AIG Agency Auto New York - Scarpulla Insurance Agency

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AIG Agency Auto New York - Scarpulla Insurance Agency Powered By Docstoc
					AIG Agency Auto
New York - 2004 Motorcycle/ATV Program
Product & Underwriting Guide
                                             Reinstatements                10     Vehicle Symbols                        21
COMPANY OVERVIEW____________2                Renewals                      11     Model Year                             21
  Company Overview                    2      Policy Issuance               11     Special underwriting requirements      21
  Important Addresses and Telephone          Records Maintenance           11
  Numbers                             3                                         COVERAGE ___________________ 23
                                           UNDERWRITING GUIDELINES ____ 12        Additional Equipment Coverage          23
AIG4AUTO.COM REFERENCE                       General Guidelines            12
GUIDE _________________________4             Material Misrepresentation    13
                                                                                CLAIMS REPORTING ___________ 24
  Logging In:                         4
  Viewing and Managing Policies       4    POLICY RATING _______________ 14
  Endorsements                        5      Discounts                     14
  Payment Uploads                     5      Surcharges                    15
  Cancellation List                   5      Policy Term                   15
  BROKER Reports                      5      Tier Determination            16
  Commissions                         5      Insurance Scoring             17
  Administration Areas                6      Renewal Tier Qualification    18
  AIG Utilities                       6
                                           DRIVER RATING _______________ 19
PAYMENT INFORMATION _________7               Named Insured                 19
  Payment Plans                       7      Driver Information            19
  Down Payments                       7      Unverifiable Driving Record   19
  Installment Payments                7      Driver Assignment             19
  Renewal Payments                    8      LIST ONLY                     19
  Fees                                8      SR-22 FILINGS                 19
  Returned payment                    8      Students                      20
                                             Military                      20
BROKER INFORMATION __________9               Foreign Drivers License       20
  Commissions                          9     Driver Points                 20
  Binding                              9     At-Fault Accidents            20
  Severe Weather Restrictions          9
  Endorsements                        10   VEHICLE RATING ______________ 21
  Cancellations                       10     Garaging Rules                21

                                                                                                          Introduction   1
Company Overview
COMPANY OVERVIEW

THE AIG AGENCY AUTO                            A RECOGNIZED MARKET LEADER                     EXCEPTIONAL CLAIM SERVICE
ADVANTAGE                                      AIG Agency Auto capitalizes on leading-        We pride ourselves on our ability to
                                               edge technology to deliver enhanced            deliver fast, fair and accurate claim
AIG Agency Auto – formerly AIG Specialty       products and services to Brokers and           service. Our extensive national network of
Auto – has been delivering innovative          policyholders. Our easy-to-use Windows-        claims offices backed by our dedicated
automobile insurance solutions for more        based rating software, application upload      claims professionals are ready to help 24
than 24 years. A division of American          capabilities and electronic billing process    hours a day, 7 days a week.
International Group, Inc. (AIG), the world’s   center simplify business transactions,
leading    U.S.-based      insurance   and     allowing you to focus on your customers.
financial services organization, AIG           www.aig4auto.com provides easy to use,
Agency Auto features products backed by        24-hour access to policy information,
the unparalleled resources and AAA-rated       payment upload, supply requests and
financial strength of the member               allows     Brokers    to    submit    online
companies of American International            endorsements. Faster, more efficient and
Group (AIG).                                   accurate methods of transacting business
                                               translate into a healthier relationship with
                                               the insured – and a healthier bottom-line.




                                                                                                                         Introduction   2
                                          AUTOMATED POLICY STATUS AND
    GENERAL CORRESPONDENCE                                                      INSTALLMENT PAYMENTS
                                              BILLING INFORMATION

AIG Agency Auto                          Website: www.aig4auto.com       Website: Use our website to upload payments
                                                                         made by your office.
P.O. Box 8215
Coraopolis, PA 15108                     Phone: (800) 633-4028
                                                                         www.aig4auto.com
Toll Free (888) 315-8977
Fax (888) 315-3311


 CLAIMS REPORTING AND CONTACT             TECHNICAL SUPPORT AND SUPPLY
                                                                                        MARKETING
          INFORMATION                               REQUESTS

New Claim Reporting: (888) AIG-6163      Technical Support               Website: www.aig4auto.com
Existing Claim Inquiry: (800) 244-0176   (800) 334-9641, ext. 4624
Claim Fax: (800) 244-0176
                                         Website: www.aig4auto.com




                                                                                                        Introduction   3
Aig4Auto.com Reference Guide
LOGGING IN:                                                                While viewing Online Policy File Screen, click on any of the
                                                                           following options (circled below):
• Type www.aig4auto.com into your browsers’ address box (URL).             ► Policy: view all details of the selected policy.
• Click on the               button on the menu to the left of your             Click on “Pay Plan” to view payment plan detail.
   screen. Follow registration instructions (one time process).            ► Claims: view all claims submitted under the policy.
                                                                                Click on “Case #” to view Claimant information.
• Click on the               button. Log In. Once at the login screen,          Click on “Office name” to view service station information.
    click on the Favorites option on your Internet Tool bar.               ► Drivers: view information on all insured drivers on the policy.
• All screens of the application start from the menu on the left side of        Click on “insured’s name” to view additional details of each
    your screen. Each heading in this guide has a menu selection                driver.
                                                                           ► Vehicles: view information on each vehicle under policy.
                                                                                Click on “Vehicle #” to view coverage and loss payee
                                                                                information. Click on “VIN” to view and/or print ID card.
                                                                           ► Payments: Links to Up Load Payments to make payments to
               VIEWING AND MANAGING POLICIES                                    policy.
                                                                           ► Endorse: Links you to Endorsements to make a policy change.
               ONLINE POLICY FILE                                          ► Search: Search for a different policy number.
               The Online Policy File page allows you the access to
               view and manage specific policies.

