ACORD 137 CA - California Commercial Auto Instructions

Instructions for ACORD 137CA - California Commercial Auto

Each state has its own ACORD 137 Commercial Auto form. Eventually I will work through all of them.

I am starting with California for two reasons...

1 - It is the largest state by population.

2 - The coverage elements are fairly standard. They apply in most states.

Remember there are at least two other ACORD forms you need to include with this section. They are...

ACORD 125 Commercial Insurance Application - Applicant Information

ACORD 126 Business Auto Section

In California you should also always attach...

ACORD 60 US - Insurance Supplement - Notice - Offer of Terrorism Coverage

ACORD 61CA - California Auto Supplement Mandatory Uninsured Motorists Bodily Injury Coverage Offer

ACORD 63 General Fraud Statement

The astute among you, dear readers, and I am sure this means you, will notice The 137 forms are titled Commercial Auto while the 126 is titled Business. Please do not let this keep you awake at night. They mean the same for our limited purposes here. The ACORD 137 includes a section for Business Auto, Truckers and Motor Carriers.

DATE / AGENCY / APPLICANT

Instructions ACORD 137CA

AGENCY CUSTOMER NUMBER - This is the customer number your agency or agency management system assigns.

DATE - the date you are completing this document.

AGENCY - the name of your insurance agency. This should be the same as the name used on the ACORD 125 and 126 forms. In an automated ACORD forms environment this should pull through automatically form the other forms.

NAMED INSURED(s) - This should be the same as the name used on the ACORD 125 and 126 forms. In an automated ACORD forms environment this should pull through automatically form the other forms.

POLICY NUMBER - This should match the policy number you use in the other attached forms - ACORD 125, ACORD 126, ACORD 600, 61, and 63.

EFFECTIVE DATE - The date the coverage provided by this policy begins. It should also match this policy's effective date used on other forms attached.

CARRIER - The insurance company underwriting this policy. This is the company listed on the DEC page of the policy.

NAIC NUMBER - 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/

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ACORD 131 Uninsured Motorists Issues By State, Remarks, Signatures

ACORD 131 Umbrella / Excess Instructions for Page 4 and 5

REMARKS

Page 4-

ACORD 131 Remarks Instructions

Page 5

ACORD 131 Remarks Instructions

The remarks section anticipates your needing to add a good deal of clarification to Yes answers in this application. Do not be shy.

If you need additional room for even more remarks use the ACORD 101 Additional Remarks Section.

SIGNATURE - FRAUD WARNINGS

ACORD 131 Fraud Warnings

You really do need to just read this out loud with your customer. I know it is dull, but still...

Did you know in New York the penalties are "SUBSTANTIAL"?

In Florida it is a Third Degree Felony.

In Kansas it is "Fraudulent Insurance Act" - whatever that is. Actually the link below shows exactly what that is...

http://kansasstatutes.lesterama.org/Chapter_40/Article_2/40-2x118.html


The point is you are responsible for knowing this for your state and you should advise you customer on what she or he is signing.


UNINSURED and UNDERINSURED MOTORIST

ACORD 131 Underinsured and Uninsured Motorists

The first two fields in the Uninsured / Underinsured Motorists section are asking limits. These are the limits for the Umbrella or Excess Policies, not the limit on the primary policies.

Louisiana and New Hampshire require your customer to initial a box stating they have accepted or rejected coverage.

Vermont adds a statement  but does not require initials. For Vermont signing the application is enough.

Wisconsin requires customers with only Non-Owned Auto Liability coverage to have indicated whether or not Medical Payments coverage is available.


SIGNATURE

ACORD 131 Signature Instructions

PRODUCER'S SIGNATURE - the licensed agent should sign here.

PRODUCER's NAME (Please Print) - Print the name of the person who signed in the PRODUCER'S SIGNATURE box

STATE PRODUCER LICENSE NO (Required in Florida) - Enter your state license number

NATIONAL PRODUCER NUMBER - Enter your national producer number.

The National Insurance Producer Registry states "The National Producer Number is a unique NAIC identifier assigned through the licensing application process or the NAIC reporting systems to individuals and business entities (including, but not limited to producers, adjusters, and navigators) engaged in insurance related activities regulated by a state insurance department."

Here is a link to their web site...

http://www.nipr.com/


APPLICANT'S SIGNATURE - Have your customer sign here.



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Instructions ACORD 131 Additional Exposures Part 3

ACORD 131 Additional Instructions Part 3

AGENCY CUSTOMER ID

ACORD 131 Agency Customer ID

As with all ACORD forms with more than one page enter your agency customer ID so this page will be able to find the rest of this binder if somewhere, somehow in that thing we call the business cycle they get separated from each other.

POLLUTION LIABILITY

ACORD 131 Instructions Pollution Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

In the top left hand corner of this section - in the row with the section title - is a more or less hidden question...

