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_ACV_ loss settlement - Universal Property _ Casualty Insurance by pengxuezhuyes


                                        UPCIC BINDING GUIDELINES
                                                     (9-20-2013 REVISED EDITION)
                                        (Rules apply to all forms unless specifically noted)

                                                    COUNTY GROUPS
Big 5:   Broward, Hillsborough, Miami-Dade, Palm Beach, and Pinellas
Inland:  Alachua, Baker, Bradford, Calhoun, Clay, Columbia, DeSoto, Gadsden, Gilchrist, Glades, Hamilton, Hardee,
         Hendry, Highlands, Holmes, Jackson, Lafayette, Lake, Leon, Liberty, Madison, Marion, Okeechobee, Orange,
         Osceola, Polk, Putnam, Seminole, Sumter, Suwannee, Union, and Washington.
Coastal: Bay, Brevard, Charlotte, Citrus, Collier, Dixie, Duval, Escambia, Flagler, Franklin, Gulf, Hernando, Indian River,
         Jefferson, Lee, Levy, Manatee, Martin, Monroe, Nassau, Okaloosa, Pasco, Santa Rosa, Sarasota, St. Johns,
         St. Lucie, Taylor, Volusia, Wakulla, and Walton.

ON ALL POLICY FORMS (EXCEPT HO4), regardless of ACV Loss Settlement being chosen.
                                               COVERAGE AMOUNT
         HO3                 X-Wind in Windpool      W/ Wind in Windpool                                 X or W/ Wind Non-Windpool
     + see below             + Statewide – Must be   30        + Big 5 – Must be 30 yrs. or newer      + Big 5 – Must be 30 yrs. or newer
                                  years or newer                 Coastal – Must be 40 yrs. or newer       Inland / Coastal – Must be 40 yrs. or newer
Big 5 Minimum                      $200,000                              $200,000                                      $200,000
Big 5 Maximum                      $300,000                             $1,000,000                                    $1,000,000
Inland Minimum                       N/A                                   N/A                                         $100,000
Inland Maximum                       N/A                                   N/A                                        $1,000,000
Coastal Minimum                    $200,000                              $200,000                                      $100,000
Coastal Maximum                    $300,000                             $1,000,000                                    $1,000,000
HO4                                        Min. Coverage C                                            Max Coverage C
All Counties                                   $20,000                                                  $300, 000
HO6 – All Counties      Min. Coverage C              Max. Coverage C              Min. Coverage A                     Max. Coverage A
Owner Occupied              $20,000                     $300,000                      $15,000                            $500,000
Tenant Occupied              $6,000                       $6,000                      $15,000                            $500,000
            HO8                       X-Wind in Windpool                     W/ Wind in Windpool                       Non-Windpool
Minimum (All Groups)                        $40,000                               $100,000                               $100,000
Big 5 Maximum                     $500,000 ($300k in Miami-Dade)                 $1,000,000                             $1,000,000
Inland & Coastal Maximum                    $500,000                             $1,000,000                             $1,000,000
   DP1 (40 years or newer)              X-Wind in Windpool                   W/ Wind in Windpool                       Non-Windpool
Minimum (All Groups)                   $40,000 (Big 5 Closed)                     $100,000                               $100,000
Maximum (All Groups)                         $250,000                             $400,000                               $400,000
DP1 (41 – 100 years )                   X-Wind in Windpool                   W/ Wind in Windpool                       Non-Windpool
Minimum (All Groups)                   $40,000 (Big 5 Closed)                     $100,000                               $100,000
Maximum (All Groups)                         $250,000                             $400,000                               $400,000
DP2 / DP3 (25 yrs or newer)             X-Wind in Windpool                   W/ Wind in Windpool                       Non-Windpool
Minimum (All Groups)                   $40,000 (Big 5 Closed)                     $100,000                               $100,000
Maximum (All Groups)                         $250,000                             $500,000                               $500,000

+ On the HO3 form UPCIC makes exceptions for homes up to 100 years old that exist in speci-
fied zip codes (Four Point Inspections MUST be provided). Please refer to Atlas Bridge for the
list of zip codes.
We will NOT ACCEPT Business Exposure, other than a licensed and insured Home Day Care Business as defined by the
mandatory endorsement HO 04 96, on any form.

