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Meramec Valley Mutual Insurance Company Underwriting Manual Edition 05.01.13
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Blog - http://www.mymutual.net Quoting System – http://iwsquotes.com/meramec
On-Line Change Endorsements – http://iwsquotes.com/meramec Claim Submissions – http://iwsquotes.com/meramec Policy Maintenance - http://meramec.britecore.com
Meramec Valley Mutual Insurance Company Underwriting Manual Edition 05.01.13
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Main Contact Information Office Hours—Monday – Friday 8am to 4pm
Mail: Post Office Box 438, Hillsboro, MO 63050 Physical Location 535 Elm, Hillsboro, MO 63050
Billing—General Information Chris Little
(636) 789-3806—Local (888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax)
(877) 354-3806 –eFax [email protected]
Billing—General Information
Becky Wynn (636) 789-3806—Local
(888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax) [email protected]
Management, IT, Investments, Marketing Marty Wynn
(636) 789-3806—Local (888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax)
(877) 353-7399 –eFax [email protected]
Underwriting Tina Jansen
(636) 789-3812—Local (866) 533-6789 (Toll-Free) (636) 789-3820 (Local Fax)
Licensing, Accounting, Claims Administration Kay Hayes
[email protected] (636) 789-3813—Local
(877) 800-3813 (Toll-Free) (636) 789-3820 (Local Fax)
(636) 678-2449 –Kay’s (eFax)
Underwriting Sandi Henry
(636) 789-3812—Local (866) 533-6789 (Toll-Free)
(877) 663-9147—eFax (636) 789-3820
Claims—Inspections Brent Sterling
(636) 789-3813 (877) 800-3813
(877) 354-4947 – eFax (636) 789-3820—Local Fax
For after-hours and weekend
Claims Reporting Only
Meramec Valley Mutual Insurance Company Underwriting Manual Edition 05.01.13
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Table of Contents
Rule 1.1 Additional Named Insured
Rule 1.2 Additions to Mobile Homes
Rule 1.3 Address Changes
Rule 1.4 Adjusted Base Rate
Rule 1.5 Age Of Dwelling Restrictions
Rule 1.6 Apartment Buildings
Rule 1.7 Applications
Rule 1.8 ATV’s, Motorcycles, Rec Vehicles
Rule 1.9 Back Dating
Rule 1.10 Binder Restrictions
Rule 1.11 Builder’s Risk
Rule 1.12 Business Occupancies Never Allowed
Rule 1.13 Changes, Endorsements, Cancellations
Rule 1.14 Coverage Forms
Rule 1.15 Discounts and Surcharges
Rule 1.16 Daycare
Rule 1.17 Declined Applications
Rule 1.18 Deductibles
Rule 1.19 Definitions
Rule 1.20 Deleting an Insured
Rule 1.21 Dogs and Vicious Animals
Rule 1.22 Duplex Dwellings
Rule 1.23 EarthQuake
Rule 1.24 Electrical Wiring / Service
Rule 1.25 Farm Buildings and Personal Property
Rule 1.26 Fire Protection
Rule 1.27 Flood Protection
Rule 1.28 Foundations
Rule 1.29 Grace Periods
Rule 1.30 Heating
Rule 1.31 Home Cost Estimators
Rule 1.32 Inflation Guard
Rule 1.33 Inspection of Property
Rule 1.34 Insurance Score Surcharge
Rule 1.35 Insurance to Value
Rule 1.36 Late Payments
Rule 1.37 Liability and Identity Theft Expense Coverage
Rule 1.38 Limit of Risk / Binding Limits
Rule 1.39 Minimum Annual Premium/Assessment
Rule 1.40 Mobile Home Considerations
Rule 1.41 Modular / Mobile Homes
Rule 1.42 More than one HomeOwners Policy
Rule 1.43 New Home Discounts
Rule 1.44 Other Structures – Related Private Structures
Rule 1.45 Payment Options
Rule 1.46 Personal Property
Rule 1.47 Photograph Requirements
Rule 1.48 Policy Fee
Rule 1.49 Pre-Existing Damage
Rule 1.50 Preferred HomeOwners Additional Rules
Rule 1.51 Previous Insurance Requirements
Rule 1.52 Protected Property Plan
Rule 1.53 Quadplex Dwellings
Rule 1.54 Rebuilding Clause
Rule 1.55 Recreational Vehicles
Rule 1.56 Reinstatement
Rule 1.57 Rejection by Underwriting
Rule 1.58 Renewal Notices
Rule 1.59 Replacement Cost
Rule 1.60 Roof Coverings
Rule 1.61 Seasonal / Secondary Dwellings
Rule 1.62 Senior Discount
Rule 1.63 Sewer BackUp Coverage
Rule 1.64 Siding
Rule 1.65 Submersible Pumps
Rule 1.66 Swimming Pools
Rule 1.67 Theft Coverage on Dwelling Fire policies
Rule 1.68 Trampolines
Rule 1.69 Transfer of Policies
Rule 1.70 Trial Applications
Rule 1.71 Utilities Required
Rule 1.72 Valuation - Minimum Insured Values
Rule 1.73 Vandalism
Rule 1.74 Wood Stoves and Furnaces
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Rule 1.1 Additional Named Insured
Rule 1.1.1 Cohabitation and/or Co-Ownership
When two persons
who are not related by marriage, reside together,
and both names appear on the deed to the
property, add the additional person on using the
Broad Form coverage of liability, or
co-own a home and only one individual occupies
the home you must add the additional person on
as an additional insured on a Limited basis.
Rule 1.1.2 Partnerships and Corporations
You must list each person desiring coverage and charge the
appropriate premium. For positive identification of the
individuals involved, the underwriter requires personal
information on each person including at least
1. Full Legal Name, and
2. Home Address, and
3. their interest in the home
4. their Social Security Number and Date of Birth
Rule 1.1.3 Tenant Occupied Dwellings
Add on Additional Insureds as LIMITED Coverage when using
the GL600 form.
Rule 1.1.4 Other Situations
For any other situations, please call the underwriter.
Rule 1.2 Additions to Mobile Homes If the mobile home has a framed addition, the addition must
complement the entire mobile home and be built to local
building codes. The addition can be as large as, but not larger
than, the original mobile home.
Rule 1.3 Address Changes Occasionally, a billing will come back as non-deliverable on a
Home Owners policy. It is necessary for a Home Owners to be
owner occupied so the Company’s procedure is to notify the
agent and set the policy up to cancel. The agent then has the
opportunity to contact the insured and offer another of our
policies if they qualify.
Rule 1.4 Adjusted Base Rate The Adjusted Base Rate is the Base Rate LESS the Deductible
Discount (if any).
Rule 1.5 Age of Dwelling Restrictions When considering the Age of Dwelling, we consider the year the
main structure was initially built, not when it was updated or
remodeled.
Rule 1.5.1 – SafeGuard, Mobile Home Package
There is no specific maximum age for these policies, although
home should be in good condition and show signs of pride of
ownership.
Rule 1.5.2 – Standard Home and HomeGuard
The maximum age of the home for these types of policies is 40
years old. This specifically means when the main part of the
structure was built. The date when additions to the home were
completed do not change the overall age of the home/dwelling.
Rule 1.5.3 – Preferred HomeOwners
The maximum age of the home for this type of policy is 15 years
old. Updates and rehabs do not alter this rule. This specifically
means when the main part of the structure was built. The date
when additions to the home were completed do not change the
overall age of the home/dwelling.
Rule 1.5.4 – HomeGuard SELECT
This rule is obsolete.
