How to Complete the ACORD 127 Remarks Section

ACORD 127 Remarks Section

The Remarks Section is a free form place to enter all the additional information you did not have room to enter anywhere else in this application.

This is a very short tutorial. I cannot see how to tie it into the next very long tutorial on Vehicle Description. Consider this a day off from the tutorials and come back tomorrow rested.

You may need even more room than the Remarks section provides. When that is the case, use the ACORD 101 Additional Remarks Schedule.

I hope this helps you learn how to complete the ACORD 127 business auto section remarks section.

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How to Complete ACORD 127 Additional Interest / Certificate Recipient

ACORD 127 Additional Interest / Certificate Recipient

Not all fields apply to all insureds. Only complete the ones which do apply. This is very important as any Additional Interest is given many of the rights of the Insured. You do not want to give these rights by error.

If you  need space for more Additional Interest use the ACORD 45 form.

INTEREST

Check the box which applies for this specific business entity.

ADDITIONAL INSURED - Good Definition HERE

EMPLOYEE AS LESSOR - If one of this business' employees is leasing property to this business

LIENHOLDER - a person who retains legal possession of a piece of property until the person to whom he/she has advanced money for use of the property has satisfactorily repaid the debt

LOSS PAYEE - Good Definition HERE

OWNER - The person or business which owns this business or item

REGISTRANT - The person or entity the vehicle is registered, or co-registered with

OTHER - List your own here


NAME ADDRESS

Enter the full name and address as they need to be shown on a certificate of insurance.


RANK

Additional Interest can have a priority of rights. A rank of 1 would indicate this Additional Interest would receive protection from the policy prior to payments being made on behalf of lower ranked Additional Interests.

CHECK BOXES - EVIDENCE / CERTIFICATE

Both can be checked.

Evidence means the Additional Interest requires an ACORD 27 or ACORD 28 Evidence of Insurance form to be issued.

Certificate means the Additional Interest requires a Certificate of Insurance to be issued.


REFERENCE  / LOAN #

Enter the loan number.


INTEREST IN ITEM NUMBER

VEHICLE - list vehicle using description and vehicle number used in the Vehicle Description which begin on page 3.

LOCATION - the normal garage location of the above listed vehicle.


I hope this has been helpful as you learn how to complete the ACORD 127 additional interest / certificate recipient form.


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How to Complete the ACORD 127 General Information Section

ACORD 127 General Information Section

The General Information questions on the ACORD 127 begin on page 1 above and end on page 2 below.

As of this writing - June 26, 2014 - there are 16 questions in this section.

All questions begin as Yes or No questions. If your answer Yes to any question then you will need to add an explanation to your response.

While acknowledging that you must answer all questions honestly and fully, do not make the mistake of thinking that a No answer is always better than a Yes answer. Many inexperienced agents will just respond with No all the way down without reading the questions.

GENERAL INFORMATION

ANY VEHICLES NOT SOLELY OWNED BY AND REGISTERED TO APPLICANT

I am not completely certain how this could be the case. Perhaps, like with your child buying a car, the owner may be a joint owner for credit purposes. You need to ask the insured this question.

Use the Vehicle # from the Vehicle schedule which is on page three of this form.

DO OVER 50% OF THE EMPLOYEES USE THEIR AUTOS IN THE BUSINESS

This would be the case with many sales organizations and food delivery businesses.

IS THERE A VEHICLE MAINTENANCE PROGRAM IN OPERATION?

To really qualify for a Yes answer your insured needs to keep at least a calendar and mileage tracking log for all vehicles.

ARE ANY VEHICLES LEASED TO OTHERS?

List any vehicles which are leased to others using the vehicle number from the vehicle schedule which begins on page 3 of this form.

ANY CAR MODIFIED / SPECIAL EQUIPMENT? (Include customized vans / pickups)

I would include tool boxes on vehicles for construction companies even if the vehicle came with this feature installed at purchase. All these items will affect the cost of repairs. You need to certain these modifications are insured.

ARE ICC (Interstate Commerce Commission), PUC (Public Utilities Commission), OR OTHER FILINGS REQUIRED.

This will be mostly for trucking firms. If they are required you also need to complete the ACORD 194 form.

DO OPERATIONS INVOLVE TRANSPORTING HAZARDOUS MATERIAL?

The trucks will all have those colorful special signs for Fire Fighters on them.

ANY HOLD HARMLESS AGREEMENTS

If there are any, look in leases and contracts, your underwriter will want to see a copy of each one.

ANY VEHICLES USED BY FAMILY MEMBERS? IF SO IDENTIFY.

If there are any, your underwriter will also want to have the information needed to order an MVR on these drivers.

DOES THE APPLICANT OBTAIN MVR (Motor Vehicle Record) VERIFICATION?

List the provider of these reports if the answer is Yes.

DOES THE APPLICANT HAVE A SPECIFIC DRIVER RECRUITING METHOD?

If it is writing, attach a copy of document.

