Avenues Marine Builders Risk Quoting Tool

Transcription

1 Quoting Excess on Avenues Marine Builders Risk Quoting Tool Training Guide A GENT M ATE R IAL

2 Table of Contents Overview Main Menu Screen Preliminary Screening Underwriting Questions Screen Underwriting and Rating Screen Rating Summary Screen Issue Screen Appendix Quote Proposal Binder Company Documents

3 Overview Overview Introduction The Inland Marine Builders Risk application is an online quoting tool composed of 7 screens. Agents will access 6 of these for Quoting and Issuing Search and Retrieve existing quotes Printing Quote Proposal, Company Application, and Binder Refer quote to an Underwriter. Screens proceed in a linear fashion, as follows: Screen Main Menu Preliminary Screening Underwriter Questions Underwriting & Rating Rating Summary Issue Function Opening screen allows search for existing Named Insureds Initial filter to eliminate risks early in the process that are absolute declinations Captures basic information about the project and desired coverages More detailed project and coverage information pertaining to rating Summarizes the quote and displays premium with breakdown and any referral messages. Allows for referral directly to underwriter Captures billing and mortgagee information; permits final issue and generation/printing of Quote proposal, Binder and Company application. 3

4 Overview System Entry Standards The following standards exist in the system: Dollar entry should be numeric only, no commas, Ex instead of 500,000. You may use the tab key to move through the fields. Any fields that are deselected for use due to data entered, i.e. multiple location/building fields for a single location quote, will be bypassed by tabbing through fields. Percent values should be entered as numeric only, no % sign. 4

5 Main Menu Screen Main Menu Screen Introduction The Main Menu is an initial entry screen that allows search and lookup of existing quotes or the new entry of a new quote. You may access both the Eligibility Guidelines and the User Guide from the links at bottom of screen. Screen Entry Follow the steps below to complete this screen. Step Action Complete one of the below fields to begin searching for an existing account. Only one field is necessary Quote Number Named Insured 1 «(continues) 5

6 Main Menu Screen Step Action 2 Click [Search]. Result: The search results display below the search fields. 3 Determine if the desired insured has been located. If Yes Click the radio button next to the correct selection. Result: The Underwriting Questions screen displays with fields prefilled for the quote selected. If No The Insured does not previously exist; a new quote must be created. Click [New Quote]. Result: The Preliminary Screening screen displays. 6

7 Preliminary Screening Preliminary Screening Introduction This screen serves as an initial filter of the allowable risks for entry to the Builders Risk Residential Quoting Application. Note: Fields marked with Red Asterisks * are required fields. Preliminary Screen Options Described below are the actions that can be taken from the buttons at the top of this screen. ([Continue] also appears at bottom.) Use these buttons after the screen is completed. Button Continue Main Menu Action Displays the Underwriting Questions Screen for this quote. Returns to the Main Menu. Information on this screen is not saved. Screen Entry Follow the steps on the following page to complete this screen. 7

8 Preliminary Screening Step Action 1 Enter # of years contractor has been in business. Note: 2 years or less will result in a decline. 2 Enter # of years of prior experience with this construction type. Note: 2 years or less will result in a decline. 3 Select Yes/ No regarding the contractors Chapter 11/Chapter 13 status. Note: A Yes response will result in a decline. 4 Select Yes/ No regarding the construction taking place on filled land. Note: A Yes response will result in a decline. 5 Click [Continue]. Result: Two things may happen: 1. If the quote meets all underwriting criteria, the Underwriting Questions screen displays. The quote may be continued. 2. The screen displays declination messages, as shown below. The quote is declined and no further action can be taken on this quote as it is. 8

9 Underwriting Questions Screen Introduction This screen allows the initial entry and coverage selection for the Builders Risk Residential Quoting Application. Note: Fields marked with Red Asterisks * are required fields. Underwriting Questions Screen 9

