PROCESS & PROCEDURE
Table of Contents
Accounting Discrepancies ..................................................................................................................................................................4
Auto ID Cards ....................................................................................................................................................................................5
Binding Confirmation Communication................................................................................................................................................6
Binding Coverage ..............................................................................................................................................................................7
Broker of Record Letters ...................................................................................................................................................................9
Carrier Download ............................................................................................................................................................................12
Category Codes for Contacts ...........................................................................................................................................................13
Certificates of Insurance .................................................................................................................................................................14
Certificates- Renewal Process .........................................................................................................................................................18
Dividends ........................................................................................................................................................................................19
Endorsements................................ ................................ ................................ ................................ ................................ .................. 20
Excess and Surplus Lines.................................................................................................................................................................23
Experience Mod ...............................................................................................................................................................................25
Invoice Hold List..............................................................................................................................................................................27
Loss Summaries ..............................................................................................................................................................................28
Lost Business...................................................................................................................................................................................31
Motor Vehicle Reports (MVR)............................................................................................................................................................33
Policy Assembly and Delivery .........................................................................................................................................................35
Policy Cancellation ..........................................................................................................................................................................37
Policy Checking................................................................................................................................................................................39
Policy Nonrenewal...........................................................................................................................................................................44
Policy Receipt ..................................................................................................................................................................................46
Policy Reinstatement.......................................................................................................................................................................47
Policy Renewal or Remarket............................................................................................................................................................48
Policy Rewrite..................................................................................................................................................................................49
Premium Audit.................................................................................................................................................................................50
Premium Comparison ......................................................................................................................................................................54
Premium Finance.............................................................................................................................................................................56
Quote Review..................................................................................................................................................................................57
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
TABLE OF CONTENTS
PROCESS & PROCEDURE
Statement Hold List .........................................................................................................................................................................59
Submissions ....................................................................................................................................................................................60
Tail Coverage ..................................................................................................................................................................................62
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
TABLE OF CONTENTS
What is it? PROCESS & PROCEDURE
Accounting discrepancies are Accounting Discrepancies
differences between the invoiced
premium and the carrier When Accounting comes across any discrepancies on an account, an activity item will appear on your To Do
statements received by our List on the Sagitta Homepage.
accounting department.
Correcting Inconsistencies
Follow these steps to correct any inconsistencies:
1. Double-click on the activity to open the Activity Log.
2. View the Memo Description to learn about the discrepancy. If any attachments were
referenced, they will be saved to CBDDoc in the COM-Accounting/Premium Financing folder.
3. Review the request and compare to coverage quoted, policy issued or endorsement received.
4. Depending on the circumstances of the request:
a. Make the necessary corrections to the invoice and/or invoicing screen(s) per the Memo
Description, OR
b. Dispute the correction based upon facts from the file, OR
c. Make connection with the underwriter to discuss the discrepancy
5. After changes have been made, update the 1st line of the Memo Description indicating the
corrections are completed.
6. Delete your Staff Code from the To: field and click Save without entering a Completed date. This
removes the Activity from your To Do List but leaves it on the Author’s.
Supplemental Information
If the discrepancy is corrected, Accounting will close the activity. If it is not, a second request will be added
as URGENT and your Staff Code will be re-added in the To: field so it appears in your To Do List again.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
ACCOUNTING DISCREPANCIES
4
What are they? PROCESS & PROCEDURE
An auto ID card is a proof of Auto ID Cards
insurance coverage and provides
policy information which can be Auto ID cards are provided to clients with automobile coverage in accordance with state regulations.
used in the event of an accident.
Auto ID Cards: Individual or Fleet Cards
What do they include?
Each state has unique regulations on what an auto ID card must contain. Some states allow generic, all-
Auto ID cards typically include encompassing cards which can be used for any vehicle within the client’s fleet (5 or more power units).
general information about the Other states require a unique card identifying each individual vehicle.
automobile insurance policy. Reference Connect contains helpful information regarding state-specific laws regarding the information
Carrier name; contained on an auto ID card.
Agent name and address;
Policy term; Auto ID Cards: Sagitta Procedure
Policy number;
Vehicle VIN; Auto ID cards are issued from Sagitta for all states except New York. The ACORD 50 Automobile Insurance
Vehicle Year, Make, Model; Identification Card is accepted in most states which require drivers to carry or produce proof of insurance
upon demand.
and The Sagitta e-Forms system contains all acceptable versions of the ACORD 50 form including those needing a
Insured name and address. watermark. See the Auto ID Cards portion of the Forms section in the Property Casualty Reference Manual
for instructions.
Why are they issued?
Auto ID Cards: New York
Most states require proof of
automobile insurance to be carried New York auto ID cards are issued using the NYSDMV – Insurance CardGen program. If you do not have this
in all vehicles or with the driver. program installed on your computer, email [email protected] to request access.
Proof can be requested at any NY auto ID cards are issued with the vehicle purchase date listed and an effective date within 45 days of the
time by law enforcement, registration date. Copies are provided to the client and carrier; the carrier is responsible for filing an
employees of the Department of electronic copy of the card with the state.
Motor Vehicles or anyone It is imperative that the effective date is within 45 days of the registration date to avoid vehicle suspension.
requiring proof of coverage such Suspension notices are sent by the state directly to the client who must relay the information to us.
as employers. Note: Carrier will provide Auto ID cards with the policy. If you have provided Holmes Murphy Auto ID
Failure to provide proof of cards, the carrier copies may be discarded.
insurance can result in fines,
tickets or more severe penalties
as determined by the state.
How are they issued?
Auto ID Cards are issued primarily
from Sagitta for all states except
New York, Hawaii, and Canada.
New York auto ID cards must be
issued using encrypted, bar-
cording software outside of
Sagitta.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
AUTO ID CARDS
PROCESS & PROCEDURE
What is it? Binding Confirmation
Communication
The binding confirmation
communication is a formal notice The binding confirmation communication advises the client coverage has been bound with the carrier and
sent to the client confirming accompanies any documentation needed prior to the policy being received.
coverage(s) bound per their
request. Binding Confirmation Communication: Getting Started
This communication may include
binders, certificates, and/or auto The binding confirmation communication is sent to the client after the binding coverage process has been
ID cards as needed. completed with the carrier. This should be done before or on the effective date. It confirms we have bound
coverage with the carrier and allows us to provide the client with documentation specific to their policy(s)
When is it used? and coverage(s).
The binding confirmation Getting Started: Documents to be Included
communication is sent after
coverage has been bound with the The binding confirmation communication includes documentation a client needs prior to receiving a copy of
carrier and before or on the their policy(s). The following documents may be included, as applicable:
effective date.
□ Binders provided by carrier/wholesaler (see Note below)
□ Invoices
□ Certificates or batch link to copies of certificates
□ Auto ID Cards
□ Coverage Summary (HMA PSR or New Business Proposal)
□ Premium Comparison or Bound Premium & Exposure Sheet
□ Payment Plan
□ Premium Finance Agreement & Instructions
Note: Holmes Murphy does not require an ACORD Binder be sent to the client but requires confirmation of
binding be sent to the client. The communication with applicable documentation of what was bound, coverage,
limits (the Premium Comparison Worksheet or a copy of the PSR) is acceptable. When we receive a binder
from a carrier/wholesaler, this is always sent to the client. Refer to Surplus Lines Stamping.
Binding Confirmation Communication: Sagitta Procedure
1. Create an activity item in Sagitta for the binding confirmation communication.
a. If issuing Binding Confirmation Communication from Sagitta, the Format is Letter.
b. If issuing Binding Confirmation Quick Part from Outlook, the Format is Diary.
2. Save a copy of the Binding Confirmation Communication to CBDDoc using Commercial Lines CBDDoc
Guidelines. Update the guidelines to add this Binding Confirmation Communication as an OCOR.
3. Assemble communication with documents to be included and send to client electronically using
Quick Parts or paper copy.
4. Close the activity item using today’s date.
a. See Premium Finance instructions on tracking receipt of down payment and signed
contract if information is included with the binding confirmation.
b. If other subjectivities need to be addressed, follow Commercial Lines CBDDoc Guidelines
for setting up appropriate activities for follow-up on required documents.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
BINDING CONFIRMATION COMMUNICATION
What is it? PROCESS & PROCEDURE
Binding coverage confirms policy Binding Coverage
coverage conditions for specific
line(s) of business with the carrier Binding coverage is a part of the overall renewal and new business placement processes. It occurs after the
at the client’s request. AE has presented coverage limits, conditions, premium, etc. based on the quote(s) received from carrier(s).
Three steps are included in the
binding coverage process: Binding Coverage: Bind Order
1. Bind Order received from
A bind order is received from the client and authorizes the confirmation of coverage with the carrier(s).
client. Coverage cannot be bound with the carrier(s) until this authorization is received.
2. Binding Instruction letter(s)
Binding Coverage: Binding Instruction Letter
sent to carrier(s).
3. Notification of unaccepted Note: Prior to creating the binding instruction letter, the forms list included on the quote should be
compared against the forms from the expiring policy and/or our business standards. If a copy of the forms
quotes. list was not included with the quote, request one from the carrier prior to binding as any discrepancies
should be addressed in the binding instruction letter.
When does it occur? The binding instruction letter is sent to the carrier(s) and confirms accepted terms and conditions as well
as any changes or updates needed. These instructions are a formal notification which address each line
Coverage is bound as a part of the of business individually and can be delivered by email or in traditional letter format. Each carrier
renewal and new business receives their own letter.
placement processes. It is
completed after the AE has Binding Instruction Letter: Creating the Letter
presented the quote(s) received to
the client and the client has Include the following information in a binding instruction letter for each line of business being
agreed to the coverage terms, confirmed. This letter can be created in Sagitta or formatted in an email.
including premium(s).
1. Identify the line of business being addressed and list the following:
Terms □ Date of quote/proposal being bound.
□ Coverage terms including limits, coverage forms and conditions (business standards), etc.
Bind Order – Request from □ Identify any changes to limits, forms, endorsements needed.
client to bind coverage. This □ Respond to all subjectivities (conditions) outlined in quote.
order may also include □ Notes regarding dividend plans, rate guarantees, etc.
changes and/or updates. □ Final premium and commission rate(s).
□ Request for new/renewal policy number.
Binding Instruction □ Request for company-issued binder as applicable.
Letter – Formal notice to □ Confirmation of policy billing: Agency or company/direct bill or payment plan (installments);
carrier to bind coverage at confirm commission % for each line of coverage.
client’s request based on a □ Updated Additional Interest list as applicable listed by line of business.
specific quote or proposal.