ARE ANY DRIVERS NOT COVERED BY WORKERS COMPENSATION?

If the insured is in a state which allows owners, partners, etc to be excluded from Workers Compensation - Kansas comes to mind - these would be the folks you need to list.

ANY VEHICLES OWNED BUT NOT SCHEDULED ON THIS APPLICATION?

If so, and if they are insured with another company, list the company name, policy numbers and coverages.

Some vehicles may simply not be insured. We used to have old trucks and jeeps that were only driven on the farm that were not licensed and so not insured. If we had hurt some one with one of those trucks we would have wished we had insured them.

ANY DRIVERS WITH CONVICTIONS FOR MOVING TRAFFIC VIOLATIONS?

I cannot see questions like this without seeing the Bill Murray scene from the movie Stripes. The Army recruiter asks if he has any "CONVICTIONS" and his answer is the question "You did say convictions. Right?"

Notice the limits on what you need to report if your insured is licensed in Kansas.

If you need more room for any of these items, use the ACORD 101 form.


I hope this has been helpful in your learning how to complete the ACORD 127 general information section.


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ACORD 127 Driver Information and Coverage / Limits

How to Complete the ACORD 127 Driver Information

ACORD 127 COVERAGE AND LIMITS

Just above the Driver information section is a note about the coverage and limits section. Because insurance is regulated on a state by state basis, coverage and limit can vary widely from one state to another. You will need to use the ACORD 137 form for your specific state to complete the entire application to send to your underwriter.

If you have more than one state where this business is garaging vehicles, you will need to use a separate ACORD 137 for each state. I will cover all the ACORD 137 forms in later posts.

DRIVER INFORMATION

This form has 13 rows for drivers. Why ACORD would dare to put such an unlucky number on the form is I question I cannot answer. They could have finished the curse by naming the form the ACORD 13. If you are suspicious I suggest you never fill in the information on the 13th driver on this form.

If you need room for more drivers use the ACORD 163.

DRIVER# You should just list these in a 1,2,3 sequential order.

Believe it or not driver number and vehicle number are the two items which cause software programmers the greatest heartache and headache in building systems to manage auto policies. The issue is when you have to remove a driver and add a driver. Normal human beings can see if you start with 10 drivers and remove one and add another you still have 10 drivers. But computers do not like that. They never let go of the removed driver, so the new driver becomes driver #11. That is until the policy renews, then they forget the removed driver and the new driver becomes driver #10.

I am not terribly worried that machines which cannot figure this out are going to take over the world.

NAME CITY, STATE, and ZIP CODE The driver's name and address. This should be an exact match to the information on their driver's license.

SEX M for male, F for female.

MAR STAT Marital status is usually shown as M for married, S for single, D for divorced, W for widow or widower, etc. The note at the bottom of this section states "MARTIAL STATUS / CIVIL UNION (if applicable)". I do not know the indicator for civil union. I suggest a C.

DATE OF BIRTH It will be appreciated if you enter this in the DD/MM/YYYY format. Again, match the driver's license.

YRS EXP - Years of driving experience for this driver.

Here is a secret. You and I both know that if you subtract Year Licensed from this year, you will get the answer to Driver's YRS EXP. But sometimes we apparently have to help others with this type of math. Just do so in a kind way so you do not hurt your underwriter's feelings.

YR LIC - This is the year the license was issued.

DRIVERS LICENSE NUMBER/ SOCIAL SECURITY NUMBER Enter the complete driver's license number. If this is not available enter this person's social security number.

STATE LIC Enter the two character ID for the state which has issued this driver's license.

DATE HIRED This is the date this driver was originally hired by this business. It is fine to say month and year.

BROADENED NO FAULT This is a yes or no answer. Use Y or N.

DOC This stands for Driver Other Car coverage. This is a yes or no question, Use a Y or an N.

USE VEH # Enter the vehicle number from this application of the vehicle that this driver operates most often.

% USE Enter the percentage of the time this driver is the operator of the USE VEH you entered in the previous question. Example, if this driver uses vehicle 1 all the time enter 100%.


I hope this has helped you learn how to complete the ACORD 127 drivers information section.

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How to Complete the ACORD 127 Business Auto Section

ACORD 127 Business Auto Section

This is the first of a series of posts on how to complete the ACROD 127 Business Auto Section.

The ACORD 127 is used with at least the ACORD 125. As a result, most of the information in the top section should flow through from your system and pre-fill.

In case you are not using a system that does that, here are the fields and what you should put in them.

AGENCY CUSTOMER ID: The number used by some older agency management systems to track your customer.

DATE (MM/DD/YYYY) The date you are completing this form.

AGENCY Your agency's name, If your agency name is a commonly used agency name - i.e. Home Insurance - you may also want to include you City and State so your underwriter will know it is you and not that bum that lives in some other town.

CARRIER This is the name of the insurance company which will be insuring this customer. This is the name on the actual policy.