10 Underwriting Questions Screen Options Described below are the actions that can be taken from the buttons at the top of this screen. (Continue also appears at bottom.) No fields are required to be filled out to continue to the next screen. Underwriting Questions Screen Button Continue Main Menu Save Action Displays the Underwriting and Rating Screen for this quote. Returns to the Main Menu. Information on this screen is automatically saved. Saves the quote at the same screen. Screen Entry Follow the steps below to complete the sections of this screen. Quote Information Field Named Insured Agency Code Effective/Expiration Dates Enter Enter the Insured s Name. (Required) Note: Length of fields in this section: 30 characters. Use the Continuation of Insured Name in the section below if longer. Enter the Agency Code. (Required) Note: If search results have located the Insured, this field will be prefilled. Enter dates. (Required) Select from Pop-up calendar by clicking the calendar icon. 10

11 Quick Quote: Underwriting Questions Screen Field Renovation Single or Multiple Structures Reporting Building Assoc. Membership Terrorism Enter Yes/No from drop-down. (Required) Select from drop-down. (Required) Click the check box if this applies on a multiple building project. Select from the drop-down menu. (Required) Click the check box if this coverage is desired. # of Site Locations Total # of sites if more than one. 11

12 Builders Risk Quote Information: Underwriting Questions Screen Field Continuation of Insured Name Business Entity DBA Name Mailing Address Mailing City Mailing State Mailing Zip Code and Ext. Enter If necessary. Select from drop-down menu. (Required) If applicable. (Required) (Required) (Required) (Required) 12

13 Residential Builders Risk Additional Underwriting Questions: Underwriting Questions Screen Field Insured Acting as General Contractor Enter Select Yes/No. (Required) Notes: Selecting No triggers additional fields on later screens regarding the general contractor. Selecting Yes prefills the named insured in the General Contractor field. # of Major Subcontractors Select from drop-down. (Required) If none, leave at default selection of 0. Note: # of Subcontractors entered here will display the corresponding entry lines on the Underwriting and Rating screen. System can accept up to 20. # of Builders Risk losses # General Contractor has had in the last 3 years. (Required) If none, leave at default selection of 0. Note: Entry here triggers other questions for loss value (required). (continues) Dollar Value of Above Losses Complete if applicable. (Required) in Last 3 Years If none, leave at default selection of 0. Note: Relationship of losses to estimated annual premium may trigger a referral. Required if # of losses field is greater than 0. «13

14 Field Working Hydrants Enter Select Yes/No for hydrants in place prior to start of construction. (Required) Note: Lack of hydrants in place will trigger a referral. Underwriting Questions Screen More Than 10% Spec Building Select Yes/No. (Required) Note: More than 10% spec building will refer. Additional Coverages: Field Named Storm Coverage Flood Coverage (continues) Notes Coverage for Named Storms is specifically excluded. If coverage is desired, quote is referred to underwriting for acceptability, pricing and deductibles. Selection here triggers the other Flood coverage questions on the Underwriting and Rating Screen. Coverage is not provided for any location within the 500 Year Flood Plain (as designated by FEMA). Available only in zones C, X «14

15 Field Earthquake Coverage Notes Selection here triggers the other Earthquake coverage questions on the Underwriting and Rating Screen. Underwriting Questions Screen Soft Cost and Rental Income Coverage Model Homes and Sales Office(s) Coverage Click [Continue]. No Earthquake Coverage will be provided for any location within ISO zones 1 & 2 and/or MMI intensity rating of 5 or lower. Selection here triggers other Soft Cost and Rental Income coverage questions on the Underwriting and Rating screen. Selection here triggers other Model Homes and Sales Office coverage questions on the Underwriting and Rating screen. Result: The Underwriting and Rating screen displays. 15

16 Underwriting and Rating Screen Introduction This screen collects further information to the specific coverages selected for the Builders Risk Residential Quoting Application. Note: Required fields will vary based on information entered and selected on the Underwriting Question Screen. They are noted in the descriptions below. Underwriting and Rating Screen (continues on next page) 16

17 Underwriting and Rating Screen Underwriting and Rating Screen Options Described below are the actions that can be taken from the buttons at the top of this screen. (Several also appear at bottom.) Use these buttons AFTER the screen is completed. Button Continue Main Menu Action Displays the Rating Summary screen for this quote. Returns to the Main Menu. Information on this screen is automatically saved. Underwriting Questions Returns to the Underwriting Questions screen for this quote. Information on this screen is automatically saved. Navigate back to this screen to make revisions and re-rate if necessary. Rate Quote Save Rates the quote. Saves the quote at the same screen. 17

