AMERICAN INDEPENDENT INSURANCE COMPANY 1000 RIVER ROAD, SUITE 300 CONSHOHOCKEN, PA 19428 WE STRIVE FOR EXCELLENCE. DELAWARE AGENT S MANUAL 7/25/2013
AMERICAN INDEPENDENT INSURANCE COMPANY American Independent Insurance Company (AIICO), has been providing a wide array of quality insurance products and services since 1938. You as an AIICO agent have the competitive advantage of being able to offer your customers affordable rates with low down payments and monthly billing. You also have the option of tailoring your customer's coverage to their specific needs through varied coverage levels, different deductibles and variable term policies. We at AIICO hope that you utilize this manual to further familiarize yourself with our company. Our view is that you are our partner. We show that through our commitment to the independent agency system. Together we can be successful while providing our customers with quality insurance protection at affordable rates. IMPORTANT PHONE NUMBERS CUSTOMER SERVICE 1-800-954-2442 FAX ENDORSEMENTS 1-877-791-2442 AUTOMATED BILLING INQUIRY SERVICE. 1-800-954-2442 #1 24 HOUR CLAIMS REPORTING 1-800-954-2442 #2 SUPPLY REQUEST - PHONE (X8425 or X8393) 1-800-954-2442 SUPPLY REQUEST - FAX.. 1-610-832-1307 MAIL APPLICATIONS AND CORRESPONDENCE TO: American Independent Insurance Co. P.O. Box 3000 Plymouth Meeting, PA 19462 (Please do not submit payments to this address. It will slow processing.) MAIL PAYMENTS TO: AIS P.O. Box 42526 Philadelphia, PA 19101 (Please submit only payments to this address.) - 1 -
BILLING INQUIRY & CLAIMS REPORTING AUTOMATED BILLING INQUIRY 1-800-954-2442 #1 Our automated billing inquiry gives you access to information on billing and policy information 24 hours a day seven days a week. At any time you can easily and quickly obtain information via your touch tone telephone. You will need the policy number and the zip code of the customer. The information available depending upon policy status is as follows: Policy holder s name Policy number Number of vehicles currently on the policy Amount due Current payment due date Date bill sent Outstanding balance Amount of and date of last payment received Renewal date, if applicable Cancellation/expiration effective date, if applicable Reason for cancellation, if applicable Agent name and phone number CLAIMS REPORTING 1-800-954-2442 # 2 It is extremely important that you advise your customer to report all claims directly to AIICO immediately after an accident. They can be guided as to how to proceed with repairs. If an insured or claimant contacts your office to report a loss, PLEASE ADVISE THE INSURED OR CLAIMANT TO CALL AIICO DIRECTLY. They can report the claim 24 hours a day, seven days a week. It is to your customers advantage to call as soon as possible. - 2 -
GENERAL INFORMATION APPLICATION All new business must be submitted on an AIICO Delaware Private Passenger Auto application and uploaded through our website. We recommend that you keep our ITC rating software as backup only, if your Internet connection is ever disrupted. BINDING AUTHORITY Coverage on the original application will be bound as of the date and time the applicant signs the application if: 1. The risk is not designated as unacceptable in the Underwriting Rules contained in this manual. 2. The application is fully complete in all respects. 3. The down payment is submitted with the application. 4. The envelope containing the application is postmarked or uploaded within 72 hours of the effective date. 5. In some cases, you may be required to inspect the vehicle and take photos. 6. Driver s License numbers must be on the application for all drivers, including those that are excluded. Application must indicate clearly the exact coverage requested and each coverage must be within the limits and restrictions of Company Underwriting rules. AGENT DUTIES The agent's duty to the insured includes explaining the following: 1. Rate the risk based on the age, sex, marital status of the highest rated driver for the first car and then the next highest for the second car, etc.. 2. All members of the household or other regular operators over the age 14 must be listed on the application and rated or excluded. A resident driver can be excluded only if they possess valid auto insurance at time of binding. A signed exclusion form must be sent along with the application. Suspended drivers should be excluded. It is the insured's responsibility to inform you and AIICO that a previously suspended driver now has a valid driver s license. 