Insurance Proposal for Bronze Leaf Condominium Association Presented by HUB International Mountain States Limited Producer: Blaine D. Martin, CIC Account Manager: Jamie M. Roe, CIC, AIS Date: December 29, 2015 Committed to doing the right thing, every time, for everyone. Note: This proposal or summary is for information purposes and the actual policy or contract.
Account Service Team Staff Member Phone/Fax/Email Blaine D Martin, CIC Account Executive Phone: (406) 582-8868 Fax: (406) 582-8878 Blaine.Martin@hubinternational.com Jamie M Roe, AIS, CIC Senior Account Manager Phone: (406) 652-9151 ext 3218 Direct: (406) 371-8418 Fax: (406) 652-7838 jamie.roe@hubinternational.com will govern. A copy of the policy is available for review. December 29, 2015
Please note the following regarding this Summary of Insurance: THIS PROPOSAL CONTAINS ONLY A SUMMARY OF YOUR INSURANCE COVERAGE AND POLICY. IT IS YOUR RESPONSIBILITY TO CAREFULLY AND COMPLETELY REVIEW THE ENTIRE POLICY FOR ITS ACTUAL TERMS, LIMITS AND CONDITIONS. IN THE EVENT OF ANY INCONSISTENCY BETWEEN THE TERMS OF THE POLICY AND THE PROVISIONS OF THIS PROPOSAL, THE TERMS OF THE POLICY WILL GOVERN AND CONTROL. will govern. A copy of the policy is available for review. December 29, 2015
What is AM Best's Financial Strength Rating? A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. A Best's FSR opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders. A.M. Best's rating system has a proven track record in indicating insurance companies that may, over time, encounter financial difficulties. As such, a Best's FSR is recognized worldwide as the benchmark for assessing and comparing insurers' financial strength. Such a benchmark is increasingly important to an international market that looks for a strong indication of stability in the face of widespread deregulation, mergers, acquisitions and other dynamic factors. Why a Best's Financial Strength Rating Is Important For insurance companies, a Best's FSR is a strategic tool that can enhance consumers' confidence in the organization's stability, as well as its attractiveness to investors. A rating also enhances an insurer's credibility with reinsurers - a valuable resource, particularly for insurers entering new markets. Insurance professionals depend on a Best's FSR to assess the creditworthiness of an insurer's operations, to evaluate prospective reinsurance accounts, to compare company performance and financial condition, and more. A rating can influence an agent's selection of plans to market. A rating also is an important factor in the consumer's decision-making process to purchase insurance. Today's insurance consumers are well aware of how regional, political and economic instabilities can affect a marginal company. A Best's FSR can provide consumers with the information necessary for an educated buying decision. Understanding Best's Financial Strength Ratings A Best's FSR can be assigned to an insurance company on an interactive or non-interactive basis. In both cases, the rating scale and descriptors are: Secure Vulnerable A++, A+ (Superior) B, B- (Fair) A, A- (Excellent) C++, C+ (Marginal) B++, B+ (Good) C, C- (Weak) D (Poor) E (Under Regulatory Supervision) F (In Liquidation) S (Suspended) Hub only writes with companies that have ratings of A- or higher. If you would like to learn more information about your companies AM Best rating, please contact your Hub Agent.