               • On the Menu click on:
               • You will have these options for pulling up a policy:

               ► Enter policy # and click “Get Policy Info”
               ► Search by Name
               ► Search all Policies in Force




                                                                                                             Aig4Auto.com Reference Guide   4
ENDORSEMENTS                                                        Previous Day:
                                                                    • Request adjustment to a previous payment prior to today.
    Process and rate endorsements, as well as viewing and           • Generate activity report of payments prior to today.
    editing pending endorsements, with the online endorsement       • Request reimbursement for a returned check.
    tool. To submit an endorsement:
                ► Enter the Policy number and effective date
                      and <enter>.                                  CANCELLATION LIST
                ► Click on each required Action link to enter the   Reports on policy cancellations and reinstated policies.
                      change requests.
                ► Click on submit,                                    ► Click on                                  to chose your reporting
                ► Click on Review, Verify information is correct          preferences.
                ► Click on Approve, to complete the process         • View Cancellation lists – reports on the cancellations with your
                ► A Confirmation page will pop up for printing          office in the last 60 days.
                      and reference numbers.                        • View 7 Day Reinstated List.
                ► NOTE: endorsements will be posted 1 day           • View 10 Day Advance Notice Lists.
                      after submittal.
                                                                    When viewing a report by page, scroll down and click each page #.
              See Endorsement Training Guide Online:
                                                                    A policy may be eligible for reinstatement if “Payment” is underlined
              Click on Agency e-bulletins, then the Training link
                                                                    in the Policy Number field.
              for detailed instructions on all endorsement
              functions.
                                                                    BROKER REPORTS
             PAYMENT UPLOADS                                        •   Broker Production Report
             Upload payments directly to AIG and view payment       •   Yearly comparison of production for each broker
             details such as date of last payment, amount, next     •   Daily Activity Report
             installment amount and due date.                       •   All broker activity completed on this particular day including
                                                                          payments, policies, billing, cancels, etc.
             NOTE: System pre-loads all policy information.
 To Upload a Payment:                                               COMMISSIONS
  ► Enter Policy number, Click “Get Policy”.
                                                                    Reports on up to three months history of your commission reports.
  ► Enter payment info and view Pay Plan and Billing Details.
                                                                    You have the choice of viewing, printing or downloading.
  ► Click “Submit Payment”. System will generate a receipt.
                                                                    Reports Available:
 Other Payment Upload Options:
                                                                    • View Commission statements (PDF format)
  Current Day:                                                      • Commission data download (Data file)
  • View payments uploaded today.                                   • Update Direct Deposit Commissions Account
  • Modify the amount of a payment uploaded today.                  • Full Commission Schedule

                                                                                                          Aig4Auto.com Reference Guide   5
                                                                                      AIG UTILITIES
                                                                                      A Sub Menu will direct you to additional information and additional
                                                                                      methods to directly navigate to Links defined and listed above.

                                                                                      NB UPLOAD HISTORY
                                                                                      Reports on your Office’s New Business Upload history
                                                                                      Select the date range you want to receive data on.
                                                                                      Additional Functions from the report are:
                                                                                      • Link back to Online Policy File information.
                                                                                      • NSF Request for New Business Uploads (Credit Request).
                                                                                      • Adjustment Request for New Business Uploads.

                                                                                      VIN FIND
                                                                                      Look up tool for finding specific Vehicle Symbols for quotes.

ADMINISTRATION AREAS*                                                                 ID CARDS
                                                                                      Allows viewing and printing of Insurance ID cards
REQUEST SUPPLIES                                                                      ► Enter Policy number.
Allows Broker to order any additional AIG supplies online.                            ► Click on appropriate VIN Number.
                                                                                      Adobe Acrobat opens with the card.
BROKER E-BULLETINS
                                                                                      To Print - click on the “Print Button”   on the Adobe Toolbar.
Provides online copies of historic broker bulletins sent to your state.
                                                                                      NOTE: ID cards for newly added vehicles are only available after the
                                                                                      endorsement has been processed.
UPDATE USER INFO
Change user profile information and password.

HELP AND TECH SUPPORT
Access to view online FAQs and/or submit electronic requests for
Support.

* Super Users also have “User Admin” ability to set up sub-users; call for guidance
on this activity.