18 Screen Entry Follow the steps below to complete the sections of this screen. Underwriting and Rating Screen Note: Fields displaying on this screen will vary based on information entered and selected on the Underwriting and Questions Screen. They are noted in the descriptions below. Quote Information: Check to confirm all information is correct. This section prefills from previous screens-no entry required. 18

19 List All Job Sites Planned for Completion in the Next 12 Months: Underwriting and Rating Screen Notes: If more than one location is selected on the previous screen, a corresponding # of lines with the same fields will display for each location. All fields in this section are required. Field Start Date Enter Date started in mm/yy format. Project Description Brief description limited to 30 characters. Location State County Predominant Construction Protection Class Select from drop-down list. Select from drop-down list. Select from drop-down list: Frame Joisted Masonry Combustible Fire Resistive Note: Select Repeat for up to 10 different location selection(s). Select from drop-down list. (continues) «19

20 Field Notes # of Units Per Structure Select from drop-down list. Underwriting and Rating Screen Total # of structures planned for site over project lifespan Total # est. to start in next 12 mo. Est. # of structures under const. at any 1 time Completed value of structure Completed value of project Maximum value of any 1 structure & Average value of any 1 structure Total count for structures in this project. Only required for multiple-unit projects. Only required for multiple-unit projects. Required entry for single location. Entry format: Dollar format, 12 character length, none after decimal. Required entry for multiple selection. Entry format: Dollar format, 12 character length, none after decimal. Note: This field will trigger a referral when average value of any one structure X planned # of homes > 150% of the completed value of the project. Required entry for Multiple selection Maximum entry: 12 characters Note: Both fields are triggered by multiple selection for the project. Value exceeding 1.5 Mil will cause the quote to refer. Value exceeding 10 Mil will cause the quote to be declined. (continues) «20

21 Field Type of structures being built Notes Select from the drop-down list: Single Family Homes Condos Townhouses Apartments Mixed Residential Mixed Res/Comm. Repeat for up to 10 different location selection(s). Note: Selection of Mixed Residential or Mixed Res/ Comm. Results in a referral. Underwriting and Rating Screen Flood zone Modified Mercalli Zone ISO EQ Zone (Only active if flood coverage was selected on previous screen.) Select from drop-down: A, B, C, D, V, X. Note: Selection of A, B, D or V zones results in a decline. (Only active if EQ coverage was selected on previous screen.) Select from drop-down: or higher results in a decline. (Only active if EQ coverage was selected on previous screen.) Select from drop-down: 1-5. Note: Selection of zones 1 or 2 results in a decline. # of miles from coast (Only active if flood coverage was selected on previous screen.) Select from drop-down: 1-3, 4-10, 11-25, 26-50, , 101 & Over Note: System will validate the entry in this field by state and county. 21

22 Deductible and Limit Options: Underwriting and Rating Screen Note: All these fields are required. Field Deductible: Maximum any one occurrence limit: Enter Select from drop-down if desired deductible is greater than the default of (Required) Enter maximum up to 12 characters. (Required) Residential Builders Risk Additional Underwriting Questions: Note: All these fields are required, except web site address. (continues) Field GC Website: GC Name: Address: City: Enter General Contractor s website address if available. General Contractor s full name. Limit: 30 characters. General Contractor s address: Limit: 30 characters. General Contractor s City: Limit: 15 characters. «22

23 Field State: Zip Code & Ext.: Enter General Contractor s State: Limit: 2 characters. General Contractor s Zip: Limit: 10 characters. Extension Limit: 4 characters Underwriting and Rating Screen List Major Subcontractors: This section displays when the Number of Major Subcontractors field on the previous screen is filled with more than 0. A corresponding number of entry lines displays for each contractor. Note: All fields in this section are required entry. Field Continuation of Insured Name Business Entity DBA Name Mailing Address Mailing City Mailing State Mailing Zip Code and Ext. Enter If necessary. Select from drop-down menu. (Required) If applicable. (Required) (Required) (Required) (Required) 23

