Transcript Commercial Training PowerPoint Presentation

Louisiana Plans
Management System (LPMS)
Commercial Training
July 2006
Major Operational Changes
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New Telephone System and Call Center
Market Equalization Charges Effective
07/01/2006
Commercial/Commercial W&H Application
in LPMS Effective 07/01/2006– Tentative
quote fee no longer required.
Emergency Assessments Effective
01/01/2007
Builder’s Risk Renovation Policies
Effective July 2006
Gubernatorial Declared Disaster Areas Only
Personal and Commercial
One Annual Term
May be unoccupied but must have building
permit or signed contract
Fully earned premium payable at time of
application – no payment options
Mandatory minimum deductible and
hurricane deductible
Gubernatorial Declared Disaster
Areas
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Jefferson
Orleans
Plaquemines
St. Bernard
St. Tammany
Tangipahoa
Washington
Calcasieu
Cameron
Vermilion
Producer Binding Authority
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Effective Date TBD
• Must submit application via LPMS
• Qualifications to be established
• Effect on fees and other charges
• Application Fee
• MEC
• Emergency Assessments
Commercial Program Requirements
 ISO Commercial Lines Manual
 ISO Classification Manual
 Knowledge of commercial codes
 Access to PIAL commercial rating
information for non-class rated risks
• PIAL member company authorization to
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access PIAL commercial rating system
Access to LPMS does not include access
to PIAL
Current Binding Procedures
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Producers do not have binding authority
Coverage bound upon receipt and
acceptance of application package by LA
Citizens
Determination of Bound Date
FAX Binders – Not Available for
Commercial
Hurricane Binding Restrictions
Submission procedures
Application Package
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Properly Completed Signed Application
Properly Completed Signed Supplement
Commercial Hurricane Loss Statement
At least two COLOR pictures - 3x3
minimum size
Check or money order – no cash
Mobile Home Tie Down/Anchoring
Certificate
Premium Finance Contract
Commercial Policy Limits
MAXIMUM POLICY LIMIT OF LIABILITY IS $10 MILLION
MAXIMUM LIMITS OF LIABILITY AT ANY ONE LOCATION**
Building $2,000,000.
Business Property - $1,000,000.
School Property
Limits subject to acceptance by the Plan.
**Location is defined as the entire area within a described premises or site
bounded by public thoroughfares or open waterways.
Underwriting – Penny O’Neil
Linda Kemp
Claims – Caroline Baker
How Commercial Limits Can Be Utilized
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Building must be insured to a minimum of
80% of ACV
90% and 100% coinsurance options
available
LA Citizens will participate up to its limits
on a contributing insurance form basis
LA Citizens cannot act as primary insurer
• Deductible
• Any layer
Commercial Deductible Options
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Policy Limit $3 Million or Less
• Mandatory 2% W/H
• Other perils $500, $1000, $2500, $5000,
$10000, $25000, $50000, $75000
Policy Limit more than $3 million and $10 Million
or Less
• Mandatory 5% W/H
• Other perils $500, $1000, $2500, $5000,
$10000, $25000, $50000, $75000
Higher deductibles will be offered in future
Commercial Risks
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Any seasonal dwelling or camp owned in
a commercial name or LLC
Any dwelling risk with more than four (4)
families regardless of ownership
Any risk used for commercial purposes
regardless of ownership
Any risk owned in a commercial name
(Exception: Risk with four (4) families or
less occupied by tenants as a primary
residence
Eligible Commercial Risks
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Reasonable Underwriting Standards
Satisfactory housekeeping and
maintenance
Sound construction with controlled
access
Insurance requested reasonable to policy
valuation requirements
Subject to condition surcharges,
increased deductible, declination of risk
Ineligible Commercial Risks
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Risk that qualify for dwelling program
(Four families or less occupied as a
primary residence)
Less than 50% occupied (new
construction has 60 days to comply)
Structural damage or foundation
problems
Personal storage facilities
Perils Insured Against – Only Basic
Property Coverage
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Fire, Lightning, Explosion
Windstorm or Hail, Smoke, Aircraft or Vehicle,
Riot or Civil Commotion, Sinkhole Collapse,
Volcanic Action
Vandalism or Malicious Mischief (Optional) Not
available for bars, vacant, unoccupied, or
seasonal buildings.
Sprinkler Leakage (Optional)
All the above as defined by CP 10 10 06 95
Exclusions
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Ordinance or Law
Earth Movement
Governmental Action
Nuclear Hazard
Utility Services
War and Military Action
Water
All above as defined by CP 10 10 06 95
Current Commercial Status
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Requests for Quotes – May 2006
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We will process and keep fee or return with check
for fee
Returning significant number for lack of properly
completed application package
Type of coverage requested
Building number versus location number
Co-Applicant versus additional named insured
Endorsements, Billings, and Commissions
August 2006 Renewals and
Subsequent
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New application must be submitted via LPMS
Cannot complete in house because old system
did not capture the required information
Less than 1,000 commercial policies in force
Can change requested effective date up to sixty
(60) days in advance
Claims Process
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Producer reports claim via LPMS – Currently
only available if application submitted via LPMS
Bankers is Service Provider (SP) for all
commercial policies
SP assigns IA to adjust claim
IA submits report to SP
SP conducts final review and determines
settlement
SP requests claims checks via LPMS
Checks/report mailed to Insured/Producer
Bankers Insurance Group
3636 S. I-10 Service Rd. #204 PO Box 1434
Metairie, LA 70001
Metairie, LA 70004
(800) 973-4953 Phone
(800) 966-9014 FAX
Katrina/Rita Claims (866) 476-6600
Underwriting – Michael Emery (Commercial)
Amy Roth (Personal)
Claims – Andy Condrey
NOTE: Bankers handles all commercial business.
First Premium Ins. Group
112 Innwood Drive
Covington, LA 70433
(800) 256-2171 Phone
LA Citizens Line
Underwriting – April Najolia
Claims – Eddie Cole
PO Box 77
Covington, LA 70434
(800) 299-2171 FAX
(888) 741-0088
The MacNeill Group
235 Highlandia Drive
PO Box 82630
Baton Rouge, LA 70810
Baton Rouge LA 70884
(877) 527-4222 Phone
(877) 527-4244 FAX
Katrina/Rita Claims (866) 635-4722
Underwriting – Elaine (Bunny) McMorris
Claims – Ronnie Landry
LA Citizens Contacts
Underwriting and Payments
433 Metairie Rd. Ste. 400
Metairie, LA 70005
Claims
5555 Hilton Avenue, Ste. 320
Baton Rouge, LA 70808
PO Box 60730
New Orleans, LA 70160
PO Box 14839
Baton Rouge, LA 70808
(888) 568-6455 Phone
(504) 831-6676 FAX
(888) 568-6455 Phone
(225) 928-3090 FAX
Support
Technical questions
[email protected]
General policy or procedural questions
[email protected]
Website Address
www.lacitizens.com