Monday, October 6, 2014

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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