24 Flood Coverage: Underwriting and Rating Screen This section displays when the Flood Coverage check box on the previous screen is selected. Field Requested Sub Limit/Annual Aggregate for Flood? Flood Deductible: Enter Enter the requested limit. Click Risk Meter to access the RiskMeter website. Select deductible from drop-down. Earthquake Coverage: This section displays when the Earthquake Coverage check box on the previous screen is selected. Field Requested Sub Limit/Annual Aggregate for Earthquake? Earthquake Deductible: Enter Enter the requested limit. Select deductible from drop-down. 24

25 Optional Included Coverages Increased Limits are Flat Charged: Underwriting and Rating Screen Select Increases in coverage where desired. Note: Membership Selection on the previous screen will automatically trigger higher coverage limits for the selected coverage. Coverage Standard Coverage Limit Transit 100,000 Temporary Storage 100,000 Debris Removal 5,000 Emergency Removal 10 Days Limited Fungus Coverage 15,000 Expediting Expense 10,000 Ordinance or Law Included in Building Limit Increased Cost of Construction 1,000,000 Pollution Clean-up 10,000 (continues) «25

26 Coverage Sewer Back-up 10,000 Standard Coverage Limit Underwriting and Rating Screen Trees, Shrubs and Plants 10,000 Free Standing Appliances 10,000 Office Trailers & Contents 20,000 Re-Erect Scaffolding 10,000 Roadways 10,000 Valuable Papers and Records 10,000 Scaffolding and Temporary Structures Included in Building Limit Time Element Coverages: This section displays when Soft Cost and Rental Income Coverage is selected on the previous screen. Field Soft Cost and Rental Income Coverage Limit Enter Enter the Limit for this coverage. (Required) Note: 50,000 is already included in the membership coverage. Enter the additional amount of coverage desired. Example: For 200,000 in coverage, enter 150,

27 Additional Structures Coverage: Underwriting and Rating Screen This section displays when Model Homes and Sales Office coverage is selected on the previous screen. Field Total Inventory Value for Model Homes and Sales Offices and Contents: Enter Enter the dollar amount for the inventory value. Note: Limit for Model Home and Sales Offices and Contents >20% of maximum any Occurrence. Click [Continue]. Result: The Rating Summary screen displays. Reporting (Multiple Only): This section displays when Reporting (Multiple Only) is selected on the previous screen. Field Deposit Percentage Enter Select from drop-down list: 80, 90, or 100%. 27

28 Rating Summary Screen Introduction The rating summary screen displays when all required information is entered in the Preliminary Screen, Underwriting Questions and Underwriting and Rating screens with no declinations. Clicking [Continue] from the Underwriting and Rating screen triggers this screen. Rating Summary Screen Referral messages (if any) display at the bottom of the screen, showing Location Referral Code Description of why quote was referred. 28

29 Rating Summary Screen Options Rating Summary Screen Described below are actions that can be taken from this screen. Button Main Menu Action Returns to the Main Menu. Information on this screen is automatically saved. Underwriting Questions Returns to the Underwriting Questions screen for this quote. Information on this screen is automatically saved. Changes can be made in these screens and then re-rated if necessary. Underwriting Rating Submit to Issue Save Copy Quote Quote Proposal Refer Quote Returns to Underwriting Rating screen for this quote. Information on this screen is automatically saved. Changes can be made in these screens and then re-rated if necessary. Submits the quote for Issue and activates the Issue Screen. Note: If Quote is in Refer status, this option is not available. Saves the quote at the same screen. Copies this quote to a second copy and assigns a new quote number. Opens the Underwriter Questions screen with all data prefilled from the first quote. Note: When any version of this quote original or copy is issued, a cleanup command is activated and all other copies are deleted from the system. Displays the quote proposal in PDF form. This action is always available unless the quote has been declined. Refers quote to underwriter and send with quote number and direct link to the quote to the business unit group in box. Changes Quote status to Referred. 29