NAIC CODE:  NAIC stands for the National Association of Insurance Commissioners.

Here is their website home page...

http://www.naic.org/index.htm

POLICY NUMBER: If you are sending in a new application you will not have a policy number so you will leave this blank.

If you are sending in a renewal application this will be the policy number for this policy's current term.

EFFECTIVE DATE: This would be the date you want this policy to begin.

NAMED INSURED: This is the applicant name from the ACORD 125.

I hope this helps you learn how to complete the ACORD 127 business auto section.

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ACORD 45 Additional Interest Section

How to Complete the ACORD 45 Additional Interest Section

The Additional Interest Section repeats itself 5 times on the ACORD 45 form. The instructions are the same for each repetition.

As the forms states, not all fields apply to all insureds. Only complete the ones which do apply. This is very important as any Additional Interest is given many of the rights of the Insured. You do not want to give these rights by error.

INTEREST

Check the box which applies for this specific business entity.

ADDITIONAL INSURED - Good Definition HERE

BREACH OF WARRANTY - Good Definition HERE

CO-OWNER - some one who is one of the owners of this insured business

EMPLOYEE AS LESSOR - If one of this business' employees is leasing property to this business

LEASEBACK OWNER - After purchasing an asset, the owner enters a long-term agreement by which the property is leased back to the seller at an agreed rate.

LIENHOLDER - a person who retains legal possession of a piece of property until the person to whom he/she has advanced money for use of the property has satisfactorily repaid the debt.

LOSS PAYEE - Good Definition HERE

MORTGAGEE - Good Definition HERE

OWNER - The person or business which owns this business or item

REGISTRANT - This may be the person who registers a trademark, copyright or patent to be used by the insured. It could be the registrant of a web site URL being used by the insured.

TRUSTEE - A person appointed to manage the property of another.

OTHER - List your own here


NAME ADDRESS

Enter the full name and address as they need to be shown on a certificate of insurance.


RANK

Additional Interest can have a priority of rights. A rank of 1 would indicate this Additional Interest would receive protection from the policy prior to payments being made on behalf of lower ranked Additional Interests.


CHECK BOXES - EVIDENCE / CERTIFICATE / POLICY / SEND BILL

All can be checked.

Evidence means the Additional Interest requires an ACORD 27 or ACORD 28 Evidence of Insurance form to be issued.

Certificate means the Additional Interest requires a Certificate of Insurance to be issued.

Policy means the Additional Interest requires a copy of the actual policy.

Send Bill means the Additional Interest wants a copy of the bill.


REFERENCE  / LOAN #

Enter the loan number.

LIEN AMOUNT

Enter the amount of the original lien, not the current balance.

INTEREST END DATE

Enter the date the loan, lien, interest expires.


PHONE (A/C, No., EXT) 

Enter the phone number for the person at this Additional Interest who should be contacted with any issues related to their Additional Interest.

A/C is area code. No. is number - as in 7 digit phone number. EXT is the phone extension, if any, for this person.

E-MAIL ADDRESS

Enter the e-mail address for the person at this Additional Interest who should be contacted with any issues related to their Additional Interest.

FAX (A/C, No.)

Enter the FAX number for the person at this Additional Interest who should be contacted with any issues related to their Additional Interest.


INTEREST IN ITEM NUMBER

LOCATION, BUILDING, VEHICLE, BOAT, AIRPORT, AIRCRAFT, ITEM CLASS, ITEM

The number to enter here is the number referencing this at other places in this application. For instance, Location refers to the location number listed in the PREMISES INFORMATION section at the top of this page.

ITEM DESCRIPTION

If there is no other reference number in this form or other forms which are part of this application, enter a description.


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How to Complete the ACORD 45 Additional Interest Form

ACORD 45 Additional Interest Section

This first lesson is short, but the second lesson seemed too long to combine. My goal is to not have more than five minutes of reading in any one post.

The top section of the ACORD 45 form asks basic questions which allow the form to be a part of the rest of the application. This is helpful if you are sending your underwriter a bunch of separate pieces of paper or separate PDFs.

If you are using our Cap Dat ACORD service you will combine all these forms into one larger form. This has the advantage of keeping all the documents together for your records and your underwriter. It also means the inputs in the section like the top section of the ACORD 45 will automatically pre-fill with data from the other forms.

AGENCY CUSTOMER ID: this is any internal agency customer ID number your agency management system may have assigned. Older agency management systems still use this type of out of date file structure. This does not have to be filled in.

DATE: Enter the date your are completing this form.

AGENCY: Enter your agency name. If you name is a common agency name - for instance Home Insurance - you should probably also enter your city and state.

CARRIER: The name of the insurance company to whom you are sending this application.

NAIC CODE:  NAIC stands for the National Association of Insurance Commissioners.

Here is their website home page...

http://www.naic.org/index.htm

They assign each insurance company a five digit code. You can search for any insurance company by name on their website at this page...

https://eapps.naic.org/cis/

POLICY NUMBER: If the policy is a renewal or the policy number has already been assigned, enter that number here. If this is a request for a new business quote there will be no policy number, so leave this blank.

