Underwriting Refresher

Underwriting Refresher

By Stephanie Batyi

​Vehicle Values - Less than $10,000

Summary

The minimum value we generally insure is $3,000;

However, with vehicles that are low in value, you should have a more detailed conversation with the caller to get an idea of the applicant’s intent and overall risk profile.

• What makes this car a collector?

• We are looking for true collectors and not just old “drivers”.

• Think about why the car is only worth $6,000.

Is it because it’s in poor condition and it’s a “Driver”, or is it a collector in good condition but it only yields a $6,000 value (I.e. 1975 Dodge Dart Sport Coupe)?  

A photo is required upfront to determine the condition and value.

Cars valued below $10,000 should be in “Excellent” to “Very Good” condition and all else from an underwriting standpoint is “good”.

​Cancellation Methods Cheat Sheet - Insured's Request

Exceptions

• *Cancelling for Duplicate Coverage i.e. (Issue State Change Rewrites or Consolidating Duplicate Policies) – always choose Pro-Rate**

• **Cancelling for Total Losses – always choose Pro-Rate**

  • Cancel effective for date after total loss date

• ***Cancelling Maryland Policy in Underwriting Period - In MD if we determine that a surcharge must be applied due to information obtained during the Underwriting period (i.e. marginal garaging, freedom tier, etc.) and the customer decides to subsequently cancel the policy due to the new premium amount, the cancellation should be done Pro-Rate.***

All Other Insured's Request Scenarios

• Choose FLAT RATE If:

  • Cancelling Flat on the Renewal Date – Only time we should use the Flat Rate option

  • AFAM/AMOD – New American Collectors & Condon Skelly (Rollover)

    • Auto/Cycle - ACI04B/8FA2PA/CSK04A/7FA2PA Terms

      • Pro Rate: AK, CA, FL, IL, LA, MI, MN, NH (just added)

      • Short Rate: Everything Else

    • Collectibles - ACI04C/8FA2IM/CSK04B/7FA2IM Terms

      • Pro Rate:  NH (just added)

      • Short Rate Everything Else

​No Money Endorsements - Effective Date Rules

• If there is a renewal rated/pending, (is it a future date coming up?)

  • -> Endorse on the renewal date only.

• If the renewal/policy inception date has recently passed (within the last 30 days)?

  • -> Endorse back to the renewal/inception date only.

• If the request is by phone and there is no renewal rated/coming up/recently passed?

  • -> Endorse for tomorrow’s date.

• If the request is in writing (online submission) and there is no renewal rated/coming up/recently passed?

  • -> Endorse for the date after the request was received.

• Backdating Corrections - If we are correcting a mistake for an issue that would cause a suspension (spelling of a name correction, year/make of car corrections, VIN corrections, etc.) go back as far as possible (to last renewal date/beginning of the term, to last endorsement date, to policy inception date).

  • Remember to include the renewal date on the endorsement if it is rated as well.

  • In these situations if you are still dealing with an AVP term for American Collectors, we will also need to send a preventative electronic filing email to the carrier (ABIC) in an effort to avoid them receiving a suspension letter in certain states:  (CA, KY, FL, NY, GA, AZ, VA, MA, MD and NV).  Otherwise, this electronic filing isn't necessary as it happens automatically under AFAM.

    • -> Endorse back to beginning of term/inception date/last change & If there’s a renewal coming up, Endorse for the renewal date as well