                                                                                                                          Aig4Auto.com Reference Guide   6
Payment Information
PAYMENT PLANS
                                                                                   PHONE AND ONLINE PAYMENTS:
  DOWN              # OF           MINIMUM         EFT
 PAYMENT       INSTALLMENTS        PREMIUM       STATUS           DUE DATES        AIGAA has contracted with a third party vendor to provide easy-to-
  100%               0                            N/A                 N/A          use phone and online payments 24 hours a day, 7 days a week.
   25%           3 @ 25%             $200        Optional       30, 60 & 90        • Visa®, MasterCard® and checking account withdrawal payments
                                                                 days from             may be made by phone at 1-866-582-4359, or online via a
                                                               effective date          secure website at www.aigpaymybill.com.
   25%          6 @ 12.5%            $500        Optional       30, 60, 90,        • Only the person named on the card/account may authorize
                                                              120, 150 & 180           payment.
                                                                 days from
                                                               effective date
   8.5%        10 @ 8.32%,           $250       Required          Monthly          ELECTRONIC FUNDS TRANSFER (EFT)
                1 @ 8.30%                                                          Premium payments may be automatically withdrawn from the
 Note: Pay plan availability may vary by state and risk. All available pay plans   insured’s checking account through Electronic Funds Transfer.
      for a particular risk will appear on the Premium/Billing screen of DRS.      • The first and subsequent installments are withdrawn on the same
                                                                                       numerical day of the month as the original effective date. If the
DOWN PAYMENTS                                                                          numerical day of the month does not exist (e.g. 31st), then the
                                                                                       withdrawal date will be the last day of the month. If the
Down payment for uploaded policies may be submitted by broker’s
                                                                                       withdrawal date falls on a non-banking day, payment will be
account or by insured credit card payment. Our DRS rating
                                                                                       withdrawn on the next business day.
software will prompt you to select the appropriate method. If using
broker EFT, promptly deposit the insured’s funds into broker                       • EFT Billing requires a signed, dated copy of an EFT
account for EFT removal. Do not send payment directly to the                           authorization agreement with an attached VOIDED check.
company.                                                                               Both the EFT authorization agreement and the check must
                                                                                       be sent to the company with the supporting application
                                                                                       documentation.        POLICIES       WITHOUT       A     VALID
INSTALLMENT PAYMENTS                                                                   AUTHORIZATION FORM WILL BE DIRECTLY BILLED.
DIRECT BILL                                                                        • The insured’s checking account must be an established account
All installments will be billed directly to the insured. Insureds may                  with the insured’s name and address pre-printed on the check.
send payment to the company, to your office, or pay by EFT,                            Temporary checks are not acceptable.
checking account withdrawal or credit card. If insured makes                       • Once a policy is set up for EFT withdrawal, it cannot be changed
payment to your office, please upload payment through our                              to a direct billing option without submitting a new application.
website:                                                                               EFT withdrawals cannot be initiated midterm.
                         www.aig4auto.com                                          • Any change in the insured’s banking information should be
                                                                                       immediately submitted through a faxed copy of the EFT
                                                                                       authorization agreement to 800-815-7803.

                                                                                                                               Payment Information   7
PREMIUM FINANCING                                                         RETURNED PAYMENT
Premium financing is not accepted.
                                                                          INSURED’S CHECKS / EFT PAYABLE TO THE COMPANY
RENEWAL PAYMENTS                                                          • If the insured’s check or attempted EFT withdrawal is returned for
                                                                               non-sufficient funds (NSF) on a new or renewal down payment,
All policies will be offered the lowest available renewal down                 coverage will be canceled flat. Policies canceled flat for NSF
payment. Renewals will be billed directly to the insured.                      down payment may not be reinstated.
                                                                          • Installment payments that are NSF will be cancelled given the
                                                                               appropriate notice. We must receive replacement payment in
FEES                                                                           certified funds for NSF on installment payments.
                                                                          • An NSF fee will be applied to the policy.
FEE TYPE              AMOUNT   WHEN APPLIED                               INSURED’S CHECK PAYABLE TO THE BROKER
Monthly Direct Bill     $8     Each installment invoice                   • Insureds’ checks should be submitted by broker upload.
Installment Fee                                                           • Returned payments made to your broker should be reported
EFT Installment         $3     Each EFT withdrawal                            immediately to the company. Do not re-submit the insured’s
Fee                                                                           check. If the payment was for a new or renewal down
NSF Fee                $20     Each NSF payment
                                                                              payment, coverage will be canceled flat. If the payment was for
Late Fee               $10     When      installment    payment      is
                               postmarked after installment due date
                                                                              an installment payment, the policy will be canceled given the
Policy Fee             $15     Each new and renewal policy                    appropriate notice.
Cancellation Fee       $10     Applies to Insured Request and Non-        BROKER CHECKS
                               Pay cancellations on policies in force     • An NSF fee will be charged to the broker.
                               less than 90 days and a minimum 6-
                                                                          • Repeated occurrences are grounds for termination of broker
                               month premium of $750.
                                                                             contract.
                                                                          • Agencies are responsible for maintaining sufficient balances in
• Fees are fully earned and due immediately or upon next invoice.            their premium account in order to avoid overdrafts.
• Commission is not paid on fees.
• Fees are waived only in the event of company error.




                                                                                                                      Payment Information   8
Broker Information
COMMISSIONS
Brokers receive 15% commission on new business and 12.5% on          ENDORSEMENTS
renewals.                                                            Endorsements will be effective as requested provided:
                                                                     • Broker receives the endorsement request from the insured prior
BINDING                                                                  to effective date of change.
                                                                     • Endorsement is uploaded, faxed or postmarked within 3 business
BINDING PROCEDURES                                                       days of endorsement effective date.
No binding authority exists.                                         • There are no severe weather warnings. Please refer to the
                                                                         severe weather restrictions below.
NEW BUSINESS                                                         • Please retain the original signed copy in your office.
New business applications must be rated and submitted through
our DRS rating software. Handwritten paper applications are          SEVERE WEATHER RESTRICTIONS
unacceptable. Down payment for uploaded applications must be
                                                                      Whenever the National Weather Service issues a hurricane,
made through broker EFT or insured credit card. New applications
                                                                      tornado, hail or other severe weather watch or warning and the
will be bound as of the time and date indicated if:
                                                                      storm is within 100 miles of the location of the proposed risk,
• Application is complete and signed by applicant and Broker prior
                                                                      coverage acceptance is limited as follows:
     to or on the effective date.
                                                                     • No new business policies may be written or bound.
• Proper remittance accompanies application.
                                                                     • Physical Damage may not be endorsed onto existing policies.
• Time is noted next to Broker’s signature.
                                                                     • Renewals of the company's expiring policies may be written in
• Risk is eligible per our underwriting standards.
                                                                          the normal manner providing there is no increase in exposure
• There are no severe weather warnings. Please refer to the               to the company.
     severe weather restrictions below.
                                                                     • Normal binding authority will resume after the watch
                                                                          and/or warning is lifted by the National Weather
                                                                          Service, providing there is no forecast of an imminent
                                                                          reoccurrence.
                                                                     • Applications with an effective date/postmark combination which
                                                                          violate the prohibitions listed above will be rejected and no
                                                                          coverage will have existed.