EPA #: If your insured has an EPA number you should enter it here. I will be honest and say I have never heard of an EPA number before and I have owned a half dozen businesses. I did a search and here is what I found...

http://publicaccess.supportportal.com/link/portal/23002/23012/Article/16371/How-can-I-look-up-an-EPA-number-nbsp-nbsp-If-I-have-an-EPA-number-how-do-I-verify-it

You can look up existing EPA numbers.

You can apply to get your own at this link...

http://publicaccess.supportportal.com/link/portal/23002/23012/Article/16799/How-do-I-get-an-EPA-ID-number

Apparently you need an EPA number to get certain licenses and permits. Who knew?

20 - DO CURRENT OR PAST PRODUCTS, OR THEIR COMPONENTS, CONTAIN HAZARDOUS MATERIALS THAT MAY REQUIRE SPECIAL DISPOSAL METHODS?

How would you know? there are a lot of results when I search "list of hazardous materials".  Here is the top...

http://www.epa.gov/osw/hazard/wastetypes/

21 - INDICATE THE COVERAGES CARRIED:

Check the boxes only if the insured has primary policies which include these coverages.

GL WITH STANDARD ISO POLLUTION EXCLUSION
GL WITH STANDARD SUDDEN & ACCIDENTAL ONLY
GL WITH POLLUTION COVERAGE ENDORSEMENT
SEPARATE POLLUTION COVERAGE


PRODUCT LIABILITY

Instructions ACORD 131 Product Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.


22 - ARE MISSILES, ENGINES, GUIDANCE SYSTEMS, FRAMES OR ANY OTHER PRODUCT USED / INSTALLED IN AIRCRAFT?

The focus on missiles sets a tone in this question which may lead you to forget about all the other things that can be installed or used in aircraft. What about the seats, pillows, blankets, drinks, paper towels. I imagine your underwriter really is not interested in whether or not paper towels are used on airplacnes - but you should let them tell you that in writing.

23 - ANY FOREIGN OPERATIONS, FOREIGN PRODUCTS DISTRIBUTED IN THE USA OR US PRODUCTS SOLD / DISTRIBUTED IN FOREIGN COUNTRIES? (If "YES" Attach ACORD 815)

This seems simple enough for physical products. What about digital products. We have users of our ACORD forms online service on four continents. Does that mean we sell and distribute a product in a foreign country? I could argue both sides but I do not think you want to be doing that if a claim occurs. Ask your underwriter and get the answer in writing.

23 - PRODUCT LIABILITY LOSS IN PAST THREE (3) YEARS? (SPECIFY)

Notice it says "LOSS" not claim.

25 - GROSS SALES FROM EACH OF LAST THREE (3) YEARS.

Enter the dollar amount.

Remember Gross Sales is a measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge.


PROTECTIVE LIABILITY

This is insurance that protects an owner or contractor against liability for injury or damage caused by independent contractors doing work in his behalf.

ACORD 131 Protective Liability Instructions

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

26 - DESCRIBE INDEPENDENT CONTRACTORS (ACORD 101, Additional Remarks Schedule, may be used if more space is required)

List names of independent contractors and mention if they have their own insurance and if certificates of insurance are required.


WATERCRAFT LIABILITY

ACORD 131 Watercraft Liability Instructions

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

If your customer does own or lease watercraft, list those watercraft here.

LOC# - remember way back on page one of this form you entered PRIMARY LOCATIONS? Remember those locations needed to track the LOCATIONS listed on the ACORD 125 you will be including with this application? That is the location number you should enter here.

# OWNED - enter number of owned watercraft.

LENGTH - This seems problematic to me. If there is more than one owned watercraft the chances are they will have different lengths. In this case use the remarks section.


APARTMENTS / CONDOMINIUMS / HOTELS / MOTELS

ACORD 131 Instructions

Just the watercraft section above, the LOC # goes all the way back to locations you have listed on the ACORD 125 which is going to be sent with this ACORD 131.

Use the Remarks section as needed for space to explain.

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ACORD 131 Additional Exposures Part 2 Instructions

Instructions ACORD 131 Contractors Liability, Employers Liability and Incidental Malpractice Liability

CONTRACTORS LIABILITY

Instructions ACORD 131 Contractors Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

10 -  IS BRIDGE, DAM OR MARINE WORK PERFORMED?

11 - DESCRIBE TYPICAL JOBS PERFORMED  (ACORD 101 Additional Remarks Schedule may be attached if more space is required)

If there is a dramatically atypical job that is done from time to time I am sure the underwriters would like to know about that also.

12 - DESCRIBE AGREEMENT (ACORD 101 Additional Remarks Schedule may be attached if more space is required)

Include copies of agreements if possible - at least the pertinent parts.

