The Wheaton, Ill.-based American Association of Insurance Services (AAIS) said it has made a nationwide filing of some additions to policy language for use with commercial insurance policy forms.
In addition to new endorsements, it said there has been a filing of a revised manual under the AAIS Businessowners Program. The proposed effective date for the first states being filed is Sept.1.
AAIS, a national insurance advisory organization, develops standardized policy forms and rating. Among the new AAIS business owners endorsements:
o One would implement functional replacement cost valuation for building property, and another would implement such valuation for business personal property.
o One could be used to implement percentage deductibles of 1 percent, 2 percent, or 5 percent for windstorm or hail losses, subject to a $1,000 minimum deductible.
o One would allow coverage for property damage liability to apply to scheduled premises rented or occupied by the named insured with the owner's permission.
AAIS said the newly revised program manual features a format consisting of countrywide rules, classifications and rating information, plus state pages with territorial definitions, state-specific rating information and state-specific exceptions to countrywide materials.
The revised manual gives affiliates a choice between using precalculated loss costs or factor rating information to determine the basic policy premium for buildings and business personal property.
The factor rating information consists of base loss costs and relativity factors that pertain to construction, protection, territory, rate group and liability limits, said AAIS, adding that with approval of each state filing, the base loss costs and relativity factors will be posted to the AAISdirect online service as downloadable data sets for automated policy rating systems.
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