Rule 1.6 Apartment Buildings MVMIC does not insure Apartment Buildings. MVMIC only
insures single family homes and duplexes. Liability coverage is
only available on single family homes and duplexes. Triplexes
and Quadplexes do not qualify for any program with MVMIC
Rule 1.7 Applications Meramec Valley accepts applications from properly licensed
and approved agents of MVMIC through the website at its
secure website — no others. The MVMIC agent may not
wholesale MVMIC policies to other agents.
1. MVMIC requires that the agent fill out the on-line
application recording the answers from the insured after
asking all the questions on the application screen and
recording the insured’s exact responses. The Company
does not allow the agent to mail applications to the
applicant for signature. This could be a potentially large
E&O exposure for the agent.
2. The agent must visually inspect the property before
binding coverage on the application.
3. Signatures are required on:
A. All new applications
B. All changes that delete or reduce coverage
C. All cancellations
4. The agent/agency must retain a copy of each item signed
by an insured and be able to produce it upon demand of the
Company.
Rule 1.8 ATVs, Motorcycles, and other Recreational Vehicles
Rule 1.8.1 Property Damage – Policy language specifically
excludes coverage for property damage.
Rule 1.8.2 Liability – You may add off-premises coverage for
certain recreational vehicles at a specific charge added to
Liability. This liability coverage is extremely limited. It does not
offer coverage for uninsured/Underinsured Motorist or physical
damage to the ATV. MVMIC strongly recommends seeking
other more appropriate and comprehensive coverages designed
for this type of risk.
Rule 1.9 Back Dating The agent cannot backdate coverage for any reason.
Rule 1.10 Binder Restrictions Unless allowed for in the rules of a specific application, the
minimum standards for binding shall be as follows.
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Rule 1.10.1 Minimum Insurance Score Allowed for Binding
This rule is obsolete.
Rule 1.10.2 Claims and Financial History HOME GUARD
policies
This rule is obsolete.
Rule 1.10.3 Regarding Claims and Financial History for all
other policies
1. No more than one (1) homeowner/property loss in the
past three years. This loss cannot be a Total-Loss Fire.
2. If it is a Total Loss Fire, it cannot have happened in the
past five (5) years.
3. If it is a Vandalism Claim, it cannot have happened in
the past twelve (12) months
4. If it is a Fire Claim, it cannot have happened in the past
twelve (12) months
5. If it is a Theft Claim, it cannot have happened in the past
twelve (12) months
6. No liability claims in the past five (5) years
Rule 1.10.4 Regarding Unacceptable Character
Those who are not eligible for coverage from Meramec Valley
Mutual Insurance Company
1. Alcoholics, drug addicts, or narcotic addicts
2. Persons engaged in illicit business of any kind or whose
morals or lack thereof are such as to lead to the falsifying
of a claim
3. Persons mentally incapable of making sound judgments
as they, by law, cannot enter into enforceable contracts.
4. Persons whose habits or living conditions show lack of
responsibility or respect for the property or rights of others
Rule 1.10.5 Regarding Unacceptable Property
1.No property, which has a business occupancy listed under
the heading, “Business Occupancies Not Allowed”
2. No shell homes or spec/speculative homes. Speculative
here defined as a home built by anyone without a clear
buyer. The builder speculating that they can sell it once
they’re finished building it.
3.No dwellings converted from a mobile home(s) to a
dwelling that appears to be site-built
4.Homemade doublewides are not acceptable. Two or
more singlewide mobile homes conjoined in any way.
5. Vacant or Unoccupied Buildings are unacceptable.
6. Pools must be made inaccessible to small children to
prevent accidental drowning. Under no circumstances are
slides or diving boards allowed on any policy with
liability coverage.
7. Property located in a subscription fire district must have
a current fire tag at the time of application and keep the tag
renewed each year thereafter.
8. Property that is inaccessible to fire protection year
around is not eligible. This means properties that have
excessively narrow driveways, rutted driveways, dangerous
or excessively narrow bridges, deteriorating or dangerous
low-water bridges.
9. Property is unacceptable which suffers from lack of
maintenance or poor housekeeping: chipped or peeling
paint, rotting soffit/fascia boards, loose or missing siding or
underpinning, broken, curled, or missing shingles, loose
gutters, open cracks in foundation, debris or excessive
personal property scattered in the yard, etc.
10. No property that is poorly or improperly constructed:
homemade repairs on electrical or plumbing which put the
home at risk, improper building materials used for
unintended purposes, homes that have been
slowly/gradually constructed from a mobile home into a
standard-looking home, etc.
11. Property with derelict vehicles and their parts, or
construction or other business related materials/vehicles
scattered in the yard, etc.
12. No property/insured with vicious or aggressive animals
such as, but not limited to Pit Bulls, Dobermans,
Rottweilers, German Shepherds, Chows, or any dog that is
mixed with these particular breeds. If the animal cannot be
approached by anyone without being charged or threatened,
that animal is not acceptable. This applies regardless of
whether the animal is in the home, running free, or
tied/chained in the yard, or fenced.
Rule 1.11 Builder’s Risk Rule 1.11.1 The purchase of the Builder’s Risk Endorsement
including Builder’s Risk Theft is REQUIRED on New
Construction but NOT on minor (typically a value of less than
10% of the total building amount) Rehab Projects. The agent
should insure the structure for the completed value of the
structure.
Any home remodeled extensively (increasing the value of
the property by more than 10%) or new home being built
must have a Builder’s Risk Endorsement included on the
policy. This endorsement limits the Company’s claim
responsibility to the actual amount spent at the time of the
loss instead of the amount insured for in the event of a total
loss. The charge for this endorsement is listed in the rate
pages and includes $2,000 Builder’s Risk Theft Coverage
(which may be increased at an additional cost).
Rule 1.11.2 New Home Built by Contractor Other than
Insured/Applicant
A new home may be written on a Standard or Preferred
Home Owners policy if:
· The home is being built primarily by a licensed
general contractor other than the insured, and
· The home will be completed and occupied within six
months or less.
Rule 1.11.3 New Home Built by Insured/Applicant
The home must be written on a SafeGuard policy if:
· The home is being built primarily by the insured
acting as the general contractor, or
· If the home is not going to be completed and
occupied within 6 months, or
· The insured is rehabbing an older structure.
Once the new home construction is completed, the
SafeGuard policy may be cancelled pro-rata and a Standard
or Preferred Home Owners written on the policy. (This
does not apply to rehabs if the home is more than the
allowable age for the replacement cost policies). If the
home is not completed within 12 months of inception of the
policy, it will be non-renewed.
Rule 1.11.4 Rehab Policies
This Policy Type is no longer offered.
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Rule 1.12 Business Occupancies NEVER Allowed
The following is a listing of activities that would not be subject
to coverage under any policy containing liability coverage and
cannot be bound by the agent:
Archery Range
Auctioneers
Bulldozing
Custom Butchering
Custom Spraying
Dance Studios
Dog Kennels
Dog Grooming
Day Care Services 4+ children
Exercise Classes
Fishing for a Charge
Fruit Orchards open to Public
Golf Driving Ranges
Hayrides
Hoof Trimming
Horse Boarding/Racing Stables/Breeding
Horse Shoeing
Hunting for a Charge
Livery
Livestock Dealers
Machinery Repair/including Welding
Machinery Rental
Manufacturing of any type
Miniature Golf Course
Picnic Grounds
Rental or Riding of Horses
Rock Quarries
Sawmills
Seed Corn Processing
Skeet or Trap Shooting
Snow Removal/ Government
Swimming for a Charge
Tanning Salon
Tennis/Handball/Shuffleboard Courts
Tree Trimming
Taxidermy
Any business involving toxic chemicals or potentially
dangerous machinery.
