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Personal Lines Report TexasAgent February 3, 2006 Practical Information to Help IIAT Personal Lines Agents TDI vs Allstate: Advantage Allstate Management > Legal Compliance > Miscellaneous Laws A Travis County district judge decided Jan. 20 to deny and Regulations > Cancellation and Non-Renewal. TDI’s request for a permanent injunction that would prevent Allstate from denying additional living expense New on InfoCentral: Client claims to property owners aﬀected by Hurricane Rita. In Communications her decision, Judge Lora Livingston said it is apparent IIAT’s technical staﬀ is pleased to present a new feature “that the extension of coverage for loss of use [in the on InfoCentral that will help you answer common Texas homeowners policy] is not triggered without questions asked by your customers. We started with actual physical loss or damage to the property. The what members report to be the most common question mere existence of a hurricane which tangentially causes asked by their customers: Should I purchase the loss policyholders to be either without power or access to damage waiver offered by a rental agent when I their home is not a peril insured against.” It is not known rent a vehicle? Because the answer to this question whether TDI will appeal this decision or continue the now depends on what type of personal auto policy the original lawsuit to ultimately and deﬁnitively decide the customer has, we separated the communication into coverage issue. three separate pieces: (1) to answer the question for a speciﬁc customer who has a Texas PAP or equivalent, Mexico Coverage No Longer Available in where coverage for a rented vehicle is provided in TAIPA the liability section; (2) to answer the question for a TDI approved a new personal auto policy form for customer who has an ISO PAP or equivalent, where policies assigned through the Texas Automobile coverage is provided in the physical damage section; Insurance Plan Association eﬀective Mar. 1, resulting and, (3) to answer the question for a group of customers in two signiﬁcant changes. The Mexico Coverage and or an audience that may have either type of PAP. The Supplementary Death Beneﬁt endorsements will no combined article can be used for customer newsletters, longer be attached to any TAIPA-assigned policy. These web sites, or public interest columns in local newspapers. changes apply to new and renewal policies, including The bottom line of our answer to this question is: We those renewed during the 3-year assignment period. The recommend that you buy the loss damage waiver Mexico Coverage endorsement was previously added from the rental company. Take a look at this new to many TAIPA-assigned policies at the option of the feature by going to InfoCentral at iiat.org and clicking insurance company and sometimes only if requested by on Client Communications. We will be adding more the agent. Even though the assigned insurer should be articles in the future. If you have an idea for subjects obligated to notify policyholders of these changes, IIAT we can cover based on questions your customers ask recommends that agents notify all TAIPA policyholders frequently (personal or commercial), please e-mail David on the policy anniversary date that they no longer have Surles at email@example.com. this coverage and will need to obtain a special policy even for short trips into Mexico. And don’t forget IIAT’s Scheduled Personal Property Valuation endorsed market for Mexico Tourist Auto Insurance As companies convert homeowners policies from Texas through International Insurance Group – go to forms to ISO forms, you need to be mindful of coverage iiat.org > Market Services > Advantage Markets for more diﬀerences as well as diﬀerent options that are available information. by endorsement. For example, when HO-160 (Scheduled Personal Property) is attached to the Texas homeowners Policy Transfer Within Company Group policy, jewelry and ﬁne arts items are covered on an A new law that was passed during the last legislative “agreed value” basis. When an insurer converts from session changed non-renewal rules for personal auto Texas to ISO and attaches endorsement HO 23 03 and homeowners/dwelling policies. Companies are no (Scheduled Personal Property – Texas) for jewelry and longer required to send notices of non-renewal when ﬁne arts, only the latter is covered on an agreed value transferring a policyholder from one company to another basis. If you want to continue providing agreed value within the same family of companies. For a complete coverage on jewelry items, you should ask the company review of all cancellation and non-renewal laws and rules, to attach endorsement HO 04 60 (Scheduled Personal go to InfoCentral at iiat.org and navigate to Agency Property With Agreed Value Loss Settlement). According to the IIAT member who raised this issue, at least one P.O. Box 684487 | Austin, Texas 78768 | 512.476.6281 | Fax 512.469.9512 | firstname.lastname@example.org | iiat.org company charges twice as much premium for this For damage to rented property while the insured is endorsement, but