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UNDERWRITERS GUIDE
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GENERAL INFORMATION


Policy Wording
Florida Sample Policy Wording - FL Sample Policy (Acrobat PDF)


LLC/Trust/Additional Insured Questionnaire - LLC_Application_Worksheet (Acrobat PDF)

COVERAGE

Limits
$1,000,000, $2,000,000, $3,000,000, $4,000,000 and $5,000,000
Optional underinsured/uninsured motorist coverage $1,000,000 and $2,000,000

Self-insured Retention
None

UNDERLYING REQUIREMENTS:
  1. Automobile Liability
    $500,000/$500,000/$100,000 OR $500,000 CSL (including but not limited to ATV’S, motorcycles, mopeds, snowmobiles, and motorhomes).
    For an additional premium, a reduced underlying limit of $250,000/$500,000/$100,000 or $300,000/$500,000/$100,000 may be considered subject to underwriting guidelines.
    Antique autos (25+ years old) and golf carts where liability is extended from the CPL coverage may have underlying limits of $300,000 CSL for additional premium.
  2. Uninsured/Underinsured Liability
    For $25,000 limit, underlying coverage must be present.
    For increased UMBI limits, the underlying limit must match the underlying BI liability limit.
  3. Comprehensive Personal Liability (CPL) or Homeowners
    $300,000 CSL
  4. Watercraft (less than or equal to 350 horsepower)
    $300,000/$500,000/$100,000 OR $300,000 CSL
    Watercraft (over 350 horsepower)
    $500,000/$500,000/$100,000 OR $500,000 CSL
  5. Vacant Land
    $300,000 CSL
  6. Rental Units
    $300,000 CSL
INELIGIBLE RISKS:
  1. Policies written in a corporate name. Business pursuits are excluded.
  2. Individuals convicted of insurance fraud.
  3. Risks without a primary US residence.
  4. Primary residences without required minimum underlying CPL coverage limits.
  5. Risks where the primary residence is a motorhome.
  6. Drivers over the age of 80
EXCLUDED RISKS:
  1. Aircrafts
  2. Locations leased to others that are used for hunting
  3. Race Boats
  4. Auto liability is excluded when underlying does not meet required minimum.
  5. Risks outside the US with underlying carriers domiciled outside the US (with the exception of Lloyds).
  6. Drivers with unacceptable driving records can be excluded as vehicle and watercraft operators where allowable by state regulations.
    1. States which prohibit such exclusions include, but may not be limited to, NY & WI. However, auto liability can be excluded for the entire policy.
  7. Residences with more than four units owned by the insured in a single location.
  8. Properties with commercial underlying policies
  9. Watercraft with maximum speed in excess of 60 MPH
  10. Exposures without required minimum underlying limits
  11. Medium to heavy trucks (i.e. semis and commercial trucks) not written on a personal lines policy.
  12. The following additional insureds cannot be included: mortgagee, landlord, property manager, home owner associations, municipalities, government entities, etc.
REFER TO COMPANY:
  1. Applicants who have any of the following:
    1. An open claim
    2. Any liability claim that exceeds $25,000 in payment during the last five (5) years
    3. More than two (2) liability claims in the past five (5) years
  2. Vacant land in excess of 200 acres
  3. Locations used for hunting
  4. Watercraft over 350 horsepower or that can reach speeds in excess of 45 MPH
  5. Risks with a houseboat
  6. Any driver that has been convicted of:
    1. A major traffic conviction during the last three (3) years
    2. Combination of two (2) moving convictions or at fault accidents during the last three (3) years
    3. More than one (1) at-fault accident during the last three (3) years
    4. Any risk with more than 5 total violations for all household members
    5. Drivers over 70 with any violations
    6. Drivers over the age of 80
    7. Drivers under age 21 with any of the following:
      1. More than 1 moving violations
      2. 1 or more accidents
      3. 1 or more major violation
  7. Target Risks – Entertainment, Political, or Sports Personalities
  8. Requested limit above $5,000,000
  9. UM/UIM requested limit above $2,000,000
  10. Risks with an open liability claim – please provide reserves and loss details
  11. Risks with 12 or more rental units – each unit (not location) is counted separately.
  12. Risks with more than 12 vehicles
  13. Risks with an individual(s) convicted of a felony.
  14. Risks where the named insured is anything other than an individual (i.e. LLC, trust or estate).