Rule 1.13 Changes, Endorsements, and Cancellations
Rule 1.13.1 Timeliness of Submissions
The agency must send changes and endorsements within
three (3) working days of the effective date or binder
date—whichever is later.
Rule 1.13.2 Signatures Required
The insured must sign the form anytime coverage is deleted
or reduced in any manner.
Rule 1.13.3 Divorce
At times, due to divorce, an insured needs to be deleted
from the policy. We need proper documentation in order to
delete an Insured from a policy. Proper documentation
includes:
A Divorce Decree that clearly shows the
disposition of the property.
A Quit Claim Deed
A change endorsement signed and dated by the
insured wishing to be taken off the policy.
Rule 1.13.4 After a Total Loss
After a total loss, it is the responsibility of the insured to
request a cancellation of the policy.
However, MVMIC reserves the right, by policy language,
to cancel the policy at any time, with proper notice, any
property with an ‘increase in hazard’. That increase in
hazard typically includes a fire scene.
Rule 1.13.5 Cancellations / Deletions of Coverage
Requests for cancellations or deletions of coverage will be
routinely processed back 30 days. Requests for cancellation
beyond 30 days will require documentation in the form of a
bill of sale or copy of a declarations page showing coverage
by another company. Under no circumstances will the
Company process a cancellation beyond the most recent
renewal of the policy (up to one year).
When we cancel a policy or delete a coverage creating a
refund, the refund will be sent back to the insured.
Refunds will be sent to the insured.
Rule 1.14 Coverage Forms Main coverage forms for policies offered by MVMIC are
as follows
Dwelling Fire Basic FL1 and Broad FL502
SafeGuard Broad Form FL502
Mobile Home Package Seasonal Occupied is Basic
FL1
Tenant Occupied is Broad
FL502
Owner Occupied is Special
FL3
Standard Home Form 2 and Form 3 available
HomeGuard Form 3
Preferred Home and
HomeGuard Select
Form 5
Coverage forms for various endorsements are listed on
the REFERENCES tab of the rating web site at
http://iwsquotes.com/meramec
Rule 1.15 Discounts and Surcharges Rule 1.15.1 Claim Free Discount
All MVMIC policies may earn the Claims Free Discount.
The Claim Free Discount follows the property, not the
insured. Insureds with multiple policies earn Claim Free
Discounts on each property they insure with MVMIC. They
also lose Claim Free Discounts on individual properties
when claims reach two claims within a 36-month period. It
applies when the particular property insured is 36 or more
months claim free before the inception/renewal date.
Rule 1.15.2 Claim Surcharge
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All MVMIC policies are subject to the Claim Surcharge.
MVMIC will apply a claims surcharge of 30% to any
policy that has two claims submitted (based on the date of
loss) in the thirty-six month period before the renewal of
the policy. MVMIC will add this surcharge at the next
renewal of the policy once the policy reaches two claims.
MVMIC will remove the surcharge once the policy has
gone claim free for three years claims (based on the date of
loss).
Rule 1.15.3 Mobile Home Discounts
Previous Insurance / Transfer Credit
This credit/discount is available to applicants who move
their insurance to Meramec Valley Mutual from another
company without any lapse of coverage. If the applicant is
purchasing the home and applying to Meramec Valley
Mutual as their carrier, then they qualify for this credit.
Agent must supply a copy of the previous carrier’s
declaration page at the time of application to qualify for
this credit/discount. Failure to supply declarations page at
the time of application will result in permanent loss of
discount.
Non-Smoker
On Owner Occupied Residences ONLY, if ALL residents
of the home are non-smokers then they qualify for this
credit/discount.
Working Fire Extinguisher
If there is at least one WORKING fire extinguisher (less
than 3 years old) in the home, they qualify for this
credit/discount.
Working Smoke Alarm
If there are at least two WORKING smoke alarms in the
home, they qualify for this credit/discount.
Dead Bolt
If there is a dead bolt, either single or double, on all
exterior doors, then the applicant will qualify for this
credit/discount.
3 Years Claim Free
If the applicants have been claim free on other property
insurance for the most recent three years then they may
qualify for this credit/discount.
Multi-Policy
If the applicant has another policy with Meramec Valley
Mutual they qualify for this credit/discount.
Double Wide
If the Mobile Home is a Double or Triple Wide, it will
qualify for this credit/discount. Please be aware though,
that Meramec Valley Mutual does not accept any home-
made double wides under any circumstances. Double
Wides get a discount of 5% of the Adjusted Base
Assessment.
·Home Made Double Wides constructed by the
insured of two single wides are NOT allowed.
·Triple Wides manufactured that way from the factory
get the Double Wide Discount
Rule 1.15.4 Insurance Score Discounts and Surcharges
With the use of the web-based rating system, this section is
now obsolete.
Rule 1.15.5 Loyalty Discount
A Loyalty Discount may be earned on all MVMIC policies
with the exception of the HomeGuard and HomeGuard
SELECT policies.
The discount is earned at a rate of 1% per year up to a
maximum of 10% beginning after 3 years in force. So, a
policy that has been in force four years has earned a
discount of 4%, five years earns 5%, etcetera.
Rule 1.16 Daycare Policy forms specifically exclude coverage for business
activities. This exclusion includes day care or baby-sitting of
any type under the liability portion of the policy. Coverage for
some daycares of 4 or less children (excluding the insured’s
children) may be added at the appropriate assessment. The
agent should not write any coverage for an insured that operates
a day care in excess of four (4) children/adults.
Rule 1.17 Declined Applications Applications that the Company rejects will be canceled in
accordance with the language of the policy. Whenever MVMIC
cancels a policy, written notice is sent to the insured.
The reasons for any cancellation, whether on New Business, at
Renewal, or anytime, can be found in the Britecore policy
management system. Those reasons are one or more of the
following:
Underwriting
Property Condition
Loss History
Agent Request
Underwriting - Inspection
Underwriting - Builders Risk
Claim Frequency
Claim Experience
Claim Severity
Underwriting
Underwriting
Agency N.L.R. Meramec
Lack of Underwriting Info
IMPORTANT
The agent is not to refer the applicant to the Home Office.
MVMIC will not divulge specific information regarding their
cancellation.
Rule 1.18 Deductibles All MVMIC policies will be issued with a $1,000 standard
deductible unless otherwise stated on the application. MVMIC
does not split deductibles on a policy. $500, $1,000, $2,000, and $2,500
Rule 1.19 Definitions Doublewide Mobile Home – A doublewide mobile home is a
mobile home that was manufactured in two or more pieces,
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delivered, and set up as one structure. Singlewide mobile homes
with additions will not be considered doublewide mobile homes.
Duplex, Triplex, Quadplex – The only multiple-family
dwelling MVMIC will insure is a duplex. Triplexes,
Quadplexes, and Apartment Buildings are not insured by
MVMIC.
Insured Premises -- Insured Premises are defined by the policy.
See the specific policy form for a complete definition.
Insured – An Insured is defined by the policy. See the specific
policy form for a complete definition.
Motorized Vehicle – a self-propelled land or amphibious
vehicle regardless of method of surface contact. It does not
include vehicles that are designed and used to assist the
handicapped and are not required to be licensed for road use.
