Insurance Community University AgOP 1 The webinar will begin shortly. There is no audio at this...

Insurance Community University

AgOP

1

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Use the ‘chat’ window for questions on the content.

100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.


Welcome to your Insurance Community University

• All of you are currently on mute – Un-mute your own system– Telephone Option

• Select Telephone on your screen• Dial in the PIN number so that your number becomes active

– Microphone and/or Speaker Option• You can use this option if you have a headset that you use

with your computer

Audio

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Participation & Chat Window

• You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel

• Q & A is welcomed during the presentation and at the end of the presentation

• You will find the question box on your control panel– Write your question in that box

and send it to the presenter/organizer

• The presenter will take those• questions in the order submitted

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DOI Requirements

• When you see a slide with the hand up symbol, touch the “hand” icon on your control panel– Click ONCE only

• If you do not raise your hand, the monitor will be in contact with you in the chat box

• If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times

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= Hand is down


Polling

• Throughout the class we will be conducting periodic polls

• We need 100% participation on the polls• The polls are intended to check

participation but also to create discussion topics throughout the presentation

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Forms To Complete for CE

• After class ends– Return attendance form– Proctors – return your form to email

address

• Email address is in chat window or in email sent to you today

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DOI Requirements

• We will file your hours with the DOI after the completion of this webinar and we have received the attendance form.

• You have 48 hours to return the form• You will be sent a Certificate of

Attendance/Completion by email. Please retain this for your records for five years.

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Internet Disruption

• If the presenter looses internet connection STAY ON THE LINE

• The administrators will communicate with you


Internet Failure

• If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated

• You will receive instructions by email as to how we will proceed

• This is a precautionary notice, only

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This class is being recorded

• Available in the University• This course is approved for CE in CA Only


DisclaimerInsurance forms and endorsements vary based on insurance company;

changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is

intended as a general guideline and any interpretations provided by the instructor or the creator(s) of this material do not modify or

revise insurance policy language. In providing these materials, the authors assume neither liability nor responsibility to any person or

business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials

provided. Copyright 2010 – 2013 All Rights Reserved

www.insurancecommunitycenter.com

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Your Instructor Today

Laurie Infantino, CIC, AFIS, CISC, ACSR, CISC, CRISPresident and Co-Founder of

The Insurance Community Center


What This Course Will Cover

• Background on AgOP• Eligibility• Review of AgOP Coverage Form• Review of available endorsements

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Polling Question #1

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Background on AgOP—It is all about Vertical Integration

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Background on AgOP

• Developed by the AAIS• Designed for insuring the business of

processing agricultural products from production through processing to distribution

• There are 80 eligible classes of businesses for the AgOP

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Eligibility (AAIS)

• Risks involved in one or more of the following agricultural operations are eligible for the program– Buying, selling, storage, or processing of

agricultural products– Manufacturing goods from agricultural

products

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Eligibility (AAIS)

– The sale of goods or services to agricultural or agribusiness customers; or

– Farming operations that supply agricultural commodities for manufacturing or processing

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AgOP vs Farm Owners Policy

• It is designed for the “agribusiness risk”• Higher limits are available• Higher minimum premiums are

applicable• There are similarities, however farm

owner risks are often owner occupied with dwellings as a key component.

• Dwellings can be written on the AgOP

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Farm Forms in the ISO Series

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Farm Forms in the ISO Series

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Polling Question #2

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AgOP

• The AgOP is a monoline property policy• The AgCGL is the monoline CGL policy• However, it is a “package” of property

coverages all on one policy including:• The policy avoids gaps in property

coverages

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AgOP

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INLAND MARINE


It is all about the trigger of coverage

• Most coverages are within the primary coverage form

• Triggered by the Declarations page

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Review of the AgOP Coverage Form

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Policy Structure

• Common Policy Declarations• Agribusiness Property Coverage

Declarations (many)• Common Policy Conditions• Agribusiness Property and Income

Coverage Part• AgOP Endorsements• State Amendatory Endorsements

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AgOP Coverage Part AG 0100 0101

• Coverage can be written on a “blanket” (combined limit/category) or “scheduled (brings in the inland marine approach)

• This is one reason the Declarations Page has numerous pages available to specify

• Example; pasture fences which is property not covered—the pasture fences can be scheduled.