3. There is no coverage under this policy for an excluded operator driving a listed vehicle. 4. The requirements for obtaining coverage on replacement and additional vehicles. 5. Discounts and surcharges may apply to this program. 6. All claims are to be reported immediately to AIICO. 7. In some cases, you may be required to inspect the vehicles as well as take photos. CANCELLATIONS 1. Flat cancellations are not permitted. 2. Policies cancelled at the Company's request are computed on a pro-rata basis. 3. Policies cancelled at the insured's request. 4. Nonpayment of premium is considered insured s request but cancelled on a pro-rata basis. 5. Cancellation refunds are mailed directly to the insured. - 3 -
GENERAL INFORMATION - (cont'd) REINSTATEMENTS 1. Policies cancelled for non-payment of premium will be reinstated with a lapse in coverage as of 12:01AM the day following payment or postmark date if: a. The postmark or payment date is within 29 days of the cancellation date. b. The insured has paid the entire amount due. c. The policy is not in the last 30 days of its term without a renewal offer. 2. Policies cancelled for lack of information will be reinstated ONLY if all requested information is postmarked on or prior to the effective date of cancellation and all payments are current. ENDORSEMENTS Coverage will be bound as of the effective date and time requested on the endorsement, as long as it is within the agent's binding authority. If a time is not indicated, coverage will be made effective at 11:59 p.m. on the day of the requested effective date. Signatures are required to delete a driver, to reduce limits or delete physical damage coverage. Premium adjustments are made on the next installment bill. Depending upon the remaining balance an interim bill or return premium may generate. You can fax endorsements to us on 1(877) 791-2442. Endorsements can also be uploaded on the system. RENEWALS Thirty days prior to the expiration a renewal offer will be sent to your customer. If no response is received from the customer, it is presumed that the insured has declined our coverage offer for the next term. NAMED DRIVER EXCLUSIONS Drivers should be excluded for the following reasons: 1. If they have a suspended or revoked license 2. If they provide proof of other insurance 3. If they have never been licensed, a household member is listed as a driver. A named insured MAY NOT BE EXCLUDED, except for suspended or revoked license. - 4 -
UNDERWRITING GUIDELINES UNACCEPTABLE RISKS NOTE: All risks are subject to final underwriting approval by the Company. No agent may bind the Company on an unacceptable risk. You cannot bind a risk where one of the vehicles is worth over $40,000 in value. Other unacceptable risks are as follows: 1. Applications submitted that do not list all drivers and household members. 2. Applications where all named insureds are not licensed, or excluded due to a suspended or revoked license. A Driver Exclusion Form must accompany the application. 3. Applications where the Named Insured has never been licensed and the other listed driver is not a household member. A Driver Exclusion Form must accompany the application. 4. Ineligible vehicles. (See list) 5. Any risk with more than 10 points. (1/2 points are to be used to calculate total points.) 6. Operators not possessing a valid Delaware driver's license. Operators licensed in other states must obtain a Delaware license within 30 days of policy inception. (The policy will be surcharged two points at the effective date. The points will be removed if we receive verification of a valid Delaware driver s license within 30 days.) 7. Foreign exchange students, foreign business trainees, or persons driving with a foreign country driver's license 8. Risks submitted without a permanent telephone number where the insured can be reached. 