it may very well be worth it to avoid using it, Section I (property) excludes watercraft, a hassle when it comes time to adjust a claim. For a recreational vehicles, and aircraft. Section II (liability) complete discussion of this and other issues to consider excludes damage to property the insured rents or uses. when moving from Texas to ISO, go to InfoCentral at The Section II extension of coverage for damage to iiat.org and navigate to Policy Coverages > Homeowners property of others excludes damage arising out of the Policy > Technical Reports > From Texas to ISO – Ten use of aircraft, watercraft, or motor vehicles, other than Essential Questions. recreational vehicles that are not registered or supposed to be registered. Payment under this extension is limited Spring Break Coverage Issues to $500 on the Texas policy or $1,000 on the ISO policy. Spring has almost sprung and millions of college students To be safe, you should advise your customers to purchase and families will soon be heading to the shores or slopes any type of damage waiver that might be oﬀered by the for fun in the sun or snow. It’s safe to assume that rental company. insurance problems will be the last thing on their minds (especially the college students), but maybe someone NFIP Launches Web Site for Agents will ask you a question before they leave, like: “Will I be The National Flood Insurance Program has launched a covered if I rent a [jet ski] [snowmobile] [golf cart] [boat] FloodSmart agents web site to provide access to agent [hang glider] [3-wheeler]?” The safest quick answer is materials and new content in a password-protected, “no,” because the answer depends on what type of policy agents-only section of www.ﬂoodsmart.gov. After they have (Texas or ISO or other) and whether the focus registering for a username and password, agents can log of their inquiry is third-party liability or damage to the in to access links to education and training programs; rented vehicle itself. information about map modernization projects in their If the insured rents a motorized vehicle other than a area; marketing tips, advertising tools, and additional “standard automobile,” such as a snowmobile, moped, resources to distinguish themselves as their community’s motorcycle, 3-wheeler or 4-wheeler, coverage may not ﬂood insurance expert; resource materials for customers be available on the PAP. Liability coverage on the Texas to help them through the claims ﬁling process; and PAP applies to the operation of “any auto” used by the support for sales eﬀorts that include tips, talking points, named insured or a family member, but the word “auto” and an opportunity to enroll online for the NFIP Agent is not deﬁned in the policy. Assuming that “auto” is short Referral Program and Co-op Program. for “automobile” and that most dictionary deﬁnitions To register, visit www.ﬂoodsmart.gov/agent, click on of “automobile” contain the idea that it’s any vehicle on “Register Now” and follow the directions to ﬁll out the wheels, most such rentals could be covered by the liability online registration form. For more information contact section of the PAP, except vehicles with fewer than four FEMA at 202.646.4600. wheels which are speciﬁcally excluded. The ISO PAP, on the other hand, excludes liability while using a vehicle IIAT Offers Simpliﬁed RLI Umbrella that is designed mainly for use oﬀ public roads, except a Program non-owned golf cart. IIAT’s commitment to provide stand-alone personal How does the homeowners policy respond to claims umbrella coverage through RLI Insurance Company related to golﬁng, boating, jet skiing, biking, snowmobil- (rated “A+” Excellent IX by A. M. Best) continues to ing or hang-gliding? Liability coverage applies to third- be an outstanding service. Oﬀering personal umbrella party claims arising out of the operation of certain types coverage with limits up to $5,000,000, the program of rented watercraft. On the Texas and ISO homeowners features 12 percent commission, quick policy issuance, policies, this includes outboard boats of any horsepower, direct bill at renewal, no excluded vehicles, easy sailboats smaller than 26 feet in length, and inboard rating with no manual calculations, self-underwriting watercraft with 50 horsepower or less. (Most if not all application and more. Find out how you can start jet skis have more than 50 horsepower.) In addition, the oﬀering this valuable service by looking under Market policies cover third-party liability arising out of the use Services at iiat.org or by calling Polly Middlebrook or of rented recreational vehicles that are not registered or Bill Wade at 800.880.7428. supposed to be registered. That could include golf carts, Program guidelines, a simpliﬁed self-underwriting snowmobiles, mopeds, 3-wheelers, and 4-wheelers. The application (that you can now complete electronically) hang glider is subject to the aircraft exclusion, which and a new QuickQuote rater are available on the web site deﬁnes “aircraft” as any device used or designed for ﬂight. for you to download to get started today.
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