Only the OIR-B1-1802 (Rev. 01/12) Uniform Mitigation Verification Inspection Form, promulgated by the state will be ac-
ceptable in applying for wind mitigation credits. This applies to all policy forms including HO6.

Revision (9-20-2013)                                                                                                          Page 1 of 5
                                       UPCIC BINDING GUIDELINES
                                                (9-20-2013 REVISED EDITION)
                                      (Rules apply to all forms unless specifically noted)

Age of Home (Restrictions apply to all forms except HO4, HO6, and those forms specifically noted below)

      • Restrictions below apply regardless of age.
        § No Polybutylene pipes or Pex Plumbing. Except on: HO8, DP1
        § No Knob-tube wiring.
        § No Aluminum wiring.
        § No Fuses.
        § No Federal Pacific or Zinsco breaker boxes, double tap wiring.
        § Required 100 AMP or greater electrical service.
        § Operable A/C is required statewide.
        § Operable Heating, which is vented to each room, is required in all but the following counties: Broward, Char-
           lotte, Collier, Dade, De Soto, Glades, Hardee, Hendry, Highlands, Lee, Manatee, Martin, Monroe, Okeechobee,
           Palm Beach, Saint Lucie, and Sarasota.
           Ø Solid or alternative fuel based heat sources which are professionally installed/certified are acceptable, as
                long as they meet the aforementioned venting requirement.
        § Homes with Self-Installed Wood burning stoves or Portable or Space heaters are ineligible for all forms.

  •     21 to 40
        § Wood roofs must be 15 years old or newer.
        § Shingle roofs must be 20 years old or newer and in good condition. Except on: HO8, DP1. (Older shingle
            roofs, if they are in good condition, may be acceptable upon U/W review)
  •     41 to 100 – (All restrictions addressed above apply)
           §   All Forms (Except HO8) - Four Point Inspection Confirming Updates for electrical, roof, plumbing, heat &
               air conditioning is required.
           § Eligible on HO8, ONLY electrical and heat updates are required
            Ø The 4 Point CANNOT be more than a year old.
  •     Over 100 years – (All restrictions addressed above apply)
        § HO8 form only
           Ø Actual Cash Value (ACV) loss settlement will apply to all losses other than a deemed total loss, however
             Coverage A MUST be written for the FULL REPACEMENT COST VALUE, per the HO8 policy form. The
             REPLACEMENT COST LOSS SETTLEMENT ENDORSEMENT (HO 23 74 06 94) is not available.

Prior Losses (Fire or Sinkhole losses are not acceptable under ANY policy form)
  •     All Forms except HO8 – (1) prior loss within the past 5 years less than $10,000 with a minimum $1,000 deductible.
        Fire, water damage, dog bite, theft, or sinkhole is NOT ACCEPTABLE REGARDLESS OF TIME FRAME.
  •     HO8 Up to four (4) claims, within the past five (5) years, is acceptable (Exclusive of Fire or Sinkhole claims).

All Forms – In NO case will an applicant, insured, or resident with a prior arson conviction be eligible for insurance.

  •     All Forms except HO8:
        § No bankruptcies filed in the past 60 months (based on filed date)
        § Not party to a foreclosure judgment in the past 60 months
        § No felony conviction in the past 10 years
        § No first party law suits against an automobile or homeowners insurance company
  •     HO8
        § No felony conviction in the past 10 years
        § No first party law suits against an automobile or homeowners insurance company

Revision (9-20-2013)                                                                                       Page 2 of 5
                                      UPCIC BINDING GUIDELINES
                                               (9-20-2013 REVISED EDITION)
                                     (Rules apply to all forms unless specifically noted)

