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IIAT WEBCAST UPDATE

A New Look at Texas and ISO Homeowners and Auto. Jim GavinPaul Martin. . Why Now?. More carriers are switching to non-Texas forms for both homeowners and auto The transition to different forms creates E

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IIAT WEBCAST UPDATE

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    1. IIAT WEBCAST UPDATE The webcast will begin in a few moments. If you haven’t already joined the audio portion of the event, call (toll free)… At the prompt, provide your full name and company.

    2. A New Look at Texas and ISO Homeowners and Auto Jim Gavin Paul Martin

    3. Why Now? More carriers are switching to non-Texas forms for both homeowners and auto The transition to different forms creates E&O loss potential Agents need help educating their customers

    4. What’s Out There? Texas forms ISO forms Modified ISO Farm mutual forms (Property)

    5. Homeowners Texas HO-A HO-B HO-C HO-B-T HO-B-CON ISO HO-2 or HO-8 HO-3 HO-5 HO-4 HO-6

    6. Key Property Differences (HO-B vs. HO-3)

    7. Key Property Differences (HO-B vs. HO-3)

    8. Windstorm Coverage Differences (HO-B vs. HO-3)

    9. Sublimit Differences (HO-B vs. HO-3)

    10. Sublimit Differences (HO-B vs. HO-3)

    11. Sublimit Differences (HO-B vs. HO-3)

    12. ISO Built-in Extras Business personal property off premises - $500 Debris removal expense in excess of dwelling limit – 5% of Cov. A Fire department surcharge - $500 Loss assessment - $1,000 Landlord furnishings - $2,500* Grave markers - $5,000* * May be covered without specific reference in the HO-B

    13. Peril Differences

    14. Vacancy HO-B policies lose all coverage on the dwelling after 60 days of vacancy HO-3 policies exclude only vandalism and malicious mischief after 60 days of vacancy

    15. Residency Confusion “Residence premises” means the residence premises shown on the declarations. This includes the one or two family dwelling, including other structures or grounds where an insured resides or intends to reside within 60 days after the effective date of this policy. - Texas HO-B “Residence premises” means: a. The one or two family dwelling where you reside... and which is shown as the residence premises in the Declarations. - ISO HO-3

    16. Recommendations Recognize that with an ISO policy, carriers may not recognize coverage on the dwelling without initial or on-going occupancy Dwelling policies or binders may be required for gaps between closing and move-in Clarification should be pursued on unoccupied property

    17. Key Liability Coverage Differences (HO-B vs. HO-3)

    18. “Business” Exclusion The HO-B excludes all business liability unless normally incidental to a non-business pursuit The HO-3 does not consider “business”: - insured receives less than $2,000 the prior year - volunteer activities without pay - mutual exchange of home daycare services - home day care services for a relative The HO-3 business liability exclusion makes an exception for insureds under 21 engaged in part-time work, or self-employed business with no employees

    19. The Texas Four Pack

    21. Personal Auto Texas vs. ISO

    22. Newly Acquired Autos Texas vs. ISO

    23. Non-owned Autos (Damage to a Rental) Texas Provided under Liability Coverage includes damage to auto, loss of use, diminished value, other damages Subject to property damage limit ISO Provided under Physical Damage Loss of use of rental provided under Transportation Expenses ($20 per day, $600 maximum) No coverage for diminished value or other damages

    24. Liability Exclusion Differences ISO – Coverage provided for non-owned pickups and vans used in business (Texas requires endorsement 511) ISO – Includes an exclusion for racing in a facility designed for that purpose (Texas has no similar exclusion under Liability) ISO – Excludes vehicles designed mainly for use off public roads ISO – No exception made for the named insured when driving a vehicle owned by or furnished to a family member

    25. Physical Damage Differences ISO – One deductible applies (the higher) when two vehicles involved in the same accident ISO – Electronic equipment exclusion more specific to more types of equipment not permanently installed ISO – Custom furnishings and equipment exclusion contains exceptions for bed liners, caps and covers on pickups ISO – Limits of liability for electronic equipment ($1,000) and non-owned trailers ($1,500) lower than Texas

    26. Other PAP Forms Driver limitations Business use limitations Punitive damage exclusions Racing exclusions Damage to non-owned autos Custom equipment exclusions Betterment exclusions

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