13 - DOES APPLICANT OWN, RENT OR OTHERWISE USE CRANES. - I am fairly certain that if they own or rent cranes you should also explain how they are used by your customer.

14 - CARRY COVERAGES OR LIMITS LESS THAN APPLICANT? - If so list carriers, policies, effective dates and limits.


EMPLOYERS LIABILITY

How to complete the ACORD 131

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

15 - IS APPLICANT SELF-INSURED IN ANY STATE?  - List states.

16 - SUBJECT TO: - check the boxes if the applicant is under the regulations or conditions of any of the following...

JONES ACT - Link to explanation of Jones Act...

http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920

FELA - Federal Employees Liability Act. Here is a link...

http://en.wikipedia.org/wiki/Federal_Employers_Liability_Act

STOP GAP - Stop Gap Employers Liability. Here is a lin to a definition of this...

http://www.irmi.com/online/insurance-glossary/terms/s/stop-gap-endorsement.aspx


OTHER - enter and explain.


INCIDENTAL MALPRACTICE LIABILITY

Here is a link to a definition of Incidental Malpractice Liability

http://www.irmi.com/online/insurance-glossary/terms/i/incidental-malpractice.aspx

ACORD 131 Instructions for Incidental Malpractice Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

17 - IS A HOSPITAL OR FIRST AID FACILITY MAINTAINED? - I would be sure I understood what my underwriter considered a first aid facility. The best way to do that is to ask in writing so you can get a written response.

18 - ARE COVERAGES PROVIDED FOR DOCTORS / NURSES?

If Yes enter the carrier, effective dates, policy number and limits.

19 - INDICATE # of...

DOCTORS

NURSES

BEDS

Just type in the numbers. On the doctors and nurses I might also add a note about full time or part time.

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ACORD 131 Additional Exposures - Part 1 - Instructions

Additional Exposures Instructions ACORD 131 Part 1

AGENCY CUSTOMER ID

ACORD 131 Agency Customer ID

As with all ACORD forms with more than one page enter your agency customer ID so this page will be able to find the rest of this binder if somewhere, somehow in that thing we call the business cycle they get separated from each other.

ADVERTISERS LIABILITY

Instructions ACORD 131 Advertisers Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

1 - MEDIA USED: - List the media in which you advertise. This might include TV, radio, newspaper, magazines or online ads.

ANNUAL COST: $ - Enter the dollar amount you spend a year on all advertising.

2 - ARE SERVICES OF AN ADVERTISING AGENCY USED? - if so, enter the name or names of the agency and for which media you use them.

3 - ANY COVERAGE PROVIDED UNDER AGENCY'S POLICY? - This is the advertising agency they are asking about. If there is coverage provided please list the carrier, policy number, coverage form and edition date and the limit.

AIRCRAFT LIABILITY

Instructions ACORD 131 Aircraft Liabiilty

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

4 - DOES APPLICANT OWN / LEASE / OPERATE AIRCRAFT? - If yes describe the aircraft and the way it is being used.

As an interesting question, should a drone be considered an aircraft? Even the small personal ones. I would suggest they should be.


AUTO LIABILITY

Instructions ACORD 131 Auto Liability

All the questions are first answered as a Yes or NO question by putting a Y or N in the box on the far right hand column for each row.

If you answer YES to any of these questions you need to answer the questions in that row.

5 - ARE EXPLOSIVES, CAUSTICS, FLAMMABLES OR OTHER DANGEROUS CARGO HANDLED?

If Yes list type of materials handled and any safety procedures.

Caustic does not mean material with a biting wit in this usage. It means a material capable of burning, corroding, dissolving, or eating away by chemical action.

Flammable is a material which ignites easily and burns rapidly with a flame, or a material with flash point below an arbitrary temperature limit of 50 degrees C or 122 degrees F.

Here is a useful link to OSHA's web page on flammable materials.

https://www.osha.gov/dte/library/flammable_liquids/flammable_liquids.html


6 - ARE PASSENGERS CARRIED FOR A FEE? - If so please elaborate. Do go on.

Are vehicles used as independent contractors for Uber or LYFT carrying passengers for a fee? Yep.

7 - ANY UNITS NOT INSURED BY UNDERLYING POLICIES? - A good example would be my farm truck. From time to time is is not licensed and is only driven on the farm. Many construction vehicles fall under this same use.

8 - ARE ANY VEHICLES LEASED OR RENTED TO OTHERS? - explain if the answer is Yes.

9 - ARE HIRED AND NON-OWNED COVERAGES PROVIDED? - You just need to check your primary auto liability policy for this. List the carrier, policy number, effective dates and limits.

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Instructions ACORD 131 Care, Custody, Control and Vehicles Sections

ACORD 131 C,C,C and Vehicles Instructions

CARE, CUSTODY, CONTROL

This is a big insurance issue. Does your customer's insurance cover them for damage to the property of some one else left in their care?