9. Vans, pickups or panel trucks with a load capacity in excess of 2000 pounds 10. Vehicles used for retail or wholesale delivery including magazines, food (pizza, etc.), newspapers, and mail delivery 11. Vehicles used for livery or taxi service, including vehicles used to haul nursery or school children, migrant workers, or hotel/motel guests 12. Any vehicle equipped in any way for snow plowing 13. Vehicles without a valid garaging address 14. Vehicles used for racing 15. Emergency vehicles 16. Any of the following types of vehicles: antiques, classics, collector's items, custom built autos, limited edition autos, restored, modified and/or customized autos, street rods, dune buggies, electric, kit, stainless steel or all aluminum body autos 17. Gray market vehicles 18. Vehicles available to multiple drivers for sales, farming or artisan use 19. Vehicles leased or rented to others by the applicant 20. Applicants who have been convicted of insurance fraud 21. A risk where one of the vehicles is over 41 years old 23. Comprehensive and collision on a vehicle more than 15 years old is not acceptable. 24. Any vehicle that is used for a business purpose more than 25% of the time - 5 -
VIOLATION SURCHARGES DRIVING RECORD SURCHARGES AIICO rates their policies based on a maximum of a ten-point scale for driving activity within a three-year experience period. A clean risk is a 0. Every moving violation is rated at a half point. We do not charge for half points, therefore it takes two moving violations to have a surcharge increase. If you have an accident and a moving violation on a different day, the moving violation being a half point will not add to the surcharge. When an accident and violation(s) are the result of the same occurrence, we only charge for the highest. More than one violation from an occurrence will be rated on the highest rated violation only. A list of AIICO s surcharges is as follows: DESRIPTION SURCHARGE Moving violation ½ point Chargeable accidents Inexperienced operator Failure to provide financial responsibility Non-Delaware license DUI violations 1 point 1 point 1 point 2 points 3 points Leaving the scene of an accident 3 points Driving while under suspended or revoked license or driving without a license Major Violations Minor Non-Moving Violations 3 points 3 points ½ point Non-United States license Unverifiable driving record * Failure to respond suspensions are not charged 4 points 4 points OTHER SURCHARGES PLEASURE USE WITH MILEAGE 10,000 MILES OR MORE ANNUALLY - There is a 20% surcharge for pleasure use when the annual mileage of the vehicle is 10,000 or more. This applies for both Physical Damage and Liability coverages. BUSINESS USE - A 40% surcharge applies to all coverages when the vehicle is required by or customarily involved in the business duties of the applicant.
- 6 - DISCOUNT PROGRAMS MULTI-CAR DISCOUNT If there is more than one vehicle to be insured under the policy, a multi-car discount will apply to Bodily Injury, Property Damage, Medical Benefits, Income Loss, Comprehensive and Collision coverages for all vehicles. PRIOR COVERAGE DISCOUNT - 20%/15%/10% A 20% discount applies if the insured s prior coverage has been in effect for 6 successive months and there has been no lapse in coverage. Proof of prior coverage must be supplied. A 15% discount applies if the insured's prior coverage has not lapsed for more than 1-10 days from the prior policy's expiration date and proof of coverage can be supplied. A 10% discount applies if the insured's prior coverage has not lapsed more than 11-30 days from the prior policy's expiration date and proof of coverage can be supplied. Prior coverage will be granted if: The insured's prior personal auto policy must have provided coverage for six continuous months with the same Company without lapse. The expiration or cancel date must be no more than 30 days prior to the AIICO policy inception date. The named insured on the AIICO policy must be listed on the previous policy. Examples of proof of prior coverage are: Company issued offer to renew the prior policy Company issued letter of intent to non-renew Cancellation notice from prior carrier A Declarations page for the prior term is not acceptable. PAID IN FULL DISCOUNT - 5% A 5% discount applies to each coverage when 100% of the policy premium for the indicated term is paid at the time of binding. GOOD CUSTOMER DISCOUNT - 2.5%/ 5%/10% Customers of AIICO will receive