                                                                                                                  Broker Information   9
ENDORSEMENTS
• All endorsement requests should be submitted through our web              • Flat cancellations are only permitted in the event of duplicate
    site at www.aig4auto.com.                                                    coverage.
• The insured’s signature is required to reduce coverage limits,            • Insured’s cancellation requests must include the original policy, a
    delete coverage, delete a driver and exclude a driver.                       signed Lost Policy Release form or the insured's written
• Brokers must retain the original signed endorsement.                           request. Policies will be canceled as of the date indicated
                                                                                 provided the postmark is within three business days. A
• Additional or return premium will be applied evenly to the
                                                                                 cancellation request for duplicate coverage must be
    remaining installments.
                                                                                 accompanied by a copy of the declaration page from the
• The current amount due resulting from additional endorsement
                                                                                 current carrier showing coverage and effective dates.
    premium will be billed immediately and due upon invoice
                                                                            • Policies canceled at the insured's request cannot be reinstated or
    receipt. The remaining premium will be spread across any
                                                                                 reissued. A new application must be submitted.
    remaining installments.
                                                                            • If a loss payee or other third-party interest exists, the effective
• Policies will not be reclassified or re-rated for changes in driver
                                                                                 date of cancellation may be adjusted to comply with regulatory
    classification or points during the policy term except for change
                                                                                 requirements. Flat cancellations will not be permitted.
    in marital status, addition of a driver, or deletion of driver who is
    no longer a resident of the household and no longer operates            • In the event of a total loss on a single car policy, Broker or
    an insured vehicle.                                                          insured must contact the company to request cancellation or
                                                                                 add a replacement vehicle. Policy may be canceled effective
• A replacement vehicle will be given the coverage of the vehicle it
                                                                                 one day after loss if no replacement vehicle is obtained.
    replaces unless a change of coverage instruction accompanies
    the vehicle change request.

CANCELLATIONS                                                               REINSTATEMENTS
                                                                            Canceled policies will not be reinstated except as mandated by
• If policy is canceled by the Company, return premiums will be
                                                                            New York law.
     computed on a pro-rata basis.
• Non-pay cancellations are computed on a pro-rata basis and will
     be charged a cancellation fee as defined in the fee section of
     this manual.
• Policies canceled for NSF down payment will be null and void.
• If policy is canceled by the insured, the return premium will be
     computed on a pro-rata basis and will be charged the
     appropriate cancellation fee. When cancellation is requested by
     the insured due to an out of state move, the policy will be
     canceled on a pro-rata basis.



                                                                                                                          Broker Information   10
RENEWALS
The insured will receive a renewal bill prior to policy expiration.

Renewal request will not be accepted after the expiration date of
the preceding policy term. Payments sent in after the expiration
date will not be accepted.


POLICY ISSUANCE
All new policies, renewals and endorsements will be mailed directly
to the insured and loss payee. A copy will also be sent to the
Broker.


RECORDS MAINTENANCE
• AIG Agency Auto requires that Brokers maintain a complete set
    of original records pertaining to all uploaded transactions.
    These records must be available for inspection by us as
    required by your Producer Broker Agreement.
• Records must be kept for seven (7) years.
• AIG Agency Auto also requires that you fax certain
    documentation to our underwriting staff in order to verify
    program and state compliance. Once a new policy has been
    uploaded, the DRS software will produce a fax cover sheet that
    indicates the pertinent documents that must be faxed. Please
    use this cover sheet and immediately fax all requested items to
    the fax number indicated immediately.
• Failure to submit these documents when required may result in
    removal of requested discounts, the addition of excluded
    operators, the addition of rejected coverage options and the
    deletion of selected coverage options.




                                                                      Broker Information   11
Underwriting Guidelines
GENERAL GUIDELINES
UNACCEPTABLE OPERATOR PROFILE                                         •   Owned by a business.
• Does not possess (or obtain within 30 days) a valid New York        •   Registered or owned by any name other than the applicant.
   driver’s license, except for operators on active military duty,    •   With more than one owner.
   students attending school in state or persons with a foreign or    •   Not found in either the DRS rating software or the N.A.D.A.
   international driver’s license. A Foreign Driver’s License              Appraisal Guide.
   surcharge will apply to such policies.
• Under the minimum age for state licensing unless they are a         UNACCEPTABLE COVERAGE
   principal operator of a motorcycle or ATV that is designated for   • Physical damage only policies.
   off-road use.                                                      • Collision without comprehensive.
• Applicants who have been convicted of insurance fraud.
                                                                      MISCELLANEOUS UNACCEPTABLE
UNACCEPTABLE MOTORCYCLE/ATV PROFILE                                   • Risks with material misrepresentation on the application.
• No specific physical garaging address or principally garaged        • Applications where all pertinent rating information (license
   outside of the state in which the policy is issued. Principally       numbers, VINs, garaging location, operator date of birth, etc.)
   garaged is defined as six (6) or more months per year.                cannot be submitted within allowed binding authority (72
• Principally garaged/stored in a state where AIG Agency Auto            hours).
   does not have an active personal auto or motorcycle program.
• Used for racing/speed tests, pickup or delivery of goods, or any         The company reserves the right to reject any risk.
   other business or commercial purpose.
• Used for funerals or escort service.
• Rented or leased to others.
• Dune buggies, snowmobiles, golf carts, go-carts and Cushman 3-
   and 4-wheeled vehicles.
• Vehicles with no motor or engine, or partially assembled vehicles
   or individual parts.