Mobile Home – a mobile home is a house trailer serving as a
permanent home, hooked up to all necessary utilities, and is at
least twelve (12) foot in width by fifty-five (55) foot in length.
Fifth-wheel trailers and smaller trailers are not eligible for
coverage with any MVMIC policy.
Modular Home – usually synonymous with doublewides, a true
modular home is delivered in pieces that were manufactured
away from the site and are assembled on the homeowner’s
property. Typically, modular homes will not have the
characteristic steel I-beams underneath the home, once it is set
up.
Multi-Family Dwellings – MVMIC offers coverage to only
Single Family Dwellings and Duplexes. Triplexes, Quadplexes,
and Apartment Buildings are not eligible.
Owner Occupied - a home is considered owner occupied when
one or more of the persons listed on the deed of the property
take up full time residence as is evidenced by where they receive
their mail or where they list their residence for tax purposes.
Owner occupied homes cannot rent, lease, or board-out any part
of the residence. The homeowner must live at this residence for
the majority of the year.
Related Private Structures – Other Structures, or Related
Private Structures for the purposes of our policies, are those
structures 1) located on the insured’s property that 2) are not
attached to the residence and which 3) are not used for any
business purpose including farming. Typically, only private
garages and small well houses or sheds are considered under the
Related Private Structures portion of the coverages. Barns and
other farming structures, whether or not they are actively used in
farming, are not considered to be covered unless added on
separately and an assessment charged.
Personal Property- property is considered to be personal
property according to the language of the policy. Specifically,
automobiles and their related parts, motorcycles, all-terrain-
vehicles and other motorized vehicles are not covered under
personal property. MVMIC strongly suggests the agents
thoroughly familiarize him or herself with what is and is not
covered under the terms and conditions of the policy.
Rental/Tenant Occupied – a home is rental/tenant occupied
when the owner/deed holder of the property does not live on the
property and instead allows others to live there on a full-time
basis. Homes rented by the day or by the week are not eligible
for coverage with any MVMIC policy. The home must be
rented on a monthly basis, preferably with a year contract.
Money does not have to exchange hands in order for the
property to be rental. Homes rented by parents to children for
no charge are rental/tenant occupancies.
Seasonal/Secondary Occupied- not to be confused with vacant
structures, a home is seasonal or secondary when occupied by
the owners/deed holders at least 3 out of 12 months per year.
Seasonal structures are typically located along rivers, lakes, and
other recreational areas. Typically a home is not seasonal if in
town or located on the same property as the owner-occupied,
primary home.
On all New Business with an effective date of January 1, 2013
and later, Meramec Valley Mutual Insurance Company will only
accept seasonal dwellings for those who live in and are legal
residents of the State of Missouri, or live within 50 miles of the
seasonal property, or who use the services of a Property
Management company at the effective date and provide proper
documentation of agreement with initial application.
Spec Home- A home built for the purpose of reselling/profit.
Unoccupied Dwellings – a home is unoccupied when it is not
occupied but has contents typical to the occupancy of a dwelling
inhabited by humans (stove, refrigerator, bedroom furniture,
living room furniture, etc).
Vacant Dwellings – a home is vacant when it is not being
occupied and is empty of contents.
Rule 1.20 Deleting an Insured To delete an insured we must have the signature of the insured
being deleted or a copy of the Quit Claim Deed or similar legal
document in order to take them off the policy. The insured may
use a divorce decree or similar documentation to prove no
further insurable interest.
Rule 1.21 Dangerous or Vicious Dogs and Other Animals
Risks with large/vicious/agressive dogs such as, but not limited
to
Pit Bull or American Staffordshire Terrier
Rottweilers,
Doberman Pinschers
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German Shepherds
Chows or Chow Chows…
Other breeds that are considered potentially dangerous and/or
aggressive are Dalmatians, Huskies, Alaskan Malamutes, Presa
Canarios, and Boxers.
Exotic animals such as, but not limited to Rhea Birds, Ostriches,
Chimpanzees, Bears, etc. cannot be offered Liability coverage
regardless of whether the animal is caged, chained, or kept
inside the dwelling. The agent may offer a SafeGuard Policy
without Liability.
Rule 1.22 Duplex Dwellings MVMIC insures duplexes only on Dwelling Fire and SafeGuard
policies. MVMIC never insures dwellings with more than two
families such as Triplexes, Quadplexes, or Apartment Buildings.
Rule 1.23 Earth Quake When Earth Quake Coverage is purchased, it must be purchased
on all applicable property.
SPECIAL NOTE: On the Standard and Preferred HomeOwners
policy that can be written with Farm Property and Buildings, it
is necessary to add all of Coverage A, any additional Coverage
B and C as well as all of Coverages E and F to arrive at the total
amount for Earthquake Coverage.
Earthquake Zone 2 – The Missouri Counties of:
Bollinger, Butler, Cape Girardeau, Dunklin, Mississippi, New
Madrid, Pemiscot, Scott, Stoddard
Earthquake Zone 3 – The Missouri Counties of:
Carter, Iron, Madison, Perry, Reynolds, Ripley, Ste. Genevieve,
St. Francois, Wayne
Earthquake Zone 4 – The Missouri Counties of:
Andrew, Atchison, Audrain, Bates, Boone, Buchanan, Caldwell,
Callaway, Cass, Clay, Clinton, Crawford, Daviess, DeKalb,
Dent, Franklin, Gasconade, Gentry, Henry, Holt, Howell,
Jackson, Jefferson, Johnson, Lafayette, Lincoln, Maries,
Monroe, Montgomery, Nodaway, Oregon, Osage, Phelps, Pike,
Platte, Pulaski, Ralls, Ray, Shannon, St Charles, St Louis
County, St Louis City, Texas, Warren, Washington, Worth
Earthquake Zone 5 – The Balance of the State not specifically listed
in the other zones above.
Rule 1.24 Electrical Wiring / Service Rule 1.24.1 Fuses not allowed
MVMIC does not offer coverage on dwellings with fuses.
Rule 1.24.2 Condition of wiring and service
The dwelling must have a minimum of one circuit per room with
the exception of the kitchen, which should have at least two
circuits. The electrical service should be of sufficient amperage
to handle the normal load of the dwelling. Typically, a
minimum of 100 amps for dwellings with a non-electric
furnace and 200 amps are needed for dwellings with
electrical furnaces or other high amperage appliances.
Rule 1.24.3 Knob and Tube Wiring
Meramec Valley Mutual Insurance Company will never accept
under any circumstances a dwelling that has any knob and tube
wiring. An indicator that there might be knob and tube wiring in
an older home is if the home still has plaster walls.
Rule 1.25 Farm Building and Farm Personal Property Rules
Rule 1.25.1 Farm Building Rules
1. All Farm Buildings and Structures will be subject to the
Rebuilding Clause which reads “When the total amount of loss
to the covered building described above exceeds $2,500, “we”
pay only 50% of the amount of the adjusted loss on that
building. The remaining 50% of the adjusted loss will be paid if
the building is repaired or replaced with a new permanent
building.”
2. Any farm building insured must be used in the farming
operation.
3. The building must be structurally sound and maintained in a
usable condition.
4. All systems (i.e. heating, venting, and electrical) which are
contained in the buildings or structures must meet the
appropriate accepted NFPA standards, State law or Meramec
Valley Mutual standards.
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5. No solid fuel heating device of any type allowed in farm
buildings unless properly installed and UL listed and approved
prior to submission.
6. General housekeeping must be satisfactory.
Rule 1.25.2 Farm Personal Property Rules
1. Must insure 100% of units of a specific property and insure to
a minimum of 100% of the actual cash value.