This letter addresses each 2. Repeat for each line of business as needed.
line of business separately.
Binding Instruction Letter: Sagitta Procedure
Renewal Information
Letter – Formal notice to 1. Create an activity item in Sagitta for the bind request.
client confirming coverage(s) a. If issuing Bind Coverage Request Letter from Sagitta, the Format is Letter.
bound per their request. May b. If issuing Bind Coverage Request Quick Part from Outlook, the Format is Diary.
include binders, invoices,
certificates, and/or auto id 2. Save a copy of the bind request to CBDDoc using the Commercial Lines CBDDoc Guidelines.
cards as needed. 3. Close the activity item using today’s date.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
BINDING COVERAGE
PROCESS & PROCEDURE
Binding Coverage: Notification of Unaccepted Quotes
Carriers who issued quotes which were not accepted by the client must be notified their quote has been declined. The notification should include the
following information:
Appreciation for the underwriter’s time in reviewing the exposure(s) and issuing a quote;
Notification the coverage has been bound with another carrier; and
Reasons quote was declined as appropriate (i.e. coverage deficiency, price, etc.).
Binding Coverage: Renewal Information Letter
The binding confirmation to the client is included in the Binding Confirmation Communication or Renewal Quick Part. Invoices, binders, certificates,
and/or auto id cards are included with this letter. Holmes Murphy does not require an Acord Binder be sent to the client, but we do require
confirmation of binding be sent to the client. The letter with applicable documentation as to what was bound, coverage, limits (the Premium
Comparison Worksheet or a copy of the PSR) is acceptable. When we receive a binder from a carrier or wholesaler, this is always sent to the client.
Binders provide temporary coverage for the client until the policy is issued and are issued by an agent, broker, wholesaler or carrier with binding
authority. They are typically valid for 30 or 60 days and remain in force for that time unless cancelled or until the policy is issued (or refused) by the
carrier. If a binder is received from the broker, wholesaler, or carrier, it is provided to the client as a part of the Renewal Information Letter.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
BINDING COVERAGE
PROCESS & PROCEDURE
What are they? Broker of Record Letters
Broker or Agent of Record letters Before recognizing a new broker/agent, carriers require the policy holder to sign a Broker or Agent of
are used when a policy holder Record (BOR) letter. Before accepting a BOR, it is important to confirm we represent the wholesaler/carrier.
decides to change brokers/agent on
their current insurance policy(s). BOR Letters: New Business
Why are they used? BOR letters are used by brokers/agents to acquire new business from a client’s existing carrier. These
signed letters from the new client are required for us to take over as their broker/agent. All letters of
Some of the reasons a policyholder authorization must be on the company’s letterhead and signed by a principal of the
may choose to change broker/agent company.
could be: The letters we need include a Letter of Authorization allowing us to become the new agent/broker with the
Not happy with their current existing carrier; NCCI letter allowing us permission to obtain Workers Compensation information and a Loss
Information Letter, which allows us the ability to access their loss runs. A Retail-Wholesale Authorization
broker/agent; letter is required when that type of arrangement is in place on a policy.
Additional services available
New Business: Authorization Templates
through a new broker/agent;
Current broker/agent no We provide the policy holder with templates of the BOR Letters of Authorization ; Loss Info Authority Letter
and NCCI Letter, which they copy and paste onto their letterhead.
longer represents the carrier; When we are working with a wholesaler, the BOR Retail Broker – Wholesaler Authorization letter is needed
Policyholder’s insurance in lieu of the BOR Letters of Authorization.
decision maker has changed Authorization Templates: Sending to Prospect
(new relationship).
An AE can send the letter directly to the client with instructions or ask a team member to do so. Usually the
How do we get them? client instructions are sent using the Quick Part in Outlook with copies of the letters attached to the email.
The AE and client would discuss New Business: Follow-up for Authorization
the possibilities of allowing us the
BOR opportunity. The AE, Placement Team or servicer will follow-up on receipt of the signed letters of authorization
Once all parties agree upon a BOR depending on involvement and responsibility of new client opportunity.
arrangement, the AE would provide
electronic copies of the BOR letters New Business: Carrier Acceptance of BOR
of authorization to the client for
completion. Once a signed BOR is received it must be sent to the carrier for acceptance and tracked in Sagitta using an
We can also lose business to activity item.
another agent/broker by BOR.
Carrier Acceptance of BOR: Sagitta Procedure
1. Verify a Client Record has been created in Sagitta.
a. If a Client Record is found, update the existing information and fill-in any missing data.
b. If a Client Record is not found, create a new Client Record using the instructions in the
Property Casualty Reference Manual.
2. Create an activity item to document the BOR has been submitted to the carrier and confirmation of
the carrier’s acceptance or rejection is needed.
Format: Diary Doc Type: BOR
Follow-up Days: 10 Memo Description: YY COR BOR letter to carrier for acceptance
3. Save the signed BOR in CBDDoc using the Commercial Lines CBDDoc Guidelines.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
BROKER OF RECORD LETTERS
PROCESS & PROCEDURE
4. When BOR acceptance is received, create the Policy Record(s) in Sagitta using the full policy term in the Effective and Expiration date fields
and the BOR effective date (i.e. BOR eff 1/1/15) in the Description field on the policy screen (which is under the policy number).
Carrier Acceptance of BOR: Request to Cancel/Rewrite
When a carrier requests a cancel/rewrite of the policy(s) in response to the BOR follow our new business process.
The AE is required to obtain all information needed to create a full submission, including: SOV, Exposure Data, Loss Summary, Loss Runs, Mod
Worksheet, Narrative as well as all other necessary documents and completed applications.
New Business: BOR Rights & Responsibilities
Rights and responsibilities awarded to the newly appointed broker vary by carrier; see the BOR Procedures Per Carrier document for more
information.
BOR Rights & Responsibilities: Carrier Requests & Confirmations
It is important to ask the following questions and request the required policy information of the carrier underwriter:
□ Will we receive any commission for the BOR policies? (Normally the new broker/agent is not paid until the policy(s) renew.)
□ Which agent is responsible for remaining installments on agency bill policies?
□ Which agent is responsible for collecting/returning premium due to audit at the BOR policy expiration?
□ Are there any outstanding issues or endorsement requests we should be aware of?
□ What is the annual premium and commission for each line of business? (This is needed for new business reporting.)
□ Request policy/account information:
□ Complete policy copy for each LOB.
□ Complete certificate holder list or copies of certificates. (This may need to be requested from the client as well.)
□ Prior loss runs (attach a copy of the Loss Info Authority Letter).
BOR Rights & Responsibilities: Additional Internal Tasks
When we accept a BOR from a policyholder, we need to complete the following internal tasks in addition to those listed previously.
□ Notify the assigned Claims and Loss Control Representatives at Holmes Murphy as applicable. The AE, Claims, and Loss Control
Representatives will discuss the service plan for on-going claims.
□ Complete a full review and coverage analysis of the BOR policy(s).
□ Update policy information and coverage details in Sagitta.
□ Complete exposure schedules.
□ Review certificates of insurance to the policy(s).
□ Prepare PSR for AE discussion with policyholder.
□ Notify lender of BOR change if original premium was financed.
New Business: New Business Credit for AE
The AE receives credit for the full annual premium at the BOR effective date. Remember that the BOR effective date (i.e. BOR eff 1/1/15) is to be added
in the Description field on the policy screen (which is under the policy number).
New Business Credit for AE: Sagitta Procedure
Verify the following information is entered into the BOR Policy Record(s) in Sagitta to ensure credit:
□ Original Effective Date field on the Policy Record matches the BOR effective date. Remember, we can receive a BOR at policy inception or
at any time during the policy term. This field is located under the policy term effective and expiration date fields in Sagitta.
□ Estimated annual revenue is entered in the Policy Summary section. These are entered for both agency and company/direct bill policies.
New Business: Renewing a BOR Policy – Sagitta Procedure
When renewing a new business BOR policy in Sagitta, use the Renew transaction type so it is coded as a renewal in the system.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
BROKER OF RECORD LETTERS
PROCESS & PROCEDURE
BOR Letters: Lost Business
When a BOR letter is used by another broker/agent to acquire an account from Holmes Murphy, an AE has approximately 10 days to rescind. We can
provide the policy holder with a template of the BOR Rescinding Letter. Just like new business, accounts can be lost by BOR mid-term or at renewal.
Lost Business: BOR Rights & Responsibilities
Rights and responsibilities awarded to the newly appointed broker vary by carrier so it is important to verify our duties with the underwriter.
BOR Rights & Responsibilities: Verifying Carrier Details
Verify the following information with the carrier once a BOR has been received:
□ Which agent is responsible for remaining installments on agency bill policies?
□ Which agent is responsible for collecting/returning premium due to audit at the BOR policy expiration?
□ Who is responsible for ongoing retro calculations?
BOR Rights & Responsibilities: Additional Internal Tasks
When we receive a BOR for lost business, we need to complete the following internal tasks in addition to those listed previously.
□ Notify the assigned Claims representative at Holmes Murphy the account was lost.
□ If ongoing retro calculations, check with AE on any charges to be assessed to client.
□ If original premium was financed, notify lender of BOR change.
Lost Business: Sagitta Procedure
Sagitta must be updated to reflect the lost business by BOR. The actual process is determined by which agent is responsible for remaining installments
on agency bill policies and/or collecting/returning premium for audits.
Sagitta Procedure: Holmes Murphy Responsible
Complete the following if Holmes Murphy IS responsible for remaining installments on agency bill policies and/or collecting/returning premium for
audits:
1. Enter the effective date of the BOR as the Clients Business Lost Date on the Client Details screen.
2. Create a client-level Note which indicates the account was lost by BOR and Holmes Murphy is responsible for remaining installments on
agency bill policies and/or collecting/returning premium for audits. Remember to include the effective date of the BOR in the note.
3. Non-renew each LOB – see the Policy Transactions section of the Property Casualty Reference Manual for instructions.
a. Use the policy expiration date as the effective date of the non-renewal.
b. Update the Description field on the Policy Details screen to show the policy was lost by BOR and include the effective date.
c. Use the L0 - *BizLost AOR/BOR reason code for non-renewal.
d. Create a client-level activity item for follow-up to complete the Lost Business process.
Format: Diary Doc Type: BOR
Follow-up Date: Expiration date of last policy to non-renew
Memo Description: Complete lost business process for client after all policies have been cancelled or non-renewed
Sagitta Procedure: Holmes Murphy NOT Responsible
Complete the following if Holmes Murphy IS NOT responsible for remaining installments on agency bill policies and/or collecting/returning premium for
audits:
1. Cancel the policy(s) in Sagitta – see the Policy Transactions section of the Property Casualty Reference Manual for instructions.
a. Use the effective date of the BOR as the cancellation effective date.
b. Update the Description field on the Policy Details screen to show the policy was lost by BOR and include the effective date.
c. Use the L0 - *BizLost AOR/BOR reason code for cancellation.