 • All major construction types are eligible except when the following applies:
    § Homes with Exterior Insulation Finishing System (EIFS)
    § Mobile homes
    § Dome Homes or any unusual construction type
    § Homes containing Chinese Drywall
    § Masonite
    § Manufactured homes
    § Modular homes
    § Homes constructed over water
    § Homes constructed partially or wholly over sand are only eligible on HO8 form
    § Builders risk (properties under construction)
    § Homes with OPEN foundations, i.e. - lattice, stilts, piers, pilings, etc., are eligible only on the HO8, DP1 forms.
          Ø Exception: Diagram 6 (FEMA) available on HO3

 •   Form Specific Rules (Forms not listed are not eligible)
     § All Forms – Homes on up to 5 acres, of land are eligible.
     § HO8 up to 20 acres of land are eligible provided that NO farming, ranching or agricultural use is associated
     § HO4, HO6, and all DP forms – Tenant occupied units must be leased on an annual basis.
     § HO4 – In NO case can an Additional Interest be added to the policy (exception: Premium Finance Company).
     § HO6 – $6,000 Coverage C on a Tenant occupied unit is required (cannot be increased or decreased).
     § HO6 – $2,000 Loss Assessment Coverage (cannot be increased or decreased).
     § HO6 – A policy may be issued for a condo unit used exclusively for residential purposes. The condominium must be
        operated by a condominium association that is subject to and in compliance with Florida Statutes, Section 718.111.
     § All Forms – Condo hotels or assisted living facilities are not eligible.
     § All Forms – Burglar Bars MUST have a release in each room in case of fire
     § HO3 and HO8 – Trampolines, Diving boards, or Pool slides are acceptable. HO3-Liability Exclusion Applies
     § All Forms – A handrail (1) is required for ANY stairway containing at least three (3) steps.
     § All Forms – Prior Insurance Declarations or a Notice of Lapse is required for all new business. A surcharge
        applies where no prior insurance existed or when it lapsed over 45 days prior to application.
          Ø A HUD statement or a registered deed for new purchases within the last 45 days is required to avoid the
          Ø Forced placed insurance is NOT considered prior insurance.
     § All Forms – PC 1-9 are acceptable
          Ø Log Homes must be PC 1-8.
     § All Forms – New purchase Foreclosure or Short Sale properties require current interior and exterior photos to
        be submitted, however a four point may be requested.
     § 360 Replacement value is not acceptable

 •   All Forms Except HO8 – Please note that following breeds are INELIGIBLE: Chow, Doberman, German Shep-
     herd, Pit Bull, Presa Canarios, Rottweiler, Staffordshire Terrier, Akita, or any mixed breed dog that is half breed (or
     greater) with one or more of the aforementioned animals.
 •   HO8 – All breeds of dogs are acceptable under the HO8.
 •   The Animal Liability Exclusion applies on all forms.
DP1, DP2 and DP3 and HO8 – The maximum limit of liability under Section II is $100,000.
 • Any swimming pool, whether in-ground or above ground, MUST be completely screened in or be surrounded by a
     fence of at least four (4) feet in height that prevents access other than through a latched gate.
     (Swimming Pool Liability Exclusion Form Applies with unfenced or unscreened pools HO3 & HO8)

Revision (9-20-2013)                                                                                       Page 3 of 5
                                        UPCIC BINDING GUIDELINES
                                                 (9-20-2013 REVISED EDITION)
                                       (Rules apply to all forms unless specifically noted)

I.    Risks not meeting all of the requirements contained herein may not be bound. Risks not eligible for binding may be
      submitted unbound if they meet the guidelines contained in the “Manual” (See section VI below regarding unbound
      applications) and the applicable program section of the manual (Homeowners or Dwelling Fire).
II.   Company underwriting guidelines are located in the Manual and may be supplemented in the applicable program
      section. Rules contained in the program section of the manual must be followed and will prevail in the underwriting
      and rating of all policies written with Universal Property & Casualty Insurance Company.

III. General Requirements
      A. All business placed by the agent with the Company must originate from persons licensed for the Agency by the
         Company. Brokered business (except brokered business placed under a written Brokerage Agreement) is not
         acceptable and is deemed to be a violation of the Agency-Company Agreement.
      B. All bound applications must be submitted to the Company within 12 days for customer paid policies and 17 days
         for mortgagee pay following the binding of coverage.