2. Amounts insured under hay, straw, silage, farm produce,
grain, seeds, and feeds must represent maximum amounts on
hand (peak values) at any one time of production.
3. If an amount is indicated for specified machinery, the
machine or equipment will be fully described by
1. make,
2. model, and
3. serial number.
Rule 1.26 Fire Protection MVMIC requires adequate fire protection on everything it
insures. This means that the property to be insured
must not be more than 10 miles from its responding fire
department
must be accessible, year-round, to fire equipment, and
must maintain a current/paid fire tag subscription if
required.
OVER 5 ROAD MILES FROM PRIMARY
RESPONDING FIRE DEPARTMENT TO FRONT DOOR
OF INSURED DWELLING IS ALWAYS A CLASS 10.
Rule 1.27 Flood Protection Flood Insurance is NOT available from MVMIC.
Rule 1.28 Foundation Rule 1.28.1 Dwelling Fire
Under the Dwelling Fire program there are four different rating
categories. Class One and Class Two specifically disallow Pier
Foundations. Class Three and Class Four allow the structure to
be built partially or fully on pier foundations.
Natural Stone foundations are not acceptable.
Rule 1.28.2 SafeGuard
The dwelling must have a continuous masonry foundation under
all exterior walls of the living area of the dwelling. Piers are not
accepted.
Natural Stone foundations are not acceptable.
Rule 1.28.3 Standard and Preferred Homeowners
The dwelling must have a continuous masonry foundation under
all exterior walls of the living area of the dwelling. Piers are not
accepted. Foundations constructed from natural stone/rocks are
not eligible for coverage under the Standard Home or Preferred
Home policies. Dwellings with skirting are not acceptable.
Natural Stone foundations are not acceptable.
Rule 1.28.4 HomeGuard and HomeGuard SELECT
This policy type no longer offered.
The dwelling must have a continuous masonry foundation under
all exterior walls of the living area of the dwelling. Piers are not
accepted. Foundations constructed from natural stone/rocks are
not eligible for coverage under the Standard Home or Preferred
Home policies. Dwellings with skirting are not acceptable.
Rule 1.28.5 Mobile Home Package
Continuous foundations or piers are acceptable. The mobile
home must be tied down and skirted/underpinned.
Rule 1.29 Grace Period THERE IS NO GRACE PERIOD ON ANY MVMIC POLICY. Renewals and all installment billings are prepared and mailed at
least 30 days in advance and are due by the date specified on the
bill. If the payment is not received on or before that date the
policy lapses with NO coverage in force except as is provided to
the Mortgagee only (for 10 days).
For information on Reinstatement of a lapsed policy, please
refer RULE 1.56
Rule 1.30 Heating
Rule 1.30.1 Dwelling Fire
Under the Dwelling Fire program, there are four different rating
categories. Class One and Class Two specifically require Central
Heating and can have wood heat as a supplemental form of heat.
Class Three and Class Four allow Central or Space Heating and
may have wood heat as a supplemental form of heat.
Rule 1.30.2 SafeGuard
SafeGuard policies must have Central or Permanently
Installed Space Heating and only have wood heat as a
supplemental form of heating.
Space heating in this context does NOT mean space
electric space heaters that plug into a wall socket.
Kerosene space heaters are NEVER allowed in any
home that MVMIC insures.
See the Space Heating Supplement for more information
Rule 1.30.3 Standard and Preferred Homeowners
The dwelling must have a permanently installed central heating
system with thermostatic control in good working condition.
The heating unit must be less than 30 years of age. If the
primary heating source is NOT a conventional electric, natural
or propane gas or oil furnace using a ductwork or hot water
piping system, a supplemental heating questionnaire must be
completed and attached to the application. A wood stove or
furnace is acceptable only if properly installed and only if used
as a supplemental heating device.
Rule 1.30.4 HomeGuard and HomeGuard SELECT
The dwelling must have a permanently installed central heating
system with thermostatic control in good working condition.
The heating unit must be less than 30 years of age. If the
primary heating source is NOT a conventional electric, natural
or propane gas or oil furnace using a ductwork or hot water
piping system, a supplemental heating questionnaire must be
completed and attached to the application. The HomeGuard and
HomeGuard SELECT specifically disallow coverage for homes
with any form of solid fuel heating.
Rule 1.30.5 Mobile Home Package
The dwelling must have a permanently installed central heating
system with thermostatic control in good working condition.
Mobile Homes may not have any sort of wood heat or solid fuel
heating of any type unless it is a fireplace originally installed by
the manufacturer.
Rule 1.31 Home Cost Estimator Rule 1.31.1 When Required
MVMIC requires a Home Cost Estimator from
http://www.e2value.com to be filled out on every application
submitted.
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Rule 1.31.2 What Estimators are accepted
MVMIC may accept other nationally recognized Home Cost
Estimators from the agent as long as the agent has received prior
written approval.
Rule 1.32 Inflation Guard The Company automatically adjusts the Dwelling, Other
Structure, Personal Property, and Additional Living Expense
amounts of a Standard Home Owners and Preferred Home
Owners polices by 2% each year. The HOME GUARD face
amount inflates at a rate of 4% per year. The Company retains
the right to not offer this coverage if it deems necessary. The
applicant/insured may NOT opt-out of Inflation Guard.
Rule 1.33 Inspection of Property Policy language on all policies permits reasonable inspection of
property by the Company. If the insured does not allow the
Company to perform a reasonable inspection, the Company
reserves the right to cancel the policy.
Applicants/properties with locked gates must allow full
inspection of property at the request of the Company.
Rule 1.34 Insurance Score Surcharge See rules and printed schedule of surcharges in rule 1.15
Rule 1.35 Insurance to Value Usage of the e2Value system on the quoting system has
rendered these rules obsolete.
Rule 1.36 Late Payments If the agent/agency accepts a payment that is either late or
within three days of the due date, the agent should notify the
Home Office as soon as practical. This helps avoid mailing out
lapse notices and cancellations.
Rule 1.37 Liability Rule 1.37.1 Liability Limits
The Limits available are:
1. $100,000
2. $300,000
3. $500,000
4. $1,000,000
Rule 1.37.2 Liability Types
The three main types of Liability Coverages are:
Personal/Homeowner Liability for risks up to 40
acres with NO farm exposure on the premises.
Country Home Liability
This coverage type no longer available effective
January 1, 2013.
Farm Liability for risks with 40 acres or more, or
risks with a farming operation.
GL-600 – Premises Only
Rule 1.37.3 Medical Payments Coverage
There are three different types of Med Payments coverage
available.
1. First is the standard Medical Payments coverage available
to the Public. This is standard on Personal AND Farm
coverages.
2. The second type of Medical Payments coverage is Medical
Payments for Farm Employees. As the name implies, this
coverage is only available on Farm Liability policies.
3. Finally, Medical Payments for Named Persons coverage is
available on Farm Liability Policies. As this name implies,
you must name the specific person (age 70 or less) that is to
be insured. This type (Named Med Pay) has a $100
deductible.
Limits for both types are:
1. $1,000 (standard)
2. $2,000
3. $5,000
4. $10,000
Rule 1.37.4 Identity Theft Coverage
Coverage for $15,000 of Identity Theft Recovery
Protection may be purchased on any policy that provides
Liability Coverage (excluding the GL600, Rental Premises
and Seasonal Liability Coverage)
Rule 1.37.5 Optional Coverages Available
Additional Insured – Broad
This coverage extends coverage to an additional insured when
there is an unmarried couple, brother/sister, parent’s children, or
such combination insuring a property, provided they have no
other broad liability coverage with another carrier.
