POLICY TERM

Our policies are now written on a Continuous Basis at rates in effect at the inception date or anniversary date. If a policy is cancelled for any reason, a continuous policy will not be issued on the anniversary date.

APPLICATIONS

Supplies are available upon request. Acord applications are acceptable for all lines of business.

In order for the underwriting department to evaluate a risk, the new application must be properly completed and rated. The following are simple and basic requirements for completing our applications. Applications not meeting these requirements will be returned to the agent for completion. Cancellation of the risk will result due to lack of underwriting information and the risk will not be reinstated. 

1. Applications must be received within 5 working days of the inception date.
2. They must be legible. 
3. Abbreviations or nicknames should not be used.
4. A check for a down payment must accompany the application.
5. A photo of each risk is required with the application.
6. On Standard Fire, Farmowner and SMP policy applications, a diagram must be completed, showing location and distance between all buildings. Uninsured buildings should also be noted on the diagram. This information is necessary to determine risk size for reinsurance purposes.
7. All questions must be answered.
8. All applications must be signed by the insured.
9. A Fair Credit Reporting Act form must be signed by the insured, if it is not a part of the application.  
10. All Personal Lines and Farmowners applications and endorsements must be completed and rated by the agent. Our manual provides rates for all types of policies, with the exception of certain Inland Marine risks. SMP and BOP applications will be rated by the commercial underwriter. You may submit an application for a quote prior to binding, or call the office with pertinent information. Failure to rate any other policy types will result in the agent being charged for rating.
11. On all Personal Lines policies, we will need the Social Security numbers and Dates of Birth of all named policyholders. This is due to New York State legislation which states all persons over 65 years old must be notified that they may designate a third party to whom all bills would be mailed.

BINDERS

Please submit a copy of all binders issued to policyholders within five working days to the Company. You may issue a binder for a one-year term, as permitted by New York State Insurance Department Law.

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ANNUAL PREMIUM

It is our company policy to bill annually on the anniversary date. All anniversary billings are sent at least 30 days in advance to the policyholders, and premiums are due on the policy anniversary date. We have financing available for eligible policyholders. For detailed information, please refer to page 11, Payment Plan. Policies are normally direct bill to the policyholder.

DIRECT BILL PAYMENT PLAN 
(Effective 3/1/91, revised 6/94)

1. All Insureds
2. Payment in Full
3. Payment option:

• 1st Payment 25% due on effective date of policy.
• 2nd Payment 25% + service charge due 60 days after effective date of policy.
• 3rd Payment 25% + service charge due 120 days after effective date of policy.
• 4th Payment 25% + service charge due 180 days after effective date of policy. 

Service Charges:

A service charge will be applied to each applicable billing.

There will be a charge back fee for any dishonored checks returned.  The fee imposed hinges upon the Schedule of Rates, Fees and Charges utilized by our depository bank.  The fee will not exceed $10.00. 

Endorsements:

Premiums for endorsements effective:

• During the billing period will be split between remaining payments.  1st payment due on the effective date of the endorsement.
• After the billing period are due in full by the due date on the bill. 

Billing period:

The first 180 days after the effective date of the policy. 

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Additional Features:

If two payments are made on any payment due date, the following billing will be skipped, until the next billing. e.g.  If a 50% payment is made on the effective date, the next billing will be due in 120 days. 

Reminders:

1. If another party is to pay the premium, initial the bill and send it to them.  All coverage questions, changes and claims should be handled by your agent.
2. A cancellation for non-payment of premium will be issued when a check has been dishonored by the bank. The amount due will be the original premium, plus the  bank  charge back fee.  This amount will be payable in cash, money order, certified bank check or agency check.

CONTINUOUS POLICIES

Each agent will receive a computer listing of renewal policies two to three months in advance of the policy anniversary dates. All policies will be continued on the anniversary date at the rates and terms in effect unless we are notified in writing that the insured requests to cancel his policy, or if we notify you we are canceling for underwriting reasons, in accordance with New York State statutory laws at the end of the required policy period. 

Additional or updated information maybe requested from the agent prior to the renewal date.

ENDORSEMENTS

Endorsement requests must be properly completed, legible, rated and received within 5 working days in our office. When submitting an endorsement adding a new location, a picture is required. All endorsements will be subject to inspection and may be cancelled according to statutory regulations if necessary.

If a policyholder contacts the Company directly with an endorsement request, we will refer them to the agent of record, so you may submit an endorsement request.

Endorsements will be rated at the rates in effect at the time of the endorsement.

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INSPECTIONS

It is company policy to inspect all property. Inspections are done with the goal of preventing losses and to keep our premiums low. Your policyholder should be advised to anticipate an inspection.

DEFICIENCY NOTICES

If an inspection report indicates minor recommendations or deficiencies, a recommendation notice or deficiency notice will be issued to the policyholder. The agent will receive a copy. Our inspector will return to the premises to re-inspect shortly after the deadline noted on the deficiency notice. Please encourage your policyholders to protect their property. If the recommendations have not been completed and we are within our 60 day time period for cancellation, a cancellation notice will be issued.

PAYMENTS MADE TO THE AGENT

Any payment made to an agent is considered payment to the company. The agent has a fiduciary responsibility to the Company to maintain proper premium accounts. Premiums must be remitted to the Company within three working days of receipt. The agent must telephone the office immediately upon receipt of a policy premium being cancelled for non‑payment of premium. This applies to Direct‑bill Agents only.

DISCLOSURE NOTICES

A disclosure notice is a letter to policyholders describing changes to their renewal policy. A notice must be sent to policyholders at least 60 days in advance of the policy renewal date. A copy is also sent to the agent.

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CHAPTER 220/SECTION #3426

The Legislative intent behind Chapter #220 and Section #3426 is to protect policyholders by: 

1. Preventing unwarranted mid-term cancellations; 
2. Affording policyholders adequate advance notice of: 

• Non-Renewal
• Reduction of Coverage
• Premium increase of 10%

All Commercial policies, including applicable Farmowners policies are covered under the rules of Section #3426.

FLAT CHARGES/SPECIAL EVENTS CHARGES

The Company will underwrite at the discretion of the underwriter flat charges or special events charges as an accommodation to a policyholder. It must be discussed with the underwriter in advance of the event and the charge must be paid in full. There will be no commission paid on Flat Charges or Special Events charges.

COPIES OF  INSURANCE  DEPARTMENT CORRESPONDENCE

Copies of Regulations, Sections, Chapters and other information from the New York Insurance Department are available from the Company. Please contact your underwriter.

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