ACORD 193 Additional Coverage, Exclusions and Remarks

How to Complete the ACORD 193 Open Cargo Additional Coverages, Exclusions and Remarks

ADDITIONAL COVERAGES

Check the boxes for any of the additional coverage you want included in this policy.

RETURNED / REFUSED - Sample Wording for Returned or Refused Coverage:

This policy also to cover shipments insured for the original voyage which have been Returned/Refused by the consignee. Such shipments are held covered subject to the terms and conditions stated herein, until:(i) disposed of by the Assured, or (ii) returned to the original point of shipment, provided such shipments remain in original packing. It being understood and agreed that notice must be given to the Company by the Assured as soon as refusal of acceptance is known to them.

FOB SHIPMENTS: FOB stands for Free On Board. Here is a good definition.

Sample Wording for FOB Shipments Coverage:

This policy is extended to cover:

A: The Assured's interest only in shipments sold by the Assured on F.O.B, F.A.S, Cost and Freight, or similar terms whereby the Assured is not obligated to furnish marine insurance, subject to this policy;s terms and conditions and continues until: (i) the goods and/or merchandise are loaded on board the overseas vessel, or (ii) until the Assured's interest ceases, whichever shall first occur.

B. The Assured's interest only in shipments purchased on F/O.B. or F.A.S port of arrival or similar terms whereby the Assured is not obligated to furnish marine insurance, subject to this policy's terms and conditions while in transit from the port of arrival in the United States by railroads or railroad express and connection conveyances and by licensed public motor truck carriers. To attach and cover from the moment the merchandise and/or goods leave from the port of arrival, and to cover continuously thereafter in due course of transit until delivered to final warehouse or until the Assured's interest ceases, whichever shall first occur.

FRAUDULENT B/L & RECEIPT: B/L stand for Bill of Lading.

WAR: This would provide coverage for loss resulting from acts of was.

DUTY: This covers the risk of partial loss by reason of perils insured against on the duties imposed on goods imported into the United States.

DE/CONSOLIDATION: This stands for Deconsolidation and Consolidation.

The insurance provided covers goods insured while on the premises of freight forwarders, export packers, consolidators, truckers, warehousemen or others for the purpose of storage incidental to transit, packing or repacking, consolidation, deconsolidation, distribution or otherwise anywhere in the world whether prior to loading or after discharge from overseas vessel for a period not exceeding 30 days after arrival at such premises.

BRANDS / LABELS:

Brands sample coverage wording...

In the event of loss or damage to property insured bearing and brand or trademark, the sale of which in any way carries or implies a guarantee, the salvage value of such damaged property shall be determine after the removal of all brands and any trademarks.

Labels sample coverage wording...

In case of damage affecting labels, capsules or wrappers, the Company, if liable, shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or wrappers and the cost of reconditioning the goods.

PAIRS /SETS: Physical loss of or physical damage to any one item of the goods and/or merchandise under this policy which consist of items in a pair or set, shall constitute a total loss of such pair or set.

DIC: Difference in Conditions. With respect to shipments purchased by the Assured on C.I.F. or similar terms, whereby ocean marine insurance is arranged by the seller and/or others, this policy is extended to cover the difference in conditions between such other insurance and the conditions of insurance for which the merchandise would otherwise have been insured hereunder. All shipments covered hereunder shall be valued and reported at the amount of the seller's insurance.

OTHER: List any other which apply to this application.


EXCLUSIONS

Check the check boxes for any of the following exclusions you want to apply to this policy.

MARRING, DENTING, CHIPPING & SCRATCHING

BREAKAGE

RUST

DISCOLORATION & OXIDATION

MECHANICAL / ELECTRICAL

OTHER - describe other.


REMARKS

This is a free forms text section for you to elaborate on any items above which did not provide enough space in the form.

If you need even more room you should use the ACORD 101 Additional Remarks Schedule


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How to Complete the ACORD 193 Coverage Section

ACORD 193 Open Cargo General Information and Coverage Sections

GENERAL INFORMATION

AVERAGE VALUE: Enter the average value of items being shipped after the $ sign.

After the "PER" enter a text description of what the average value applies to - example, per shipment.

PACKING: Enter a text description of the packing or packaging of the items insured.

ANNUAL GROSS SALES: Enter the annual gross sales of the items being shipped for this insured.