2. Complete the Lost Business process to update the remaining fields on the Client Details and/or Policy Details screens.
a. The Clients Business Lost Date will be the effective date of the BOR
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 3
BROKER OF RECORD LETTERS
PROCESS & PROCEDURE
What is it? Carrier Download
Insurance carriers provide Carrier Download Information
automatic download of coverage
information directly into our
agency management system
(Sagitta).
Downloads occur 30-60 days prior Carriers we currently receive download for include:
to renewal. You will receive a Travelers (660 policies do not download)
download status list from IT (see Hartford
Transaction Codes below). Progressive
Liberty Mutual, Auto and Work Comp
Transaction Codes Allied-Personal Lines
Most Other Personal Lines Carriers
Transaction codes will be preceded
by ‘Download-‘ Note: When setting up policies subject to download, always use the BOP or PKG code in the Coverage area
PCH= Policy Change of the Basic Policy Screen in Sagitta. The download will not accept if you use one line of coverage such as
XLC= Cancellation CGL, CAU, etc.
RWL= Renewal DO NOT place policies subject to download in Remarket Status.
NBS= New Business DO NOT update any information in Sagitta; this will all take place with the download. The download updates
REI= Reinstatement exposures, limits and underwriting fields. Sagitta clean-up is necessary as the information does not always
REW= Rewrite come into our system in the correct fields.
SYN= Database synchronization
Updating Download Information
The areas that will always need updated include:
Commission information fields for new and renewal on the policy screen
Umbrella updates
Activity set-up for receipt of audits.
The following will assist with download:
1) Search and load desired client record in Sagitta.
2) Go to the Policies tab on the Client Options menu bar to view the policy grid. Select the desired
policy record.
3) Check that umbrella policy has correct underlying information which includes carrier name, policy
number and limits. This is the only data needed to review from the download. Advise the umbrella
carrier of changes to underlying information by email, set up an activity and close activity once
download is received making the change. DO NOT update fields in Sagitta, download will do this.
4) Input the premium/commission information in the policy summary of the basic policy section for
each policy.
5) Retrieve policies, endorsements, anything included in download from the carrier website (option:
Transact Now) and save to CBDdoc according to Cheat Sheet.
6) If policy is subject to audit, create and follow audit process & pend for receipt of audit results.
Sagitta Manual, Policy Transactions section 9-11 page 10-11 step 5.
Note: When comparing the download print with Travelers System, information appears on the right hand
side of their website and is called: CL Policy Activity Report. Select either "Equals" for a process date or
"Date Range". Information may be one day behind. For example, checking the website on Wednesday,
September 2, information would be updated for Tuesday, September 1. On Monday you could be looking at a
date range, to cover Friday and Saturday Processing.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
CARRIER DOWNLOAD
What is it? PROCESS & PROCEDURE
Category codes are used in the Category Codes for Contacts
Sagitta Contact Records to identify
specific Holmes Murphy mailings Category codes are used in Sagitta to indicate which Holmes Murphy mailings and/or promotional items
should be sent to each contact. should be sent to each individual contact for a client.
How do I add them? Category Codes: Requirements
Category codes can be searched All contacts must have the SV01 – (Receive Satisfaction Survey) code. This triggers the annual
for and selected while the Contact customer satisfaction survey mailing by our Corporate Marketing department.
Record in Sagitta is in Edit mode. A corresponding code for the Holmes Murphy employee who maintains a relationship with the contact should
be included to determines which section(s) of the survey are generated. The available Holmes Murphy
employee codes are:
AE – (Account Executive Contact) should be used to generate the Producer section and applies to
the 1st, 2nd, and 3rd level Producers listed on the Client Details screen.
AM – (Account Manager Contact) should be used to generate the Account Management section and
applies to the 1st and 2nd level Servicers listed on the Client Details screen.
CL – (Claims Contact) should be used to generate the Claims section and applies to the 3rd level
Servicer listed on the Client Details screen.
LC – (Loss Control Contact) should be used to generate the Loss Control section and applies to the
Loss Control Consultant listed on the Client Details screen in the Additional Information (Agency
Defined) section.
Category Codes: Multiple Codes per Contact
Multiple Category Codes can be used in one Contact Record as long as the information applies to each
relationship.
Category Codes: Sagitta Procedure
For supplemental information on creating Contact Records and entering the respective Category Codes,
please refer to the Contact Records & Details information in the Property Casualty Reference Manual.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
CATEGORY CODES FOR CONTACTS
What are they? PROCESS & PROCEDURE
An ACORD Certificate of Insurance Certificates of Insurance
(cert) is a summary of essential
policy information including, but Certificates of insurance are issued to provide proof of coverage. They are evidence of the policy(s) in force
not limited to: at the time of issuance and do not provide any assurance the holder will be notified if a policy is modified,
Coverage type; cancelled, expired or extended. It is a “snapshot” in time of policy coverage(s).
Policy number(s);
Limits; and Certificates: Requests
Effective and expiration
Certificates can be requested by the client or other interested third parties which are then approved by the
dates. client. If a request includes a requirement to make a change to the policy (i.e. additional insured, waiver of
subrogation, etc.) the client must approve the policy change prior to issuance and be informed of any
There are many different ACORD additional charges.
forms available but are Note: If a change to the policy is approved by the client to fulfill the request, this will require an END
categorized into two groups: transaction in Sagitta in addition to issuing the certificate.
Certificates of Liability Certificates of insurance are issued the same day as requested. If a request is received after
3:00pm the certificate should be issued the following business day. Some certificates may be delayed due to
Insurance; and extensive contract and/or coverage review.
Evidences of Property If a certificate management vendor requires certificates to be issued or uploaded to their system, the
certificate should be issued using CertsNow or Sagitta first to ensure our records are correct.
Insurance.
Certificates: Forms to Use
Why are they used?
All certificates should be issued using the appropriate ACORD form from CertsNow or Sagitta and include all
Certs are used to show proof of pages as applicable. The most current version of all ACORD forms should be used to ensure the proper,
coverage when requested by the standardized wording is shown.
client or another interested party.
Some of the more common For proof of liability insurance – use most current version available of the ACORD 25 Certificate
reasons to need a cert are: of Liability Insurance unless another form is specifically requested.
Client is a tenant and building
For proof of property insurance - use most current version available of the ACORD 27 Evidence
owner request proof of of Property Insurance unless another form, such as ACORD 28 Evidence of Commercial Property
liability insurance. Insurance, is specifically requested.
Client is a borrower
(mortgagor) and lender Requests to use non-ACORD forms must be approved by the carrier prior to use, due to state-specific form
(mortgagee) requires proof of regulations. It is the CSC/AM’s responsibility to secure and document the carrier’s written authorization.
property insurance.
Client leases equipment and Certificates: Delivery Methods
lessor requires proof of
rented/leased equipment The preferred method of delivery for all certificates is by email. For international holders who require
coverage while in client’s mailed copies or if electronic delivery (email or fax) is unavailable, the cert copy must be emailed to Office
possession. Services with the international address for mailing.
Client is submitting a job bid Note: Due to our E&O requirements, a copy of the issued certificate is sent to the carrier and/or broker
and needs to provide proof of even if not required by the carrier and/or broker. Copies are also sent to the client. It is their option to
general liability and workers’ discard any unwanted copies.
compensation insurance.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
CERTIFICATES OF INSURANCE
PROCESS & PROCEDURE
Certificates: Issuing Certs
Certificates are issued using either CertsNow or Sagitta. See the Sagitta Certificates & EPIs or CertsNow System Manual in the Property Casualty
Reference Manual for more information on the system-specific issuance procedure.
Issuing Certs: Reviewing the Request
1. Verify the coverage(s) requested is covered by the policy(s) prior to issuing the certificate including:
□ Coverage type(s) is available including Umbrella/Excess Liability coverage;
If not, can it be endorsed and are there any additional charges? The client needs to be informed of these changes and/or
charges prior to certificate issuance.
□ Limits; and
□ Endorsement forms and edition dates.
2. Confirm the project number or job description has been provided as applicable.
3. Determine if blanket Additional Insured or Waiver of Subrogation coverage is available or if scheduled coverage needs to be requested.
a. Review any “as required by written contract” policy language to ensure it responds to the Additional Insured or Waiver of
Subrogation requirements.
□ Does the policy provide coverage for the interest of the Additional Insured on the line of business requested as outlined in the
contract such as: Is it primary & non-contributory? Does it include completed operations?
□ Does the Waiver of Subrogation wording respond to the contract requirements on the line of business requested as outlined in
the contract such as: Is it state-specific or blanket?
b. See the CSC/AM for assistance in determining coverage as needed.
4. Create END transaction in Sagitta and send request to carrier if scheduled Additional Insured or Waiver of Subrogation coverage is needed.
5. Determine if Umbrella or Excess Liability coverage is follow form or if policy needs to be endorsed – create END transaction in Sagitta and
send request to carrier as needed.
Issuing Certs: Creating the Certificate(s)
Create the certificate(s) from the applicable certificate master(s) in CertsNow or Sagitta using the Property Casualty Reference Manual. All certificates
requiring the coverages shown on the master will be issued from the same form.
1. Identify the correct master to use - if one has not been created with the correct coverage information, you will need to create it using the
Property Casualty Reference Manual prior to creating the certificate(s).
2. Enter the full policy limits as they are shown on the policy declarations page. Umbrella limits can be adjusted on individual certs to show
lower amounts as authorized by the client. It is the CSC/AM’s responsibility to secure and document the client’s written authorization as well
as know the laws in the issued state regarding the amount requirements.
3. Add the certificate wording to the Description of Operations (DOO) section as supported by the policy(s) - specify which policy(s) apply
when referencing any endorsed coverages such as Additional Insured, Waiver of Subrogation, Loss Payee, etc.
4. Select the authorized signature – either the AE on the account (CertsNow) or designated signature based on location (Sagitta).
Certificates: Issuing Corrected Certs
Certs returned/rejected by the holder or certificate management vendor requesting corrections or updates are treated as an original request. While
corrected certificates can be issued using the original master or individual certificate form, the CSC/AM must still compare the insurance requirements
on the request to the current policy(s) as coverages may change at any time. Some certificate corrections may require approval from the client and/or
carrier prior to issuance.