Here is a good definition of Care, Custody and Control...

http://www.irmi.com/online/insurance-glossary/terms/c/care-custody-or-control-ccc.aspx

Instructions ACORD 131

LOC - Remember how this form is attached to the ACORD 125? Well that is where the number you would enter here for locations number will be found.

PROPERTY TYPE - check the box to indicate if the property at this location which is in the care, custody and/or control of your insured is REAL property - like a building, or PERSONAL property - contents of a building.

VALUE - if you checked REAL for property type enter the value of the entire building. If you checked Personal enter the value of this personal property.

A*, B*, C*, D* - Read the line at the very bottom of the box for CARE, CUSTODY, CONTROL to see what these seemingly mysterious letters mean.

Check any and all boxes which apply/

A - Applicant is held harmless in the lease

B - Applicant has a waiver of subrogation

C - Applicant is a Named Insured in the fire policy

D - Other - Specify

SQ FT OF BLDG OCC - enter the square footage of the building occupied by your insured.

OCCUPANY / DESCRIPTION OF PERSONAL PROPERTY - this is a description of the property held in your insured's care, custody or control.


VEHICLES

How to Compelte the ACORD 131

TYPE

This column is a list of vehicle types that match the rows and columns to the right. This is a reference point.

Example - if you have private passenger vehicles you will check the related columns for OWNED, NON-OWNED, LEASED, PROPERTY HAULED and RADIUS in this row for those Private Passenger vehicles.

# OWNED - the number of vehicles owned for each listed vehicle type.

# NON-OWNED - the number of vehicles used but not owned or leased

# LEASED - the number of vehicles leased for each listed vehicle type

NOTE: Leased is normally a longer term contract than a rental contract. Rental contracts are for a day or week while leased is typically for a year or multiple years.

PROPERTY HAULED - Describe the specific property being hauled - carried - in each vehicle type.

RADIUS (MILES) - Enter the number of vehicles which fall into each radius.

LOCAL - up to 50 miles from office or garage location

INTERMEDIATE - between 51 and 200 miles from office or garage location

LONG DISTANCE - over 200 miles from office or garage location

If you have more than one vehicle in any vehicle type, some may be local, some intermediate and some long distance.

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Instructions ACORD 131 - Underlying Coverage Part 2

Underlying Coverage Page 2 of ACORD 131

AGENCY CUSTOMER ID

ACORD 131 Customer ID

As with every ACORD form of more than one page the top right hand corner asks you to put in the agency customer number if there is one. The purpose is to help re-assemble a file if the pages get separated. If you are using forms software such as Simply Easier ACORD Forms, the software will push this data from page to page so you do not have to mess with it.


UNDERLYING INSURANCE (Continued)

Instructions ACORD 131 Umbrella and Excess Application

UNDERLYING GENERAL LIABILITY INFORMATION (Explain all "yes" responses)

There are 6 questions under this section. Obviously if you answer yes you need to explain. Of course not all questions are yes/no questions.

QUESTION 1 - ARE DEFENSE COSTS...

WITHIN AGGREGATE LIMITS?
A SEPARATE LIMIT?
UNLIMITED?

Check the one box which applies. Your underlying insurance policy will only be one of these. If for some reason you do not know the answer ask your underwriter.

QUESTION 2 - INDICATE THE EDITION DATE OF THE ISO FORM OR SIMILAR FILING FOR THE UNDERLYING COVERAGE:

You should be able to look at the forms in the actual policy. The form edition date will be right next to the form number.

QUESTION 3 - HAS ANY PRODUCT, WORK, ACCIDENT OR LOCATION BEEN EXCLUDED, UNINSURED OR SELF-INSURED FROM ANY PREVIOUS COVERAGE? (Y/N)

Put a Y or in in the check box. If the answer is "y" then use the blank space below the question to explain. If you need more space use the Remarks section on page 4 of this form.

QUESTION 4 - FOR CLAIMS MADE, INDICATE RETROACTIVE DATE OF CURRENT UNDERLYING POLICY:

This will be on the actual underlying policy. If you do not know ask the producing agent or the underwriter.

QUESTION 5 - FOR CLAIMS MADE, INDICATE ENTRY DATE INTO UNINTERRUPTED CLAIMS MADE COVERAGE:

This will be the earliest date claims made coverage existed without there being any gap in coverage.

QUESTION 6 - FOR CLAIMS MADE, WAS "TAIL" COVERAGE PURCHASED FOR ANY PREVIOUS PRIMARY OR EXCESS POLICY? (Y/N)  

EFF. DATE:

Here is an excellent definition of Tail Coverage...

http://www.irmi.com/online/insurance-glossary/terms/t/tail-coverage.aspx

If the answer is yes list the policy #, carrier name and dates.


COVERAGE / EXPOSURE

The next section is in two different formats.