COVERAGE FORM: While most property insurance forms can be broken down into broad categories of Named Peril, Broad Form or All Risk, Marine insurance coverages are more likely to be unique manuscript forms custom written by each individual carrier. Work with your underwriter to be certain you use the correct wording in this space.


COVERAGES

COVERAGE TYPE: The first of the five boxes in this column is pre-filled with INTERNATIONAL TRANSIT as the coverage type. If you are not covering property shipped internationally then you should not enter any responses in the rest of the first row.

Other possible coverage types would be domestic transit, air transit, land transit, etc.

VALUATION: Indicate the type of value used. Types of value are an accounting question. Possible types of value include book value, fair market value, cost of production value, historical value, sales value, etc.

Enter the appropriate type of value for each row which has a coverage type.

ANNUAL VALUES: Enter the total annual values for this applicant for this coverage type.

LIMIT: Enter the limit of insurance coverage for each coverage type.

PER: Enter text identifying the type of unit to which this coverage limit applies. An example would be "per shipment".

DED: Deductible. Enter the deductible for the coverage type in each row.


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ACORD 193 Open Cargo Section - Interest, Conveyance and Operations

How to Complete the ACORD 193 Interest, Conveyance and Operations Sections

INTEREST: This defines your insured's interest in the property being shipped. Select one of the following by checking the appropriate box.

1. FREIGHT FORWARDER
2. SHIPPER OF OWNED PROPERTY
3. IMPORTER
4. EXPORTER
5. OTHER - if you check this box add a text description.

CONVEYANCE USED: Describe the type of transportation which will be used to move the property insured under this policy. Examples, container ship, barge, etc.


OPERATIONS

PROPERTY SHIPPED:  Provide a text description of the property being shipped. If this is a large shipment of various items you may want to attach a spreadsheet with a description of all items.

POINTS OF ORIGIN: Where did the shipment originate? More to the point, at what physical location does the coverage begin. If there are separate items picked up along the way, associate each item with its point of origin.

POINTS OF DESTINATION: Where is the shipment begin taken. When does this coverage end. If there are separate items delivered to separate destinations, associate each item with its destination.


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How to Complete the ACORD 193 Open Cargo Section

ACORD 193 Open Cargo Section

The Open Cargo Section is used in combination with the ACORD 125. This form is used to provide basic information on marine coverage - coverage for items being shipped by watercraft.

Basic Account Information

The form begins with the following basic account information section.

This information should already be in the ACORD 125 form, and systems like our Cap Dat ACORD service will automatically pull this information into this form. The information needs to be entered even if attached to the ACORD 125 in case the documents become separated.

AGENCY CUSTOMER ID: This is the ID number your agency management system may have assigned. Many older systems still use this technology instead of names.

DATE (MM/DD/YYYY): Enter the date you are completing this form.

AGENCY: Your agency name. If your name is also used by other agencies with whom your underwriter may also work, it is a good idea to at least also add your city and state.

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

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

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

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

POLICY NUMBER: If this is a new application, there will most likely be no policy number assigned yet. So leave this space blank. If this is a renewal, enter the existing policy number.

EFFECTIVE DATE: The date you want the coverage to begin.

APPLICANT / FIRST NAMED INSURED: Enter your customer's legal name in the format they would need it to appear for a certificate of insurance.


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ACORD 146 Fraud Warning and Signature Section

How to Complete the ACORD 146 Signature Section

FRAUD WARNING

The top 3/4's of the 3rd page of the ACORD 146 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.

Keep in mind that not only can Fraud lead to prison time and fines, it can also allow the carrier to deny payment for claims.


SIGNATURE

PRODUCER'S SIGNATURE - sign your name manually or electronically.

PRODUCER'S NAME (Please Print) - Print the name you just signed. If you are like me, your signature is more readable than your print.

STATE PRODUCER LICENSE NO (Required in Florida) - If you do not know this, ask other agents or the agency owner.

APPLICANT'S SIGNATURE - have your customer sign manually or electronically.

DATE - the date the document was signed by the applicant.

NATIONAL PRODUCER NUMBER - If you do not know this, ask other agents or the agency owner.


I hope this has helped you learn how to complete the ACORD 146 Signature Section.


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ACORD 146 Scheduled Equipment Section

How to Complete the ACORD 146 Scheduled Equipment Section

Page 2 of the ACORD 146 is nothing but a listing of scheduled equipment. There is room to list 15 items. If you need more room, just make more copies of this page of this form.

At the top of the page is a global question on Coinsurance. Normally this will be 80%, 90% or 100%.