Additional Insured – Limited
This is used specifically when there are additional insureds that
are on the deed but live at another premises. They want to make
sure their liability exposure is covered on this specific insured
premise.
Regarding LLC Insureds on GL-600 Premises Only Liability
Policies: Put the LLC on as the Insured and include the others as
Additional Insured Limited (GL-70). This only works with a
Premises Only GL600 Liability Policy.
Employee Occupational Liability
Limited Liability coverage may be extended for certain classes
of employee/insureds. See rating sheet for complete list and
rates.
Home Day Care Endorsement
Home day care coverage may be provided only if:
1. The home day care service is regularly provided by an insured
person
2. The insured person is compensated for providing the home
day care service to any one child
3. The home day care service is primarily conducted on the
residence premises
4. The number of children or adults, other than children of an
insured person, receiving home day care service does not exceed
four at any time.
Incidental Agricultural Activity
This is an endorsement added to a Personal Liability policy to
extend coverage in a limited form to small Farm/Agriculture
risks. The levels of coverage offered are:
1. 0-10 acres (with or without livestock)
2. 11-40 acres (No livestock)
3. 11-40 acres (With livestock)
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Personal Injury Endorsement
This coverage is available to extend coverage on either the
Personal or Farm Liability policy for Personal Injury.
Rental Home Extensions
Coverage may be bound by the agent for up to two rental homes.
Seasonal Home Extension
Liability coverage may be extended to a Seasonal Residence.
Select Recreational Vehicle
Liability coverage may be extended for the following vehicles:
1. Snowmobiles, ATV’s & Golf Carts (Note: MVMIC does
NOT provide Property coverage for ATV’s)
2. Outboard Boats over 50 horsepower and under 125
horsepower
3. Inboard/Outboard Boats under 40 Miles Per Hour
capabilities
Rule 1.37.6 Unacceptable Liability Risks
1. Any insured who has more than two property OR liability
claims within the past 36 months.
2. Any insured who has had a dog bite claim in the past 5 years
3. Any insured who has a mean or vicious dog, specifically:
a. Dobermans
b. Pit Bulls – American Terriers
c. Rottweilers
d. Chows
e. Shepherds
f. Mastiffs
g. Or any other dog with a history of violent or
erratic behavior or exhibits aggressive or violent
behavior.
4. Any insured whose overall premises housekeeping is poor
5. Any insured who you could not recommend or who has a
poor character reference
6. Any insured engaged in custom farming if the gross receipts
exceed $75,000 or any insured engaged in custom feeding if the
gross receipts exceed $150,000 in the prior calendar year.
7. Any insured engaged in a business activity where the gross
receipts exceed 25% of their total income or $20,000 whichever
is less. Also any insured who is engaged in a prohibited activity
as specifically indicated under the business activities section.
8. Under Named Persons Medical coverage individuals with
medical histories involving bad backs, hernias and lung diseases.
9. Any rental property which does not have functioning smoke
detectors installed.
Rule 1.38 Limit of Risk / Binding Limit MVMIC limits the size of risks it insures. The limits below are
the maximum new business amounts.
Dwelling
Fire Policy
SafeGuard TenantGuard (Contents
only)
Standard HomeOwner
Preferred HomeOwner
$30,000 Min
$150,000 Max
$30,000 Min
$200,000 Max
$10,000 Min $100,000
Max
$75,000 Min $225,000 Max
$125,000 Min $225,000 Max
Rule 1.39 Minimum Annual Premium / Assessment
No longer applicable.
Rule 1.40 Mobile Home Considerations Rule 1.40.1 Minimum Size of Mobile Home Allowed
Small mobile homes less than 12 ft wide or less that 55 long are
not allowed in the Mobile Home Package Program. No Travel
Trailers are allowed in this or any other policy of insurance with
Meramec Valley Mutual.
Rule 1.40.2 Skirting/Underpinning and Tie Downs
Skirting/Underpinning and Tie Downs are required.
Rule 1.40.3 Unacceptable Mobile Home Conditions
Mobile Homes that are in poor repair, have extensive hail
damage, missing or improperly installed skirting/underpinning,
proper steps to all exterior doors, or any evidence showing a
lack of pride of ownership.
Rule 1.41 Modular / Mobile Homes These types of mobile homes are acceptable for coverage under
a Standard HomeOwners Policy Form 2 or 3, based on the
following criteria. The home must:
A. Be permanently installed on a weight bearing masonry
foundation of concrete or concrete blocks/bricks that are on
all exterior walls under the living area of the home.
B. NOT be installed on piers of any type.
C. NOT have skirting on any section of the home
D. Be of a model year that is 10 years old or less at the
original effective date.
E. Have a composition shingle gable roof.
Manufactured Homes of these types may not be written under
the Form 5 Preferred Policy or on the HomeGuard or
HomeGuard SELECT.
The effective date for this type of policy is the closing date of
the property/dwelling.
Rule 1.42 More Than One HomeOwners Policy
MVMIC will allow an insured to maintain more than one owner
occupied Home Owners for a period not to exceed sixty days.
The policy will be canceled at sixty days and may be re-written
on a Dwelling Fire policy provided it qualifies. Vacant
dwellings do not qualify at this time under any MVMIC policy.
MVMIC will allow two HomeOwners policies for insureds that
are building another home and have the Builder’s Risk policy
with MVMIC.
Rule 1.43 New Home Discounts New home discounts are available to dwellings under the
Standard Home Owners and Preferred Home Owners plan
and the HomeGuard and HomeGuard SELECT plan
New Home Discount on HomeGuard and
SELECT policies
0 to 2 years 15% of the ABR
3 to 4 years 12% of the ABR
5 to 6 years 10% of the ABR
7 to 8 years 7% of the ABR
9 to 10 years 5% of the ABR
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New Home Discount on Standard and
Preferred HomeOwners
0 to 5 years 15% of the ABR
6 to 10 years 12% of the ABR
11 to 15
years
10% of the ABR
16 to 20
years
7% of the ABR
21 to 25
years
5% of the ABR
*The ABR is the Adjusted Base Rate. This is the Base rate taken from the tables of
rates for these particular policies less (if any) Deductible Discounts.
Rule 1.44 Other Structures – Related Private Structures – Automatic Amounts
Some policies give an automatic 10% coverage for Other
Structures or Related Private Structures and others do not.
· Dwelling Fire – Non-Mobile Home/Non-Farm 10%
· Dwelling Fire – Mobile Home Dwelling 0%
· Dwelling Fire – Farm 0%
· SafeGuard – Owner and Tenant occupied 10%
· Mobile Home Package Policy 10%
· TenantGuard (Contents only) 0%
· Standard and Preferred Home Owners 10%
· HOME GUARD & HOME GUARD SELECT 10%
Rule 1.45 Payment Options Rule 1.45.1 Payment Required
IMPORTANT: Payment must accompany all
applications. If the applicant submits a check and at a later
date we receive a check from the mortgagee (thereby
doubling payment), we will return the check to mortgagee
if policy is insured billed and reimburse the insured if it is
mortgagee billed.
Rule 1.45.2 Payment Frequency
Annual – No additional Payment Fee for this option
Semi-Annual – There is a $7.50 installment fee per
payment for any semi-annual payment option for a total of
$15 per year.
Quarterly - – There is a $7.50 installment fee per payment
for any quarterly payment option for a total of $30 per year.
.