Locations Schedule Carrier: AMCO Insurance Company Effective: 01/01/2016 Loc. # Address City State 1 4665 Bembrick Street Bozeman MT 2 4665 1/2 Bembrick Street Bozeman MT 3 4673 Bembrick Street Bozeman MT 4 4673 1/2 Bembrick Street Bozeman MT 5 4689 Bembrick Street Bozeman MT 6 4689 1/2 Bembrick Street Bozeman MT 7 4659 1/2 Bembrick Street Bozeman MT 8 4643 1/2 Bembrick Street Bozeman MT 9 4645 Bembrick St Bozeman MT 10 4645 1/2 Bembrick Street Bozeman MT 11 4635 Bembrick Street Bozeman MT 12 4635 1/2 Bembrick Street Bozeman MT 13 4615 1/2 Bembrick Street Bozeman MT 14 4645 Bembrick Street, Unit E Bozeman MT Prepared by HUB International Mountain States
Property Coverage Summary Carrier: AMCO Insurance Company Effective: 01/01/2016 Blanket Limit Information Cause Blanket Type Valuation Ded. Total Limit Special Blanket Building Limit RC 2,500 8,684,500 Earthquake Blanket Earthquake Coverage 10% 8,684,500 Property Extensions Business Income & Extra Expense Actual Loss Sustained 12 Months Equipment Breakdown Included - $2,500 Deductible Back-Up Of Sewers Or Drains - $5,000 Limit per Building / $25,000 Policy Aggregate Prepared by HUB International Mountain States
Statement of Values Loc # Building Description Subject of Insurance Coverage Amt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14 4665 Bembrick Street, Bozeman, MT 12 Unit Residential Condo Building 4665 1/2 Bembrick Street, Bozeman, MT 12 Stall Garage 4673 Bembrick Street, Bozeman, MT 12 Unit Residential Condo Building 4673 1/2 Bembrick Street, Bozeman, MT 12 Stall Garage 4689 Bembrick Street, Bozeman, MT 12 Unit Residential Condo Building 4689 1/2 Bembrick Street, Bozeman, MT - 12 Stall Garage 4659 1/2 Bembrick Street, Bozeman, MT 6 Stall Garage 4643 1/2 Bembrick Street, Bozeman, MT 6 Stall Garage 4645 Bembrick St, Bozeman, MT 12 Unit Residential Condo Building 4645 1/2 Bembrick Street, Bozeman, MT 12 Stall Garage 4635 Bembrick Street, Bozeman, MT 12 Unit Residential Condo Building 4635 1/2 Bembrick Street, Bozeman, MT 12 Stall Garage 4615 1/2 Bembrick Street, Bozeman, MT 12 Stall Garage 4645 Bembrick Street, Unit B, Bozeman, MT Fitness Center 4645 Bembrick Street, Unit B, Bozeman, MT Fitness Center Building 1,622,400 Buiding 77,900 Building 1,622,400 Building 77,900 Building 1,622,400 Building 77,900 Building 39,000 Building 39,000 Building 1,622,400 Building 77,900 Building 1,622,400 Building 77,900 Building 77,900 Building 27,100 Business Personal Property: Gym Equipment 21,200 *** ** Business Personal Property Limit at Location #14 not included in Blanket Prepared by HUB International Mountain States
General Liability Coverage Summary Carrier: AMCO Insurance Company Effective: 01/01/2016 Coverage Limit General Aggregate other than Products/Completed $2,000,000 Products & Completed Operations Aggregate $2,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence $1,000,000 Damage to Premises Rented $300,000 Medical Expense (any one person) $1,000 Additional Coverage: Non-Owned Automobile Combined - Limit: $1,000,000 Additional Insured - Condominium Unit Owners Premier Business Owners Liability Coverage Form Limitation of Coverage to Designated Premises Rating Basis: Class GL Class Description Exposure Basis 62003 Condominiums-residential 60 Units Note: This portion of the policy may be subject to audit at expiration of the policy term. It is important to obtain certificates of insurance from all subcontractors showing General Liability limits equal to or greater than the limits you carry. Please be reminded, you could be responsible for the premium on any uninsured or underinsured subcontractors. Prepared by HUB International Mountain States
Crime Coverage Coverage Summary Carrier: Travelers Casualty and Surety of Americ Effective: 01/01/2016 Crime: Coverage Description Limit Deductible Employee Theft / Fidelity $60,000 $1,000
Directors & Officers Liability Coverage Summary Carrier: Travelers Casualty and Surety of Americ Effective: 01/01/2016 Directors and Officers Coverage Description Limit Deductible Directors and Officers Liability $1,000,000 $2,500
Premium Summary Coverage Summary Bronze Leaf Condominium Association Coverage 2015/2016 2016/2017 Property $18,156 $18,958 General Liability Included Included Crime * $206 $219 Directors & Officers $1,194 $1,038 Your Estimated Premium $19,556 $20,215 Allied renewal premium was renegotiated from $19,667 to $18,958. An endorsement will be processed with this amendment Renewal premium includes an increase in the Blanket Building limit of 4% Crime premium listed is annual installment amount. Policy is written on a Three year term (1/1/16 to 1/1/19) with annual installments. Optional Quote: To increase your General Liability limits to $2,000,000 Per Occurrence / $4,000,000 Aggregate would be an additional annual premium of approximately $360 THIS PROPOSAL CONTAINS ONLY A SUMMARY OF YOUR INSURANCE COVERAGE AND POLICY. IT IS YOUR RESPONSIBILITY TO CAREFULLY AND COMPLETELY REVIEW THE ENTIRE POLICY FOR ITS ACTUAL TERMS, LIMITS AND CONDITIONS.