IV. Binding Requirements
      A. Risks eligible for binding may be bound by obtaining a completed and signed UPCIC application and the re-
         quired premium payable to UPCIC.
          1. The binder period will end upon the earliest of (a) 30 days following binding, (b) acceptance or declination of
             the insurance policy, or (c) notice from the Company.
          2. New Business:
              •     Full Payment Option – The full payment is to be submitted with the application. If paid by the insured
                    or premium finance company within 12 days of the date the policy is bound or if paid by the mortgage or
                    title company within 17 days of the date the policy is bound.
              •     Two Payment Option – 55% down and 45% due on the 180th Day of the policy period.
              •     Four Payment Option – 30% down and 2 payments of 25% each due on the 90th, 180th day and 1
                    payment of 20% on the 270th day of the policy period.
          3. Payment fee schedule for the two and four payment plans above:
                    Total Premium including fees            The fee per payment is:
                            ranges from:
                     $0      To        $399                            $3
                    $400     to        $499                            $4
                    $500     to        $649                            $5
                    $650     to        $799                            $6
                    $800     to        $949                            $7

                  Add $1 in fees per payment for every $150 of total premium over $949
                  A $10 set up fee applies to all polices utilizing a payment plan.

          4. Renewal Business: The billing process is the same as the New Business process above with one ex-
             ception. The first Payment Option will be mailed to the insured 50 days in advance of the renewal

Revision (9-20-2013)                                                                                       Page 4 of 5
                                        UPCIC BINDING GUIDELINES
                                                 (9-20-2013 REVISED EDITION)
                                       (Rules apply to all forms unless specifically noted)

V. Additional Limitations on Binding
      The Company is able to consider applications for coverage originating in all areas of Florida. However, the Compa-
      ny must ensure that applications received for risks located in areas of the state in which the Company has existing
      concentrations are assessed for their effect on the Company’s overall exposure. From time to time, Universal Risk
      Advisors, UPCIC’s Managing General Agent (MGA) will identify the areas in which the Company will not authorize
      the binding of coverage and will require the submission of all policies unbound according to the procedures of Sec-
      tion VI, below. This may include changing the territories or minimum/maximum coverage values for which binding is

      Applications cannot be submitted on a bound basis when a prior UPCIC policy of the applicant, a resident relative or
      other person residing with the applicant, has been canceled (for reasons other than non-payment) or non-renewed
      by the Company. If the agent is new to the account and desires to submit the application on a bound basis, the
      agent must make appropriate inquiry of the applicant and/or Company to determine compliance with this require-

      Documentation regarding unbound risks should be submitted with the application as provided in Section VI, below.
      As allowed by law, UPCIC reserves the right to cancel or reject risks that are submitted out of compliance with the
      underwriting manual or guidelines.

VI. Unbound Applications:
      Risks not meeting the binding guidelines and requirements contained in the manual and applicable program section
      may be submitted on a non-bound basis for consideration. The following documentation will be required with the
      A. A completed, but not signed UPCIC application, a copy of the expiring declaration page must be submitted with
         each application. A copy of expiring declarations is not required for a new home.
      B. A completed Residential Replacement Cost worksheet must be submitted with each application requiring one.
      C. Omit any effective date.
      D. Do not require the signature of the applicant.
      E. Do not accept any premium deposit from the applicant.
      F. Do not issue any form of binder to the applicant.
      G. Do not advise the applicant they are covered.
      H. You will be notified in writing of the acceptability of the risk and advised if binding is acceptable.

Note: Universal Property and Casualty seeks to write business and will make every effort to do so responsibly.
Risks not meeting the binding guidelines may be submitted unbound as provided for in Section VI above. The company
considers all available information in underwriting risks. In some cases the company may be able to write risks that do not
meet one or more criteria if other characteristics indicate the risk is desirable. In other cases, a risk meeting the criteria
might not be acceptable due to other underwriting considerations. The underwriting department will be happy to assist
with any questions.

Revision (9-20-2013)                                                                                              Page 5 of 5

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