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Polling Question #3

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Polling Question #4

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AgOP Coverage Part AG 0100 0101

• Core coverages– Building including residences– Personal property including household

property– Computers– Stock– Mobile Equipment– Builders Risk

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Definitions

• The AAIS Forms begin with the definitions

• ISO forms define terms at the end of the forms/endorsements

• All forms that are defined will be in parenthesis throughout the policy

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Key Definitions

• Computer hacking• Computer virus• Covered location• Dependent location

– Contributing location– Recipient location– Leader location– Manufacturing location

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Key Definitions• Finished stock• Mobile equipment• Pollutant• Perishable stock• Public health authority• Rents• Restoration period• Specified Perils

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Coverage Set UP

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Property Covered

• Property covered can be covered on a “blanket basis” under the –broad categories or be–“specifically scheduled property”

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Property Covered

• Lead in language on Building and Stock, for example will say:– Other than property that is specifically

described on the “declarations” and covered as Specifically Scheduled Property or not specifically excluded on the Declarations

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Property Covered

• Building Property• Builders’ Risk Property• Computers• Mobile Equipment• Personal Property

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Property Covered

• BUILDING PROPERTY – “covered location”– Including within 1000 feet

• BUILDERS RISK PROPERTY – In Course of Construction subject to above

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Property Covered

• COMPUTERS – Scheduled– Blanket

• MOBILE EQUIPMENT – Scheduled– Blanket

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Property Covered

• PERSONAL PROPERTY – Other then computers, mobile equipment,

excluded property, stock– TIB– Leased– Property of Others– Household Personal Property

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Property Covered

STOCK • Other then specifically scheduled

– Grain, seed, other agricultural products– Raw materials– Goods in process and finished goods– Goods held in storage or for sale– Stock of others in insured’s care– Supplies used in packing or shipping

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Stock Endorsements

• Hay, Straw & Fodder AG 0136• Mortgaged and Stolen Grain AG0144• Livestock Coverage AG 0140• Poultry Coverage AG 0152


Specifically Scheduled Property • This means property that is specifically

described on the “declarations” as covered property and for which a separate “limit” is shown in the “declarations”.

• Items that are specifically described on the “declarations” and covered as Specifically Scheduled Property will not be subject to “terms” under Property Not Covered that exclude or restrict coverage for the specifically described item.


Polling Question #5

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Property Not Covered

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1. Airborne & Waterborne Property (Supp)

2. Aircraft & Watercraft (Supp)

3. Animals (End)4. Automobiles and

Vehicles(Dec) 5. Contraband6. Crops (Crop Insurance)

7. Exports & Imports (Supp)

8. Fences (schedule)9. Fine Arts (Supp)10. Foundations 11. Furs (Supp)12. Guns (Supp)13. Hay, Straw, or Fodder

(End)

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14. Jewelry, Watches, (Supp)15. Land, Water, and Cost of

Excavation16. Money and Securities (Crime17. Newly Acquired and Newly

Constructed Buildings (Extension)18. Property More Specifically

Insured19. Property of Others (Supp)20. Property You Have Sold

21. Silverware (Supp)22. Trees, Shrubs, Plant,

Lawns (Supp)23. Underground Pipes, Flues

Drains24. Valuable Papers (Supp)


Additional Coverages

• Applicable limits shown on Schedule or Supplemental Dec

• Additional insurance, unless otherwise indicated

• Not subject to coinsurance• Subject to deductible, unless otherwise

indicated

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Additional Coverages1. Consequential Loss -

(Incl.) Debris Removal2. Emergency Removal -

(Incl.)3. Emergency Removal

Expense4. Fire Department5. Glass Repair (Incl.)6. Inventory & Appraisal

7. Pollutant Cleanup8. Recharge of Fire

Protection

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Coverage Extensions


• Not Additional Insurance• Not subject to coinsurance• Subject to deductible, unless otherwise

indicated

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Coverage Extensions

1. Fraud or Deceit -2. Newly Acquired

Computers 3. Newly Acquired,

Constructed Buildings 4. Newly Acquired Mobile

Equipment 5. Personal Effects6. Personal Property

Acquired

7. Property Away8. Stock Acquired

Locations9. Trees, Shrubs, Plants

and

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Supplemental Coverages


• Additional insurance• Not subject to coinsurance• Subject to deductible, unless otherwise

indicated

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Supplemental Coverages1. Accounts Receivable 2. Brands or Labels Expense 3. Carrier Liability 4. Fine Arts, Furs, Guns,

Jewelry, 5. Loss of Use of Dwellings 6. Ordinance or Law

7. Overseas Transit & Location

8. Property in Transit9. Property on Exhibition10. Property Sold Under

Installment Sales11. Salesmen’s Samples12. Sewer Backup13. Spoilage

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Supplemental Coverages

14. Surface Water Run-Off15. Tank Leakage16. Utility Service

Interruption

17. Valuable Papers and Records

18. Watercraft19. Wrongful Delivery of

Liquid Property


Income Coverage

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Polling Question #6

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Polling Question #7

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Income CoverageFour Income Options Available:

– Earnings, Rents, and Extra Expense– Rents and Extra Expense– Earnings and Extra Expense– Extra Expense Only