The very first format is a simple set of three check boxes. Check the coverage formats which apply.

ANY AUTO (SYMBOL 1)
CGL - CLAIMS MADE
CGL - OCCURRENCE

You can not not have claims made and occurrence on the same policy.

The rest of this section asks you to check the box to the left of the Coverage column coverage description if that coverage is provided by any underlying insurance policy.

For example if there is an AIRCRAFT LIABILITY policy for this customer, check the check box to the left of that text.

IN ADDITION - if there is an exposure - regardless of whether there is a primary insurance policy covering that exposure or not - check the box in the EXPOSURE column.

For example if there is an aircraft liability exposure but there is no primary aircraft liability policy you should still check the box in the exposure column to the right of the text "AIRCRAFT LIABILITY".

At the end of this section are several blank lines for you to enter any coverage or exposures not listed.


UNDERLYING INSURANCE COVERAGE INFORMATION

(INCLUDE ALL RESTRICTIONS; e.g. LASER ENDORSEMENTS, DISCRIMINATION, SUBROGATION WAIVERS, OR EXTENSIONS OF COVERAGE)

This section is used for free form text entry . If you do not have enough room use the ACORD 101 Additional Remarks form.


PREVIOUS EXPERIENCE

GIVE DETAILS OF ALL LIABILITY CLAIMS EXCEEDING $10,000 OR OCCURRENCE THAT MAY GIVE RISE TO CLAIMS, DURING THE PAST FIVE(5) YEARS. WHETHER INSURED OR NOT. SPECIFY DATE, COVERAGE, DESCRIPTION, AMOUNT PAID, AMOUNT OUTSTANDING.

In the bottom left hand corner is a check box to check if there have been NO SUCH CLAIMS.

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ACORD 131 Instructions for Underlying Insurance Section

Instructions for Underlying Insurance for ACORD 131

UNDERLYING INSURANCE

Instructions ACORD 131 Underlying Insurance

TYPE - Under Type there are rows for...

• AUTOMOBILE LIABILITY
• GENERAL LIABILITY
• EMPLOYERS LIABILITY
• TWO BLANK ROWS FOR OTHER TYPES OF UNDERLYING INSURANCE

If you have a general liability policy you need to indicate if that underlying policy is an Occurrence or Claims Made coverage by checking the check box to the immediate left of the appropriate text.


CARRIER /  POLICY NUMBER

In the rows for which there is underlying coverage enter the carrier name and the policy number.


POLICY EFF DATE - POLICY EXP DATE

This is the underlying policy's effective and expiration date. Most carriers prefer you to enter in the MM/DD/YYYY format. EX: 12/01/2014.


LIMITS / ANNUAL RENEWAL PREMIUM . RATING MOD

Automobile Liability

Limits - The limits you will enter here will be the actual in force limits on the underlying policies. Refer to those policies for this information.

CSL EA ACC - This stands for Combined Single Limit Each Accident. If you have a CSL limit you will not have a BI or PD limit for the spaces below.

BI EA ACC - This stands for Bodily Injury Each Accident

BI EA PER - Bodily Injury Each Person

PD EA ACC - Property Damage Each Accident

Premium - CSL and BI / PD are mutually exclusive. You will enter teh Annual Renewal Premium for hte coverage which exists.

RATING MOD - enter any combined rating and / or experience modification that applies to the underlying policy. You will find this on the actual policy.

General Liability

LIMITS -None of these are mutually exclusive. You may not have all these underlying coverages, in which case you will leave that space empty or put in N/A for not applicable.

• EACH OCCURRENCE
• GENERAL AGGR - general aggregate
• PROD & COMP OPS AGGREGATE - products and completed operations general aggregate
• PERSONAL & ADV INJURY - personal and advertising injury
• DAMAGE TO RENTED PREMISES
• MEDICAL EXPENSE

ANNUAL RENEWAL PREMIUM - Enter the actual premiums from the underlying policies.

RATING MOD - enter any combined rating and / or experience modification that applies to the underlying policy. You will find this on the actual policy.

Employers Liability

EACH ACCIDENT

DISEASE EACH EMPLOYEE

DISEASE POLICY LIMIT

Enter the actual limits from the existing underlying policies.

ANNUAL RENEWAL PREMIUM - Enter the actual premiums from the underlying policies.

RATING MOD - enter any combined rating and / or experience modification that applies to the underlying policy. You will find this on the actual policy.

BLANK ROWS - enter the information for other underlying polices which will covered by the umbrella or excess policy you are writing.

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Instructions ACORD 131 Primary Locations & Subsidiaries

ACORD 131 Instructions for Primary Locations & Subsidiaries

How to Complete the ACORD 131 Umbrella Excess Application

PRIMARY LOCATION & SUBSIDIARIES (ACORD 125)

# - the far left hand column simply asks # - number. Enter the number for this location. Probably start with 1, or use numbering system used in other application for other coverage for this insured.