EFFECTIVE DATE: The date the coverage under this policy should begin.

NAMED INSURED: The name of the insured from the form to which this document is attached.

BOTTOM of FORM

The bottom section of this form is blank because there is not enough room to add another additional interest info block. You just leave this blank.

I hope this helps you learn how to complete the ACORD 45 Additional Interest Form.


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How to Complete the ACORD 126 Remarks Section and Read the Fraud Warning

ACORD 126 Remarks Section and Fraud Warning

REMARKS

This is a free form text entry box where you can add any information you wish. I recommend you use it for things you may have put in your cover letter to the underwriter. That letter will likely get lost somewhere, but the application will remain for years.

If you are using the Remarks section to add to a response to a question earlier in this form, start the remark with the section name and question number. That will allow your underwriter to understand what this additional information is meant to answer.

There is a fair amount of space here but is you need more use the ACORD 101.

FRAUD

The very last thing on the ACORD 126 for is a bunch of text about the criminal status of knowingly and with intent providing false information in these documents. It is a crime and a felony in many states.

The purpose of placing this on the form is either to advise you which states it is not a crime in so you can go to that state to complete the forms - I doubt that - or to impress upon you and your insured the importance of being honest, accurate and disclosing information fully.


I hope this has helped you learn how to complete the ACORD 126 Remarks section.

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How to Complete the ACORD 126 General Information Section

ACORD 126 General Information Section

The General Information questions begin on page 3 and continue on page 4 of the ACORD 126 Commercial General Liability Section.

As I am writing this on June 10, 2014 this section has 20 questions. All questions are set up as Yes or No answers first. Then, if you have any Yes answers you need to provide an explanation.

The explanation should begin in the free form text entry space in the box with the Question.

If you need more room use the Remarks section on page 4. Remember to begin your additional information in the Remarks section with the question number.

Beware of making the mistake of thinking you should answer all questions with a "No". For instance, the current question #19 asks whether there is a formal, written safety and security policy in effect. Answering this "No" will make this risk less attractive to your underwriter.

Take the time to read each question completely. I even read things like this out loud sometimes. It stops me from letting boredom allow my eyes to fog over and skip some things. If I am really having a hard time focusing I will read a few sentences backwards. That always helps me refocus. Plus sometimes it can make the sentence sound like Yoda is asking a question.

I hope this helps you learn how to complete the ACORD 126 General Information Section.

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How to Complete the ACORD 126 Additional Interest and Certificate Recipient Section

ACORD 126 Additional Interest and Certificate Recipient

If you have more than one Additional Interest or Certificate Recipient use the ACORD 45 form to list the others and attach that form to your application.

Not all fields apply to all insureds. Only complete the ones which do apply. This is very important as any Additional Interest is given many of the rights of the Insured. You do not want to give these rights by error.

INTEREST

Check the box which applies for this specific business entity.

ADDITIONAL INSURED - Good Definition HERE

EMPLOYEE AS LESSOR - If one of this business' employees is leasing property to this business

LIENHOLDER - a person who retains legal possession of a piece of property until the person to whom he/she has advanced money for use of the property has satisfactorily repaid the debt.

LOSS PAYEE - Good Definition HERE

MORTGAGEE - Good Discussion HERE

OTHER - List your own here

NAME ADDRESS

Enter the full name and address as they need to be shown on a certificate of insurance.

RANK

Additional Interest can have a priority of rights. A rank of 1 would indicate this Additional Interest would receive protection from the policy prior to payments being made on behalf of lower ranked Additional Interests.

CHECK BOX - EVIDENCE / CERTIFICATE 

ACORD advises you to put a check in the box if the Additional Interest Requires a Certificate. I suppose you need to add a Remark as to whether that is a Certificate or an Evidence of Insurance form.

Evidence means the Additional Interest requires an ACORD 27 or ACORD 28 Evidence of Insurance form to be issued.

REFERENCE  / LOAN #

Enter the loan number.

INTEREST IN ITEM NUMBER

LOCATION, BUILDING, ITEM, ITEM DESCRIPTION

The number to enter here is the number referencing this at other places in this application. For instance, Location refers to the location number listed in the PREMISES INFORMATION section at the top of this page.

ITEM DESCRIPTION

If there is no other reference number in this form or other forms which are part of this application, enter a description.


I hope this helps you learn how to complete the ACORD 126 Additional Interest and Certificate Recipient Section.

How to Complete the ACORD 126 Products and Completed Operations Section

ACORD 126 Products and Completed Operations Section

The Products / Completed Operations section of the ACORD 126 is the bottom half of the second page.

PRODUCTS / COMPLETED OPERATIONS

The first section asks for a description of individual products. Even small manufacturers probably have more than three products. You will most likely need to use the ACORD 101 form to list more products. Or you could use a spreadsheet and attach it to the application.