a Good Customer Discount if their current policy has been in force with AIICO for at least 3, 6, or 12 continuous months, no prior balances are owed to the company and the risk still meets the company s Underwriting Guidelines. For a 3-month policy a 2.5% discount is given if the policy renews. For a 6-month policy a 5% discount is given if the policy renews. A 12-month policy receives the full 10% discount as long as the policy renews. Each successive renewal earns a discount as long as the policy renews until it reaches it s maximum of 10%. HOMEOWNERS' DISCOUNT - 5% A Homeowners' Discount of 5% is applicable for those customers who own their own primary residence. Proof of ownership can be a copy of a current Homeowner Insurance policy with the named insured listed on the dec. page, a copy of the mortgage coupon, or tax records. - 7 -
DISCOUNT PROGRAMS - (cont'd) ANTI-THEFT DISCOUNT - 10% A 10% discount shall apply to all private passenger motor vehicles equipped with a passive antitheft device. The discount is applicable to comprehensive coverage only. A passive device is defined as any item or system designed to prevent unauthorized use, which is installed in the auto and activates automatically when the operator turns the ignition key to the off position. The term does not include an ignition interlock provided by the original automobile manufacturer. PASSIVE RESTRAINT DISCOUNT A 15% discount shall apply to PIP coverages for all vehicles equipped with passive seat belts. A 20% discount shall apply to all vehicles with a driver's side airbag. A 30% discount will apply to all vehicles with two airbags. If a vehicle has multiple devices, only the highest discount shall apply. DEFENSIVE DRIVING DISCOUNT A 10% discount on the BI, PD, and PIP premiums will be applied to all private passenger vehicles on the policy, if all operators complete the course. A certificate certifying voluntary attendance and successful completion within the last 36 months must be submitted to the company. The discount shall terminate at the policy expiration subsequent to the expiration of three years since completion of the course. An insured may take an advanced defensive driving course within 90 days of expiration of the course mentioned above and receive a 15% discount for an additional 3-year period. Discounts shall not overlap. ADVANCE QUOTE DISCOUNT Insured has prior coverage with no lapse in coverage a 2.5% discount on the BI, PD, PIP, COMP, and COLL premiums will be applied when a policy is issued to the company 1-5 days prior to the policy renewal effective date. Insured has prior coverage with no lapse in coverage a 5% discount on the BI, PD, PIP, COMP, and COLL premiums will be applied when a policy is issued to the company 6+ days prior to the policy renewal effective date. NOTE: THE MAXIUMUM ALLOWABLE DISCOUNT BY COVERAGE IS 35%. - 8 -
COVERAGES BODILY INJURY Bodily Injury Coverage can be purchased at the following amounts: 15,000/30,000 20,000/40,000 25,000/50,000 50,000/100,000 100,000/300,000 PROPERTY DAMAGE Property Damage Coverage can be written in the following amounts: 10,000 25,000 50,000 PERSONAL INJURY PROTECTION Personal Injury Protection Coverage can be written in the following amounts: 15,000/30,000 20,000/40,000 25,000/50,000 50,000/100,000 100,000/300,000 PIP deductible options are: $0, $250, $500, $1000, $2000, $5000, and $10,000 (PIP deductible applies to Named Insured Only or Named Insured and Members of Household) PHYSICAL DAMAGE 1. Comprehensive allowed without Collision (if Bodily Injury and Property Damage coverage are purchased). 2. We do not cover custom furnishings or equipment not permanently installed by the original automobile manufacturer, including sound receiving or transmitting equipment designed for use as citizens band radios, two-way radios, telephones, scanning monitor receivers, television sets, or their accessories or antennas. 3. Physical Damage only policies are not allowed. DEDUCTIBLE OPTIONS Comprehensive and Collision deductibles can be written in any combination of the following levels: $100 $250 $500 $1000 $2000-9 -