Terrorism Reauthorization Act of 2007 On December 26, 2007 the Terrorism Risk Insurance Program Reauthorization Act of 2007 was signed into law. Some of the provisions of the new law are: It extends TRA (TRIPRA) for an additional 7 years through December 31, 2014. It revises the criteria for certification of an act of terrorism by eliminating the distinction between foreign and domestic acts of terrorism. It reinforces the $100 billion cap on aggregate insured losses. Specifies that the U.S. Secretary of Treasury will issue regulations for determining pro rata share of insured losses under the Program when aggregate insured losses exceed $100 billion cap. Requires that insurers provide Disclosure Notices to insureds notifying them of the existence of the $100 billion cap, at the time of offer, purchase and renewal of insurance policy. Terrorism Insurance Act of 2002 Terrorism Risk Insurance Extension Act As you are aware, the federal Terrorism Risk Insurance Program expired on December 31, 2005. However, on December 22, 2005, President Bush signed the Terrorism Risk Insurance Extension Act of 2005 (TRIEA), which extended the federal program through December 31, 2007. We are writing to advise you of actions that insurance carriers are taking to comply with TRIEA, as well as to reinforce your responsibilities in meeting the disclosure notice requirements of the federal program. TRIEA retains most of the provisions of the original program, but there are some notable changes: Commercial Automobile, Professional Liability (not including Directors and Officers Liability), Surety, Burglary and Theft and Farm Owner s Multi-Peril are no longer covered under the federal program. Individual insurer deductibles have been increased from 15% in 2005 to 17.5% in 2006 and 20% in 2007. The federal share of insured losses remains at 90% through 2006, but decreases to 85% in 2007. For the lines of insurance still covered under TRIEA, the program retains the requirement that insurers provide a written disclosure notice to commercial lines policyholders each time a policy is offered, purchased or renewed. The notice must disclose the premium that is charged for losses insured under the program, as well as the federal share.
CONSENT TO RECEIVE ELECTRONIC DOCUMENTS Bronze Leaf Condominium Association ("Client") hereby consents and agrees to receive electronic documents related to insurance coverage procured or quoted by, or Client's business relationship with, HUB International ("HUB"). In addition to traditional manners of delivery, HUB may transmit documents to Client through electronic means, such as electronic mail and facsimile. The documents that may be transmitted electronically include, but are not limited to, the following: insurance policies; policy information pages; coverage forms; endorsements; applications; binders; certificates and evidence of insurance; invoices; premium finance agreements; audit statements; loss control reports; claim reports; correspondences; notices of cancellation and non-renewal; and policies related to the operation of HUB's business. Insured Signature Date
How We Get Paid Hub International takes pride in the services our brokerages provide to you, our client, for insurance and risk management programs. For our efforts we are compensated in a variety of ways, primarily in the form of commissions and contingency amounts paid by insurance companies and, in some cases, fees paid by clients or third parties. The means by which we are compensated are described below. Commission Income - Commission, normally calculated as a percentage of the premium paid to the insurer for the specific policy, is paid to us by the insurer to distribute and service your insurance policy. Our commission is included in the premium paid by you. The individuals at Hub International who place and service your insurance may be paid compensation that varies directly with the commissions we receive. Contingency Income - We also receive income through contingency arrangements with most insurers. They are called "contingent" because to qualify for payment we normally need to meet certain criteria, usually measured on an annual basis. Contingency arrangements vary, but payment under these agreements is normally the result of growing the business by attracting new customers, helping the insurance company gather and assess underwriting information and/or working to renew the policies of existing insureds. There is currently no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements. However, brokers tend to receive higher contingency payments when they grow their business and retain clients through better service. In other words, the amount of earned contingency income depends on the overall size and/or profitability of all of a group of accounts, as opposed to the placement or profitability of any particular insurance policy. For this reason, the individuals involved in placing or servicing insurance are rarely, if ever, compensated directly for the contingent income that we receive. Supplemental Commissions - Some insurance companies have recently replaced contingent commissions with supplemental commissions. These commissions, in