There is also wording on the application asking you to include any literature, brochures, labels, warnings, etc.

There are seven columns for each listed product.

1 - PRODUCTS - give a brief description of the product. I would include the product's name.

2 - ANNUAL GROSS SALES - this would be the dollar amount of sales rounded off to a reasonable number.

3 - # OF UNITS - use a numeric entry. Rounding off is acceptable.

4 - TIME IN MARKET - This is from the date this product was first sold to an intended end user. If there have been several generations of this product, and those generations have significant product changes, I suggest you list these generations as separate products.

5 - EXPECTED LIFE - how long does the manufacturer expect this product to continue to be used?

6 - INTENDED USE - a brief description of how the manufacturer thinks people should be using this product.

7 - PRINCIPAL COMPONENTS - in creating this list I am certain the underwriter would like to know if any of the components are made by other manufacturers and simply assembled by your insured. That will lead to your underwriter asking about the insurance carried by that component provider. You might as well anticipate that question and answer it in advance if possible.

The limited space provided on the ACORD for really does argue for you to create a spreadsheet for this information.

GENERAL QUESTIONS ON PRODUCTS / COMPLETED OPERATIONS

There are ten yes or no questions as of this writing (6/6/2014). If the answer to any question is yes you will need to use the space under the question to enter an explanation. If you need more room use the REMARKS section of this form.

1 - DOES APPLICANT INSTALL, SERVICE OR DEMONSTRATE PRODUCTS? It is hard for me to understand how the answer to this question could ever be No.

2 - FOREIGN PRODUCTS SOLD, DISTRIBUTED, USED AS COMPONENTS? (If YES, attach ACORD 815) Foreign products refers to products imported into this country as opposed to products exported to other countries.

3 - RESEARCH AND DEVELOPMENT CONDUCTED OR NEW PRODUCTS PLANNED? If your insured is not doing this then they are probably not going to be in business for the long term.

4 - GUARANTIES, WARRANTIES, HOLD HARMLESS AGREEMENTS? You might as well include copies of any written documents on these. Your underwriter will certainly ask for them.

5 - PRODUCTS RELATED TO AIRCRAFT/SPACE INDUSTRY? That would be pretty cool. Especially if you were insuring things in outer space. Read the policy definition of territory of coverage.

6 - PRODUCTS RECALLED, DISCONTINUED, CHANGED?

7 - PRODUCTS OF OTHERS SOLD OR RE-PACKAGED UNDER APPLICANT LABEL?

8 - PRODUCTS UNDER LABEL OR OTHERS?

9 - VENDORS COVERAGE REQUIRED? Your underwriter will also ask about required certificates of insurance.

10 - DOES ANY NAMED INSURED SELL TO OTHER NAMED INSUREDS?


I hope this helps you learn how to complete the ACORD 126 Products and Completed Operations section.

How to Complete the ACORD 126 Contractors Section

ACORD 126 Contractors Section

1. DOES APPLICANT DRAW PLANS, DESIGNS, OR SPECIFICATIONS FOR OTHERS? (Petty grammatical note - there should not be a comma after the word designs)

This is a yes or no question. If the answer is yes use the space in the question box to explain. If you need more space use the REMARKS section of this form. If you need still more space use the ACORD 101 form.

The paragraph above applies to all explanations in this section. If you need even more space and the underwriter is in a location you have always wanted to visit, get the business to send you there to explain in person. If the underwriter is in a location you never want to visit, invite the underwriter to have his employer send him on a business trip to visit you. Have him meet the insured and take them both to an expensive dinner.

2. DO ANY OPERATIONS INCLUDE BLASTING OR UTILIZE OR STORE EXPLOSIVE MATERIAL? Answer yes or no with an explanation as outlined in #1. (Grammar note: this is the correct use of no comma, although it reads a bit strange.)

3. DO ANY OPERATIONS INCLUDE EXCAVATION, TUNNELING, UNDERGROUND WORK OR EARTH MOVING? Answer yes or no with an explanation as outlined in #1. (Grammar note: this is the correct use of the comma.)

4. DO YOUR SUBCONTRACTORS CARRY COVERAGES OR LIMITS LESS THAN YOURS? Answer yes or no with an explanation as outlined in #1.

5. ARE SUBCONTRACTORS ALLOWED TO WORK WITHOUT PROVIDING YOU WITH A CERTIFICATE OF INSURANCE? Answer yes or no with an explanation as outlined in #1.

6. DOES APPLICANT LEASE EQUIPMENT TO OTHERS WITH OR WITHOUT OPERATORS? Answer yes or no with an explanation as outlined in #1.

At the very bottom of this section are questions about subcontractors.

DESCRIBE THE TYPE OF WORK SUBCONTRACTED.  Use the space below the question to enter free form text. If you need more room use the REMARKS section on page 4 of the ACORD 126.

There are 4 small boxes along the top of the subcontractors box.