Certificates: Undeliverable Certs
Certificates returned as undeliverable are excluded for the renewal holder list in CertsNow and/or Sagitta.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
CERTIFICATES OF INSURANCE
PROCESS & PROCEDURE
Certificates: Renewal Process
As a part of the renewal process all holder information is reviewed and updated by the client. The CSC/AM updates the holder(s), master(s), and any
attachments in CertsNow and/or Sagitta as appropriate using the Property Casualty Reference Manual and issues certificates for the upcoming policy
term. This is discussed in more detail in the Certificates: Renewal Process document.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 3
CERTIFICATES OF INSURANCE
PROCESS & PROCEDURE
Sample Certificate Wording for DOO Field
The sample certificate wording may need to be modified based on the policy terms and conditions. For example, not all policies contain “by written
contract” wording so this may need to be removed or adjusted as appropriate.
Sample: Additional Insured
(Certificate Holder name) is an Additional Insured on (Line(s) of Coverage) as required by written contract with the insured, per policy terms and conditions.
Sample: Additional Insured on General Liability with Completed Operations
(Certificate Holder name) is an Additional Insured on the General Liability, including Completed Operations, as required by written contract with the insured, per
policy terms and conditions.
Sample: Additional Insured with Primary & Non-Contributory
(Certificate Holder name) is an Additional Insured on (Line(s) of Coverage) on a primary and non-contributory basis as required by written contract with the insured,
per policy terms and conditions.
Sample: Additional Insured on General Liability with Completed Operations and Primary & Non-Contributory
(Certificate Holder name) is an Additional Insured on the General Liability, including Completed Operations, on a primary and non-contributory basis as required by
written contract with the insured, per policy terms and conditions.
Sample: Waiver of Subrogation
The (Line(s) of Coverage) includes a Waiver of Subrogation in favor of (Certificate Holder name) as required by written contract with the insured, per policy terms
and conditions.
Sample: Leased/Rented Equipment – Specific Equipment
(Certificate Holder name) is an Additional Insured on the General Liability as required by written contract with the insured and Loss Payee on the Inland Marine with
respect to the following equipment, per policy terms and conditions.
Sample: Leased/Rented Equipment – Unspecific
(Certificate Holder) is an Additional Insured on the General Liability as required by written contract with the insured and Loss Payee on the Inland Marine with
respect to equipment leased/rented by the insured, per policy terms and conditions.
Sample: Leased/Rented Vehicles
(Certificate Holder name) is an Additional Insured and Loss Payee on the Auto policy with respect to the following leased/rented vehicle, per policy terms and
conditions.
Sample: Mortgagee (Mortgagor)
(Certificate Holder name) is Mortgagee on the Building coverage with respect to the referenced location, per policy terms and conditions.
Sample: Property Loss Payee
(Certificate Holder name) is Loss Payee on the Business Personal Property coverage with respect to the referenced location, per policy terms and conditions.
Sample: Property Lenders Loss Payee
(Certificate Holder name) is Lender’s Loss Payee on the Business Personal Property coverage with respect to the referenced location, per policy terms and
conditions.
Sample: Notice of Cancellation *This should include a copy of the endorsement with certificate.
The (Line(s) of Coverage) policy(s) contain a Notice of Cancellation endorsement in favor of (Certificate Holder name).
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 4
CERTIFICATES OF INSURANCE
PROCESS & PROCEDURE
What is it? Certificates: Renewal Process
Renewal certificates are issued to Issuing renewal certificates is a part of the overall Renewal Process. These should be issued prior to the
show specific insurance coverage renewal policy effective date or within 5 days of binding coverage, whichever is sooner.
to a certificate holder for the new
policy term. Renewal Certificate Process: Getting Started
What are they? There are six main steps when completing the renewal certificate process:
1. Download the renewal certificate holder list and compare the contents to the renewal policy
An ACORD Certificate of Insurance information (exposures, descriptions of operations, etc.)
(cert) is a summary of essential 2. Send updated holder list to the client for review.
policy information including, but 3. Review the client’s changes and update holder list as appropriate in CertsNow or Sagitta.
not limited to: 4. Update the renewal policy information for the renewal master to reflect the current effective
Coverage type; dates, policy limits, carrier, etc.
Policy number(s); 5. Create and complete the renewal job in CertsNow or Sagitta.
Limits; and 6. Email certificates to client using the appropriate QuickPart.
Effective and expiration
Getting Started: CertsNow or Sagitta?
dates.
There are many different ACORD Most certificates are issued using CertsNow; however, depending on the size of the client, they may be
forms available but are issued from Sagitta instead. See the Property Casualty Reference Manual for more instructions on issuing
categorized into two groups: certificates from either system.
Certificates of Liability
Insurance; and
Evidences of Property
Insurance.
Why are they used?
Certs are used to show proof of
coverage when requested by the
client or another interested party.
Some of the more common
reasons to need a cert are:
Client is a tenant and building
owner request proof of
liability insurance.
Client is a borrower
(mortgagor) and lender
(mortgagee) requires proof of
property insurance.
Client leases equipment and
lessor requires proof of
rented/leased equipment
coverage while in client’s
possession.
Client is submitting a job bid
and needs to provide proof of
general liability and workers’
compensation insurance.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
CERTIFICATES: RENEWAL PROCESS
What are they? PROCESS & PROCEDURE
Dividends are a partial return of Dividends
premium to the client based on the
client’s loss experience and the Dividends are paid out by the carrier 18 months after the policy expiration for the term to which the
carrier’s financial performance dividend applies. The dividend information becomes a part of the policy term records.
during the policy term to which the
dividend applies. Dividends: Sagitta Procedure
Dividend payments cannot be
guaranteed by the carrier. They Dividends must be tracked in Sagitta to ensure receipt.
are not subject to commission.
Sagitta Procedure: Create Activity Item
Where are they found?
When a policy with a dividend option is renewed, an activity item is created for follow-up.
Dividend options are notated on
the quote, binder, and/or policy Format: Diary Doc Type: CONF
forms. Follow-up Date: 18 months from policy expiration
Memo Description: YY DIV LOB received?
When do they occur?
Sagitta Procedure: Dividend Notice Received
Any earned dividend payment is
paid out 18 months after policy When a dividend notice is received the activity item should be updated and closed. The dividend notice may
expiration for the term to which include the payment for us to provide to the client, a notice of payment made directly to the client, or notice
the dividend applies. of no dividend earned.
Who issues them? □ Update memo description with dividend information and delivery type (carrier delivered,
mailed to client, or AE delivery)
Dividend checks are issued by the
carrier. The delivery method can □ Save dividend documentation using the Commercial Lines CBDDoc Guidelines as applicable
be from the carrier to an agent or □ Close activity item using today’s date
directly to a client from the
carrier. The agent is notified of Sagitta Procedure: Mailing Dividend Notice to Client
dividend results.
If the dividend notice was received in our office and is being mailed to the client, a dividend cover letter
must be created in Sagitta.
If dividend was earned, create the HMA Dividend to Insured letter from a new activity item.
If dividend was not earned, create the HMA Dividend No Return Premium Letter from a new
activity item.
Format: Letter Doc Type: CL
Closed Date: Today’s date Memo Description: YY DIV LOB desc.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
DIVIDENDS
What are they? PROCESS & PROCEDURE
Endorsements are written Endorsements
documents attached to a policy
modifying coverage. Prior to requesting an endorsement you will need to receive a request from someone authorized to make
Endorsements can add, expand, changes to the policy – the main contact, Account Executive (AE), etc. If changes are requested by an
restrict or delete insurance unauthorized party you must contact the client before sending the request to the carrier.
coverage and/or exposures. These
agreements can increase, Endorsements: Requesting an Endorsement
decrease or have no effect on
policy premium. An endorsement request should be sent to the carrier within 48 hours of receiving notification or
Each endorsement includes: authorization from the client. To complete an endorsement request:
Insured’s name & address;
Policy number; □ Create an endorsement transaction in Sagitta and update policy detail(s). Note: Regardless of
Effective date of changes; where the exposure is stored, the ENDRQ transaction must be followed in Sagitta.
Description of changes made
□ Create an Acord change request form in Sagitta and submit it to the carrier, or request the
and the line of business change by using the Quick Part email in Outlook.
affected; and
Premium information. □ When appropriate (complexity of change) confirm with client change(s) have been requested
Once an endorsement is attached by using the Quick Part Endorsement Request to Insured.
to a policy it takes precedence
over the original policy provisions. □ Update the END activity in Sagitta for follow-up.
When are they used? Requesting an Endorsement: Updating Policy Details
Endorsements are requested or Update the appropriate coverage screens and schedules within the Policy Record in Sagitta.
issued throughout a policy term If coverage schedules are kept outside Sagitta – update the appropriate coverage screens in
when there is change to the policy
provisions or exposures. Sagitta and the Excel schedules in CBDDoc.
Who requests them? Updating the electronic policy copy to reflect endorsements is optional. This can be done using the notation
tools. If you do update the policy it will create another version; remember to use the description line to
A client’s authorized provide details.
representative requests changes
or confirms changes requested by Requesting an Endorsement: Creating Change Requests
others on their behalf.
Carriers can proactively issue There are two ways to request a policy change:
endorsements if errors are found If policy coverage details are kept in Sagitta – generate an ACORD 175 Commercial Policy Change
in the policy or when coverage Request Form and send it to the underwriter. Or you can create a change request email using the
terms have been expanded. appropriate change request Quick Part and send it to the underwriter.
If policy coverage details are kept outside Sagitta – create a change request email using the
How do we get them? appropriate change request Quick Part and send it to the underwriter.
□ Save change request email to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
We submit requested changes to
the carrier who issues an Requesting an Endorsement: Confirming Changes with Client
endorsement to amend the policy.
These are received in paper or This step can be completed at your discretion based upon your client and the complexity of the change.
electronic format. □ Email client using Endorsement Request to Insured Quick Part including applicable
documentation.
□ Save the confirmation email to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
Requesting an Endorsement: Updating END Activity in Sagitta
Update the END activity item in Sagitta to follow-up on receipt of endorsement. Sagitta will default to 30
days for follow-up but this can be adjusted accordingly.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
ENDORSEMENTS
PROCESS & PROCEDURE
Endorsements: Following Up on Endorsement Requests
Occasionally an endorsement may be delayed and not received within the 60 days allotted for receipt. When the END activity appears in your Sagitta
To Do list, first check the carrier website for a copy of the endorsement.
Follow-up: Second (2nd) Request
If endorsement is available on website – download a copy for processing.
If endorsement is not available – complete a 2nd request and send to the underwriter.