This set of questions repeats 15 times.

# - Enter a unique number for each item. Start with 1 and go 2,3, etc unless you have a good reason not to do so.

TYPE - Describe the general type of equipment.

DESCRIPTION - Explain how the equipment is used.

ID # / SERIAL NO: - if the equipment has an ID number or serial number enter that here. Many companies use metal tags or RFID chips to track equipment. If there is no other ID number, use the number from the tag or chip.

NEW/USED - was this item purchased new or used.

DATE PURCHASED - month and year is good. Year if it has been around a while.

MANUFACTURER - the name of the company which built this piece of equipment.

MODEL - if there is a model for this equipment, similar to models for cars - i.e. Ford Mustang - enter that.

MODEL YEAR - what year was this equipment built?

CAPACITY - similar to gross vehicle weight. For instance a backhoe has a rated capacity for its bucket.

AMOUNT OF INSURANCE $ - the amount for which you are insuring this specific equipment. Policies can be written to cover ACV - actual cash value, stated amounts, replacement cost, etc. You need to insure the item for an amount based on the type of policy coverage you are providing.


I hope this helps you learn how to complete the ACORD 146 scheduled equipment section.



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How to Complete the ACORD 146 General Information Section

ACORD 146 General Information Section

There are only four general information questions. A very low number based on other forms reviewed.

Also there is no Remarks section in the ACORD 146 form. If you need space to elaborate use the ACORD 101 Additional Remarks form.

As with all general information sections in ACORD forms, the format is answer the questions first with a Y for YES or an N for NO in the left hand column. If any answers are YES, then add a text explanation in the space under the question.

EQUIPMENT RENTED, LOANED TO / FROM OTHERS WITH / WITHOUT OPERATORS?

If the applicant is involved in any sort of rental or loan agreement, explain the circumstances and the nature of the agreement, including who is carrying the insurance for the equipment.

IS APPLICANT OPERATING EQUIPMENT NOT LISTED HERE?

If Yes, identify the equipment and include information on who has the insurance on this equipment. If at all possible name the carrier, policy number and limits.

PROPERTY USED UNDERGROUND?

Also, is the equipment left underground when not in use. Explain location of use and storage.

ANY WORK DONE AFLOAT?

List the bodies of water - ex: Atlantic Ocean, Charleston Harbor, Lake Norman, Mississippi River, etc.

Describe work being done.

Is the equipment left afloat when not in use. How is it secured? Any alarms, guards, etc?


I hope this helps you learn how to complete the ACORD 146 general information section.


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ACORD 146 Additional Interest / Certificate Recipients

How to Complete the ACORD 146 Additional Interest / Certificate Recipients Section

There is room for three additional interests / certificate recipients on this form. If you  need more room use the ACORD 45 form.

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.

LOSS PAYEE - Good Definition HERE

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.

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.

REFERENCE  #

Enter any loan document reference number.

CERTIFICATE REQUIRED

Check this box if you need a certificate of insurance sent to this Interest.

ITEM DESCRIPTION

Enter a description of this item.

INTEREST IN ITEM NUMBER

LOCATION - The location number listed in the Equipment Storage section.

BUILDING - The building number listed in any other part of this form or the attached ACORD 125.

SCHEDULED ITEM NUMBER - The corresponding number shown in the schedule on page two for this item.

OTHER: anything else you thing is useful.


I hope this helps you learn how to complete the ACORD 146 Additional Interest / Certificate Recipient section.


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How to Complete the ACORD 146 Equipment Storage Section

ACORD 146 Equipment Storage and Unscheduled Equipment Section

EQUIPMENT STORAGE

This section is for locations as a whole. Two things about this...

1 - Nowhere does it ask the location address to correspond with the location number. You will be wise to add that information. Since this form does not have a Remarks section, I would use the ACORD 101 Additional Remarks Section.

2 - There is only room for three locations. If you need more room use the ACORD 101.

LOC# - Enter the location numbers sequentially starting with 1, 2 then 3, etc.

MO. IN STORAGE - Months in Storage. If less than one month enter one. Round up all partial months.

MAXIMUM VALUE

IN BUILDING - Enter the dollar amount of the maximum value kept in the building at this location.

OUTSIDE - Enter the dollar amount of the maximum value kept outside at this location.


TYPE OF SECURITY - Describe the type of security measures used at this location. Guards, Alarms, Cameras, Dogs, etc.