$ PAID TO SUBCONTRACTORS Enter a total dollar amount. You can round to the nearest thousand dollars.

% OF WORK SUBCONTRACTED Enter a percentage.

# FULL TIME STAFF Full time staff is normally considered to be staff that works more than a minimum of 30 hours a week. Enter a number.

# PART TIME STAFF Part time staff is normally considered to be staff that works less than a minimum of 30 hours a week. Enter a number.


I hope this has helped you understand how to complete the ACORD 126 contractors section.

ACORD 126 Claims Made and Employee Benefits Section

How to Complete the Claims Made and Employee Benefits Sections of the ACORD 126

CLAIMS MADE SECTION

If you checked the Claims Made box under the Coverages section at the top of this page, you have to answer the questions in this section.

PROPOSED RETROACTIVE DATE: This is the same as the effective date of this policy.

ENTRY DATE INTO UNINTERRUPTED CLAIMS MADE COVERAGE: If this is a new policy, this will be the same as the Proposed Retroactive Date. If this is a renewal policy, this will the the first effective date of the first claims made policy, assuming there have been no lapses of coverage between that date and this policy.

HAS ANY PRODUCT, WORK, ACCIDENT OR LOCATION BEEN EXCLUDED, UNINSURED OR SELF INSURED FROM ANY PREVIOUS COVERAGE? Answer yes or no.

If you answered yes to the above question, enter an explanation either in the space below te question or in the REMARKS section.

WAS TAIL COVERAGE PURCHASED UNDER ANY PREVIOUS POLICY? Answer yes or no.

If the answer is yes, use the space below the question to enter the company name, policy number, effective dates and limits for this coverage.

Once again I lean on IRMI for a good definition...

A provision found within a claims-made policy that permits an insured to report claims that are made against the insured after a policy has expired or been canceled, if the wrongful act that gave rise to the claim took place during the expired/canceled policy.


EMPLOYEE BENEFITS LIABILITY

If your policy will include Employees Benefits Liability coverage you must answer the questions in this section.

DEDUCTIBLE PER CLAIM: Enter the dollar amount of this deductible.

NUMBER OF EMPLOYEES: Enter the total number of employees whether or not they are covered under provided employee benefits.

NUMBER OF EMPLOYEES COVERED BY EMPLOYEE BENEFITS PLANS: Enter the number of employees covered under provided employee benefits. This may be the same or it may be less than the answer to the previous question. It would be strange if it was more.

RETROACTIVE DATE: This will normally be the same as the Retroactive Date listed in the Claims Made section above.


I hope this has helped you learn how to complete the ACORD 126 Claims Made Section and Employee Benefits Liability section.

How to Complete the ACORD 126 Schedule of Hazards

ACORD 126 Schedule of Hazards - including Video

As a special treat, here is a video on this...

How to Find the General Liability Class Code

This is the General Liability code. ISO - Insurance Services Office created these codes for use in rating general liability insurance.

Your carrier will have a list of all these codes. If you use a commercial lines rating software program, that program should have all these codes.

I have found two sources of these codes online at the following links...

https://www.faia.com/core/contentmanager/uploads/FIRL/Rapid%20Reference/Commercial%20General%20Liability%20Classifications%20%E2%80%93%20Numerical%20Listing.pdf

http://www.htbailey.com/tools/class_codes_listing.htm


Neither of these class code look ups is the one shown in the video. That source has been taken offline.

I hope this has been helpful in teaching you how to complete the ACORD 126 schedule of hazards section.

How to Complete the ACORD 126 Limits Section

ACORD 126 Limits Section

LIMITS APPLY

The Limits section at the top of the first page of the ACORD 126 begins by asking you to fill in the General Aggregate Limit - see RED box below.

GENERAL AGGREGATE: IRMI has a good definition of General Aggregate Limits here.

To quote the first part of their definition " The maximum limit of insurance payable during any given annual policy period for all losses other than those arising from specified exposures. Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury."

Next there are four check boxes. Only one can apply. Example, if the General Aggregate applies per LOCATION, check the box to the immediate left of the word LOCATION.

There are 7 more lines where you can enter Limits.

PRODUCTS & COMPLETED OPERATIONS AGGREGATE
PERSONAL & ADVERTISING INJURY
EACH OCCURRENCE
DAMAGE TO RENTED PREMISES (each occurrence)
MEDICAL EXPENSE (Any one person)
EMPLOYEE BENEFITS
BLANK LINE FOR FREE FORM ENTER OF OTHER

Enter limits only for coverage which is provided under this policy.

You can have all of these coverages, none of these or some of these.

The limits go in the row in the blue box in the above picture.

PREMIUMS

If this is an application for a quote, you will most likely be leaving the premium fields empty. You underwriter will be providing you with her premium quotations.

I hope this helps you learn how to complete the ACORD 126 Limits Section.