NAME AND LOCATION OF PRIMARY AND ALL SUBSIDIARY COMPANIES (Describe Operations)

NAME - Enter the name of this location. If this is a commercial application the name may be the same as the name of the business.

LOCATION - Enter the physical street address, city, state and zip code.

DESCRIPTION - Enter a text description of the operations of this company. Add the ACORD 101 Additional Remarks form if you need additional room.

ANNUAL PAYROLL - Enter the total annual payroll for this business at this location.

ANNUAL GROSS SALES - Enter the annual gross sales for the trailing 12 months. This should include the foreign sales.

Gross sales are the grand total of all sale transactions reported in a period, without any deductions included within the figure.

FOREIGN GROSS SALES - Enter the total gross sales. This amount should be either the same or less than the amount above since foreign sales are included in ANNUAL GROSS SALES.

# EMPL - This means number of employees. Enter the total number of employees at this location.


Repeat this for each additional location listed in this section.

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Instructions for ACORD 131 Umbrella / Excess Section

ACORD 131 Umbrella / Excess Section Instructions

The ACORD 131 is attached to the ACORD 125.


Basic Information

Instructions ACORD 131 Umbrella Excess Section

AGENCY CUSTOMER ID - Enter the customer ID number your agency uses for this customer if one exists.

DATE - Enter the date you are completing this document.

ACORD 131 Insrtuctions

AGENCY - Enter your agency's name and the producer's name.

CARRIER - Enter the actual insurance company's name - not the name of the insurance group or holding company. For example instead of entering The Travelers - a holding company - you might enter Charter Oak Ins. Co - a specific insurance company.

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 a policy number has been assigned enter that number here. If no number has yet been assigned, leave this blank.

EFFECTIVE DATE - the date this policy will begin coverage.

NAMED INSURED(s) - Enter the name of your customer exactly as they want it to appear on the policy.


POLICY INFORMATION

Click on Image to see Larger Image of the ACORD 131

TRANSACTION TYPE

NEW - RENEWAL - Check the appropriate check box to show whether this application is for a new or renewal policy.

EXPIRING POLICY # - This is directly under the NEW or RENEWAL Question. It is easy to miss. If there has been a previous policy enter teh policy number for that previous policy.

UMBRELLA - EXCESS - Check the appropriate check box to show whether this application is for an Umbrella or an Excess policy.

OCCURRENCE - CLAIMS MADE - Check the appropriate check box to show whether this application is for an Occurrence or Claims Made policy form.

This link takes you to a discussion of the difference between Occurrence and Claims Made forms....

http://simply-easier-acord-forms.blogspot.com/2014/03/claims-made-vs-occurrence-definitions.html


VOLUNTARY - Check this box if the Excess policy is in a voluntary market.

OTHER - the blank check box below Voluntary should be checked if  this is some other type of transaction. Enter a description of the transaction to the right of the box.

RETROACTIVE DATE

PROPOSED - If this policy is to be a claims made policy, this would be the earliest date for which coverage under this policy would apply.

CURRENT - If this policy is to be over a primary policy with Claims Made coverage, this should be the retroactive date on that policy.


LIMIT OF LIABILITY

Enter the dollar amount of coverage provide by this policy for...

EA OCC - each occurrence

Two Blank lines - enter dollar amount of coverage and a text description of that coverage.


RETAINED LIMIT

Enter the dollar amount of the excess or umbrella policy's deductible or retained limit. This is the amount the insured will paid before the carrier makes any claim payment.


FIRST DOLLAR DEFENSE Y/N

Enter a Y if yes this policy does provide first dollar defense coverage. Enter a N it no this policy does not provide first dollar defense coverage.

Here is a link to a good definition of First Dollar Defense Coverage...

http://www.irmi.com/online/insurance-glossary/terms/f/first-dollar-defense-coverage.aspx



EMPLOYEE BENEFITS LIABILITY

Here is a link to a good definition of Employee Benefits Liability Insurance...

http://www.irmi.com/online/insurance-glossary/terms/e/employee-benefits-liability.aspx

Instructions ACORD 131 Umbrella Excess Section

LIMIT OF INSURANCE (Ea Employee) - EA stands for each. Enter the requested limit.

AGGREGATE LIMIT FOR EBL - EBL stands for employees liability benefits, It does not stand for electron beam lithography, English basketball league, e book library , European Bridge League or extragalactic background light.

Enter the aggregate limit for this coverage in this space.

RETAINED LIMIT FOR EBL - Enter the retained limit - or deductible - here.

RETROACTIVE DATE FOR EBL - Enter the proposed retroactive date in this space.

NAME OF BENEFIT PROGRAM - Enter the full name of the benefit program this policy will provide coverage over.