30 Issue Screen Issue Screen Introduction This screen collects the policy information needed to issue a policy, and triggers the issue through an notification. Issue Screen Options Described below are the actions that can be taken from the buttons at the top of this screen. Note: Save and Quote Proposal can only be used AFTER the screen is completed. Button Save Quote Proposal Action Saves the quote to this screen. Click to generate the quote proposal. Result: The Quote Proposal displays in PDF format.you may print the proposal from here. Generate Binder Click to generate the binder. Note: Only available after the final issue button is activated Result: The binder displays in PDF format. You may print the binder from here. (continues) «30

31 Issue Screen Button Company Documents Action Click to generate the Company Application. Note: Only available after the final issue button is activated Result: A Company Application displays in PDF format, containing all quote information as entered in the system. You may print the application from here. Final Issue Click for final issue of the policy. Result: An notification for policy issuance is sent to the group box. This allows the generation of 2 documents: the Binder and the Company Application. Screen Entry Follow the steps below to complete the sections for this screen. Quote Information: Check to confirm all information is correct. This section prefills from previous screens-no entry required. 31

32 Issue Screen Additional Quote Information: Field Business Description Enter Enter brief description limited to 30 characters. Commission Defaults to 15% Billing Method Installments Contact Name: Select from drop-down listing Select from drop-down listing. Prefilled based on billing method selected. Loss control contact name Phone Number: Loss control phone # Sweep Transit Routing # AFT bank routing number if applies 32

33 Issue Screen Additional Named Insured: Field Additional Insured Name: Name Extension: Enter Any additional names on policy. Limit: 30 characters Enter balance of Insured Name here if necessary. Click [Add]. Result: The additional insured is added to the policy and displays below the section. 33

34 Issue Screen Loss Payable Mortgagee / Other: Field Location Name Address City State Zip Code Type Enter Location number of project Additional Interest name Additional Interest Address Additional Interest City Additional Interest State Additional Interest ZIP Select from list: List Mortgagee, Loss Payable, Contract of Sale Determine if Mortgagee information is correct as entered. If Yes Click [Add] to add the Mortgagee to the quote. Result: Mortgagee information displays at bottom of screen. If No Two things may be done to correct: 1. Click [Clear] to reset the fields and start again if data still displays in the entry fields. 2. Click radio button under Delete if entry has already been accepted. Result: Data is cleared for the entry fields, or entry is deleted from the system. 34

35 Issue Screen Next Steps From this point you may complete the following actions: Click Quote Proposal to generate/print the Quote proposal Click Generate Binder to create/print the Binder document Click Company documents to generate/print the application Click Final Issue to send the quote to be issued. 35

36 Appendix Quote Proposal Binder Company Documents

37 Builders Risk Residential Quote Proposal Agency Name: FAIR & YEAGER INS. AGCY. Agency Code: Agency Sub Code: Quote Number: 0A CHG7FF7 32 Named Insured: TESTING FILE DBA Name: Continuation of Named Insured: Mailing Address: 645 W GRAND RIVER Mailing City: HOWELL Mailing State: MI Mailing Zip: Effective Date: 04/14/2006 Expiration Date: 04/14/2007 Residential Builders Risk Policy Deductible and Limit Option: Completed Value of the Structure or Maximum Value any One Structure: 500,000 Maximum any One Occurrence Limit: Deductible: 1, ,000 Endorsements Named Storm Exclusion Terrorism Flood Coverage Reporting Earthquake Coverage Additional Coverage(s) Limit: Annual Aggregate: Deductible: Flood Coverage 500, ,000 Earthquake Coverage 500, ,000 Included Coverage Limit Included Increased Flat Limit Transit 100,000 Temporary Storage 100,000 Debris Removal 5,000 Emergency Removal 10 Days Limited Fungus Coverage 15,000 Expediting Expense 10,000 Ordinance or Law Included in BLDG Limit Increased Cost of Construction 1,000,000 Pollution Clean-up 10,000 Sewer Back-up 10,000 Trees, Shrubs, and Plants 10,000 Free Standing Appliances 10,000 Office Trailers & Contents 20,000 Re-Erect Scaffolding 10,000 Roadways 10,000 Valuable Papers & Records 10,000 Scaffolding and Temporary Included in BLDG Limit Structures 100, ,000 5,000 15,000 10,000 10,000 10,000 10,000 10,000 20,000 10,000 10,000 10,000 Premium Charge 25,000 25,000 Residential Builders Risk Quote Proposal