□ Update the Sagitta END activity item in Sagitta to reflect 2nd request being sent.
□ Change the Sagitta END activity item’s Follow-up Days to 10.
□ Forward the original change request email to underwriter and change the description to reflect 2nd Request.
□ Save 2nd request email to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
Follow-up: Third (3rd) Request
If endorsement is available on website – download a copy for processing.
If endorsement is not available – complete a 3rd request and send to the underwriter.
□ Update the Sagitta END activity item in Sagitta to reflect 3rd request being sent.
□ Change the Sagitta END activity item’s Follow-up Days to 5. (Follow-up the request to the underwriter with a phone call, and contact CSC
for escalation of response)
□ Forward the 2nd request email to underwriter and change the description to reflect 3rd Request.
□ Save 3rd request email to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
Follow-up: After Third (3rd) Request
If endorsement is available on website – download a copy for processing.
If endorsement is not available – contact the underwriter by phone to discuss delay.
□ Notify AE and/or Manager of delay as applicable.
□ Update the Sagitta END activity item in Sagitta to reflect date and details of follow-up efforts.
□ Change the Sagitta END activity item’s Follow-up Days to 7. This may need to be adjusted based on your discussion with underwriter.
Endorsements: Processing an Endorsement
□ Save endorsement to CBDDoc WIP according to the Commercial Lines CBDDoc Guidelines.
□ Verify changes made by endorsement using CBDDoc Image Viewer notations including:
□ Policy number;
□ Effective date of change;
□ Changes made (limit increase/decrease; scheduled item addition/deletion; etc.)
□ Premium increase/decrease
□ Maintain the END transaction in Sagitta and invoice any additional or return premium. Endorsements are billed in full even if the
policy is on an installment plan. Direct bill policy’s Premium Summary can be updated as desired for significant premium amounts.
□ Move endorsement (with checking notations) to the CBDDoc permanent folder according to the Commercial Lines CBDDoc Guidelines. If
errors are found within the endorsement, create an email request to the carrier with the corrections required. Save to your activity and
pend for follow-up. Save the endorsement in error, but in your description line note endorsement being corrected.
□ Prepare and send client copy of endorsement.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
ENDORSEMENTS
PROCESS & PROCEDURE
Processing an Endorsement: Client Copy
If client receives an electronic copy direct from the carrier and premium is direct bill:
□ We do not need to send insured another copy of the endorsement. If you find errors, contact your client that the endorsement was
processed with errors and you have requested a correction.
□ Save endorsement delivery email to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
If agent receives an electronic copy direct from the carrier and client prefers electronic delivery – email a copy of endorsement and invoices
as applicable.
□ Generate email using Endorsement Delivery Quick Part, attach endorsement and invoices, and send to client. Forms may need to be
attached using ShareFile. If you find errors, contact your client that the endorsement was processed with errors and you have requested
a correction.
If client prefers receipt of paper copy – mail a copy of endorsement, invoices and payment envelope as applicable.
□ 3-hole punch paper copy of endorsement.
□ Include copy of applicable invoices with payment envelope (agency bill).
□ Create an Endorsement Enclosed form letter in Sagitta, place it on top of remaining documents and mail to client.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 3
ENDORSEMENTS
PROCESS & PROCEDURE
What is it? Excess and Surplus (E&S) Lines
Surplus lines insurance is not When placing coverage in the E&S market it is important to be familiar with the state-specific rules regarding
usually available from an admitted non-admitted carriers. Refer to the Surplus Lines State Tax Guidelines available on the Knowledge Center
(licensed) carrier in the standard under Property Casualty Examples.
insurance market. These policies
are typically assessed a tax Surplus Lines: Tax & Fee Filing
and/or fee that is filed with the
state when issued. It is Holmes Murphy’s standard practice to require the E&S broker to file the taxes and fees.
Non-admitted (unlicensed) carriers Leann DeJong in Accounting handles all surplus lines taxes and fees.
do not have the same When obtaining quotes from an E&S broker, ask broker to file taxes and fees.
capitalization requirements as
insurers licensed (admitted) to do If broker agrees – nothing needs to be sent to Accounting.
business within a state. Therefore, If broker does not agree – verify license availability before agreeing to file.
premiums paid on these policies
are not protected by any state’s o Reference Surplus Lines State Tax Guidelines to obtain name of AE with surplus lines
guaranty fund. license, if applicable.
Why do we use them? o Contact licensed AE to request authorization to place business using their license. Do not
agree to file taxes in other states without approval from the surplus lines licensee.
The E&S market originated when
coverages were unavailable from o Forward copy of declarations page or binder, include any endorsements and audits, to
the standard (admitted) carriers Leann DeJong for processing.
due to a variety of reasons:
New entity; Surplus Lines: Stamping Binders & Policies with Required Wording
Inadequate loss history;
Unique coverage Each state has its own required wording to be stamped on or attached to a surplus lines binder and policy.
Refer to the National Underwriter Company’s Surplus Lines States list for any special wording required by
requirements; state. This can be found within Reference Connect under the Licensing & Surplus Lines Laws section.
Loss record outside the
1. Copy and paste the appropriate state wording under Notes section of the Premium Comparison.
underwriting requirements 2. Use the Binding Confirmation Communication or Renewal Quick Part when binding coverage as
of a standard carrier; or
Capacity not available in surplus lines wording is already included.
standard market.
Surplus Lines: Invoicing
How do we access them?
Invoices issued on a surplus lines policy must include the taxes and fees. These are typically itemized within
Business is placed with E&S carrier the quote. These are listed as separate line items on the Sagitta invoice. State tax and fee amounts can also
through specially licensed surplus be verified using the National Underwriter Company’s Surplus Lines States list found in Reference
lines brokers. The licensing Connect under the Licensing & Surplus Lines Laws section.
requirements differ from standard
producer insurance licenses. If the E&S broker is required to file taxes and fees – use the broker Payee code.
Most states require the producing If required to file taxes and fees the applicable Payee code will be used for each applicable
agency to document their inability
to place the risk in the standard transaction. The Sagitta Payee codes for surplus lines are in the 18000 series. (i.e. Surplus Lines
market. This is called diligent Tax AZ – Payee: 18012; Surplus Lines Tax IA – Payee 18005; Surplus Lines Tax TX –Payee 18006)
effort and typically done by See the Additional Transaction Lines section of the Property Casualty Reference Manual – Invoicing tab for
obtaining the requisite number of more information on creating additional transaction lines on an invoice including examples.
declinations from admitted
carriers. See Surplus Lines Chart
for more information.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
EXCESS AND SURPLUS LINES
PROCESS & PROCEDURE
Invoicing: Accounting
When invoicing surplus lines tax, it is extremely important that the account manager invoices it correctly. Every state has different rules and
regulations so it can get quite complicated. Accounting prints a report of all items coded to the 18000 Payee series twice monthly. This report is used
for compliance in filing and paying each of the states for surplus lines. Be diligent in your invoicing to avoid any costly penalties and/or
corrections.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
EXCESS AND SURPLUS LINES
PROCESS & PROCEDURE
What is it? Experience Mod
An experience rating modification Experience mods adjust the Workers Compensation policy premium to reflect the client’s actual loss
factor (experience mod) is the experience by dividing the Adjusted Actual Losses by Adjusted Expected Losses provided by the National
difference between a client’s Council on Compensation Insurance (NCCI).
actual past experience and the
expected (or actual) experience of Experience Mod: Understanding the Worksheet
the class. Actual past experience is
determined using three (3) years Understanding the information listed on the experience rating modification worksheet is extremely
of actual (audited) payroll and important. The following are items are found on the worksheet.
claims information, not including
the current policy term.
How is it used?
A mod can be used as a debit or Employer Name
credit to increase or decrease the Risk Identification Number – NCCI identification number for employer.
manual premium of a Workers Rating Effective Date – effective date the experience mod will apply to the policy.
Compensation policy. Production Date – date the experience mod was calculated.
State – location of employer.
Why is it used? Code – matches the classification (class) code listed on the specified policy and describes the type
The mod factor creates a premium of business or work being completed.
which is more representative of ELR – Expected Loss Rate – the rate for expected losses per class code per $100 of payroll.
the client’s loss experience. D Ratio – Discount Ratio – ratio of expected losses that are the expected primary losses.
Payroll – actual (audited) payroll per class code.
Terms to know Expected Losses – the amount of expected losses per class code determined by multiplying the
Experience Mod ELR by payroll divided by 100.
Worksheet – A detailed Expected Prim Losses – expected primary losses determined by multiplying the D Ratio by
summary of the experience
mod calculation as issued by expected losses.
NCCI or non-NCCI participating Claim Data – claims listed by claim number for losses greater than $2,000 or individual claims
states.
less than $2,000 are grouped by type of injury (IJ) number (NO) of claims included in group.
Unity Factor – A 1.00 factor IJ – Type of injury code
used for: new businesses with OF – Open or Final/Closed status.
no data; existing businesses if Act Inc Losses – Actual Incurred Losses – total of indemnity and medical amounts not including
eligibility and/or data
requirements are not met; or Expenses; medical-only claims are reduced by 70%.
when the mod for a qualified Act Prim Losses – Actual Primary Losses – loss amount less than or equal to capped amount
business equals 1.00.
per NCCI rules or state exception rule.
Credit Modification – A Ballast – factor used to help prevent experience mod from shifting too far above or below the
factor less than 1.00.
unity factor to produce one part of the stabilizing value.
Debit Modification – A “Wt” or “W” Factor – weight given to excess and expected losses to produce another part of
factor more than 1.00.
the stabilizing value.
Intrastate Rating – When Stabilizing Value – value used to limit fluctuations of the experience mod calculated by
an employer only has
exposure in one state. multiplying the expected excess losses by (1 – “Wt”) and adding the ballast.
Adjusted Actual Losses – total of actual primary losses, stabilizing value, and actual ratable
Interstate Rating – When
an employer has exposure in excess.
two or more states. Adjusted Expected Losses – total of expected primary losses, stabilizing value, and expected
ratable excess.
See the Claim Information section of NCCI’s ABCs of Experience Rating for more information on how the
Actual Primary loss amount is determined as of 2014. This document also contains a detailed example of the
worksheet and helpful information understanding experience rating in general.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
EXPERIENCE MOD
PROCESS & PROCEDURE
Experience Mod: Status of the Rating
Insurance carrier sends information regarding the client’s audited payroll and loss information on a stat card at 6 months prior to the expiration date
of the Work Comp policy to NCCI. This information is used to calculate the experience mod.
