UmialikXpress
Agency Bulletin
July 18, 2024
Commercial Auto Product Changes and Town Hall Recording
Thank you to everyone who was able to attend our Town Hall last Tuesday. A recording of the Town Hall is available here. We discussed several forms during the Town Hall, and those forms are available here. Two additional forms are available here. If you were unable to attend the Town Hall, here are a few important details to know and some key questions and answers from the presentation.
New Policy Proposals
For policies with effectives dates of July 8, 2024, and after, you will receive one to three attachments with your proposal, depending on the lines of business you are writing with Umialik. There may be one proposal for Commercial Auto, one for Workers’ Compensation, and one for any other commercial lines.
Composite Rating Plan
In composite rating, we calculate a rate for each vehicle and coverage group by determining the exposures on a regular underwriting basis according to the preceding twelve months of coverage and by asking about the policyholder’s vehicle additions and removals over the prior twelve months. Composite rating helps efficiently write large, complex risks and includes an audit at the end of the policy period to confirm the actual exposures during the policy period.
The premium requirements to qualify for composite rating are $60,000 for Auto Liability Coverage and $20,000 for Physical Damage Coverage.
Alaska Motor Carrier Form Changes
We previously used a separate form for Alaska Motor Carrier coverage. Going forward, Alaska Motor Carrier coverage will be available as an endorsement that can be added to our standard business auto coverage form. We will also use standard business auto symbols instead of separate motor carrier symbols.
New Business Auto Coverage Forms
Several new business auto coverage forms are available for new Commercial Auto policies. These forms include:
- Business Interruption
- Tractor Trailer Combined Deductible
- Replacement Cost for Private Passenger Vehicles / Autos
- Alaska Auto Hacking Expense Coverage
- Alaska Auto Loan / Lease Gap Coverage
- Full Safety Glass Coverage
- Business Auto Enhancements / Endorsements
There were a couple of questions asked at the Town Hall that we thought would have broader interest, so they are included below.
Are these new coverages eligible to be added to existing policies by endorsement?
The coverages discussed in the Town Hall are only available for policies written in our new system with effective dates of July 8, 2024, and later.
Is Auto Loan / Lease Gap Coverage available for truck-tractors?
This coverage is not available for truck-tractors at this time. We will advise if that changes in the future.
Thank you again to everyone who was able to attend our Town Hall. We look forward to seeing you in our next Town Hall. We will be sending out invitations in the coming weeks.