                                                                                                               Underwriting Guidelines   12
MATERIAL MISREPRESENTATION
Complete and accurate information is required to bind coverage.
Material misrepresentation on the application may impact the
insured's rights to policy benefits. Brokers should ask all pertinent
questions directly of the applicant and clearly explain the
consequences         of    providing   false  information.   Material
misrepresentation may result in the policy being declared null and
void from inception or canceled. It is important that insureds are
aware that a claim may not be paid if false or misleading
information is provided. Misrepresentation includes:
• Failure to list all regular or household operators whether licensed
    or not.
• Use of a post office box or incorrect garaging ZIP code.
• Failure to report all accident and violations on the application,
    regardless of fault.
• Failure to accurately report vehicle usage or vehicles available
    for use.




                                                                        Underwriting Guidelines   13
Policy Rating
DISCOUNTS
Note: Discount and Surcharge availability and amounts may vary by
                                                                              HOMEOWNERS DISCOUNT
state. Please refer to your state specific DRS rating software for details.   • Applies if the named insured owns and lives in a house,
                                                                                 townhouse or condominium.
MULTI-CYCLE DISCOUNT                                                          • Non site-constructed residences, such as mobile homes, are
• Applies if more than one motorcycle, ATV or trike is insured on                ineligible unless otherwise indicated in DRS.
   the policy.                                                                • Acceptable documentation includes a current copy of the
             Up to 10% for 2 Motorcycles                                         declarations page from the homeowner’s policy, a current tax
             Up to 25% for 3 Motorcycles                                         bill or mortgage payment coupon. The address on the
             Up to 35% for 4 or more Motorcycles.                                documentation must match the resident address of the insured.
MULTI-POLICY DISCOUNT                                                         • Documentation must accompany the application. If sufficient
• Applies to the AIGAA Motorcycle policy when the named insured                  documentation is not submitted, the policy will be issued
   has another personal lines policy in force with AIG.         At a             without a discount. The discount will be applied back to policy
   minimum, this discount will apply to named insureds that also                 inception if proof of prior coverage is submitted within 30 days
   have an Auto policy written through the AIGAA group of                        of policy issuance.
   companies. Additional policy types will qualify for this discount          • The discount will be adjusted at renewal if the homeowner status
   as we expand our product offerings and programs through                       changes during the policy term.
   AIGAA and other AIG member companies. Changes regarding
   qualifying policy types will be updated directly to your DRS               SAFETY COURSE DISCOUNT
   rating software.                                                           • Applies to insureds that have successfully completed an
                                                                                 approved motorcycle safety course within the past 36 months.
ASSOCIATION DISCOUNT                                                             The insured must provide proof of completion at the time of
• Applies to insureds who are members of an approved motorcycle                  application.
   association, including, but not limited to:
              American Motorcyclist Association (AMA)                         MSF INSTRUCTOR DISCOUNT
              Harley Owners Group (HOG)                                       • Applies to insureds that are certified by the Motorcycle Safety
              Honda Rider’s Club of America (HRCA)                               Foundation (MSF) as an instructor to teach their classes.
   Only one Association Discount will apply. The insured must                    Insureds must provide proof of certification at the time of
   provide proof of Association membership at the time of                        application and maintain their certification in order to retain this
   application and renew their membership in order to continue                   discount for subsequent policy terms. AIGAA will confirm
   receiving this discount for subsequent policy terms. AIGAA will               proper certification with the MSF.
   verify membership with the appropriate Association. Qualified
   associations may change from time to time, please refer to your
   DRS rating software for the most current acceptability.

                                                                                                                                  Policy Rating   14
SURCHARGES
SPECIAL HAZARD SURCHARGE
• Applies to policies with motorcycles or operators meeting one or
   more of the following criteria:
             Motorcycles that have been enhanced to significantly
             increase performance beyond factory specifications
             through the introduction of a turbo kit or nitrous oxide
             kit; or,
             Motorcycles that have been structurally altered,
             including, but not limited to, frame or suspension
             modifications; or,
             Named insured or other rated operator who is an
             entertainer, celebrity, professional athlete or other
             nationally known person.


POLICY TERM
• Policies are issued for a twelve month term only.        Layaway
   policies are not available.