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Review of All ACORD 75 Insurance Binder Instructions Tutorials

Instructions for ACORD 75 and 76 Insurance Binders

Here are all the tutorials we have done on how to complete the ACORD 75 Insurance Binder and the ACORD 76 Binder Log...


Instructions for Agency, Carrier, Insured and Description of Operations Information

http://simply-easier-acord-forms.blogspot.com/2014/09/instructions-acord-75-insurance-binder.html


ACORD 75 Binder - Property Coverage and General Liability Coverage Section

http://simply-easier-acord-forms.blogspot.com/2014/09/acord-75-insurance-binder-coverage.html


ACORD 75 Binder - Vehicle Liability, Physical Damage and Garage Sections

http://simply-easier-acord-forms.blogspot.com/2014/10/acord-75-binder-instructions-coverages.html


ACORD 75 Binder - Excess Liability, Workers Comp and Special Conditions Sections

http://simply-easier-acord-forms.blogspot.com/2014/10/aocrd-75-binder-coverage-part-3-excess.html


ACORD 75 - Additional Interest, Mortgagee, Loss Payee and Signatures Sections

http://simply-easier-acord-forms.blogspot.com/2014/10/how-to-complete-acord-75-additional.html


ACORD 75 - Conditions

http://simply-easier-acord-forms.blogspot.com/2014/10/acord-75-insurance-binder-conditions.html


ACORD 76 - Insurance Binder Instructions

http://simply-easier-acord-forms.blogspot.com/2014/10/acord-76-binder-log-instructions.html

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ACORD 76 Binder Log Instructions

Instructions for ACORD 76 Binder Log

The Binder Log is your best tool for controlling and tracking binders issued by your agency.

Since all Binders have a limited live span it is critical for you to be certain the binder is either replaced by a policy or properly cancelled.

BINDER #

Instruction ACORD 76 Binder Log

Most folks just start with the number one and work their way forward.

Whatever your format it must be the same as the Binder # on the actual binder.


INSURED

ACORD 76 Binder Log Instructions

Enter the insured's name as shown on the binder.


TYPE

Click on ACORD 76 Binder Log for larger image

Enter the coverage type or types. for instance Commercial General Liability, Business Auto, Workers Comp. If you have multiple coverages you will use abbreviations such as CGL, BA, WC.


INITIALED

How to Complete ACORD 76 Binder Log

Admit it. You did it. This is where your enter the person's initials who issued the binder and who is responsible for the disposition of the binder.


COMPANY

Instructions ACORD 76 Binder Log

This is the name of the issuing company. Not the company group but the masthead company.

Example not The Travelers but Oak River Insurance Co.


EFFECTIVE AND EXPIRATION DATES

ACORD 76 Binder

Enter the beginning date and ending date for teh Binder. The expiration Date for the Binder will not be the same as the expiration date of the policy which may replace the binder. Just be certain you put the same dates as you have on the actual binder.

SUSPENSE DATE

ACORD 76 Binder Log Suspense Date

If you plan on putting this item in a suspense file, enter the date here for the date you want the file to come back to you.


DISPOSITION

ACORD 76 Binder Log Disposition

No, this is not when the lawyers from Law and Order or Perry Mason get to question the binder about who done it.

This should be your notes on the final action for the binder. Either a policy replaced it - list the policy number - or it was cancelled - list the cancellation date.

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ACORD 75 Insurance Binder Conditions

Conditions for the ACORD 75 Insurance Binder

AGENCY CUSTOMER ID

Before we get to the good stuff remember to enter your agency customer ID so this page will be able to find the rest of this binder if somewhere, somehow in that thing we call the business cycle they get separated from each other.


BASIC CONDITIONS

The first two paragraphs at the top of page two are the conditions which apply to every state unless modified by statements later on this page.

I noticed - you  may too - that some of the sections listed as applicable in a specific state are actually only a re-statement of a condition stated in this section.For instance Michigan says the binder may be cancelled by the insured. This section also says that. But we know government employees need work in Michigan, so I guess no harm no foul. I just appreciate being amused by the process . I hope you are also entertained.


STATE SPECIFIC TIME LIMITATIONS

The most common state specific condition relates to limits on the length of the Binder or the amount of time required for cancellations. I have underlined those in the above image. You can see a larger version of the image by clicking on it.

Read any condition applicable in your state and the state of your insured. You need to be certain to comply with these conditions.

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How to Complete ACORD 75 Additional Interest and Signatures

ACORD 75 Insurance Binder Instructions

NAME & ADDRESS

ACORD 75 Insurance Binder

NAME AND ADDRESS

Enter the complete name and address of any additional interest to this Binder.

TYPE OF INTEREST

Check the check box next to the appropriate type of interest. Use the 4th check box to indicate an interest not listed. Use the space to the right of the 4th check box to add a text description of that interest type.