UNSCHEDULED EQUIPMENT

DESCRIPTION - This section is used to lists groups of similar items you do not list on the schedule on page 2 of this form. Normally these would be lower value items such as hand tools.

MAXIMUM ITEM - The maximum value of any individual item in the groups listed in the Description above. For instance, a really nice hammer might be $75.

AMT OF INSURANCE - Amount of insurance. The total amount of insurance on all items listed in the groups. So 100 hammers at $50 each - $5,000 of insurance.

% COINS - Percentage of coinsurance to apply to this coverage. In this case I would suggest 100%.


I hope this has helped you learn how to complete the ACORD 146 Equipment Storage Section


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ACORD 146 Equipment Floater Section - Inland Marine

How to Complete the ACORD 146  Territory and Type of Operation and Coverage Section

TERRITORY OF OPERATION

List the normal location of the listed equipment. List job sites or specific addresses if at all possible.

TYPE OF OPERATION

List the type of work done by the insured. This question has already been asked in the ACORD 125, so you may simply answer by saying "Refer to ACORD 125 form attached"

If you need extra space to describe the nature of work done by your insured you should use the ACORD 101 Additional Remarks Section.

COVERAGE / DEDUCTIBLE

The following is an exact quote from the ACORD FIG on this field... ( I did correct the spelling of appropriate - they had it spelled as "apporopriate". We all make these mistakes. I hope no one correct my spelling publicly.)

"List the form of coverage desired and all appropriate deductibles in the space provided.

Indicate if the Floater is to be written on a Scheduled or Blanket basis. If scheduled, list all the items. Specify if All Risk or Named Perils.

Enter any other options chosen as Replacement Cost or Actual Cash Value and the desired deductible. Deductibles may be written on a "dollar amount" or "percentage" basis.

Specify how the deductible is to be applied if not familiar with each company's policy (e.g., Contractors' Equipment, Commercial Articles Floater or Musical Instrument Dealers)."


I hope this helps you learn how to complete the ACORD 146.


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How to Complete the ACORD 146 Equipment Floater Section

ACORD 146 Equipment Floater Section

We get many calls asking for the Inland Marine ACORD form. There is no ACORD form called inland marine. There are several forms which provide inland marine coverage. This is the one we recommend most often.

You will attach the ACORD 146 to the ACORD 125.

BASIC ACCOUNT INFORMATION

Like all the forms you attach to the ACORD 125, the first page of this form begins with basic account information.

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: This is your agency's name.

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.

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

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.

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

I hope this helps you learn how to complete the ACORD 146 equipment floater section.



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ACORD 140 Fraud Notices

Read the ACORD 140 Fraud Notices

The top of the final page in the ACORD 140 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.

Not only can this lead to criminal conviction of you, but it can also lead to denial of insurance coverage and payment of claims.


I hope this helps you learn how to complete the ACORD 140.


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ACORD 140 Additional Premises Section

How to Complete the ACORD 140 Additional Premises Section

The Additional Premises Information is EXACTLY the SAME as the information collected on the first page for Premises Information.

See above how the sections line up.

You just need to refer back to the previous posts of the past 5 days to see how to complete these sections.

I will add links to those pages here later. I cannot do it yet because I am writing these posts in advance and will be on vacation when these are actually published. That means I have no final URL from which to link.


I hope this helps you learn how to complete the ACORD 140 additional premises section.


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ACORD 140 Remarks Section

How to Complete the ACORD 140 Remarks Sections

The ACORD 140 has three separate remarks sections - one on each page.

If you have remarks you need to add for items on page 1, I suggest you use the Remarks section on page 1 and then on page 3 for the overflow.

If you have remarks for items on page 2, I suggest you use the remarks section on page 2, then on page 3 for the overflow.

You should always reference the input title at the start of any remark. Example: if you are adding information on the BURGLAR ALARM TYPE, start your remark  with "Burglar Alarm Type" and then enter the additional information.

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.

Remember you can always use the ACORD 101 Additional Remarks for for more space.


I hope this helps you learn how to complete the ACORD 140 remarks sections.


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ACORD 140 Additional Interest

How to Complete the ACORD 140 Additional Section

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 Subject of Insurance.

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 28 Evidence of Insurance form to be issued.

REFERENCE  / LOAN #

Enter the loan number.

INTEREST IN ITEM NUMBER

LOCATION, BUILDING, ITEM CLASS, 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 140 Additional Interest.