                                                                        Policy Rating   15
TIER DETERMINATION

AIG Agency Auto’s Dynamic Rating System (DRS) will underwrite           The prior limits shown on the proof source will also be used to
insureds into a rating tier based on the criteria below:                place the insured in the appropriate rate tier. The limits must be in
AGE OF PRINCIPAL NAMED INSURED                                          force on the policy for a minimum of six months to qualify for a prior
There are two age groups used as criteria for eligibility:              rating tier.
• Principal named insureds less than 21 years of age; and
• Principal named insureds 21 years of age or older.                    We do not accept AIG Agency Auto as proof of prior insurance
                                                                        except in one or more of the following circumstances:
                                                                        • The named insured has moved from one state to another and the
PRIOR INSURANCE                                                             prior policy had a transfer discount.
The named insured has proof of current Auto, Motorcycle or ATV          • A family member is purchasing his or her own policy, coming
liability insurance which verifies the previous policy covered the          from another family member’s policy and the customer has
named insured or rated spouse and provided six months                       been an AIGAA insured for at least six months with a coverage
continuous coverage. If appropriate, DRS will prompt you to fax in          lapse not greater than that allowed by the state guidelines.
documentation. The documentation must show proof of 6 month’s
                                                                        • A spouse separated or divorced from an AIGAA named insured
continuous liability coverage and come from one of the following
                                                                            and the customer has been an AIGAA insured for at least six
sources:
                                                                            months with a coverage lapse not greater than that allowed by
• Company issued ID card with inception and expiration dates                the state guidelines.
• Declarations page                                                     • The customer’s policy has canceled or lapsed due to an
• Renewal Declarations Page                                                 overseas military assignment. This is only valid for military
• Renewal notice                                                            personnel who are deployed out of the country in a military
• Letter from a prior carrier                                               engagement as a result of our country’s military action against
• Screen print from prior carrier website                                   terrorism. It is not valid for military personnel who are sent out
All prior proof sources must indicate policy inception and expiration       of the country for military training. The circumstances must be
cancellation date.                                                          noted with the application.
                                                                        NON-CHARGEABLE INCIDENTS PER POLICY
** ID cards cannot be used to verify prior limits; if ID card is        Includes not-at-fault accidents and comprehensive losses of
provided, company will assume that policy was written for minimum       $1,000 or more.
limits.




                                                                                                                          Vehicle Rating   16
INSURANCE SCORING
AIG Agency Auto uses insurance scoring to further determine the
appropriate rate level. DRS will determine the insurance score at
point of sale. Policies may not be bound and uploaded without an
insurance score. The insured may obtain a copy of their credit
report by calling the toll-free number given on the Notice of
Information Practices that prints with each quote and application.




                                                                     Vehicle Rating   17
RENEWAL TIER QUALIFICATION
After 12 months, all policies will automatically be re-tiered
according to the matrix below:

Insured will not be moved to a higher rated tier at renewal                                   Current
                                                                                            Policy Term    Renewal
          Current                                                                               Tier         Tier
        Policy Term    Renewal                                                      Group   Assignment    Assignment   Requirements
            Tier         Tier                                                         3          22           26
Group   Assignment    Assignment   Requirements                                       3          23           27       All of the criteria from Group 2 AND no driver on the
  1           1            5                                                          3          24           28       policy has had a driving record incident or claim during
  1           2            6                                                          3          25           29       the prior 48 months. We will accept one incident or
  1           3            7                                                          3          26           30       claim per policy in the prior 48 months with a value
                                   No late payments or NSF checks during                                               (reserve or payment) less than $1,000.
  1           4            8                                                          3          27           31
  1           5            9       prior 24 months and No driver on the policy        3          28           32
                                   has had a driving record incident or claim         4          29           33
  1           6           10                                                                                           All of the criteria from Group 3 AND Insured must
                                   during the prior 36 months. We will accept         4          30           34
  1           7           11       one incident or claim per policy in the prior                                       purchase a minimum of 100/300 Bodily Injury limits
  1           8           12       36 months with a value (reserve or payment)        4          31           35       during the prior six months and for the renewal policy.
  1           9           13       less than $1,000.                                  4          32           36
  1          10           14                                                          5          33           37       All of the criteria from Group 4 AND no driver on the
                                                                                      5          34           38       policy has had a driving record incident or claim during
  1          11           15
                                                                                                                       the prior 60 months. We will accept one incident or
  1          12           16                                                                                           claim per policy in the prior 60 months with a value
  2          13           17                                                          5         35            39       (reserve or payment) less than $1,000.
  2          14           18                                                          6         36            40         All of the criteria from Group 5 AND no driver on the
  2          15           19                                                          6         37            41       policy has had a driving record incident or claim during
  2          16           20       All Criteria from Group 1 AND Insured must                                            the prior 66 months. We will accept one incident or
                                   purchase a minimum of 50/100 Bodily Injury         6         38            42
  2          17           21                                                                                              claim per policy in the prior 66 months with a value
                                   limits during the prior six months and for the     6         39            43                 (reserve or payment) less than $1,000.
  2          18           22       renewal policy.                                    7         40            44        All of the criteria from Group 6 AND no driver on the
  2          19           23
                                                                                      7         41            44       policy has had a driving record incident or claim during
  2          20           24
                                                                                      7         42            44        the prior 72 months. We will accept one incident or
  2          21           25                                                                                             claim per policy in the prior 72 months with a value
                                                                                      7         43            44
                                                                                      7         44            44                (reserve or payment) less than $1,000.