NOTE: Escrow billing to mortgagee/loan companies
MUST be selected at the Annual Amount. We will not bill
a mortgagee for any other payment option than Annual.
The only exception is if the mortgagee is an individual.
They may opt to pay Semi-Annually or Quarterly.
Rule 1.45.3 Payment Types
New Business – MVMIC accepts checks, money orders,
Visa, Master Card, Discover, and eChecks for payment of
new business
Renewals – MVMIC accepts checks, money orders, Visa,
Master Card, Discover, and eChecks for payment of
renewals.
Rule 1.46 Personal Property Rule 1.46.1 Dwelling Fire Policies
200% of Coverage A is the maximum the agent should
bind. For higher amounts, contact the Home Office.
Rule 1.46.2 SafeGuard Policies
An amount of 50% of the Dwelling amount is automatic on
Owner occupied dwellings. Coverage may be increased to
100% of the dwelling amount for a charge.
No coverage is automatic on the Tenant Occupied
Dwellings.
Up to $5,000 maximum can be purchased for the owner’s
personal property in tenant occupied dwellings to cover
appliances.
Rule 1.47 Photograph Requirements Rule 1.47.1 Dwelling Requirements
The agent will provide at least: Two clear color
photographs of dwellings insured showing all sides must
accompany the application. We must also have at least
one photo of each Related Private Structure (Coverage B)
and each Farm structure to be insured.
Rule 1.47.2 Mobile Home Requirements
The requirements for mobile homes are the same as all
other policies.
Rule 1.47.3 Electronic Photos
The agent may provide digital photos by attaching them to
the electronic application or change endorsement page,
email or disk using the JPEG format and the photos sized at
least 4 inches by 6 inches. The photos may not be
retouched in any manner.
Photos of Farm Equipment valued over $500 are required.
Rule 1.48 Policy Fee All policies written with MVMIC will have an Annual
Policy Fee on the first and all subsequent policy years.
Rule 1.49 Pre-existing Damage The agent may not bind coverage on property that has pre-
existing, un-repaired damage without the expressed written
consent of MVMIC underwriting.
Rule 1.50 Preferred HomeOwners Additional Rules
In addition to those rules under the Standard Home Owners
policy, the Preferred Home Owners must also qualify under
the following rules.
1. The dwelling must have been built within 15 years prior
to inception of the policy
2. It must be an owner-occupied primary residence
3. Fire protection must be a class 9 or better
4. The dwelling must be insured to 100% of the
replacement cost
5. The dwelling must have a minimum replacement value
of $125,000
6. There must be smoke detectors on each floor.
7. The dwelling cannot be modular, mobile or a log home
8. There must be no solid fuel heating devices of any kind
on the premises other than a standard fireplace or a
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properly installed outdoor wood furnace (UL approved
installed no less than 15 foot from the home).
9. Up to two mortgagees are allowed.
10. At least one of the applicants must have had the same
employer or in the same line of work for the past two years.
11. The dwelling must be within sight of at least three other
occupied dwellings (year-round)
Rule 1.51 Previous Insurance Requirements MVMIC requires previous insurance with no lapse of
coverage of more than 60 days prior to the new effective
date on all property insured. The only exception is for first-
time buyers and those who have had nothing to insure.
Rule 1.52 Protected Property Plan On all MVMIC policies except HomeGuard and
HomeGuard SELECT, the property may receive a lower
ISO fire rating if it meets certain criteria.
· If a property is located more than 5 miles from its primary
responding fire department it is rated as a class 10. There is
no way to reduce the ISO class of this property.
· If a property outside city limits is located less than 5 road
miles from its primary responding fire department and is
within sight of three other occupied homes it may receive
the ‘in town’ ISO fire rate. If it is NOT within sight of three
other occupied homes, it must be rated as an ISO class 9.
This Protected Property Plan does not apply to the HOME
GUARD and HOME GUARD SELECT policies. HOME
GUARD and HOME GUARD SELECT policies must use
the actual ISO Class Code for the property.
Rule 1.53 Quadplex Dwellings MVMIC does not insure Triplex, Quadplex, or Apartment
Buildings.
Rule 1.54 Rebuilding Clause on Farm Buildings and Dwellings
All Farm Buildings and Structures will be subject to the
Rebuilding Clause which reads “When the total amount of
loss to the covered building described above exceeds
$2,500, “we” pay only 50% of the amount of the adjusted
loss on that building. The remaining 50% of the adjusted
loss will be paid if the building is repaired or replaced with
a new permanent building.”
Rule 1.55 Recreational Vehicles See rule 1.6
Rule 1.56 Reinstatement Policy There is NO GRACE PERIOD for any policy issued by
MVMIC. A policy may be reinstated up to but no more than 30
days after the original due date of the payment.
Rule 1.56.1 Within 10 days of due date
The insured may reinstate the policy without lapse in coverage
by paying the full amount due within 10 days of the due date.
The mortgagee may also reinstate up to 10 days after the due
date and thereby reinstate back to the effective date. After this
date, the mortgagee can reinstate with the same rules that apply
to the insured as specified above.
Rule 1.56.2 After 10 days of due date
By paying the full amount due, the policy will be reinstated
1. at 12:01 am the day following receipt in our office
of the payment OR
2. at 12:01 am the day following the postmark on the
envelope if paid by mail.
Rule 1.56.3 Number of reinstatements allowed
MVMIC no longer specifies a certain number of reinstatements
allowed.
Rule 1.56.4 Reinstatement Fee
A policy that is reinstated after the initial 10-day lapse period
and up to thirty (30) days after the bill date will be assessed a
$35 reinstatement fee. This fee must be paid before the policy
will be reinstated.
Rule 1.57 Rejection of Policy by Underwriting
If at the time an application is submitted or at any renewal where
the Company decides not to accept/renew a policy, the only
reason given will be “Does not meet underwriting guidelines”.
MVMIC will not state to the insured or to the agent the exact
reasons for the rejection/termination. If credit was one of the
deciding factors in the declination, a letter informing the insured
of their right to receive a free credit report from the issuing
credit agency will accompany the cancellation.
Rule 1.58 Renewal Notices MVMIC sends a renewal notice approximately 35 days in
advance of the due date to the insured at the address as listed on
the policy declaration page. MVMIC is NOT responsible for
any wrong addresses supplied by the insured or agent.
If MVMIC does not receive payment by the date the payment is
due, coverage lapses and a notice is mailed to the address on the
policy declarations page. A copy is also sent to the agent and
mortgagee/lien holders. From that point, the reinstatement rules
apply.
Rule 1.59 Replacement Cost Rule 1.59.1 When an Estimator is required
MVMIC requires a Home Cost Estimator to be completed for
every new piece of business and every increase which increases
the value of the dwelling by more than 10%.
Rule 1.59.2 Acceptable Estimators
Use of the automated rating system has rendered this rule
obsolete.
Rule 1.59.3 Dwelling Fire Policy Replacement Cost Rules
Coverage temporarily unavailable.
Rule 1.59.4 Mobile Home Dwelling Replacement Cost
The applicant may elect at the time of original application to add
the Replacement Cost Option onto the Mobile Home. The
Mobile Home must be 15 models years old or LESS at the
original inception date of the policy.
Rule 1.59.5 Farm Personal Property and Buildings
MVMIC always insures Farm Personal Property and Buildings
at Actual Cash Value. There is no option at this time to add
Replacement Cost Coverage.
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Rule 1.59.6 Dwelling Replacement Cost Coverage on
SafeGuard dwellings
Coverage temporarily not available.