38 Builders Risk Residential Quote Proposal Terrorism Coverage Time Element Coverage(s) Soft Cost and Rental Income Coverage Soft Cost and Rental Income Coverage Limit Additional Structure(s) Coverage Model Homes and Sales Office(s) Coverage Premium Total Estimated Premium for All Location(s) Total Structure Premium for All Location(s) Total Inventory value For Model Homes and Sales Offices and contents 1,100 1,100 Reporting Deposit Percentage Total Deposit Model Home Premium Soft Cost Premium Terrorism Premium Increase in Coverage -Total Flat Premium Total Policy Premium 1,100 Quotation is subject to receipt and verification of the following: Receipt of the insured s latest available financial statement Receipt of currently valued 3 year hard copy loss runs or signed statement of losses from the insured on their letterhead, outlining prior loss history even if none. Policy is adjusted annually based on the following: Actual Average Value per Location of any one Home multiplied by the Annual Number of Homes Started at each location during the policy period multiplied by the location Premium Per Start If Referral is indicated, the premium is only an indication of the actual premium; please refer to company If bound, please submit a list or description of Soft Cost for Soft Cost Coverage If bound, please submit a list of all Model Homes and sales Offices in existence at the inception of the Policy Only Items with checks above apply to the quote. Residential Builders Risk Quote Proposal

39 ACORDTM INSURANCE BINDER THIS BINDER IS A TEMPORARY INSURANCE CONTRACT, SUBJECT TO THE CONDITIONS SHOWN ON THE REVERSE SIDE OF THIS FORM. PRODUCER PHONE COMPANY BINDER # (A/C, No, Ext): FAIR & YEAGER INS. AGCY. The Hanover Insurance Company 0A CHG7FF7 10 MAIN STREET NATICK CODE: AGENCY CUSTOMER ID: INSURED COVERAGES SUB CODE: LIMITS DATE EFFECTIVE EXPIRATION DATE TIME DATE TIME DESCRIPTION OF OPERATIONS/VEHICLES/PROPERTY (Including Location) TYPE OF INSURANCE COVERAGE/FORMS DEDUCTIBLE COINS % AMOUNT PROPERTY CAUSES OF LOSS BASIC BROAD SPEC TESTING FILE MA /14/2006 AM PM THIS BINDER IS ISSUED TO EXTEND COVERAGE IN THE ABOVE NAMED COMPANY PER EXPIRING POLICY #: 9090 TROUT RUN 12: W GRAND RIVER Limit Any One Structure HOWELL MI ,000 Builder's Risk Builders Risk Structure 1,000 04/14/ % 04/14/ ,000 12:01 AM NOON Maximum Any One Occurence GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS AUTO PHYSICAL DAMAGE COLLISION: OTHER THAN COL: GARAGE LIABILITY ANY AUTO EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM SPECIAL CONDITIONS/ OTHER COVERAGES WORKER S COMPENSATION AND EMPLOYER S LIABILITY NAME & ADDRESS RETRO DATE FOR CLAIMS MADE: DEDUCTIBLE ALL VEHICLES SCHEDULED VEHICLES Earthquake 25,000 RETRO DATE FOR CLAIMS MADE: Ded/Limit 500,000 Flood 25,000 Ded/Limit 500,000 Soft Cost Waiting/ Limit MORTGAGEE LOSS PAYEE LOAN # 7 Day EACH OCCURRENCE FIRE DAMAGE (Any one fire) MED EXP (Any one person) PERSONAL & ADV INJURY GENERAL AGGREGATE PRODUCTS - COMP/OP AGG COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE MEDICAL PAYMENTS PERSONAL INJURY PROT UNINSURED MOTORIST ACTUAL CASH VALUE STATED AMOUNT OTHER AUTO ONLY - EA ACCIDENT OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE EACH OCCURRENCE AGGREGATE SELF-INSURED RETENTION WC STATUTORY LIMITS E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT FEES TAXES ESTIMATED TOTAL PREMIUM ADDITIONAL INSURED 1,100 AUTHORIZED REPRESENTATIVE ACORD 75-S (1/98) NOTE: IMPORTANT STATE INFORMATION ON REVERSE SIDE co ACORD CORPORATION 1993

