
  and cannot exceed 25,000
• Emergency Service
• 50 Limit excluding the cost to deliver gas or
  oil as well as the cost to change a boat trailer
  tire.

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BT 0100 - Boatowners Special Form

• Principal Liability Coverages
• Coverage X -- Personal Liability
• Coverage Y -- Medical Payments
• Additional Liability Coverages
• Claims and Defense Cost
• Removal of Sunken Property

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BT 0100 - Boatowners Special Form

• Liability Exclusions
• Exclusions That Apply to Coverages X and Y
• "Official Race or Speed Test" Exclusion
• Intentional Acts Exclusion
• Pollution Exclusion
• Personal Watercraft Towing Exclusion
• Additional Exclusions That Apply Only to Coverage
  X
• Additional Exclusions That Apply Only to Coverage
  Y

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BT 0100 - Boatowners Special Form

• Uninsured Boaters Coverage
• Coverage Z - Uninsured Boaters
• Uninsured Boat Definition
• Exclusions That Apply to Uninsured Boaters
  Coverage
• "Official Race or Speed Test" Exclusion
• Arbitration

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BT 0100 - Boatowners Special Form

• What Must Be Done In Case Of Loss
• Repairs Provision
• How Much We Pay
• Insurance Under More Than One Form or Policy
• Coverage Y (Medical Payments)

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BT 0100 - Boatowners Special Form

• Payment of Loss or Claim
• Other Conditions
• Conditions That Apply To All Coverages
• Conditions That Apply Only To Property Coverages

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CL 0400 - Additional Policy Conditions

• Monoline policy mandatory endorsement
• Conditions include
• Assignment
• Cancellation and Nonrenewal
• Change, Modification, or Waiver of Policy Terms
• Inspections

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BT 0010 - Punitive Damage Exclusion

• Defense Coverage Provided
• No Payment for Punitive or Exemplary Damages
• Filed as a Mandatory Endorsement

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Personal Watercraft Coverage

• BT 0008 - Personal Watercraft Towing Exclusion
  Deleted
• BT 0009 - Coverage For Personal Watercraft
  Excluded
• Uninsured Boaters Coverage Not Excluded

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Rules Rating Information

• Countrywide Manual
• State-Specific Manual Revision Page
• Effective Date
• AAIS Filing Number
• State Filing Number (if applicable)
• State Exception Page(s)
• Company Action
• State-Specific Exception Page(s)
• State-Specific Manuals

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Rules Rating Information

• Rule 1 - Eligibility
• Rule 1.1 - Eligible Property
• Rule 1.2 - Ineligible Property
• Rule 2 - Program Description
• Includes brief summaries of the Principal
  Property and Liability Coverages as well as an
  Uninsured Boaters Coverage explanation
• Rule 3 - Policywriting Instructions
• Monoline vs. Package policy format plus rules
  regulating Policy Period, Additional Interests,
  Minimum Premium, Waiver of Premium, etc.

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Rules Rating Information

• Rule 4 - Premium Determination
• Rule 4.3.1 Calculation of Premium - Property
  Premium - Boats and Motors
• Pre-calculated base loss cost rating information
  is multiplied by type of boat factor
• Rule 4.3.2 Calculation of Premium - Liability
  Premium
• Separate loss costs for Personal Watercraft

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Property Rating
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Liability Rating
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Rules Rating Information

• Rule 5 - Deductibles
• Flat and Split Deductible Options for Boats,
  Motors, and Additional Property
• Trailer Deductible Options
• Rule 6 - Premium Modifications
• Age of Boat
• Navigation Period
• Extended
• Limited
• Navigational Training
• Installation of Safety Equipment, Theft
  Prevention Devices, Radar, etc.

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Rules Rating Information

• Rule 7 - Coverage Options
• Increased Limits for Miscellaneous Property
• Expanded Emergency Service Coverage
• Personal Watercraft towing exclusion deleted
• Rule 8 - Navigational Territories
• Territory 1 - South Atlantic and Gulf
• Territory 2 - North Atlantic
• Territory 3 - Great Lakes
• Territory 4 - Pacific
• Territory 5 - Other Inland Waters

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Limited Homeowners Coverage

• Limited Property Coverage
• Limited Perils Coverage such as sinking,
  stranding, capsizing, collision, etc.
• 1,500 Limit (1,000 ISO)
• Damage to watercraft caused by wind or hail not
  covered unless the property is in a fully
  enclosed building at the time of loss
• Off premises theft coverage is not available
• Limited Liability Coverage
• Coverage is only provided for specific situations

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Questions?

• Use Phone or Chat Room

• Additional Questions?
• Jeff Holaway
• 1-800-564-2247 _at_ ext. 231 or
• jeffh_at_AAISonline.com