                                                                                                                                                 Vehicle Rating       18
Driver Rating
NAMED INSURED
                                                                         DRIVER ASSIGNMENT
• Named insured must be an individual. Businesses, communities,
   religious groups or other legal entities are not acceptable.          • Our DRS rating software will assign the rated driver to the vehicle
• Only spouses, of named insured may also be listed as a named                that he or she operates most frequently.
   insured. Individuals or businesses that have an insurable             • If the number of drivers exceeds the number of vehicles, the
   interest in the covered vehicles may be listed as an Additional            policy is rated using the operator developing the highest rating
   Interest. All other insureds may be listed as operators.                   factor.
                                                                         • For risks with more vehicles than drivers, the remaining vehicles
                                                                                are rated using lowest rated operator with zero (0) points.
DRIVER INFORMATION
                                                                         LIST ONLY
• All household members or regular vehicle operators who are of
     eligible driving or permit age must be listed, whether they drive   According to state regulations, drivers may not be excluded from a
     or not.                                                             private passenger auto policy. Under certain circumstances,
• Driver class is determined from the age, sex and marital status of     however, you may choose household members to be “List Only” so
     the operator. Only individuals who are legally married or           they are not included in the rating criteria.
     deemed married by state law will be rated as married.
     Operators who are single, divorced, separated, widowed, or in       The following are the only acceptable reasons to be classified as
     a same-sex relationship must be rated as single.                    List Only:
• If the owner of the insured vehicle is a minor, a parent or legal      • Out of country
     guardian's name and signature must precede the owner's.             • Disabled and does not drive
                                                                         • Has other auto insurance*
                                                                         • Never been licensed/surrendered license**
UNVERIFIABLE DRIVING RECORD                                              • Incarcerated
                                                                         *Please provide a copy of the declarations page as proof of other
• An unverifiable driving record surcharge will be applied to any          insurance
   operator aged 19 or older if a MVR is not available or if the         **Please obtain proof of license surrender
   operator has less than three years’ driving experience.
                                                                         SR-22 FILINGS
                                                                         AIG does not issue filings for any state for operators on New York
                                                                         policies.




                                                                                                                          Vehicle Rating   19
STUDENTS                                                                  AT-FAULT ACCIDENTS
• Students attending school in state should be rated using the            For Underwriting and Rating purposes, every accident will be
    garaging location of the vehicle.                                     considered to be "at-fault" EXCEPT those occurring under the
• Students with a permanent address in the risk state but attending       following circumstances (any exceptions will be counted as a not
    school out of state are not acceptable. Please contact                at-fault incident):
    Customer Service to obtain a policy in that state.                    • Auto lawfully parked (if the parked vehicle rolls from the parked
                                                                               position then any such accident is charged to the person who
MILITARY                                                                       parked the auto).
                                                                          • Applicant or other resident operator is reimbursed by, or on
• Active duty military are acceptable if they reside in the risk state         behalf of, a person who is responsible for the accident or has a
   at least nine months of the year. If the insured is in the military,        judgment against such person.
   the vehicle(s) must be garaged and registered in the risk state.       • Auto is struck in the rear by another vehicle and the applicant or
                                                                               other resident operator has not been convicted of a moving
FOREIGN DRIVERS LICENSE                                                        traffic violation in connection with the accident.
Operators who have a valid foreign or international driver’s license      • Operator of the other auto involved in the accident was convicted
without a valid U.S. driver’s license will be assessed an FDL                  of a moving traffic violation and the applicant or other resident
surcharge until they are able to provide proof that a valid U.S.               operator was not convicted of a moving traffic violation in
driver’s license has been in effect for at least 12 months.                    connection with the accident.
                                                                          • Auto operated by the applicant or other resident operator is
                                                                               struck by a "hit-and-run" vehicle, if the accident is reported to
DRIVER POINTS                                                                  the proper authority within 24 hours by the applicant or resident
• All violations and accidents (regardless of fault) occurring within          operator.
    the 39 months prior to the effective date of the policy must be       • Accidents involving damage by contact with animals or fowl.
    disclosed.                                                            • Accidents involving physical damage, limited to and caused by
• Points will be charged for violations occurring within the 35 month          flying gravel, missiles, or falling objects.
    experience period beginning on the 1st day of the 39th month          • Accidents occurring when auto was used in response to an
    and ending on the last day of the 4th month preceding the                  emergency if the operator at the time of accident was a paid or
    effective date of the policy.                                              volunteer member of any police, fire, first aid or any law
• Violations and accidents arising out of a same day, same location            enforcement agency.
    occurrence are charged using the highest rated violation or           • The applicant or other resident operator must provide proof (a
    accident. Exception: If an at-fault accident occurs in connection          police report, letter from the prior carrier, etc.) that an accident
    with a DWI conviction, charge for both offenses.                           was not-at-fault or that they were less than 50% negligent.
• Only charged accidents or violations from a single occurrence           • Accidents with PD only damage under $500.
    are considered when determining whether an incident is a first
    or additional occurrence.
• AIG Agency Auto uses CLUE and motor vehicle reports to verify
    accidents and violations.

