The Chubb Group introduced a new auto insurance policy, Masterpiece Auto Preference, which offers liability limits up to $10 million and up to $1 million in uninsured or underinsured motorist coverage. Chubb developed the policy after two years of independent research and surveying of car owners showed that financial protection from lawsuits is the primary concern of car owners.
Masterpiece Auto Preference offers an optional "Agreed Value" provision which locks in the value of a car in the event of a total loss, eliminating the factor for depreciation. It also eliminates depreciation for partial losses.
"Lease gap" protection, covering the difference between the car's value at the time of loss and its lease buyout value, also is available.
Other provisions include up to $1,500 to replace car locks if keys are lost or stolen; no deductible for repair of chipped windshields; full payment to replace airbags, even if accidentally deployed; and reimbursement of meals, phone calls and overnight stay if a covered loss occurs more than 50 miles away from home.
The policy is now available in CO, CT, IL, IN, KS, MO, NM, NY, PA and UT. The policy will become available in many more states over the next few months.
Ohio Casualty Group acquires commercial lines division of Great American
Ohio Casualty Insurance Company will acquire substantially all of the commercial lines division of Great American Insurance Company. The plan is for Great American to transfer certain commercial lines liabilities and related assets to Ohio Casualty in exchange for $300 million in cash, plus warrants to purchase $3 million in shares of Ohio Casualty common stock.
American Financial Group, the parent of Great American, also may receive up to an additional $40million depending upon the retention and growth of the acquired business.
Closing is anticipated in the fourth quarter, following any necessary regulatory approvals. The major lines of business included in the sale are workers compensation, commercial multiperil, umbrella and commercial auto.
This move will also add nearly 1,700 agents to Ohio Casualty who will come from Great American's commercial lines division.
CNA offers antique auto and boat coverages
CNA is entering the market for antique/classic automobiles and classic wooden boats through an arrangement with the Hagerty Classic Insurance Agency. CNA will offer the coverage through its agents and Hagerty, a specialist in these lines based in Traverse City, Michigan.
The Hagerty program includes agreed value physical damage coverage, a single liability premium charge, flexible underwriting and in-house claims handling.
Royal & SunAlliance offers liability for nonprofits
The Financial Products Practice of Royal & SunAlliance is offering liability insurance for nonprofit organizations in a single form policy which includes directors and officers and employment practices. The policy protects the organization, directors, officers, trustees, employees, volunteers and committee members for actual or alleged wrongful acts while serving in such capacities, including, but not limited to, mismanagement, employment wrongful acts and publishers personal injury wrongful acts.
For more information, visit www.royalsunalliance.com or call (800) 697-7564.
Travelers has service center for small commercial business
Travelers Property Casualty introduced a service center for the small commercial business of its agents. Located in Elmira, New York, where the company has maintained a service center for personal lines business since 1980, the small business service center offers various options of customer service for agents writing business with the company's Select Accounts department. Use of the service center is not mandatory for agents.
Service Center options include renewal processing, endorsement issuance, certificate requests, billing questions, claims interface, insurance to value questions and cross-selling.
The agency name will be displayed prominently on all initial and renewal communications to insureds.
The center is open Monday-Friday from 8 a.m. to 6 p.m. EST and employs 60 people, 23 of whom are licensed agents. Service personnel can handle all Travelers small commercial products including Master Pac, PacPlus, CPP, workers compensation, auto, inland marine and umbrella.
More information on the service center is available from Travelers Select account executives or Doug Goodwin at (800) 277-6130.
Hartford subsidiary provides services to other insurers, agents
The Hartford has formed a new subsidiary, Trumbull Services Co., to provide other insurers, agencies and brokers with a variety of administrative and service functions which these entities may wish to outsource. The services can include policy issuance, premium billing, collection and auditing, subrogation, loss control, claim services, medical bill review, bankruptcy administration, flood insurance, call center and communication services.
The first services Trumbull has been providing are policy issuance for workers compensation and commercial and personal auto business. Trumbull Services plans to expand this for all property/casualty lines including general liability, professional liability and directors and officers insurance by early next year.
The Hartford subsidiary also offers a wide range of run-off and liquidation services for insurers, insurance pools and funds.
Communication services to be provided include the integration of telephone and information technology to create call centers and fax communication services.
For more information about Trumbull Services Co., contact Paul Semanski at (888) 410-2963, ext. 73823. Trumbull's Web address is www.trumbull-services.com.
CNA assumes Cigna's railroad business
CNA E&S, a business unit of CNA, announced a quota share treaty agreement whereby CNA E&S will assume responsibility for Cigna's in-force book of railroad business. CNA E&S will be offering quotations, upon expiration, to all of the Cigna railroad customers.
The CNA E&S Railroad unit offers customized coverages to address the needs of U.S. and international railroad industries. The variety of coverages offered to the railroad industry includes a comprehensive package policy which encompasses a claims-made liability form including foreign rolling stock/bill of lading, pollution and FELA coverages and also a property coverage section with a combined basket retention for both property and liability for freight railroads and terminal switching facilities.
Claims-made and occurrence railroad liability policies also are available for excursion railroads and transit systems. CNA E&S also offers railroad protective liability, general liability, umbrella, automobile, and workers compensation policies for railroad contractors.
For further information regarding the CNA E&S Railroad unit, contact: Bridget Malone, assistant vice president, at (212) 440-3544. *
©COPYRIGHT: The Rough Notes Magazine, 1998