A Preliminary rating is calculated when NCCI does not have final, approved rates for the state(s). Contingent rating is calculated when NCCI has not
received the actual (audited) payroll and loss information from the carrier at the time the worksheet was produced. Final rating is calculated when
NCCI has the final, approved rates for the state(s) as well as actual (audited) payroll and loss information from the carrier.
If a client’s mod is calculated used contingent rating, contact the carrier and request the actual (audited) payroll and loss information be filed with NCCI
so a final rating can be issued.
Experience Mod: Verifying the Mod
All experience mods are verified for accuracy using the following items:
Experience Mod Worksheet issued by NCCI – can be requested from the current carrier
Three (3) years of audited Work Comp payrolls – found on the audits issued by the carrier(s) or the Audit Exposure Comparison
Worksheet and/or Audit Verification Worksheet.
Loss Runs dated six (6) months prior to the Work Comp renewal date – ordered by the Claims Consultant (CC) and saved to CBDDoc.
Verifying the Mod: What to Check
Check the following information on the experience mod worksheet for each policy period:
□ State, Policy Number, Effective and Expiration Dates (shown on top of data rows)
□ Codes (class code) and Payrolls matches audit information – note any differences
□ Claim Data matches loss runs
□ Type of injury (IJ) code
□ Open or Final/Closed status (OF)
□ Actual Incurred losses (Act Inc Losses) – note any differences over $500
□ Actual Primary losses (Act Prim Losses)
Verifying the Mod: Found an Error?
If an error is found when verifying the experience mod, notate any differences and provide this information to NCCI and carrier, as appropriate.
Correction of any errors may possibly change the experience mod for our client.
Experience Mod: Using ModMaster
ModMaster is a program used by insurance and risk management professionals to help analyze the actual experience modification factor and project
future factors based on anticipated changes to the claim data. ModMaster can be accessed through the Zywave Agency Fuel website.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
EXPERIENCE MOD
PROCESS & PROCEDURE
What is it? Invoice Hold List
The invoice hold list provides The invoice hold list is used to assist with a client’s billing requests and/or concerns. Placing a hold on the
alternate instructions to Office installment invoice(s) allows the billing information to be printed but reroutes the document(s) according to
Services on the handling of a alternate instructions.
client’s installment invoices.
Invoice Hold List: Alternate Instructions
How is it used?
Whenever an installment invoice hold is needed on an account, the CSC or AM must provide alternate
The hold list is used when the instructions for Accounting, Tech Support, and Office Services. These instructions are maintained on the
client has requested alternate Invoice Hold List spreadsheet.
handling of their installment The following information must be added to the Invoice Hold List spreadsheet when requesting a hold on
invoices. installment invoices:
It allows automatic printing of the
installment invoices but prevents □ Date Added – to spreadsheet.
them from being mailed directly to □ Bill-To Code – of entity receiving invoice; can be found in Sagitta’s Bill-To field.
the responsible party. □ Client Name – of bill-to client in Sagitta.
□ Named Insured – found on the Policy Record in Sagitta.
Why is it used? □ Servicer 1 – user id from Sagitta.
□ Send Installment To – full name of the person who should receive held invoice(s).
A CSC or AM can also request an □ Notes – additional information relating to installment hold.
installment invoice hold if the
automatic mailing has created a Invoice Hold List: Process Workflow
service issue.
A few reasons a hold may be Tech Support generates installment invoices each Monday four weeks prior to the payment due date. This
requested include: includes any invoices added to Sagitta after the previous week’s report.
Client requests a combined The report is then processed by Office Service into printed invoices. Any invoice matching a Client Code
listed on the Invoice Hold List is separated for further review. Office Services then delivers the held
installment invoice for all invoice(s) to the CSC or AM according to the alternate instructions provided.
installments.
Client wants to receive all Process Workflow: Determining Print Date
installments for their multi
bill-to’s at the same time. Each print cycle ends on a Monday and the print date can be determined by counting four Mondays prior. For
CSC or AM needs to include example, a client’s payment date falls on a Wednesday. To determine when Tech Support will print the
additional information with invoice, you would go the next Monday of that week then count back four Mondays.
installment invoices.
CSC or AM needs to review Invoice Hold List: Not Statement Holds
the installment invoice(s) for
accuracy.
Invoice holds are separate from, and have no impact on, the Statement Hold List. If a client
needs their installment invoice(s) as well as their statement held, you will need to add them to each
respective hold list.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
INVOICE HOLD LIST
PROCESS & PROCEDURE
What are they? Loss Summaries
Loss Summaries provide claim, Including Large Loss Data
premium, exposure and loss ratio
information for a span of six (6) Loss Summaries are compiled for clients for a six (6) year time span – the current policy term plus five (5)
years – the current policy term years previous.
plus five (5) years previous.
Loss Summaries: Templates
How are they created?
The Loss Info Authority letter allows us to obtain prior loss runs from prior carriers. If we were not the
Loss Summaries use information agent during any of these years, we need a letter authorizing us to obtain loss runs from the carrier. This
from the policy, audit, premium letter must be on the client’s letterhead and signed by a company principle. Some carriers will also accept
comparison, and loss run reports an email from the client.
to provide an overview of claim Other templates used in completing the Loss Summary are the:
activity during a policy term.
Loss run reports created by the Premium Comparison;
carrier document claim activity by Premium History;
policy and are provided to us. If no Policy Summary; and
claim activity occurred, this is Audit Verification Worksheet.
reflected as well.
Loss Summaries: Getting Started
Why do we use them?
The process begins when a request for loss runs is ordered from the service team to claims. The request is
Loss Summaries provide useful made to this email address: [email protected]. The typical request for the
analysis for consideration when loss summary is at 180-190 days prior to renewal. This time line ensures the Account Manager (AM) will
making marketing decisions have current information to complete a ModMaster report. Claim Consultants (CC) will order and verify that
between carriers. We may provide loss runs are available for the current policy term plus five (5) years prior. Upon receipt of the email
this information to carriers during request, the assigned CC will let the service team know they have started working on the account.
the marketing process (new or When loss runs are received the CC or AM will update the loss summary, send an email to the team when
renewal business). completed and save it to the CBDDoc WIP folder. If you need the loss summary completed by a
These summaries are included in specific date, email the CC and set an activity in Sagitta for follow-up by the specified date.
the Risk Management Annual
Review (RMR) for our clients If prior loss runs are not available, “NA” is entered into the loss summary and the column(s)
providing them important data in for the policy term(s) are not completed.
an easy-to-read format.
If older loss run is available but newer information is unattainable, the loss summary is
Where do we find them? completed using the older information and references the “Claims Valued As Of” date from the
loss run report. This is the date the report was created by the carrier.
Loss Summaries are used yearly
so data is typically transferred The Loss Summary also includes tabs to record information on large losses. These are typically over $10,000
from year-to-year. but can vary depending on the client. Advise what value you want on your Large Loss Summary when you
A working copy of the summary is send the request for loss runs. The information transferred to this tab should match what is on the loss run
saved in the client’s CBDDoc WIP and the loss summary.
folder. The yearly version used in
the annual review is saved
according to the Commercial Lines
CBDDoc Guidelines.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
LOSS SUMMARIES
PROCESS & PROCEDURE
Loss Information Requests:
Be sure to include the following when making a request:
□ Due Date
□ Item requested (ex. Loss run, loss summary)
□ Time Frame (ex. 3 policy years or 1/1/12-1/1/13)
□ Valuation (if requesting specific valuation)
For loss run requests, be sure to include such items as (if needing specifics):
□ Sorting options (State, policy year)
□ Limitations (only specific claims, claims incurred $250,000 or greater, open only, etc.)
□ PDF or Excel
□ Rush Request use the email address and include High Importance on the subject line.
□ Advise what value is wanted on Large Loss Summary. Information transferred to tab should match the loss run and the loss summary.
If nothing is specified, we will get you a standard PDF report (sorted by line of insurance and policy year, if available). Once a task has been assigned,
a CC will send out an email so the service person can follow up with additional materials, questions, or concerns directly to the assigned CC.
Loss Summaries: Understanding the Columns
Total Incurred Losses – total loss payment including loss reserve.
Paid Loss & Expenses – total loss payment including expenses without the loss reserve- Occasionally in separate entries.
Remaining Reserves – total of all reserves.
Number of Claims – tally of all claims for that line of business.
Number of Open Claims – tally of claims not closed; includes reopened claims.
Loss Summary Template
Loss Summaries: Understanding the Columns
Under the description heading there should be some detail regarding the loss. If the loss run is not very explicit, contact the carrier claims
representative for additional details.
Status refers to open or close. Open claims should be discussed with the carrier or AE for resolution and status.
Loss Summaries: Exposures and Premiums
Policy exposures and premiums reflect values at policy inception as listed on the policy or audit values. The values shown on the summary and all
documents listed in the Loss Summaries: Templates section should match.
Exception can be made for large, premium-bearing mid-term endorsements that could be included in the summary.
Policies subject to audit should reflect the exposures/premiums from the audit. As a way to track what still needs to be completed on your
loss summary use:
o Blue font is used for inception values awaiting audit figures.
o Black font is used for final or audited figures.
o Values are updated by AM when completing the audit.
Auto exposures are typically based on power units – self-propelled, licensed for road use and primarily used to transport persons or cargo.
o Trailers are not included.
o Liability and Physical Damage premium should be reflected separately.
o Miscellaneous endorsement costs should be included in the liability premium.
Workers’ Compensation payrolls should reflect those from the policy term audit.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
LOSS SUMMARIES
PROCESS & PROCEDURE
Insert comments to include helpful notes regarding exposure calculation and to help others working on the account follow the same
procedure.
Loss Summaries: Updating and Completing
The AM is responsible for updating exposures and premiums on the loss summary using the documents listed in the Loss Summaries: Templates
section. Remember to:
□ List the current term’s inception values in blue font until audit exposures and premiums are available then update.
□ Verify prior years’ information reflects audited exposures and premiums in black font.
□ Confirm the experience modification factor has been updated based on the policy, audit, and/or experience modification worksheet.
□ Verify formulas used in the document are correct and show correct values.
□ Review all information for accuracy and completion; premiums and exposures on the loss summary and premium history should match.
□ Correct any formatting issues including: spacing, punctuation, spelling, capitalization, etc.
□ Save completed summary to client’s CBDDoc WIP folder according the Commercial Lines CBDDoc Guidelines.
□ Email CSC as assigned notifying the summary is completed and ready for renewal.