                                                                                                                              Vehicle Rating   20
Vehicle Rating
GARAGING RULES                                                             SPECIAL UNDERWRITING REQUIREMENTS
• Territories are based on the location where the motorcycle or            In certain instances, physical damage coverages for specific
     ATV is principally garaged. The DRS rating software will              motorcycles or trikes will be rated using the market value of the
     automatically assign the appropriate territory based on the           vehicle, including the value of all custom and additional equipment.
     garaging information.                                                 This value is referred to as the Stated Amount and should be
• Principal place of garaging must be in risk state at least 6 months      provided by the insured at the time of application or endorsement.
     per year for at least one vehicle on the policy.                      Vehicles that require Stated Amount valuation include, but are not
• If one or more vehicles are temporarily out of the country during        limited to, the following:
     the policy term, the policy is acceptable provided the vehicle is
     in a U.S. possession or Canada. The applicant should be               • Motorcycles with more than $5,000 of Additional Equipment.
     informed that there is no coverage outside the U.S., U.S.             • Limited production cruisers, other than Harley-Davidson, that are
     possessions or territories, or Canada.                                    manufactured by small, local or regional manufacturers.
• If insured moves out of state, the liability limits of the policy will   • Any motorcycle with a state-assigned VIN.
     be increased to match the statutory limits of the new state if        • Specially constructed motorcycles or trikes including, but not
     necessary.                                                                limited to: kit bikes, non-factory built or rebuilt motorcycles,
                                                                               salvaged bikes or bikes assembled largely from non-factory
VEHICLE SYMBOLS                                                                components.
                                                                           • Motorcycles 25 years old or older.
• AIG Agency Auto uses company-defined symbols which are
     automatically assigned by our rating software.                        NOTE: The maximum amount of coverage on a Stated Amount
• Please confirm that Vehicle Identification Number (VIN) is correct       basis for motorcycles 25 years old, or older, is $20,000. The
     when entering this information.                                       maximum amount of coverage for motorcycles less than 25 years
• If a newly released vehicle from a manufacturer is not yet listed,       old is $40,000.
     please contact Customer Service.

MODEL YEAR
• The model year of the motorcycle or ATV is the year assigned by
   the manufacturer.




                                                                                                                            Vehicle Rating   21
INSPECTIONS/DOCUMENTATION OF STATED AMOUNT
                                                                      LOSS SETTLEMENT
Due to the specialized nature of customized and classic
                                                                      Our ultimate limit of liability under any selected first party, physical
motorcycles, a pre-loss underwriting inspection or other
                                                                      damage coverage to motorcycles rated on a Stated Amount basis
documentation that verifies the Stated Amount will be required
                                                                      will be the LOWEST of the:
under certain circumstances.    Our DRS rating software will
automatically determine when an inspection or supporting              • Stated Amount shown in the Declarations or any applicable limit
documentation is required.                                               of liability elected by the insured.
• Inspections – When an inspection is required, AIGAA will            • Actual cash value of the stolen or damaged property.
   automatically arrange for an inspection to be completed by a
   third party appraisal company. The appraiser will contact the      • Amount necessary to repair or replace the property with other
   insured directly, schedule an appointment and forward all             property of like kind and quality.
   required documentation once the inspection has been                NOTE: The limit of liability will be reduced by any applicable
   completed. In the case of an inspection, the Broker is not         deductible, depreciation or betterment that may apply.
   required to retain any documentation since all pertinent
   communication and supporting material will be handled directly
   by the appraisal company and AIGAA. NOTE: The appraisal
   must be completed within 21 days of policy inception or the
   addition of the vehicle by endorsement. If the appraisal is not
   completed within this time frame, the policy will be canceled or
   the physical damage coverage deleted.
• Documentation of Stated Amount – For customized and
   classic motorcycles that have physical damage coverage, but
   are not required to have a pre-loss appraisal, the Broker must
   maintain the following documentation:
           Two (2) color photographs showing each side-view of
           the motorcycle.
           Copy of Title.
           Professional appraisal of the motorcycle OR recent bill
           of sale or invoice confirming the Stated Amount.
           For motorcycles less than 25 years old, any receipts or
           invoices for additional equipment pertaining to the
           customization of the motorcycle.




                                                                                                                         Vehicle Rating   22
Coverage
Coverage options and availability vary by state. Please refer to
your state specific DRS rating software for specifics regarding
required and optional coverages.


ADDITIONAL EQUIPMENT COVERAGE
$1000 of additional equipment coverage is automatically provided,
at no extra cost, to vehicles with collision and/or comprehensive
coverage. An additional $4000 worth of coverage may be
purchased if added, non-factory installed and custom equipment or
modifications exceed the $1000 base. Such equipment valued
over $1000 is not covered unless the total value of the equipment
is disclosed on the application and an additional premium is paid.

If the insured desires coverage for additional equipment in excess
of $5000, we will insure the vehicle as a customized vehicle on a
Stated Amount basis. Refer to the Vehicle Rating section for
details.
ACCEPTABLE ADDITIONAL EQUIPMENT INCLUDES, BUT IS NOT LIMITED
TO:
• Electronic equipment designed for the reproduction of sound,
    such as radios, tape decks, or compact disc players.
• Electronic equipment that receives or transmits; audio, visual, or
    data signals, such as CB radios, telephones, two-way mobile
    radios, or TV monitors.
• Sidecars and trailers specifically designed for use with
    motorcycles or ATVs.
• Trike conversion kits.
• Custom paint, custom plating or custom exhaust.
• Safety riding equipment including helmets and apparel. NOTE:
    Coverage is only provided in the event of a Collision loss.
    Theft is not covered.



                                                                       Coverage   23
Claims Reporting
All losses, regardless of fault, should be reported by the
insured to (888) AIG-6163 within 48 hours of the loss.
Policyholders should never delay reporting a loss pending receipt
of a police report or other claim information.

Please do not phone in losses on behalf of the insured unless
the insured is unable to call.

Please Avoid Mailing in Loss Reports.

Claims will be handled through an AIG claim service center staffed
with company trained professional adjusters who are committed to
providing excellent claim service. Our centralized claims office
phone number is:
            AIG Agency Auto Claim Service Center
               Claim Reporting (888) AIG-6163

  Claim acknowledgement and additional contact information is
               available at: www.aig4auto.com.




                                                                     Claims   24

				
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