ACORD 126 Coverage Section

How to Complete the ACORD 126 Coverage Section

Coverages

The Coverages Section is made up of three parts. In this lesson we will discuss the Coverages and Other Coverages. Tomorrow we will discuss Limits.

The first area for coverages is a group of check boxes Two coverages are listed...

Commercial General Liability
Owner's & Contractors Protective

There is a check box next to a blank text entry field for you to enter other coverages.

Check each of these which apply.

There are two check boxes under the words "Commercial General Liability". One is for Claims Made, the other is for Occurrence.

You can only have one of these. This refers to whether the coverage is provided on a Claims Made or Occurrence format.

DEDUCTIBLES

The Deductibles section gives you three check boxes for coverages to which the deductibles apply. Check each that will have a deductible.

Clearly, each coverage can have its own deductible. Bodily Injury can have one deductible, or no deductible.

When I was still an underwriter, when we were still handwriting polices on stone tablets, adding a small property damage deductible to general liability coverage was a way to get a meaningful premium savings. Plus your competition hardly ever knew this was possible.

Check the Appropriate box to indicate whether the deductibles apply "Per Claim" or "Per Occurrence".


OTHER COVERAGES, Restrictions, and/or ENDORSEMENTS

Other Coverages, Restrictions and / or Endorsements is a free form text entry space.

If you run out of room, use the Remarks section.

NOTE: for hired and / or non-owned automobile liability coverage use the appropriate ACORD 137 state specific form.

WISCONSIN

Yes, Wisconsin just had to be different. Why they decided to include anything about commercial auto insurance is a commercial general liability form is beyond me. I cannot even begin to image the special interest and backroom  politics which led to this. Where is the money?

Anyway, more seriously, if your are insuring a risk in Wisconsin and if non owned only auto coverage is to be provided under this policy, check all appropriate boxes.


I hope this helps you learn how to complete the ACORD 126 Coverages Section.

How to Complete the ACORD 126 Commercial General Liability Section

ACORD 126 Commercial General Liability Section

The ACORD 126 is attached or added to the ACORD 125 when the coverage for which you are applying is commercial general liability insurance.

DATE: In the top right hand corner of the form you should enter the date you are completing this form and sending it to your underwriters.

AGENCY / CARRIER / POLICY / APPLICANT INFORMATION

AGENCY: This is your agency's name. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

CARRIER: This is the carrier to whom you are sending the application. If you are sending the application to more than one carrier, you may leave this blank so you don't alert each carrier to their competition.

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

NAIC CODE:  NAIC stands for the National Association of Insurance Commissioners.

Here is their website home page...

http://www.naic.org/index.htm

You can learn more at this earlier post we made - http://simply-easier-acord-forms.blogspot.com/2014/03/what-is-naic-code.html

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

POLICY NUMBER: If you are sending in a new application you will not have a policy number so you will leave this blank.

If you are sending in a renewal application this will be the policy number for this policy's current term.

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

EFFECTIVE DATE: This would be the date you want this policy to begin. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

APPLICANT / FIRST NAMED INSURED: This is the applicant name from the ACORD 125. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

I hope this helps you learn how to complete the ACORD 126 commercial general liability section.

EMAIL TUTORIALS

We offer daily and/or weekly email tutorials on How to Complete ACORD Forms.

You can sign up for tehm using the links at the top right hand of this page.

Table of Contents Overview How To Complete the ACORD 125

Table of Contents of Posts on ACORD 125

Below are links to all the posts we have made in our series of tutorials on how to complete the ACORD 125 form.

This is a very useful one-stop post to bookmark or to forward and share.

How to Complete the ACORD 125 Agency information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-how-to-complete-commercial.html


How to Complete the Carrier and Policy Status Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-how-to-complete-carrier.html


How to Complete the Sections Attached Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-commercial-insurance.html


How to Complete the Attachments Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-commercial-insurance_20.html


How to Complete the Policy Information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-policy-information-section.html


How to Complete the Applicant Information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-how-to-complete-applicant.html


How to Complete the Applicant Contact Information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-how-to-complete-contact.html

How to Complete the ACORD 125 Premises Information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-commerical-insurance.html

How to Complete the Nature of Business Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-commercial-insurance_28.html

How to Complete the Additional Interest Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-additional-interest-section.html

How to complete the General Information Section

http://simply-easier-acord-forms.blogspot.com/2014/05/acord-125-general-information-section.html

How to Complete the Remarks Section and the Prior Carrier Information

http://simply-easier-acord-forms.blogspot.com/2014/06/acord-125-how-to-complete-remarks-and.htmlhttp://simply-easier-acord-forms.blogspot.com/2014/06/acord-125-how-to-complete-remarks-and.html

How to Complete the Loss History Section

http://simply-easier-acord-forms.blogspot.com/2014/06/acord-125-loss-history-section.html

How to Complete the Signature Section

http://simply-easier-acord-forms.blogspot.com/2014/06/acord-125-signature-section.html


This is a great post to share. All the lessons linked from a single tutorial.