• MORTGAGEE
• LOSS PAYEE
• ADDITIONAL INTEREST
• OTHER - describe

SIGNATURE

AUTHORIZED REPRESENTATIVE

This space should be signed either by a carrier representative - underwriter - or by a person specifically authorized by the Agency / Carrier contract. This will differ by carrier.

I strongly recommend you do not sign your name unelss you can show the document which grants you this authority.

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ACORD 75 Binder Coverage Part 3 Excess, Work Comp and Special Conditions

Instructions for ACORD 75 Binder

EXCESS LIABILITY

Instructions for ACORD 75 Binder of Insurance

TYPE OF INSURANCE - Check the box to indicate whether this is an UMBRELLA FORM or OTHER THAN UMBRELLA FORM.

COVERAGE / FORMS - list all coverage forms names, numbers and edition dates which will be present on the final policy.

RETRO DATE FOR CLAIMS MADE: - If this is a Claims Made form it will normally have a retro-active date prior to which claims will not be covered. Enter that date here.

If there is no Retro active date enter the word NONE.

LIMITS - Enter a limit for each of the following...

• EACH OCCURRENCE
• AGGREGATE
• SELF-INSURED RETENTION

WORKER'S COMPENSATION

Insurance Binder Workers Compensation Instructions

TYPE OF INSURANCE - There is nothing to put in this column.

COVERAGE / FORMS - list all coverage forms names, numbers and edition dates which will be present on the final policy.

LIMITS

In almost all cases you will check the check box next to the words PER STATUTE.

E.L. EACH ACCIDENT - E. L. stands for Employer's Liability Limits.

E. L DISEASE - EA EMPLOYEE - This stands for Employer's Liability for Disease - Each Employee

E.L. DISEASE - POLICY LIMIT - Stands for Employer's Liability for Disease - Policy Limit



SPECIAL CONDITIONS / OTHER COVERAGES  

ACORD 75 Insurance Binder Instructions

Add any additional description of coverage provided that has no specific mention in the rest of the form.

You can also use this space to reference other Binders, acknowledge payment receipt, etc.

LIMITS - Enter any fees, taxes or the estimated total premium if you know this information.



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ACORD 75 Binder Instructions - Coverages Part 2

ACORD 75 Insurance Binder Vehicle Coverages

VEHICLE LIABILITY

Instructions ACORD 75 Insurance Binder

VEHICLE LIABILITY - Check any and all check boxes for coverage provided by this policy.

ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON-OWNED AUTOS
Two Blank lines for you to list other specific coverage.

When completing a binder you only need to know which coverage is actually provide by the policy. For a more detailed description of these coverages and terms you can refer to our tutorials on the ACORD 127 Commercial Auto.


COVERAGE / FORMS - List the specific policy forms numbers to be used in the policy. Include the effective dates of these forms.

LIMITS - Enter the dollar amount of the limits provided by this policy.

If you enter Combined Single Limits you will not enter Bodily Injury or Property Damage Limits. These are mutually exclusive.


VEHICLE PHYSICAL DAMAGE

How to Complete the ACORD 75 Insurance Binder

VEHICLE PHYSICAL DAMAGE

Check the Check box for COLLISION and/or OTHER THAN COLLISION if that coverage is provided for any vehicles covered by this binder.

Enter the collision DEDUCTIBLE amount next to the text COLLISION.

Enter the other than collision DEDUCTIBLE amount next to the text for OTHER THAN COLLISION.

If ALL VEHICLES are covered for physical damage check the box next to that text in the column labeled COVERAGE / FORMS.

If only some SCHEDULED VEHICLES are covered for physical damage check the box next to that text in the column labeled COVERAGE / FORMS. If scheduled vehicles are covered you should attached a document or spreadsheet listing those scheduled vehicles.

OTHER THAN COLLISION used to be called COMPREHENSIVE.

COVERAGE / FORMS - Enter the specific coverage forms and edition dates which will be on the policy.

If coverage is based on the ACTUAL CASH VALUE of the vehicles check that box in the LIMITS column.

If coverage is based on a STATED AMOUNT for the vehicles check that box in the LIMITS column and enter the dollar amount to the right of the STATED AMOUNT text. If you have more than one vehicle you will need to provide a schedule of vehicles with the stated amount showing for each vehicle.

There is a third check box and room for text coverage description and limit. This would be used for instance if NEW CAR REPLACEMENT coverage was being provided.


GARAGE LIABILITY

ACORD 75 Binder for Garage Liability

GARAGE LIABILITY - If coverage applies to ANY AUTO check that check box. If not check one or more of the next two check boxes and enter the text description of the coverage. EX: Garagekeepers Legal

COVERAGE / FORMS - List the form coverage form names and numbers and edition dates which will be a part of the policy issued for this binder.

LIMITS - Enter the limits of liability coverage provided by this binder.



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