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Earnings Options

• Maximum Period of Indemnity• Monthly Limit of Indemnity

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Earnings Coverage

• Loss/expense incurred within 12 months after the date of direct physical loss

• Actual loss of net income (net profit or loss before income taxes)

• Caused by a covered peril• And continuing operating expenses normally

incurred including payroll

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Extra Expense Coverage• Necessary during “restoration period” that

you would NOT have incurred if there had not been a loss

• Extra Expense includes Mobile Equipment Rental Reimbursement, subject to a 72 hour waiting period

• Basic Loss of Income Coverage is not otherwise subject to a waiting period

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Exclusions and Limitations

1. Finished Stock2. Leases, Licenses, Contracts, Orders3. Mobile Equipment (various requirements)4. Radio and Television Antennas (Dec)5. Software - 60 Days or Longer . . .6. Strikes, Protests, Other Interference

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Income Coverage Extensions1. Interruption by Civil Authority –

Up to 30 Days from date of order2. Period of Loss Extension –

Up to 90 Days3. Grain Storage Income –

Up to 90 Days beyond restoration period4. Seasonal Coverage –

Up to 1 Year if that period is longer than restoration period

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Additional Income Coverages

• Newly Acquired Locations, Earnings and Extra Expense

• Newly Acquired Locations, Extra Expense


Polling Question #8

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Supplemental Income Coverages1. Public Health Shutdown (30 days or

resumption)2. Dependent Locations (Dec limit)3. Utility Service Interruption (Dec limit)4. Contract Penalty (Dec limit)5. Property In Transit, On Exhibition, or In

Custody Of Sales Representatives (Dec limit)

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Optional Income Expense Deductions1. Ordinary Payroll Expense can be

excluded on Dec2. Power, Heat, and Refrigeration

Expense can be excluded on Dec

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Perils

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Polling Question #8

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Perils – Covered/Excluded

• Open Perils Coverage– Endorsements that cover hay, livestock, and

poultry provide named perils coverage

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Perils Excluded

a. Ordinance or Law (Supp)b. Earth Movement or Volcanic Eruption

(Scheduled EQ AG 0172)c. Civil Authorityd. Nuclear Hazarde. Utility Failure (Supp)f. Warg. Water (End Flood AG 0176)

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Perils ExcludedDo not pay for loss or damage if one or more of the following exclusions apply to the loss.a. Animalsb. Collapsec. Computer Virus or Computer Hackingd. Contamination or Deterioratione. Criminal, Fraudulent, Dishonest or Illegal Acts

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Perils Excluded

f. Defects, Errors and Omissionsg. Electrical Currents (EB)h. Explosioni. Freezingj. Increased Hazardk. Loss of Use

l. Mechanical Breakdown (EB)

m. Neglectn. Pollutantso. Rain, Snow, Ice or

Sleetp. Seepageq. Settling….

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Perils Excluded

r. Smog, Smoke, Vapor, or Gass. Temperature/Humidity (Specified Perils)t. Theft ( for only certain categories)u. Voluntary Partingv. Wear & Tearw. Weatherx. Windstorm or Hail ( for only certain categories)

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Additional Property Not Covered or Subject to Limitations

1. Accounts Receivable2. Boilers3. Glassware/Fragile Articles4. Gutters and Downspouts5. Interior of Buildings6. Missing Property7. Tobacco Barns8. Valuable Paper and Records

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Other Coverages

• For clarity purposes1. Collapse2. Computer Disturbance3. Electrical Breakdown (EB)4. Ordinance or Law (Dec)5. Tearing Out and Replacing6. Theft Damage—Non owned Property

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Valuation

• Dec Page Entries Trigger:1. Actual Cash Value

When Replacement Cost is NOT on DecLimited Replacement Cost ($15,000)

2. Replacement Cost3. Builders Risk4. Stated Amount (suspends coinsurance)

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Valuation

5. Fine Art (ACV)6. Glass7. Pair or Set (entire set)8. Loss to Parts9. Property of Others (ACV)

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Valuation

10. Special Stock Valuation Terms– ACV– Market Price– Selling Price– Cash Shipping Value– Point of Origin - Imported Stock – Valued Seed, Foundation Seed– Other, as shown on Declarations

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How Much We Pay

• Deductible• Peak Season Increase,• Inflation Protection• Coinsurance • Value Reporting• Coinsurance Income

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Endorsements

• See attached AAIS current endorsement list

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Upcoming ClassesUpcoming University/Paid CE Classes

FREE to University Members$50.00/charge for non university members

12/3 Surety Bonds

12/5 CA Property Valuation

12/10 Crop

12/17 Equine

12/19 & 20th Insight on Errors and Omissions

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Insurance Community University AgOP 1 The webinar will begin shortly. There is no audio at this...

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