COVERAGES (cont'd) TOWING AND LABOR COVERAGE Towing and Labor can be purchased in two increments of coverage. 1. $50.00 for each disablement on a covered vehicle subject to a $300.00 maximum limit for a six month term. 2. $75.00 for each disablement on a covered vehicle subject to a $450.00 maximum limit for a six month term.. RENTAL REIMBURSEMENT COVERAGE Rental Reimbursement reimburses the insured for the lesser of actual daily rental charges or $20.00 per day for a maximum of 30 days for each qualified disablement on a covered vehicle. Qualified disablement means a loss covered by Liability, Comprehensive or Collision sections of the policy. Rental reimbursement may be purchased for any vehicle covered by Collision coverage. ADDITIONAL CUSTOM PARTS AND EQUIPMENT COVERAGE Comprehensive and Collision coverage provide protection for equipment installed by the original automobile manufacturer. Additional Custom Parts and Equipment Coverage provides physical damage protection for any permanently installed add-on equipment except radar detectors or equipment for cooking or bathrooms. To purchase this coverage, the insured must provide an itemized list of additional equipment and pay the appropriate premium. Additional Customized Equipment Coverage is subject to a $50 deductible and provides coverage up to the lesser of actual cash value or the stated amount specified by the insured. Maximum allowable coverage is $1000. ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE Accidental Death and Dismemberment id an optional coverage available for each named insured per accident that is caused by an automobile accident. Available policy limits range from $1,000 to $10,000. - 10 -
POLICY TERM & PAYMENT OPTIONS POLICY TERM You have the option of writing a 3-month, 6-month, or 12 month policy for you customers. PAYMENT OPTIONS Minimum Number of Installment Policy Term Bill Plan Down Pay Installments Due Days 3 months Paid in full 95%* 0 N/A 6 months** Paid in full 95%* 0 N/A 5 pay plan 25% 4 25, 55, 85, 115 5 pay plan 20% 5 20, 50, 80, 110 ***5 pay plan 16.67% 5 20, 50, 80, 110 12 months Paid in full 95%* 0 N/A 11 pay plan 12.5% 10 25, 55, 85, 115, 145 175, 205, 235, 265, 295 12 pay plan 10% 11 20, 50, 80, 110, 140 170, 200, 230, 260, 290 12 pay plan 8.34% 11 16, 46, 76, 106, 136, 66, 196, 226, 256, 286, 316 ***12 pay plan 5.5% 11 20, 50, 80, 110, 140 170, 200, 230, 260, 290 *There is a 5% discount for those customers wishing to pay their term premium in full. ** All Published Rates are based on a six month term. ***Direct Billed and Electronic Funds Transfer (EFT) Pay Plans Electronic Funds Transfer (EFT) EFT may be initiated at the time of new business. However, the initial down payment cannot be withdrawn via insured EFT and must be submitted via another payment method. EFT available at policy renewal, if requested no less than 15 days before the renewal date of the policy. The Company may remove the ability to use the EFT pay plan if an insured has two or more insufficient sweeps in one policy period. An EFT authorization form is required to be completed and must be retained by the agent. EFT only available for 6 and 12 month term policy.
SERVICE CHARGES $11.00 per installment or interim bill fee per policy $ 4.00 per installment when electronic funds transfer (EFT) pay plan is selected $12.00 late fee for payments made after the due date $30.00 NSF fee for bounced checks $30.00 nonrefundable policy fee per policy term $15.00 reinstatement fee $50.00 cancellation fee BILLING ADDRESS AIS P.O. Box 42526 Philadelphia, PA 19101-11 -
INELIGIBLE VEHICLE LISTING This listing indicates cars and trucks that cannot be written with AIICO. They follow make and model. Model year will not be considered. We can't list all of the vehicles. AIICO reserves the right to cancel a risk for a vehicle that clearly does not fit the general guidelines we have set. Please call your Territory Manager or Customer Service Representative if you have any questions concerning a vehicle. GENERAL RULES: 1. No vehicles with a value of over $40,000 2. Customized off-road vehicles 3. Vehicles over 15 years old (PHYSICAL DAMAGE ONLY) 4. Motorcycles 5. Motor Homes 6. Vehicles generally considered to be used for commercial use: ie: Step Vans SPECIFIC MODELS: ACURA NX ALFA ROMERO AUDI A8 CHEV. CORVETTE DELOREAN DODGE STEALTH DODGE VIPER FERRARI FIAT HUMMER JEEP CJ5 & CJ7 MASSERATI MG MITSUBISHI 3000 PORSCHE YUGO - 12 -