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ACORD 140 Rating Information Continued

How to Complete the ACORD 140 Rating Information

ACORD 140 RATING INFORMATION CONTINUED

This posts covers the questions in the last section shown below.

RIGHT EXPOSURE & DISTANCE - the question "Exposure" is asking you to briefly describe the occupancy or use of the property on this side of the Subject of Insurance and the distance to that property.

LEFT EXPOSURE - the question "Exposure" is asking you to briefly describe the occupancy or use of the property on this side of the Subject of Insurance and the distance to that property.

FRONT EXPOSURE - the question "Exposure" is asking you to briefly describe the occupancy or use of the property on this side of the Subject of Insurance and the distance to that property.

REAR EXPOSURE - the question "Exposure" is asking you to briefly describe the occupancy or use of the property on this side of the Subject of Insurance and the distance to that property.

BURGLAR ALARM TYPE - describe any existing burglar alarm.

CERTIFICATE # - if there is a burglar alarm, enter the alarm's certificate number. Attach a copy of the certificate if possible.

EXPIRATION DATE - the expiration date of the burglar alarm certificate.

Check all box descriptions burglar alarm...

CENTRAL STATION
LOCAL GONG
WITH KEYS

BURGLAR ALARM INSTALLED AND SERVICED BY - enter name and address of the company providing installation and service of existing alarms. This may be two separate companies.

EXTENT - Specify the designated extent of protection as described in the ISO crime rating manual.

GRADE - Enter the alarm grade as described in the ISO crime rating manual (e.g., AA, A, B, C).

#GUARDS / WATCHMAN - enter a numeric value. Enter zero if there are none.

Check the box relating to the Guards or watchmen and how they track their work.

CLOCK HOURLY
OTHER - you describe

PREMISES FIRE PROTECTION (Sprinklers, Standpipes, CO2 / Chemical Systems) - describe any existing on premises fire protection system.

% SPRINK - enter the percentage of the building which is covered by a sprinkler system.

FIRE ALARM MANUFACTURER - name of the manufacturer of on premises fire alarm systems.

Check the type of fire alarm system notification.

CENTRAL
LOCAL GONG


I hope this has helped you learn how to complete the ACORD 140 rating information.


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How to Complete the ACORD 140 Rating Information Section

ACORD 140 Rating Information Section

Yesterday we covered the Additional Coverage portion of this area. Today we cover the first half of the Rating Information sections below...

RATING INFORMATION

CONSTRUCTION TYPE - Enter the construction of the premises. Common construction classifications are: * Frame * Joisted Masonry * Non-Combustible * Masonry Non-Combustible * Modified Fire Resistive * Fire Resistive

DISTANCE TO HYDRANT  FIRE STAT - the last word is Station - Fire station. Enter the distance to the fire hydrant in feet. Enter the distance to the fire station in miles.

FIRE DISTRICT - the name of the Fire District. This is normally the name of the responding fire station.

CODE NUMBER - the code number for this Fire District. This is in your state manual. If you are using rating software, it should be in your rating software.

PROT CLASS - the Protection Class rating for this Fire District. This is set by the State. It will be in the State manual.

# STORIES - the number of stories in this building.

# BASEM'TS - the number of basements in this building

YR BUILT - the year the original building was built. If there have been material renovations use the Remarks section to explain the year and the extent of the renovations.

TOTAL AREA - If the entire building is being insured, this would be the total number of square feet in the entire building. If only the portion occupied, rented by or leased to your customer is being insured, list only that square footage.

BUILDING IMPROVEMENTS - for each of the following boxes check those which apply and if they apply enter the four digit year (ex: 2004) to the right of the check box.

WIRING YR
ROOFING YR
OTHER
PLUMBING YR
HEATING YR

BLDG CODE GRADE - Building Code Grade. Enter the ISO building code grade if one applies.

TAX CODE - enter city, county or state tax code from manual.

ROOF TYPE - Enter the material used to construct the roof. Examples: * Composition (fiberglass, asphalt, etc.) * Metal * Poured * Slate * Tile * Wood Shake/Shingle

WIND CLASS - check the box for the appropriate category.

RESISTIVE
SEMI-RESISTIVE
OTHER

This information will be included on the rate card information for specifically rated properties.

HEATING SOURCE INCL WOODBURNING STOVE OR FIREPLACE INSERT - check box if answer is Yes.

DATED INSTALLED - the date the wood stove or fireplace insert was installed.

