(August 2019)
ACORD forms are designed primarily for use with insurance products associated with Insurance Services Office (ISO) policies, forms, manual rules and rating plans. While ACORD forms can also be used with the American Association of Insurance Services, Inc. (AAIS) Commercial Output Program (COP) and may be included with any company specific supplemental questionnaires, taking a different approach should be considered when dealing with the COP program.
The COP is not a location-based product. Therefore, most insurance companies will request statements of values to provide detailed information on locations, buildings, business personal property, mobile equipment and other owned property. The ACORD form may also be appropriate, but some companies may require the use of their own COP applications. Any agency that writes numerous COP policies with a single company should consider asking that its management system be supplied with their COP application and forms generator.
The following ACORD forms should be considered for collecting required information. Additional information will probably be requested.
Note: Only countrywide forms are discussed here. State specific ACORD forms are not included.
125–Commercial Insurance Application–Applicant Information Section
139–Statement of Values
140–Property Section
141–Crime Section
143–Transportation Section
146–Equipment Floater Section
147–Installation/Builders Risk Section
148–Electronic Data Processing Section
125–Commercial
Insurance Application–Applicant Information Section
All information is relevant and important. Be sure to check the appropriate boxes so the insurance company underwriter understands the lines of insurance being submitted for consideration. Both the first named insured and all other insureds must be listed in order for coverage to apply. Loss information on larger accounts should be submitted in the form of copies of currently valued loss runs for the past five years, as well as for the current year to date. Accurate and currently valued loss information for the latest three years is required to compute the Basic Loss Charge on the COP.
Related Article: AAIS Commercial Output Program Rating Considerations
139–Statement of
Values
This form should list every location the named insured owns along with the coverages and their insurance to value. Any location that is not to be covered should be listed and so noted so that it can be excluded from the policy.
140–Property Section
This form is very comprehensive and designed to provide the insurance company with as much relevant information as possible concerning the coverages selected. All of the information requested is very important in the COP deficiency point rating methodology. Inaccurate or incomplete information leads to an incorrectly rated and priced account. Endorsements needed should be listed in COP format and value reporting requirements clearly identified. A complete list of additional interests, such as mortgages, loss payees, and other lienholders is needed, along with the details of the property to which their interest applies.
141–Crime Section
Although the coverage provided by the COP Crime Coverage Parts is not the same as that provided by the ISO forms, properly identifying exposures is important in order to determine the appropriate limits and crime protection measures or devices to employ.
143–Transportation Section
Coverage is automatically provided for property in transit with a $50,000 limit. This section should be used to determine exposures that may require higher limits.
146–Equipment Floater Section
This section is used to determine total equipment values. Each piece of equipment should be listed along with values for each. Smaller items may be grouped together with a notation that the value is provided for all items with values of less than $500 or $1,000.
Information needed concerning
lienholders should also be entered in the spaces provided.
147–Installation/Builders Risk Section
This section is used to determine blanket limits for contractors, equipment installers, and millwrights. Mortgagee and lienholder information must be obtained and listed here or on supplemental applications.
148–Electronic Data Processing Section
This section is extremely important because it can help determine whether to include the coverage within the COP blanket coverage or to exclude it and write the coverage on a separate inland marine coverage form.