□ Report any errors to the CC that was assigned and copy the Claims Team Lead.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 3
LOSS SUMMARIES
What is it? PROCESS & PROCEDURE
Lost business refers to the close of Lost Business
the servicing relationship between
a client and Holmes Murphy. This Lost Business: Lost Entire Account
can apply to a single line of
business or an entire account. When all major lines of coverage (LOBs) are lost, it is considered a lost client in total even if minor lines of
coverage remain with Holmes Murphy.
When does it occur?
Lost Entire Account: Concurrent Loss Date by LOB
Lost business can occur differently
by account. A few reasons If all major LOBs share the same loss date and will be cancelled or non-renewed at the same time, the Client
business can be considered lost Record can be closed.
include:
A client or carrier chooses to Concurrent Loss Date by LOB: Sagitta Procedure
non-renew a single line of □ Update the Client Details screen with the Lost Client in Total information.
business; □ Change Client Name to “ZZZ – Client Name” (i.e. ZZZ – AMS Training Client)
A business no longer has a □ Remove CLT from the Statuses field and add the appropriate *BizLost Lost
need for insurance due to Business Code.
closure, acquisition, etc.; □ Add the Clients Business Lost Date – date major LOBs lost or BOR effective date
A specific job or contract has per the Broker of Record process.
ended; or □ Add the Lost Identify Agency Name – name of agency business was lost to.
A new broker/agent of record □ Add the Lost Identify Carrier Name – name of carrier business was lost to.
is assigned by the client. □ Enter the Lost Business Reason Beyond Code – as applicable.
Key Terms □ Cancel and/or non-renew all LOB(s) in Sagitta using the appropriate *BizLost Reason code as
these correspond to the client-level Statuses – see the Policy Transaction section of the
Lost Client in Total – Property Casualty Reference Manual.
Refers to the loss of all major
lines of coverage. Lost Entire Account: Different Loss Date by LOB
Major Line of Coverage – If the major LOBs have different loss dates, the Client Record cannot be closed until each policy record has
General Liability, Workers been cancelled or non-renewed. This may occur when we are responsible for invoicing or other servicing
Compensation, Property, needs beyond the BOR effective date; see Broker of Record Letters for more information.
Automobile, and
Umbrella/Excess. Different Lost Date by LOB: Sagitta Procedure
Tail Coverage – Claims- □ Update the Client Details screen with the Lost Client in Total information.
made policy provision which □ Add the Clients Business Lost Date – date major LOBs lost or BOR effective date
allows claims to be made per the Broker of Record process.
after the policy term has □ Add the Lost Identify Agency Name – name of agency business was lost to.
ended, if the incident causing □ Add the Lost Identify Carrier Name – name of carrier business was lost to.
said claim occurred during □ Enter the Lost Business Reason Beyond Code – as applicable.
the policy term.
□ Non-renew all LOB(s) in Sagitta using the applicable effective date and *BizLost Reason code –
see the Policy Transaction section of the Property Casualty Reference Manual.
□ Create activity item for follow-up to close the Client Record after all LOB(s) have non-renewed.
Format: Diary Doc Type: NO
Follow-up Date: Expiration date of last policy to non-renew
Memo Description: All policies have been cancelled or non-renewed – close Client Record
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
LOST BUSINESS
PROCESS & PROCEDURE
Sagitta Procedure: Closing Client Record
Complete the following steps once the activity item to close the Client Record comes due:
□ Update the Client Details screen.
□ Change Client Name to “ZZZ – Client Name” (i.e. ZZZ – AMS Training Client)
□ Remove CLT from the Statuses field and add the appropriate BizLost Lost Business Code.
Lost Entire Account: Tail Coverage Remains
If all major LOBs have been lost but tail coverage remains on a policy, the Client Record can still be closed in Sagitta.
Tail Coverage Remains: Sagitta Procedure
□ Update the Client Details screen with the Lost Client in Total information.
□ Change Client Name to “ZZT – Client Name” (i.e. ZZT – AMS Training Client)
□ Remove CLT from the Statuses field.
□ Add the TL code and appropriate Lost Business Code in the Statuses field.
□ Add the Clients Business Lost Date – date major LOBs lost or BOR effective date per the Broker of Record process.
□ Add the Lost Identify Agency Name – name of agency business was lost to.
□ Add the Lost Identify Carrier Name – name of carrier business was lost to.
□ Enter the Lost Business Reason Beyond Code – as applicable.
□ Create a client-level Note indicating “Only Tail coverage remains”.
□ Cancel and/or non-renew all LOB(s) other than the Tail coverage in Sagitta using the appropriate Reason code – see the Policy
Transaction section of the Property Casualty Reference Manual.
Note: See Tail Coverage for more information on working with these policies in Sagitta.
Lost Business: Lost Single LOB
When an individual LOB(s) is lost on an account but we retain all or a majority of the major LOBs, the policy(s) are cancelled or non-renewed in Sagitta
but the Client Record remains active. The Reason code selected should match why the policy was cancelled or nonrenewed but should not be marked
with an asterisk (*) or *BizLost.
See the Policy Transaction section of the Property Casualty Reference Manual for more information on cancelling and/or nonrenewing a policy in
Sagitta.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
LOST BUSINESS
What is it? PROCESS & PROCEDURE
An MVR (Motor Vehicle Record) is MVR Policy- Ordering
used by employers to verify that
their employees have a valid MVR’s are imperative when an employee drives for their employer. Insurance carriers use MVR’s for
driving license. underwriting purposes and verify that the drivers listed for a client have a valid driver’s license with an
acceptable driving record.
When is it used?
Holmes Murphy’s Policy
Employers ask for MVR’s for their
employees or potential employees Due to the complexity and compliancy requirements on Federal and State law and requirements of the Fair
if the job requirement includes Credit Reporting Act (FCRA), Holmes Murphy has chosen to not order or discuss MVR’s with our clients.
driving a personal or company Client requests adding drivers to an auto policy are sent to the insurance carrier using our endorsement
vehicle. request process. Specifics of driving records are not discussed amongst the parties without a signed MVR
Insurance carriers need MVR’s for Disclosure Form.
those driving vehicles that the
carrier is insuring. Information regarding the FCRA
1. We have to be compliant on Federal AND State laws when handling an MVR for a client. State laws
vary widely and are not just based on agency location. It may be based on the client’s location or
where an employee is going to be employed. This can be anywhere the agency writes business.
2. In order to share or discuss the MVR with anyone we need a signed MVR Disclosure Form from
whom the MVR was obtained.
3. We cannot discuss an MVR with a parent for their child. The parent would have to get a copy of the
MVR themselves. This is of particular concern for personal lines, when parents add their child(ren)
to their personal auto policy.
4. If using an MVR Vendor, review the contract with the vendor. Contracts will stipulate that we are
NOT able to share MVR information received with anyone, even if we would be compliant with
Federal and State laws. HOLMES MURPHY HAS CHOSEN NOT TO USE THE SERVICES OF A VENDOR.
When clients ask, we refer them to the following options:
a. Mary’s MVR Service for Iowa only. Information regarding this service is located in
Sharepoint.
b. Ask the employee to obtain their own record.
c. Intellicorp.net – check their website for more information
d. Iowa Interactive – check their website for more information
e. Share Matrix of Acceptable Driving Guidelines
Reasons supporting our decision
We become the “credit reporting agency” if the carrier decides that a driver is not acceptable to
their underwriting guidelines.
o If we advise the client an employee is not acceptable and the client 1) does not hire the
person 2) terminates the person’s employment or 3) moves the person to a non-driving
position; we have to complete specific items to be compliant with the law.
o We cannot discuss an MVR with the client unless the employee has given them a signed
release.
o We have to provide documentation including a Summary of Consumer Rights for the
employee.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
MVR POLICY- ORDERING
PROCESS & PROCEDURE
o A Notice of Adverse Action must be provided to the employee if they are not hired; terminated; or moved to a non-driving position
because of the MVR.
o An employee can dispute the MVR and HMA must provide them with whom they contact to dispute the MVR information. We refer
the employee to the DMV to obtain a copy of their own driving record. Companies are unwilling to share any information they
have obtained, other than to state the record is outside their acceptable guidelines.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
MVR POLICY- ORDERING
PROCESS & PROCEDURE
What is it? Policy Assembly & Delivery
We owe our clients a complete Clients must receive a full copy of the policy, including all forms. These copies are delivered electronically
copy of the policy(ies) they as soon as possible.
purchase. Once these are received
from the insurance company(ies), Policy Assembly: Complete Copy
it is our responsibility to send
these to our clients as quickly as
possible.
Forms should be compared to what was bound per the final quote and our renewal instructions to the
underwriter. This documentation is saved to CBDDoc using the Commercial Lines CBDDoc Guidelines.
All policies must include all forms before they are sent to the client. Most times a full copy is supplied by the
carrier or available through their website. The easiest way to verify a complete copy of the policy has been
received is to compare the Forms List included in the policy with the contents of the policy copy making sure
we have the forms as requested by the final quote.
Our preferred method of maintaining and delivering policy(s) is electronic unless the client or
AE requests a paper copy for delivery. Think before you print.
Complete Copy: Missing Forms
When forms are missing from the policy copy, a complete copy must be assembled using existing forms
found in prior policy files. This is especially helpful if the form number and edition date remain the same
from the prior term.
When the form numbers and/or edition dates are different, the forms can be requested from the carrier or
downloaded from their website’s form library.
See the CBDDoc System Manual for using CBDDoc Image Viewer to assemble documents or the FinePrint
instructions.
If a paper copy is being kept for office use and a “going green” copy was received from the carrier, keep the
prior year’s complete copy in the notebook and add a tab for the current year. Attach a note on the
notebook indicating both copies are included. This allows the full copy to be referenced when needed
without making multiple copies of documents that are the same year-to-year.
Complete Copy: New Forms
When a policy is received, it typically includes all new forms and may include some older forms depending
on the carrier’s procedure for policy distribution. “Going green” copies tend to include the declarations
page(s), required forms and new forms only.
Complete Copy: Documenting Receipt
Once a complete policy copy has been received and/or created, it is documented according to the Policy
Receipt instructions.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY ASSEMBLY & DELIVERY
PROCESS & PROCEDURE
Policy Delivery: Sending to the Client
Complete policy copies are delivered electronically to the client as soon as possible. If you are sending policies to the client prior to the policy(s) being
checked, verify the following is correct.
□ Declarations page information
□ Named Insured
□ Address
□ Policy term/dates of coverage
□ Premium(s)
Sending to the Client: [secure] or ShareFile
Policies are sent to the client via ShareFile System Manual or using the [secure] encryption prompt in the email Subject line. The body of the email
must include the appropriate Policy Delivery Quick Part for PC – Under Review or Review Complete.