MANUFACTURER - the name of the manufacturer of the wood stove or fireplace insert.

PRIMARY HEAT - check the box that applies. If you select the box with no text next to it, type in description.

BOILER
SOLID FUEL
OTHER

IF BOILER, IS INSURANCE PLACED ELSEWHERE? Y/N - Yes or No. If there is separate Boiler & Machinery coverage show carrier name and policy number.

SECONDARY HEAT

BOILER
SOLID FUEL
OTHER

IF BOILER, IS INSURANCE PLACED ELSEWHERE? Y/N - Yes or No. If there is separate Boiler & Machinery coverage show carrier name and policy number.



I hope this helps you learn how to complete the ACORD 140 rating information section.


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ACORD 140 Additional Coverages Section #1

How to Complete the ACORD 140 Additional Coverage Section

This section covers a lot of ground. I am going to break this up into three separate posts. This first post covers additional coverage, Options, Restrictions and Endorsements.

SPOILAGE COVERAGE

Here is a link to the ISO coverage form CP 04 40 06 07 . This will give you a very good idea of what is covered under this endorsement.

Put a Y or an N in the box on the form. If you enter an N because you are not including this coverage, then you will not complete any of the fields to the right in this row.

If you enter a Y for YES....

DESCRIPTION OF PROPERTY COVERED - enter a brief test description such as "Food in refrigeration units"

LIMIT $ - Enter the dollar amount of coverage.

DEDUCTIBLE $ - Enter the dollar amount of the deductible for this coverage.

REFRIG MAINT AGREEMENT (Y/N) - This is refrigeration maintenance agreement. Yes or No does the insured have one?

OPTIONS - Check the boxes for all included coverage. You can have some, all or none.

BREAKDOWN OF CONTAMINATION

POWER OUTAGE

SELLING PRICE

OTHER - you describe.


SINKHOLE COVERAGE

IRMI has a good definition of this coverage HERE.

Notice this coverage is Required in Florida.

Check one of the two boxes...

ACCEPT COVERAGE

REJECT COVERAGE

If coverage is accepted...

LIMIT $ - enter the dollar amount of coverage for this Subject of Insurance.

PROPERTY HAS BEEN DESIGNATED AN HISTORICAL LANDMARK - check this box if that is correct. You can use the blank space in this area to elaborate on that if needed.

# OF OPEN SIDES ON STRUCTURE - enter number.

I hope this helps you learn how to complete the ACORD 140 additional coverage section,



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ACORD 140 Premises Information

How to Complete the ACORD 140 Premises Information Section

PREMISES INFORMATION

The ACORD 140 form is designed for two locations. If you are applying for coverage for more than two locations you need to complete an ACORD 140 for each location.

Just to the left of the section title "PREMISES INFORMATION" are 4 data fields you need to answer.

PREMISES # - start with number 1 and progress sequentially unless your customer has their own numbering system it is helpful to match.

STREET ADDRESS - this should include the city, state and Zip.

BUILDING # - any given premises may have more than one building. Unless you are matching a numbering scheme used by your insured, just start with number 1 and progress in order 1, 2, 3 etc.

BLDG DESCRIPTION - a general text free form entry field. Enter things like "5 story red building"

SUBJECT OF INSURANCE - enter Building if the building is to insured. Enter Contents if contents are to be insured. Enter Extra Expense or Business Income if those  are to be insured, etc.

Enter one item per line since Building and Contents would most likely have different limits of coverage.

AMOUNT - enter the dollar amount of coverage for the Subject of Insurance listed in this line.

COINS% - Co-insurance percentage. This is percentage of the value of the Subject of Insurance which is being insured. A normal amount is 80%. If the amount of insurance falls below this percentage amount your insured will be required to participate in paying any claims. Learn more about co-insurance HERE.

VALUATION - Indicate the method which will be used to determine the amount paid on a claim. Valuation methods are: ACV- Actual Cash Value RC- Replacement Cost AA- Agreed Amount MV- Market Value

CAUSES OF LOSS - this would be the type of form the coverage will use. Example Basic, Broad Form, Special Risk, etc.

INFLATION GUARD % - list both the percent amount and the term. Example 5% per year. Inflation guard automatically increases the amount of insurance by this percentage each year regardless of actual market conditions. You need to stay informed on the local market conditions to be certain your customer is not too dependent on this and left under insured.

DED - the deductible amount for this coverage.

BLKT # - this is only completed if this Subject of Insurance is included under a Blanket policy.