GUIDELINES

  1. "Named Insured" – Policy may be written in the name of an Individual, estate, trust or LLC’s. No partnerships, corporate, or other commercial named insureds. All risks not in an individual’s name must be submitted for review.
  2. Automobiles – First two (2) automobiles are included in basic policy premium:
    1. Vehicles registered to a business or corporation that the insured owns, must attach Entity Controlled by the Named Insured endorsement.
    2. Vehicles provided to the insured by the employer may be either scheduled or excluded. Underlying coverage limits must meet minimum requirements and provide coverage during personal use to be scheduled.
    3. Motorhomes must have the Hudson Liability Limitation Endorsement (HUD-PUMB0010).
    4. ATV’S, mopeds, motorcycles, and snowmobiles are considered automobiles for both underwriting requirements and rating.
    5. Medium to heavy trucks (i.e. semis and commercial trucks) not written on a personal lines policy are not eligible for coverage.
    6. Underlying auto liability carrier must have an AM Best Rating of B+V or better. If not rated by AM Best, then Demotech rating of B+ or better is acceptable.
    7. MVR’s are required on all drivers for new business and every 3 years on renewals.
    8. Auto liability can be excluded for risks without acceptable underlying limits or driving records.
    9. Drivers with unacceptable driving records can be excluded as vehicle and watercraft operators where allowable by state regulations (not available in NY & WI).
  3. Property – First residence included in basic policy premium:
    1. Umbrella coverage may not be considered if CPL, with acceptable underlying limits, is not in place.
    2. Underlying CPL carrier must have an AM Best Rating of B+V or better.
      If not rated by AM Best, then a Demotech rating of B+ or better is acceptable.
    3. Apartments – Maximum of 4 owned units in a single location.
    4. Personal Injury is excluded if it is not provided on underlying.
    5. Farms – if owned and operated by Insured, must have Farmers CPL or CPL minimum limits of $300,000. Small farms without commercial operations only. Gentleman’s Farms: A gentleman’s farm is an extremely small or non-operative farm. They are generally small acreages that are not used to produce large amounts of food, grain, or livestock for major markets. Gentleman’s farms are also used as hobby farms, The gentleman farmer has an independent source of income and farms for pleasure rather than for money.
    6. Vacant Land – must have minimum underlying of $300,000 CSL. Must have coverage under CPL or Homeowners Policy. Charge for all acreage combined.
    7. Locations with a hunting exposure must be submitted to the company.
  4. WATERCRAFT:
    1. Minimum underlying liability coverage of $300,000 CSL.
    2. Race boats are ineligible and must be excluded.
    3. Watercraft with more than 350 HP or max speeds in excess of 45 MPH - refer to company.
    4. Personal watercraft (Jet Ski, Wave Runners etc.) may require underlying liability limits of $500,000 CSL due to max speed or loss history.
    5. Watercraft with any form of Ocean Marine or commercial coverage must be excluded.
    6. Ski Boats must not have a sublimit for water skiing.
    7. All watercraft over 40 feet must have Hudson’s USL&H endorsement (HUD-PUMB0017).
    8. All watercraft with inboard or inboard/outboard power greater than 50 horsepower, outboard power greater than 25 horsepower and sailboats 26 feet or more in length need to be scheduled or excluded. If they are less than this and automatically covered by the homeowners policy (i.e. canoes or row boats) they do not need to be scheduled.
  5. AIRCRAFT LIABILITY is excluded in the policy jacket.
  6. Farms - Small farms without commercial operations only.
    1. Gentleman’s Farms: A gentleman’s farm is an extremely small or nonoperative farm. They are generally small acreages that are not used to produce large amounts of food, grain, or livestock for major markets. Gentleman’s farms are also used as hobby farms, The gentleman farmer has an independent source of income and farms for pleasure rather than for money.
      1. No more than 5 employees.
      2. Less than $15,000 of annual revenue from farming operations.
    2. Minimum underlying CPL limit of $300,000 CSL.
    3. No partnerships as named insured. A policy must be written in an individual’s name, attaching an endorsement limiting coverage to "his interest only."
    4. Joint Family Ownership: if residing on farm, may write policy in joint names; if not, then requires a separate policy for each and attach an endorsement limiting coverage "to his interest only."
    5. No tobacco farms.
    6. Cattle – no more than 250 head
      Horses – no more than 50 head
      Sheep – no more than 250 head
      Pigs – no more than 250 head
    7. Farmland leased to others is acceptable for acreage only and is covered and charged as vacant land.
    8. No commercial underlying policies. Farm CPL and CPL are acceptable as underlying.
    9. Acreage grazing only land – no more than 2,000 acres.
    10. Farming only land – no more than 1,200 acres.
    11. Farms are charged separately even if located at the primary residence. Over 300 acres is charged separately.
    12. Farm equipment: vehicles licensed for over the road use must be on a personal lines policy and have minimum underlying limits of $500,000/$500,000/$100,000 or $500,000 CSL.
    13. Horse boarding, selling, or boarding exposures will be excluded.
  7. REQUIREMENTS - prior to binding:
    1. Proof of a valid license and current MVRs
    2. Confirmation of underlying coverage: company and limits.
    3. Signed Hudson UM selection/rejection form (new business and changes to the UM/UIM coverage only – unless requested by company).
    4. Application or renewal offer letter signed by the insured or legal representative.
  8. CHARGEABLE VIOLATIONS:

    1. Minor Violations (including but not limited to):
    2. Speeding less than 25 MPH over listed limit
    3. Careless Driving
    4. Following too close

    5. Major Violations (including but not limited to):
    6. DUI or DWI
    7. Hit & Run
    8. Reckless Driving
    9. Speeding more than 25 MPH over posted limit (excessive speeding)
    10. Evading Police
    11. Driving on a suspended license
    12. Exhibition of speed/drag racing
    13. Voluntary/Involuntary Manslaughter
    14. School bus violations

    15. The higher violation is charged for incidents with more than one violation on the same occurrence.
  9. Since it is not possible to make rules to cover every situation, final decisions with respect to acceptance of risks, underwriting, rates, etc. are reserved by the Company.
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