40 CONDITIONS This Company binds the kind(s) of insurance stipulated on the reverse side. The Insurance is subject to the terms, conditions and limitations of the policy(ies) in current use by the Company. This binder may be cancelled by the Insured by surrender of this binder or by written notice to the Company stating when cancellation will be effective. This binder may be cancelled by the Company by notice to the Insured in accordance with the policy conditions. This binder is cancelled when replaced by a policy. If this binder is not replaced by a policy, the Company is entitled to charge a premium for the binder according to the Rules and Rates in use by the Company. Applicable in California When this form is used to provide insurance in the amount of one million dollars (1,000,000) or more, the title of the form is changed from "Insurance Binder" to "Cover Note". Applicable in Delaware The mortgagee or Obligee of any mortgage or other instrument given for the purpose of creating a lien on real property shall accept as evidence of insurance a written binder issued by an authorized insurer or its agent if the binder includes or is accompanied by: the name and address of the borrower; the name and address of the lender as loss payee; a description of the insured real property; a provision that the binder may not be canceled within the term of the binder unless the lender and the insured borrower receive written notice of the cancellation at least ten (10) days prior to the cancellation; except in the case of a renewal of a policy subsequent to the closing of the loan, a paid receipt of the full amount of the applicable premium, and the amount of insurance coverage. Chapter 21 Title 25 Paragraph 2119 Applicable in Florida Except for Auto Insurance coverage, no notice of cancellation or nonrenewal of a binder is required unless the duration of the binder exceeds 60 days. For auto insurance, the insurer must give 5 days prior notice, unless the binder is replaced by a policy or another binder in the same company. Applicable in Nevada Any person who refuses to accept a binder which provides coverage of less than 1,000, when proof is required: (A) Shall be fined not more than , and (B) is liable to the party presenting the binder as proof of insurance for actual damages sustained therefrom. ACORD 75-S (1/98)

41 Builders Risk Residential Application Agency Name: Agency Code: FAIR & YEAGER INS. AGCY Agency Sub Code: Quote Number: 0A CHG7FF7 Named Insured: TESTING FILE DBA Name: Continuation of Named Insured: Mailing Address: 645 W GRAND RIVER Mailing City: HOWELL Mailing State: MI Mailing Zip: Business Entity: Effective Date: 04/14/2006 Expiration Date: 04/14/2007 NAICS Category: NAICS Activity: NAICS Code: Market Segment: Special Account Indicator: Contact Name: Phone Number: JOHN Builders Risk - Quote Information Number of years the general contractor been in business? 3 Number of years experience with this type of construction? 3 Is this risk or the general contractor currently in Chapter 11 or Chapter 13? N Is project being constructed on filled land? N If more that one how many Building Site Location(s)? 1 Is the insured a member of a building association if so select the membership? How many Builders Risk losses has the general contractor had in the last three years? What is the total dollar value of the three year loss history? 2 Will there be working hydrants on site prior to start of construction? Is this project a renovation? N Does your inventory of homes include more than 10% spec building? N Named Storm Coverage? N 100 Residential Builders Risk -Additional Underwriting Questions Is the Insured acting as the General Contractor? General Contractors Name: TESTING FILE GC Website: Address: 645 W GRAND RIVER City: HOWELL State: MI Zip: Builders Risk Structure Is this a Single Structure project or a Multiple Structure project? Deductible: 1,000 Maximum any One Occurrence Limit 500,000 Reporting (Multiple Only) Single Project Total Deposit Deposit Percentage Reporting -Annual(Multiple Only) Residential Builders Risk App