FORMS AND CONDITIONS APPLY - enter all coverage forms numbers and special condition which apply to the subject of this insurance.

ADDITIONAL INFORMATION

Check either of the boxes if that coverage is being included.

BUSINESS INCOME / EXTRA EXPENSE - Attach ACORD 810

VALUE REPORTING INFORMATION - Attach ACORD 811

Notice that if either coverage is being requested you need to complete an additional ACORD form as part of this application.



I hope this helps you learn how to complete the ACORD 140 premises information section.


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How to Complete the ACORD 140 Property Section

ACORD 140 Property Section

The ACORD 140 is attached or added to the ACORD 125 when the coverage for which you are applying is commercial property insurance.

AGENCY CUSTOMER ID: - this will be the ID number for this customer from your agency management system. Older agency management systems still use this because they are stuck with a very old data base structure.

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.

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.

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

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 140 commercial property section.


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ACORD 127 Signature and Fraud Warning Section

How to Complete the ACORD 127 Signature and Fraud Warning Section

FRAUD WARNING

Almost at the bottom of the third and final page of the ACORD 127 form is a section all in capital letters. This should always get your attention.

This is a group of Fraud Warnings. Before you sign, and especially before your customer signs this document, you should review this section. That is just good basic business practice.

SIGNATURES

At the very bottom of the 3rd 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.

Click here to learn more about the Cap Dat ACORD e-Signature feature.

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 has been helped you learn how to complete the ACORD 127 business auto section.


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ACORD 127 Vehicle Description Section

How to Complete the ACORD 127 Vehicle Description Section

The ACORD 127 has space to list four vehicles. For more vehicles use the ACORD 129.

If you are used to personal lines, but have limited exposure to commercial lines, you may be intimidated at first by the description section. That will not last long. I started as a commercial lines underwriter and I have always felt commercial lines was much simpler than personal. Just different.

VEH# - Vehicle number. Enter the numbers in sequence starting with 1.

YEAR - The model year of the vehicle. 2010, 2011, etc.

MAKE - The manufacturer's name. Chevrolet, Ford, etc.

MODEL - The model of the vehicle. F-3500 or Dodge Step Van are examples.

BODY TYPE - Examples - Dump truck, Van, Sedan

V.I.N. - Vehicle identification number. This is the serial number for the vehicle. It is on the registration card and on the vehicle dashboard in front of the steering wheel.

VEHICLE TYPE - Only one can apply. PP is private passenger. SPEC is Special - which I assume is anything not the other two options. COML is commercial.

SYM / AGE - Only private passenger vehicles have a symbol. If it is not a private passenger vehicle you will leave this blank and answer the "Cost New" question two line down.

Age is more than a little obvious and embarrassing. You have already told them the year built. But age is a cross reference point in some rating manuals. So to avoid mistakes have pity and enter the age. (This year minus the model year)

COMP / OTC SYM - Comprehensive / Other Than Collision Symbol. Only private passenger vehicles will have this.It can be an ISO symbol or some companies publish their own symbols. A symbol is a two digit numeric value used as a cross reference point in manual rating.

COLL SYM - Collision symbol. Only private passenger vehicles will have this.It can be an ISO symbol or some companies publish their own symbols. A symbol is a two digit numeric value used as a cross reference point in manual rating.

GARAGING ADDRESS

STREET (Required in KY) - the actual street address where this vehicle is normally kept overnight. In auto insurance terms "garaging" does not mean an actual building or physical garage. It only means where the car is normally kept when not in use.

CITY - The city of the garaging address.

COUNTY - The county of the garaging address.

STATE - The 2 character abbreviation for the state in which the vehicle is garaged.

ZIP - The 5 digit post office ZIP code for the where the vehicle is kept. Have I mentioned before that ZIP stands for Zone Improvement Plan? Now you can win another bar bet.

LIC STATE - The two digit abbreviation of the state in which this vehicle is licensed. Not always the same as the garaging location.

TERR - The rating Territory. While most states use ZIP codes for private passenger rating, commercial rating still has maps with territories. You will need to reference the tables of cities and counties, or a map for this information. Your agency or carrier will have access to this.

GVW / GCW - This is the gross vehicle weight or the gross combined weight - also defined as the total weight of the vehicle itself and the load it is designed to carry. This will be listed on the vehicle registration. The second item - combined weight - is the total of the GVW for a tractor unit and the trailer to which it is attached.

