Overview of AAIS Farm Form Changes

Size: px

Start display at page:

Download "Overview of AAIS Farm Form Changes"

Steven Cole
6 years ago
Views:

pollution issues to dealing with genetically modified organisms.

1 Overview of AAIS Farm Form Changes 1 Farmers today are doing more than tending to crops and livestock. They are doing everything from running pick-your-own farms to corn mazes, from hayrides to raising exotic animals, and from dealing with pollution issues to dealing with genetically modified organisms. To meet the needs of today s farms, American Association of Insurance Services (AAIS) is revising its farm coverage forms and endorsements. This session will provide an overview of the changes. Copyright 2016 International Risk Management Institute, Inc. 1

2 Notes This file is set up for duplexed printing. Therefore, there are pages that are intentionally left blank. If you print this file, we suggest that you set your printer to duplex. 2

3 Overview of AAIS Farm Form Changes 1 The American Association of Insurance Services (AAIS) is a national advisory organization that develops policy forms and rating information used by property/casualty insurers. Our core purpose is to help companies compete in the marketplace, and we are widely recognized as a valuable product development resource for insurers who need responsive, innovative information services. More than 700 insurers of all sizes, including some of the largest national carriers, use one or more AAIS programs as the basis of the policies they sell to consumers, businesses, and other organizations. (AAIS does not sell insurance or provide any service directly to the general public.) 2 3

About AAIS AAIS is a national insurance advisory and statistical organization that develops

Marine Personal Lines Farm and Ag Commercial Lines Under the Farm and Ag Product Line, we

Commercial/Farm and Ag Leslie Rippley, CIC, AU, vice president of commercial lines Robin

4 About AAIS AAIS is a national insurance advisory and statistical organization that develops standardized policy forms and rating information for over 25 insurance programs: Inland Marine Personal Lines Farm and Ag Commercial Lines Under the Farm and Ag Product Line, we offer the following: Farm Inland Marine Agricultural General Liability 3 AAIS Staff Commercial/Farm and Ag Leslie Rippley, CIC, AU, vice president of commercial lines Robin Souza, CPCU, AFIS, product mgr of farm and agribusiness Jennifer Kautz, AFIS senior product development specialist 4 4

5 AAIS Farm and Ag More than 150 companies, including half of the top farm insurers in the country, write more than $500 million of combined premium each year using AAIS farm and ag products. In addition, more than 250 farm mutual insurers in 10 states access AAIS programs through their mutual associations 5 Summer of 2015 AAIS conducted market meetings with their customers to determine what changes they would like to see with the current Farmowner product. Based on the feedback it was determined that there were 8 important issues that needed immediate attention. These items became the 2016 Farmowner Initiative: E, F & G Rate Level Review Increased Hay Stack Limit Intake of Foreign Objects Milk Contamination RC for Machinery/Equipment Custom Feeding Coverage Agritainment AI Managers & Lessors Trusts as Insureds 6 5

6 Coverage E, F & G Rate Level Review FO 6 Farm Coverage form includes Coverage E, F & G E: Farm Barns, Buildings and Structures F: Scheduled Farm Personal Property G: Unscheduled Farm Personal Property Base Loss Cost review countrywide 7 HAY IN THE OPEN INCREASED STACK LIMITS FO 6 Farm Coverage form includes Coverage E, F & G E: Farm Barns, Buildings and Structures F: Scheduled Farm Personal Property G: Unscheduled Farm Personal Property Under Coverage F (Scheduled FPP) hay, straw, or fodder in the Open has a limitation of $10,000 per stack. Endorsement will allow the carrier to increase this limitation per stack. Clear space warranty of 100 feet will still apply 8 6

7 MILK CONTAMINATION COVERAGE Endorse the peril of Contamination in respects to Milk Contamination coverage: 1. Contamination This means only direct loss from a foreign substance that alters the purity of the milk. However we do not pay for loss due to: a. any fraudulent, dishonest or criminal act done by or at the instigation of any insured, partner, joint venturer, employee, or agent of the insured while working in the course of their employment or otherwise and whether acting alone or in collusion with others or any others to whom the property may be entrusted, with the exception of carriers for hire; b. contamination caused by any drug not authorized for dairy use by the Federal Drug Administration; c. dryness or dampness of the atmosphere or freezing or other extremes of temperature; or d. settling, cracking, shrinking, bulging or expansion of any structure or building or any of its parts in which the milk is being stored. 9 Farm Machinery Optional Coverages Intake of Foreign Objects Exclusion: 1. "We" do not pay for a loss caused by or that results from: d. foreign objects that are picked up and taken into mobile farm machinery; Endorsement removes this exclusion for Described Mobile Farm Machinery and Equipment 10 7

8 Farm Machinery Optional Coverages Replacement Cost Standard valuation for Farm Machinery and Equipment is Actual Cash Value (ACV). If R/C is checked for Mobile Farm Machinery and Equipment, the Loss Settlement Provision is amended to Replacement Cost (80% Coins applies). However, RC will not apply to batteries, belts, canvas, chains, filters, tubes or times. 11 Custom Feeding Coverage "We" pay those sums that an "insured" becomes legally obligated to pay as "damages" due to death or necessary destruction of cattle, poultry, or swine. Loss must result in the death or necessary destruction due to Specified Causes of Animal Loss (specified perils). Subject to an Occurrence/Aggregate Limit 12 8

9 Additional Insured Managers or Lessors Additional Insured status for designated person or organization that is the designated premises Manager or Lessor 13 Trusts as Insureds Amend the Farmowner definition of you and insured to include Trust and Trustees. 14 9

10 Agritainment/Agritourism Ability to add Liability coverage to the Farmowner policy for 8 specific Ag GL classifications pertaining to Agritainment exposures: Mazes Farm Tours (on foot) Gift & Antique Shops Concerts Carriage or Sleigh Rides Equipment Rides Bakeries incl. Baking on Premises Weddings & Parties (facilities only) 15 Agritainment/Agritourism Ability to add Liability coverage to the Farmowner policy for 8 specific Ag GL classifications pertaining to Agritainment exposures: Mazes Farm Tours (on foot) Gift & Antique Shops Concerts Carriage or Sleigh Rides Equipment Rides Bakeries incl. Baking on Premises Weddings & Parties (facilities only) 16 10

11 Raw Milk Exclusion GL 4000 Revised Based on further review of the current endorsement, it was determined that a revision was required to amend the exclusionary wording. Revised exclusion: "We" do not pay for "bodily injury" or "property damage" arising out of the consumption of: 1. raw or unpasteurized milk; 2. raw or unpasteurized milk products, including but not limited to, cream, butter, cheese, whey, yogurt, or curds; or 3. food or beverages that contain raw or unpasteurized milk when left in its unpasteurized state. 17 Pending Filing and DOI Approval All forms discussed in this presentation are based on a countrywide representation and are pending filing and Department of Insurance approval. Forms are subject to change based on DOI objections or state specific requirements. You may reference AAISDirect to review approved state specific forms

12 2017 AAIS Farmowner Initiative Suggestions for our next filing Complete review and update of the current Farmowner Program Continue discussions with customers to determine future needs Smart Buildings Dwellings and Outbuildings Marijuana/Cannabis Other? 19 Questions?? Thank you for your participation! 20 12

FARM & RANCH COVERAGE PART DECLARATIONS

POLICY NUMBER: NAMED INSURED: FARM & RANCH COVERAGE PART DECLARATIONS COVERAGES PROVIDED Insurance at the Insured Locations applies only for coverage for which Limits of Insurance are shown. INSURED LOCATIONS*