42 Builders Risk Residential Application Additional Coverage(s) Flood Coverage Requested Sub limit / Annual Aggregate for Flood: Flood Deductible: 25,000 Earthquake Coverage Sub limit / Annual Aggregate for Earthquake: Earthquake Deductible: 25,000 Terrorism Coverage Terrorism Premium: Coverage Select Increase Flat Premium Charge Transit Temporary Storage Debris Removal Limited Fungus Coverage Expediting Expense Pollution Clean-up Sewer Back-up Trees, Shrubs, and Plants Free Standing Appliances Office Trailers & Contents Re-Erect Scaffolding Roadways Valuable Papers & Records 500, , ,000 5,000 15,000 10,000 10,000 10,000 10,000 10,000 20, ,000 Total Flat Premium Charge: Time Element Coverage(s) Soft Cost and Rental Income Coverage Soft Cost and Rental Income Coverage Limit Soft Cost Premium Additional Structure(s) Coverage Model Homes and Sales Office(s) Coverage Total Inventory value for Model Homes and Sales Offices and contents Model Home Premium Total Policy Premium: 1,100 Billing Method: DIRECT BILL Commission: Installments: 15 Total # of Structures: Total Estimated # of Starts: 1 Insureds Signature: Total # Under Construction Pending Sale: Total Estimated Premium for all Locations: 1,100 Agent Signature: Residential Builders Risk App

43 Builders Risk Residential Schedule Residential Builders Risk Additional Named Insured: SAM HUIT Name: Name: Name: Name: Name: Name: Name: Name: Name: Name:

44 Builders Risk Residential Location Schedule List all job sites in the next 12 months: Loc # Start Date Loc State County Project Description 1 04/20 CALIFO FRESNO 9090 TROUT RUN Total # of structures planned for this job site over the life of the project Total # estimated to start in the next 12 months: Structure Premium for Location Estimate Per Start Premium for the Individual Location: Estimated # of Structures under construction and/ or pending sale at any one time Completed Value of the Structure Maximum Value any One Structure 1, ,000 Average value of any One Structure Completed Value of this Project What type of structure(s) are being built Protection Class Number of Units per structure Predominate Construction Flood Zone Modified Mercalli Zone ISO EQ Zone How many Miles is the site from the Coast? Single Family Homes PC Frame C 4 3

45 Builders Risk Residential Location Schedule List all job sites in the next 12 months: Loc # Start Date Loc State County Project Description Total # of structures planned for this job site over the life of the project Total # estimated to start in the next 12 months: Structure Premium for Location Estimate Per Start Premium for the Individual Location: Estimated # of Structures under construction and/ or pending sale at any one time Completed Value of the Structure Maximum Value any One Structure 500,000 Average value of any One Structure Completed Value of this Project What type of structure(s) are being built Protection Class Number of Units per structure Predominate Construction Flood Zone Modified Mercalli Zone ISO EQ Zone How many Miles is the site from the Coast?

46 Builders Risk Residential Schedule Residential Builders Risk List Major Subcontractor(s): Subcontractor: Address: DONNA 645 W GRAND City: HOWELL State: MI Zip: Type of Work: Are Certificates Obtained? Y DWPL Subcontractor: Address: City: State: Zip: Type of Work: Are Certificates Obtained? Subcontractor: Address: City: State: Zip: Type of Work: Are Certificates Obtained? Subcontractor: Address: City: State: Zip: Type of Work: Are Certificates Obtained? Subcontractor: Address: City: State: Zip: Type of Work: Are Certificates Obtained? No Subcontractor: Address: City: State: Zip: Type of Work: Are Certificates Obtained?

47 Builders Risk Residential - Schedule Residential Builders Risk Loss Payable/Mortgagee/Other Location: Name: Address: City: State: Zip: Type: Location: Name: Address: City: State: Zip: Type: Location: Name: Address: City: State: Zip: Type: Location: Name: Address: City: State: Zip: Type: Location: Name: Address: City: State: Zip: Type: Location: Name: Address: City: State: Zip: Type: Location: Name: 1 Address: City: State: Zip: Type: Residential Builders Risk Schedule

48 Quoting Excess on Existing Policies The Hanover Insurance Company 440 Lincoln Street, Worcester, MA Citizens Insurance Company of America 645 West Grand River Avenue, Howell, MI The Agency Place (TAP) (4/06) 36