Private passenger vehicles do not have a GVW.

CLASS - I quote exactly the ACORD FIG form here...This is the primary industry classification code found in rating manuals for commercial vehicles as determined by: *If this is a fleet or non-fleet policy *Commercial autos by size, business use, radius of operation and whether truck or trailer type *Public autos by type of vehicle, radius or seating capacity.

A private passenger vehicle insured on a business auto policy that is not a fleet - 5 or more vehicles are needed to be a fleet - normally uses the private passenger rates and classification code, not the business auto classification code.

SIC - The secondary special industry class. This will be available to you in manuals from your agency or carrier. Or in your commercial rating software.

Class and SIC are two of those things that make agents new to commercial lines uncomfortable. But here is the nice thing about them - you set them on a vehicle and they stay there. With personal lines these are often sorted and assigned to another vehicle based on driver and rating sorting. Commercial is much more straight forward.

FACTOR - This is a rating factor. You will normally leave this blank. The Class and SIC tables carry factors. This would be the sum of those factors.

SEAT CP - This only applies to Public or Livery vehicles - cabs and buses. It stands for seating capacity.

RADIUS - These do not apply to private passenger vehicles. Enter the code from the following list...

L - Local. Up to 50 miles. Not frequently operated beyond a 50-mile radius from the point of principal garaging.

I - Intermediate. Operation beyond 50 miles, but not regularly operated beyond a 200-mile radius from the point of principal garaging.

LH - Long Haul. Regularly and frequently operated beyond a radius of 200 miles.

FARTHEST TERMINAL - Long distance, or long haul vehicles are ZONE Rated. You can find these Zones in business auto manuals or in your rating software. For long haul vehicles enter the physical address for the garaging location farthest from the normal garaging location.

GRAMMAR NOTE: (as if this post is not long enough already.) Farthest is the correct usage here, though many of us will wonder why not furthest. “Farthest” describes physical distance. “Furthest” is used to describe a greater degree. Kudos to ACORD!!!

COST NEW $ - This is for vehicles which do not have a symbol. This is not what was paid for this vehicle used, but what would have been paid for it new.

USE

Select one and only one.

PLEASURE - Private passenger vehicles or pickups/vans not used for business purposes
FARM - Private passenger vehicles or pickups/vans principally garaged and used on a farm or ranch
DRIVE TO WORK / SCHOOL - check either the < 15 miles (less than) or 15 miles + box
COMM'L - transportation of property in vehicles other than those defined as retail or service
RETAIL - Pick up or delivery of property to individual households
SERVICE - Transportation of personnel, tools, equipment or supplies to or from a job site
FOR HIRE - taxi's, etc
OTHER - you describe

CHECK COVERAGES

Check all that apply. The checked boxes should match the coverage selected in the state specific ACORD 137 form attached to this application.

LIAB - liability
NO-FAULT - liability no-fault
ADD'L NO-FAULT - additional liability no- fault
MED PAY - medical payments
UNINS MOTOR - uninsured motorists liability
UNDRINS MOTOR - under-insured motorists liability
TOWING & LABOR

SPEC C of L - Specified Cause of Loss - these are all physical damage coverages
F - Specified Cause of Loss by Fire
FT - Specified Causes of Loss by Fire and Theft
FTW - Specified Causes of Loss by Fire, Theft and Windstorm
LSP - Limited Specified Peril
COMP/OTC - Comprehensive / Other Than Collision physical damage coverages
COLL - Collision
RENT REIMB - rental reimbursement
FG - Full Glass Coverage
OTHER - you enter

DEDUCTIBLES

Check one in this first section you have...

ACV - actual cash value
AA - agreed amount
ST AMT - stated amount

These are types of physical damage valuation methods normally used on older vehicles.

If you check one of these, enter the dollar amount of the value on the line in the bottom of this box where you see the $ sign.


Check either Comp / OTC or SPEC C of L if either apply. You cannot have both, but you can have neither. If you have either, enter the dollar amount of the deductible on the next line after the $ sign.

If you have collision coverage enter the dollar amount of the deductible on the line to the left of COLL after the $ sign.

NET VEH DR/CR - This is the total of all the credits or debit factors to be applied in the rating of this vehicle. You will almost always leave this blank. This is for the raters to do.

TOTAL PREMIUM: $ - You will almost always leave this blank. This is a rating field.


I hope this has helped you learn how to complete the ACORD 127 vehicle description section.


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