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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