fixed amounts, are established annually in advance based on historical performance measured by criteria comparable to those by which contingent commissions are calculated. We refer to these commissions as guaranteed supplemental commissions, or "GSCs". Fees Paid by Clients - On occasion, with more complex business insurance programs and where additional resources, products or services are appropriate, a fee may be negotiated for placement of insurance coverage or additional services. Fees charged for the placement of insurance will be outlined in a proposal and approved, usually in writing, prior to the insurer binding coverage. On occasion, we may receive both commissions and client-paid fees for placing insurance, which generally will be disclosed in writing to you in advance. In certain circumstances clients pay us mutually agreed-upon fees for additional services, such as third party administration of employee benefits or workers' compensation programs. Wholesale Operations - We own wholesale insurance brokerages in both the US and Canada. These are intermediaries through which other brokers, typically retail brokers that have a relationship and deal directly with their clients, place coverage. Our own retail brokers may place client policies through Hub-owned wholesale brokers. In such cases, both the Hub retail broker and the Hub wholesale broker will earn commissions, and they are included in the client's premium payment. Ordinarily wholesale brokers, whether owned by Hub International or not, are included in the transaction because they offer products that are particularly suitable to a client's needs that are not available through normal insurance brokerage retail channels. Other Compensation and Benefits - We may receive revenue or further benefits from our insurance brokerage activities in other ways, including, but not limited to, from insurance company promotional events, payments from insurers for promotional marketing and/or employee training and development, fees or a percentage of the interest paid to us for the administration of premium finance contracts, interest paid to us by financial institutions earned on fiduciary or trust accounts in which we hold your premium payments pending remittance to the insurance company, and fees paid to us for policy and/or claims administration and/or loss control services that we provide. Related Party Transactions - In limited circumstances, our subsidiaries or employees may have interests in insurers and reinsurers with whom policies are placed. We own a reinsurance broker that arranges reinsurance for carriers. It is possible that coverage placed by our retail brokers could be reinsured pursuant to placements made by our reinsurance subsidiary. Ownership of a reinsurance broker also creates an additional, mutually beneficial dimension to our relationships with insurance companies. Customer Centric Carriers - We have access to the products and services of hundreds of insurers. However, we believe our ability to provide the best combination of products, service, value and ongoing access to capacity is enhanced by focusing on a manageable number of carrier relationships. These strategic relationships include many of the most respected national and regional insurance companies in the insurance industry (the "Strategic Carriers"). Although we will continue to access our other insurance company relationships where appropriate, we expect that many of our clients' insurance needs may be met through the Strategic Carriers. The Strategic Carriers may pay us enhanced compensation, which we intend to use in part to invest in initiatives to improve our ability to serve our customers' and to optimize their insurance buying experience. A portion of any enhanced compensation from our Strategic Carriers may be used to incentivize our employees to prioritize, investigate and access the products and services of our Strategic Carriers for the purpose of consolidating the number of insurance markets we deal with, while at the same time addressing the needs and best interests of our clients. More information regarding our Strategic Carrier relationships is available upon request from your Hub International insurance advisor or by visiting our website at www.hubinternational.com. Our goal is to be your insurance brokerage of choice. We know you have many brokerages to choose from, so to earn your confidence, we hold ourselves to the highest standard of service, a standard reflected in our written Client Commitment - we call it the "The Hub Advantage." We hope you will review the principles embodied in The Hub Advantage, a copy of which is attached for your convenience. You should also feel free to visit our website at www.hubinternational.com for more information regarding Hub International and how we do business. Please also feel free to ask any questions about our compensation generally, or as to your specific insurance proposal or placement, by contacting your Hub broker or customer service representative directly. We want you to choose a Hub International broker to be your insurance advisor -- and we intend to make your decision an educated one. will govern. December 29, 2015