I hope this helps you learn how to complete the ACORD 125.

ACORD 125 Signature Section

How to Complete the ACORD 125 Signature Section

At the top hand corner of the signature section of the ACORD 125 commercial insurance application is a check box you need to check to state that you have given this insured a copy of the Notice of Information Practices form.

This is the ACORD 38 form for most states. The following states have their own form as of this writing...

ACORD 38AR - Arkansas
ACORD 38AZ - Arizona
ACORD 38CA - California
ACORD 38CT - Connecticut
ACORD 38DE - Delaware
ACORD 38GA - Georgia
ACORD 38IL - Illinois
ACORD 38MT - Montana
ACORD 38NH - New Hampshire
ACORD 38NJ - New Jersey
ACORD 38NV - Nevada
ACORD 38OR - Oregon
ACORD 38RI - Rhode Island
ACORD 38VA - Virginia
ACORD 38WA - Washington

Not all states require a notice. Check with an experienced agent at your agency or with your underwriter.

In the bottom left hand corner of the first section of the Signature section there is a place to get your insured to initial. Don't forget this.

At the very bottom of the 4th page is a place for the Applicant's Signature and next to it a space to have the insured date their signature.

Next to that is a spot for your - the agent's - signature.

Finally there is a box for your National Producer Number if your agency has one.

If you are using our Cap Dat ACORD services we have an electronic, or e-signature, feature available to you. You can add this to the signature box and email a link to the form to your insured. They can then review and sign the form on a tablet, smart phone or most current browsers. This gives you an extra level of legal documentation on the time and date of the signature. It can also save time.

I hope this group of posts have been helpful in your learning more about how to complete the ACORD 125 commercial insurance application.

We offer a daily and weekly email tutorial for ACORD forms. You can sign up for these below if you wish.

Sign Up for a Daily ACORD Forms Tutorial Email


Sign Up for a Weekly ACORD Forms Tutorial Email

ACORD 125 Loss History Section

How to Complete the ACORD 125 Loss History Section

If you have historical loss runs you can attach, then you really do not have to complete any more of this section.

Normally larger accounts with frequent claims will have loss runs available.

LOSS HISTORY

Generally underwriters want 3 to 5 years of loss history. This space only has room for three losses. The ACORD form references two additional forms to use if you need more space. The LOSS SUMMARY and the ADDITIONAL LOSS INFORMATION form. These are not ACORD forms. I suggest you just use a blank piece of paper or the ACORD 101 Additional Remarks form.

NO LOSSES CHECK BOX

Just to the right of the title LOSS HISTORY is a check box you need to check if there are no claims to list.

Immediately under the Tittle LOSS HISTORY is a blank space in the sentence where you should enter the number of years your loss history covers.

At the far right hand side of this section is a box asking you for the TOTAL LOSSES: $. Enter the total dollar amount paid. No need to include amounts reserved for future payments here.

INFORMATION FOR EACH LOSS

DATE OF OCCURRENCE - This is the date of the event, or series of events which caused a claim to be filed.

LINE - The line of business the claim has be filed under. Example: Workers Comp or Auto or General Liability.

TYPE / DESCRIPTION OF OCCURRENCE OR CLAIM

Very brief free form text field.

DATE OF CLAIM - This is the date the initial claim was made. The date of claim may be the same as the date of the occurrence, but for products or completed operations claims that is not likely to be the case. Remember you can have a Claims Made or an Occurrence policy.

AMOUNT PAID - The amount that has actually been paid as of the date you are sending in this application.

AMOUNT RESERVED - This is the amount the carrier may have set aside for future payments.

SUBROGATION Y/N - Subrogation is the assignment of the insured's rights to collect the amount of a loss from the liable party from the Named Insured to the insurance carrier for the coverage type. You should indicate whether this claim paid amount might be able to be recovered using the subrogation clause in the policy.

CLAIM OPEN Y/N - If the claim is closed there should be no amount in reserves.

ACORD 125 How to Complete the Remarks and Prior Carrier Section

How to Complete the Remarks and Prior Carrier Section of the ACORD 125 

REMARKS / PROCESSING INSTRUCTIONS

Very little space is given here. Remember you can always use the ACORD 101 Additional Remarks for for more space.

This is a free form text entry box where you can add any information you wish. I recommend you use it for things you may have put in your cover letter to the underwriter. That letter will likely get lost somewhere, but the application will remain for years.

PRIOR CARRIER INFORMATION

This Section is continued on the next page with room for two more years of prior carrier info.

For each of the lines of business listed - General Liability, Automobile, Property and Other - enter the...

Year - I know that you are also asked for the effective and expiration dates. If your policy covers two calendar years show the year the in the effective date.

Carrier - The name of the specific company in the group. Example list Charter Oak instead of Travelers.

Policy Number

Premium

Effective Date

Expiration Date

Some underwriters appreciate having copies of the actual declaration pages of previous policy. You can scan and attach those to the application.