Insurance Service Office's new Commercial Liability Umbrella program will be available for insurers' use in 42 jurisdictions by November of this year. ISO also has filed the program with regulators in another six jurisdictions and will file it in Louisiana, Texas, Virginia and Puerto Rico at a later date.
Described as the first such standardized program in the industry, the umbrella program provides excess coverage above underlying limits, drop-down coverage when underlying limits have been exhausted, and certain other coverages that are broader than those in the underlying policies. The program contains policy forms, endorsements, a rating procedure, and rules.
Coverages are based on the court-tested policy language of ISO's Commercial General Liability policy (CGL) and Business Auto Policy (BAP). The umbrella program also may be used over a garage or businessowners policy as well as over policies written by the same insurer or different insurers. Under the umbrella policy, coverages have been expanded beyond those in the CGL and BAP programs. With certain exceptions, coverage will apply worldwide. The policy also will provide coverage for bodily injury, including mental anguish and mental injury resulting from bodily injury; non-owned aircraft chartered by, lent to, or hired by an insured with a paid crew; and personal and advertising injury liability arising out of false arrest, detention, or imprisonment.
The policy will have a per-occurrence limit for bodily injury and property damage; a per-person limit for personal and advertising injury liability; and one aggregate limit for all coverages except automobile, which will not be subject to the aggregate limit.
ISO has developed several endorsements to reflect the various mandatory and optional endorsements in ISO's underlying CGL and BAP programs. Insurers may use the ISO umbrella policy with any non-ISO CGL and auto programs.
Insurers that participate in ISO's General Liability or Commercial Multiperil or Businessowners programs are eligible to participate in the new program.
AIG to acquire Hartford Steam Boiler
American International Group and HSB Group, Inc., the parent of Hartford Steam Boiler Inspection and Insurance Company, have entered into a definitive agreement for AIG to acquire 100% of HSB Group's outstanding stock in a transaction valued at approximately $1.2 billion. In connection with the transaction, HSB has issued AIG an option to purchase up to 19.9% of its common stock under certain conditions.
The transaction has been approved by the boards of directors of both companies and is subject to approval by regulatory authorities and HSB stockholders. The transaction is expected to close later this year or early next year. Hartford Steam Boiler will operate as a stand-alone company with its management team remaining in place.
MLMIC acquires Princeton
Medical Mutual Liability Insurance Company acquired the Princeton Insurance Companies. With direct medical malpractice premium of more than $475 million, the combined company is the second leading malpractice writer in the country with an 8% market share.
Through subsidiaries Professional Liability Insurance Company of America and the Princeton Agency, Inc., the company is also a leading provider of workers compensation coverage to small businesses in 14 states.
CNA Personal and Acordia form marketing partnership
CNA Personal Insurance and Acordia, Inc., announced an agreement for a three-year partnership that will focus on the use of automation tools to help both companies achieve aggressive growth in personal lines.
The companies will use Internet connections to market CNA's upscale package products and perform support functions such as group payroll deduction and mail and telemarketing prospecting.
Great American Custom offers Medicare income protection
Great American Custom Insurance Services and its Chicago branch office introduced Medicare Income Protection for Medicare and Medicaid physicians in Illinois, Ohio, and California.
The policy provides two coverages: (1) income flow protection, which makes up cash flow lost as the result of reimbursement reduction or suspension; and (2) legal expense protection, which reimburses the physician for legal representation during the government appeal process.
For more information, call (888) 466-9493.
F&D expands e-risk policy
The Fidelity and Deposit Companies introduced enhancements to its E-Risk Protection Program that insures businesses for all forms of electronic risk.
The enhancements are: (1) rewards coverage, which pays for information that leads to the arrest and conviction of any individual who commits or tries to commit any illegal act against the insured's e-business activities; (2) a third-party provider endorsement that makes e-risk coverage available to customers whose electronic business systems are under the control of an outside service provider; and (3) a liberalization clause that states that if F&D adopts a revised version/edition of the E-Risk policy during the policy period that would broaden the coverage without additional premium, then broadened coverage will apply immediately to the insured.
F&D integrated into Zurich U.S.
Zurich U.S. has integrated the Fidelity and Deposit Companies as a new business unit into its organization to join its eight other business units. The new operating structure primarily involves merging F&D and Zurich U.S. backroom support services and will result in few if any changes for producers and customers.
F&D's three strategic business units--Financial Services, Surety, and Mountbatten Surety Company--will continue to operate as they have in the past. F&D will now have access to the structure, systems, shared services, and resources of the Zurich U.S. organization. Zurich U.S. will continue to use the F&D brand name in the market where appropriate. As part of the integration, F&D relocated its home office employees in Baltimore to share facilities with Zurich U.S.
AIG launches private client group
American International Group launched the AIG Private Client Group, a division of the American International Companies, to provide customized risk management solutions and services to high net worth individuals. Products include automobile, homeowners, private collections, and excess liability coverage. Insureds also will have access to specialized products such as kidnap/ransom, aviation and watercraft coverage.
The division will offer risk management services such as home valuation, security, engineering, and loss control, as well as providing access to services like art collection management, pre-employment checks on domestic staff and travel advice for trips abroad.
AAIS adds endorsements to artisans program
The American Association of Insurance Services (AAIS) developed a commercial liability endorsement for its Artisans Program. Under the Voluntary Property Damage Coverage option, insured contractors are reimbursed for what they pay or do to compensate others for (1) damage to property of others in the insured's care, custody, and control; and (2) damage to property of others that arises from the insured's work. The coverage applies regardless of who is legally liable for the damage. The insurer can designate the amount of voluntary damage coverage by entering both per-occurrence and aggregate limits on a schedule that accompanies the endorsement.
Three other new endorsements have been filed for the AAIS Artisans Program: (1) liability coverage for employment-related practices such as discrimination, sexual harassment, and wrongful termination; (2) an extended period for reporting employment-related claims; and (3) inland marine coverage for contractors' equipment and contractors' tools (owned, leased, or rented), and installation floater coverage for materials, supplies, fixtures, and equipment intended to become a permanent part of a structure.
PENCO offers college program
PENCO introduced a Colleges and Universities program to meet the needs of higher learning institutions. Primary coverage includes property, marine, crime, general liability, professional liability, and automobile. PENCO also offers customized loss control, inspections, training, and educational assistance.
For more information, contact a PENCO state sales manager, call PENCO Marketing at (800) 4-PENCO-1, or visit PENCO's Web site (www.penco.com).
CGU to be bought by White Mountains Group
CGU Insurance Group said a definitive agreement was reached between its current parent, CGNU Group of London, and an investment group led by White Mountains Insurance Group, Ltd., to purchase the CGU U.S. property/casualty operations. The purchase price is $2.063 billion, plus the repayment of approximately $470 million in inter-group debt. The transaction does not include CGU's U.S. life operation, which will be retained by the CGNU Group.
Subject to regulatory approvals and the satisfaction of other conditions, the transaction is expected to be completed by year-end.
CGU, the 16th largest U.S. property/casualty insurer, was put on the market in February when CGNU merged with Norwich Union and decided to concentrate on life insurance. *