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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How to Complete the ACORD 127 Remarks Section

ACORD 127 Remarks Section

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

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

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

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

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How to Complete ACORD 127 Additional Interest / Certificate Recipient

ACORD 127 Additional Interest / Certificate Recipient

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

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

INTEREST

Check the box which applies for this specific business entity.

ADDITIONAL INSURED - Good Definition HERE

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

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

LOSS PAYEE - Good Definition HERE

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

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

OTHER - List your own here


NAME ADDRESS

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


RANK

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

CHECK BOXES - EVIDENCE / CERTIFICATE

Both can be checked.

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

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


REFERENCE  / LOAN #

Enter the loan number.


INTEREST IN ITEM NUMBER

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

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


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


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How to Complete the ACORD 127 General Information Section

ACORD 127 General Information Section

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

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

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

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

GENERAL INFORMATION

ANY VEHICLES NOT SOLELY OWNED BY AND REGISTERED TO APPLICANT

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

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

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

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

IS THERE A VEHICLE MAINTENANCE PROGRAM IN OPERATION?

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

ARE ANY VEHICLES LEASED TO OTHERS?

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

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

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

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

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

DO OPERATIONS INVOLVE TRANSPORTING HAZARDOUS MATERIAL?

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

ANY HOLD HARMLESS AGREEMENTS

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

ANY VEHICLES USED BY FAMILY MEMBERS? IF SO IDENTIFY.

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

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

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

DOES THE APPLICANT HAVE A SPECIFIC DRIVER RECRUITING METHOD?

If it is writing, attach a copy of document.

ARE ANY DRIVERS NOT COVERED BY WORKERS COMPENSATION?

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

ANY VEHICLES OWNED BUT NOT SCHEDULED ON THIS APPLICATION?

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

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

ANY DRIVERS WITH CONVICTIONS FOR MOVING TRAFFIC VIOLATIONS?

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

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

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


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


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ACORD 127 Driver Information and Coverage / Limits

How to Complete the ACORD 127 Driver Information

ACORD 127 COVERAGE AND LIMITS

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

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

DRIVER INFORMATION

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

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

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

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

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

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

SEX M for male, F for female.

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

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

YRS EXP - Years of driving experience for this driver.

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

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

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

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

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

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

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

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

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


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

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How to Complete the ACORD 127 Business Auto Section

ACORD 127 Business Auto Section

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

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

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

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

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

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

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

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

Here is their website home page...

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

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

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

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

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

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

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