Rule 1.60 Roof Coverings The roof must be in good to excellent condition and if it is
composition/tab shingle or rolled roofing, must have no
broken, curled, or missing shingles or sections. Metal roofs
with hail damage are not acceptable. The roof must be free
from damage, defect, and excessive wear and tear and
covered with:
Rules 1.60.1 Acceptable Coverings
· Heavy 24 gauge metal (not corrugated tin)
· Composition tab shingles not more than 15 years old
· Tile
· Corrugated tin is acceptable on Dwelling Fire dwellings,
and on outbuildings on any policy type.
Rules 1.60.2 Unacceptable Coverings
Wood Shakes/Shingles and Slate Roofs do NOT qualify for
coverage with MVMIC.
Rules 1.60.3 Flat Roof Considerations
Dwellings with flat roofs do NOT qualify for coverage
under a Form 2, 3 or Form 5
Rule 1.61 Seasonal and Secondary Dwellings
Rule 1.61.1 Seasonal Home definition
The owner must demonstrate that this is a seasonal dwelling in a
developed or recreational area. Lake homes and river homes are
the most common homes to be considered seasonal. Homes
inherited from relatives in town or on county roads and
situations of that type are just vacant / unoccupied homes and
therefore not eligible for coverage. On all New Business with an effective date of January 1, 2013
and later, Meramec Valley Mutual Insurance Company will only
accept seasonal dwellings for those who live in and are legal
residents of the State of Missouri, or live within 50 miles of the
seasonal property, or who use the services of a Property
Management company at the effective date and provide proper
documentation of agreement with initial application.
Rule 1.61.2 Supporting Coverage restriction
MVMIC requires supporting, owner-occupied dwelling
coverage in order to cover a seasonal/secondary dwelling.
Rule 1.61.3 Policies offering coverage for Seasonal or
Secondary Dwellings
MVMIC offers coverage for Seasonal / Secondary Dwellings
under the SafeGuard or Mobile Home Package only. Coverage
for Seasonal / Secondary Dwellings does not qualify for
coverage in any other program.
Rule 1.61.4 Vandalism coverage not available on Seasonal
Homes
MVMIC does not offer Vandalism Coverage to Seasonal
Homes.
Rule 1.62 Senior Discount All MVMIC policies EXCEPT HomeGuard and HomeGuard
SELECT now offer the Senior Discount. The policy qualifies for
a Senior Discount if at least one of the named insureds is 50
years old by the original effective date of the policy. If this
discount is added a later date, it must be added effective on the
next Annual Renewal Date. This must be initiated by an online
change/endorsement/request made by the agent. This is not an
automated change.
Rule 1.63 Sewer Backup Coverage Rule 1.63.1 Where Coverage Available
Water / Sewer Backup coverage is available on all MVMIC
policies.
Rule 1.63.2 When Coverage Automatic
A limited amount ($2,500) of coverage is automatically included
at no additional charge on Form 3 Standard Home Owners and
on the Form 5 Preferred Home Owners. This coverage is subject
to the deductible. This amount may be increased at an
additional charge. See the endorsement for specific details about
the coverage.
Rule 1.64 Siding The siding must be free from damage and defect and be
constructed of:
Masonry
Stone
Tile
Aluminum or Steel
Vinyl
LOG HOMES DO NOT QUALIFY
FOR COVERAGE ON ANY TYPE OF POLICY
WITH MERAMEC VALLEY MUTUAL.
Rule 1.65 Submersible Pumps Rule 1.65.1 Dwelling Fire Policies
In order to obtain coverage for submersible pumps on a dwelling
fire policy of any type it is necessary to specifically add that
coverage to the policy. Once added, Submersible Pumps are
covered at Actual Cash Value Settlement for the value of the
pump.
Rule 1.65.2 All Other Policies
Coverage for Submersible Pumps supplying water to the
Dwelling is automatic with all Standard Home Owners,
Preferred Home Owners, HOME GUARD and HOME GUARD
SELECT, SafeGuard, and Mobile Home Package policies.
Coverage for any Submersible Pump NOT supplying water to
the dwelling (for instance, to a barn) may be purchased using the
applicable Submersible Pump rate found in the Dwelling Fire
Rate Pages.
Rule 1.66 Swimming Pools Pools must be made inaccessible to small children to prevent
accidental drowning. Under no circumstances are slides or
diving boards allowed on any policy with liability coverage.
Rule 1.67 Theft Coverage on Dwelling Fire policies
When Theft Coverage is purchased on a Dwelling Fire policy, it
must be purchased on all applicable properties. Applicable
Meramec Valley Mutual Insurance Company Underwriting Manual Edition 05.01.13
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properties include all Coverage C Personal Property and all of
Scheduled and Unscheduled Farm Personal Property.
Rule 1.68 Trampolines As of January 1, 2007, there are no restrictions regarding
the ownership or usage of trampolines on the insured
premises.
Rule 1.69 Transfer of Policies This is strictly prohibited under any circumstance(s). A new
application should be written once the original signing
applicants no longer have an insurable interest in the property.
This also includes those policies written T.O.D. and trusts.
Rule 1.70 Trial Applications
Anytime the automated rating system catches a problem with a
feature of a new application, it will require a Permission Code
before binding can be completed. The agent must speak with an
underwriter in order to get a Permission Code
Rule 1.71 Utilities Required All policies should maintain all necessary utilities.
Rule 1.72 Valuation - Minimum Insured Values
Rule 1.72.1 Dwelling Fire and SafeGuard
The Dwelling Fire or SafeGuard must be insured to at least 50%
of replacement cost and not more than 110% of the replacement
cost. Under no circumstance should the home be insured for
more than 110% of the current Real Estate Market Value
Rule 1.72.2 Standard HomeOwners and HomeGuard
The Standard Home Owner must be insured to at least 80% and
not more than 110% of the replacement cost. Under no
circumstance should the home be insured for more than 110% of
the current Real Estate Market Value.
Rule 1.72.3 Preferred HomeOwners and HomeGuard
SELECT
The Preferred Home Owner must be insured to 100% of value
and not more than 110%.
Rule 1.72.4 Mobile Home Package
MVMIC uses the following chart to determine acceptable ranges
of coverages for Mobile Homes.
Rule 1.73 Vandalism Coverage for Vandalism must be specifically added on the
Dwelling Fire policy. It is activated by an optional line item
stating Vandalism coverage on the Declarations page.
Rule 1.74 Wood Stoves and Furnaces / Solid Fuel Heating Devices
Rule 1.74.1 Approved Installations
For immediate binding privileges on any policy that accepts
wood stoves, the unit must be UL approved and installed to
manufacturer’s specifications or NFPA minimum guidelines.
Rule 1.74.2 Disallowed Installations
MVMIC does not accept any solid-fuel heating device
operated
In a garage where vehicles are operated, or any
outbuilding where there is storage of gasoline, or
other flammable fuels.
In a Mobile or Modular Home written as a
Mobile Home Package Policy
In Tenant or Seasonal occupied dwellings
Rule 1.74.3 Chimneys & Flues
Chimneys must be
· Tile-lined
· Properly tuck pointed if masonry
· Free of broken bricks
· Must not be tied in with any gas burning appliance.
Rule 1.74.4 Outdoor Installations
Outdoor wood furnaces must be installed no closer than a
minimum of 15 feet from the residence unless the insured
can provide documentation from the manufacturer stating
otherwise.
Rule 1.74.5 Surcharges
A surcharge applies to any risk with solid-fuel heating
stoves. Indoor and outdoor wood Furnaces are not
surcharged.