This email is saved to CBDDoc as client correspondence using the Commercial Lines CBDDoc Guidelines.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
POLICY ASSEMBLY & DELIVERY
PROCESS & PROCEDURE
What is it? Policy Cancellation
A cancellation occurs when an Policy cancellations on client accounts can be done on a policy-by-policy basis or the entire account may be
insuring agreement (policy) is canceled for a number of reasons, including nonpayment of premium, insured request for cancellation,
terminated by the carrier or insured coverage not needed or placed elsewhere. Policy cancellation is different than Policy Nonrenewal as it is
before the expiration date of the determined by the termination date of coverage prior to the policy expiration date.
policy. Cancellations are processed
according to the provisions within Policy Cancellation: Sagitta Procedure
the policy, by mutual agreement or
statute. Create a note at client-level indicating which coverage(s) are being canceled and the effective date of
cancellation. This can be done on the Note tab of the Primary Navigation bar on the Client Record in Sagitta.
How is it done?
Policy Cancellation: Client Requests
Cancellations must comply with
state law regarding time limits and When a client wants to cancel a policy it may be requested by phone call, email, in person, etc. but the
notification requirements. Whether carrier will need a signed, formal notification. A copy of the ACORD 35 Cancellation Request/Policy Release
the cancellation is initiated by the (LPR) will satisfy this requirement.
carrier or insured, formal notice
must be provided to the other Client Requests: Sagitta Procedure
party.
Sagitta Procedure: Create the LPR
Cancellations might include refunds Create a LPR for each coverage and/or policy being canceled by the client. Note: The LPR is created, signed,
which are deemed to be returned as and forwarded to the carrier prior to the Cancel transaction is started in Sagitta. The Cancel transaction is
pro rata, short rate or flat created after the signed LPR is received back from the client.
cancellation. The basis used to
calculate a refund depends on who 1. Open the Policy Record(s) for the coverage(s) being canceled. (These may need to be created one-
requested the cancellation, reason by-one)
for the cancellation, and policy
provisions. 2. Create the ACORD 35 Cancellation Request/Policy Release form listed under the Policy
Sidebar’s Forms menu.
Key Terms a. See the Creating a Policy-Specific Sagitta Form portion of the Forms section in the
Property Casualty Reference Manual for instructions.
Pro Rata Cancellation – b. Do not complete any fields on the form beyond what Sagitta prefilled.
Used when the carrier initiates
termination. Refund equals 3. Create an activity item to follow-up on the receipt of the LPR.
unearned premium. a. Pend the activity item for five (5) days to follow-up on return of signed LPR.
Short Rate Cancellation – 4. Send the LPR to the client via e-mail for signature and save the e-mail to CBDDoc as Cancellation
Used when insured initiates Request - LPR to insured using the Commercial Lines CBDDoc Guidelines.
termination. Refund equals
unearned premium minus a Sagitta Procedure: Signed LPR Received
penalty of roughly 10 percent. 1. Save the Signed LPR to CBDDoc as Cancellation Request-Signed LPR at policy-level using the
Commercial Lines CBDDoc Guidelines.
Flat Cancellation – Used 2. Update the activity item created in step 3 above to show the signed LPR was received & sent to
when a policy is terminated the carrier.
on its effective date. Refund a. Pend the activity item for 30 days to follow-up on return of the cancellation form/
equals entire amount paid by endorsement from the carrier.
insured to carrier. 3. Send the signed LPR via e-mail to the carrier and save the e-mail to CBDDoc at activity –level as
Cancellation Request – LPR to carrier using the Commercial Lines CBDDoc Guidelines.
Unearned Premium –
Premium paid for portion of
policy term coverage was not
provided.
Earned Premium –
Premium paid for the portion
of policy term coverage was
provided.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY CANCELLATION
PROCESS & PROCEDURE
Policy Cancellation: Carrier Requests
When a carrier wants to cancel a policy, a notice of pending cancellation is sent prior to the actual cancellation form/endorsement. These notices allow
the carrier to provide notification in accordance with state laws and/or regulations.
Carrier Requests: LPR needed
If a carrier requests a signed LPR but did not provide a form, create one from the Policy Record(s) in Sagitta using the instructions provided in the
Sagitta Procedure: Create the LPR section for Client Requests. Once the signed LPR is received back from the client, follow the Sagitta
Procedure: Signed LPR Received section for Client Requests to send it to the carrier(s).
Carrier Requests: Notice of Intent to Cancel
When a carrier needs to notify a client of their intent to cancel a policy, a notice of intent to cancel is sent out. The notice of intent does not imply the
policy will actually be cancelled. When this information is received, a discussion needs to take place with the AE on the account.
1. Create an activity item in Sagitta for follow-up on the actual cancellation endorsement.
a. The number of Follow-up Days and/or Date should correspond to the anticipated cancellation date in the notice.
b. Do not create the Cancel transaction in Sagitta until the actual cancellation form/endorsement is received.
If the activity item comes due and a cancellation form/endorsement has not been received, follow-up with the carrier on the status and update the
activity item accordingly.
Policy Cancellation: Cancellation Form/Endorsement Received
Once the actual cancellation form/endorsement is received, update Sagitta to reflect the cancellation of the policy. This applies to all
cancellations – client or carrier initiated. Cancelling a policy in Sagitta removes the individual LOB(s) from future expiration lists.
Cancellation Form/Endorsement Received: Sagitta Procedure
1. Verify the cancellation form/endorsement is accurate
□ Effective date of cancellation
□ Policy number
□ Method of cancellation (short rate, pro rata, or flat)
□ Premium
2. Close the activity item created to follow-up on receipt of the actual cancellation form/endorsement.
3. Create a Cancel transaction on the Policy Record(s) for the coverage(s) being canceled. (These may need to be created one-by-one.)
a. See the Cancel portion of the Policy Transactions section in the Property Casualty Reference Manual for instructions.
b. This will automatically create a CAN activity item.
4. Save the cancellation form/endorsement to CBDDoc at policy-level as Cancellation using the Commercial Lines CBDDoc Guidelines.
5. Process the cancellation in Sagitta, including any invoicing. Note: Do not change the expiration date of the Policy Record in Sagitta to the
cancellation date. This causes inaccurate production reports.
6. Update the CAN activity item to show cancellation form/endorsement received and sent to client.
7. Send cancellation form/endorsement to client via e-mail and save the e-mail to CBDDoc as Client Correspondence – Specific using the
Commercial Lines CBDDoc Guidelines.
8. Close the CAN activity item and mark the diary as complete.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
POLICY CANCELLATION
PROCESS & PROCEDURE
What is it? Policy Checking
After a complete copy of the policy Policy checking is started after a complete copy of the policy has been received or assembled and been
has been received, assembled and released to the client. See Policy Assembly and Policy Delivery for more information.
sent to our client, it is now ready
to be checked. Policy Checking: Getting Started
Why Do We Check
Policies?
It is our responsibility to make Whether checking a policy on your own or using the Policy Checking Team, have the following items
sure what we sold and bound is available.
provided and accurate.
□ Updated Policy Record(s) – in Sagitta to reflect bound exposures and coverage terms.
□ Policy(s) – saved to the CBDDoc WIP folder using Commercial Lines CBDDoc Guidelines.
□ Bind Request(s) – saved to CBDDoc using the Commercial Lines CBDDoc Guidelines. These
should be specific to each line of business as outlined in Binding Coverage section.
□ Final Bound Quote – saved to CBDDoc using Commercial Lines CBDDoc Guidelines. Forms
listed on bound quote should be compared to the expiring policy and/or our business standards
as outlined in the Quote Review section. Forms should be reviewed when quote(s) are received
and checked against final bound quote and compared to policy before sending to client.
□ Final Premium Comparison – saved to CBDDoc using Commercial Lines CBDDoc Guidelines.
Finishing: PSR Summary
If PSR Summary is being sent to client after policy check is completed, a new PSR Summary should be created
and assembled from Sagitta Proposals. Save the existing PSR Review to the permanent correspondence
folder using Commercial Lines CBDDoc Guidelines. It is not required to send a client a PSR Summary once the
policy has been checked.
The CSC/AM is responsible for updating the PSR Summary or generating a new one to send to the client. The
Policy Checking Team will provide a POLCK email that will address each policy that has been checked but
they will not update the PSR Summary.
Policy Checking: Checking on Your Own
If policy checking on your own, update Sagitta activities for tracking purposes then check individual policy(s).
Checking on Your Own: Sagitta Procedure
□ Close NEW/REN activity item(s) when policy(s) have been received. These are not used to track
policy checking but can be left open to track other new/renewal items as needed, then closed.
□ Create a POLCK activity at each policy level in Sagitta – i.e. PKG (all coverages under one
Policy # and scanned together) = 1 activity. If split – CGL, CPP, WCO & UMB all different
carriers= 4 activities)
Doc. Type – POLCK
Author – Enter CSC/AM staff User ID of the person responsible for checking the policy
Follow-up Days – 1
Memo Description – YY POL NEW/REN LOB received MM/DD/YY – ready to be checked
Note: POLCK activity item is used to monitor all policies received and checked within our 60
day ‘In and Checked’ time standard.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY CHECKING
PROCESS & PROCEDURE
Checking on Your Own: Completed Policy Check
Once the policy check(s) has been completed, the POLCK activity item(s) can be closed and the checked policy(s) copy(s) should be moved to the
permanent yellow folder using the Commercial Lines CBDDoc Guidelines.
Completed Policy Check: Discrepancies
If discrepancies are found between the issued policy and the items listed in the Getting Started section, the CSC/AM will create an ENDRQ to the carrier
requesting changes to the policy in accordance with the Endorsements procedure for requesting changes.
Policy Checking: Policy Checking Team
If the Policy Checking Team will complete the policy check(s), you will need to create a POLCK activity.
Policy Checking Team: Sagitta Procedure
□ Close the NEW/REN activity item(s) when the policy(s) is received. These are not used to track policy checking but can be left open to
track other new/renewal items as needed, then closed.
□ Create a POLCK activity at each policy level in Sagitta – i.e. PKG (all coverages under one Policy # and scanned together) = 1 activity. If
split – CGL, CPP, WCO & UMB all different carriers= 4 activities)
Doc. Type – POLCK Author – ROSD1
Follow-up Days – 1
Memo Description – YY POL NEW/REN LOB received MM/DD/YY – ready to be checked
Policy Checking Team: Return of Checked Policies
Return of Checked Policies: No Discrepancies
The CSC or AM will be notified by email when the policy check has been completed by a member of the Policy Checking Team. This email will be saved
to CBDDoc in the Permanent Correspondence folder as YY POLCK MEMO. The POLCK activity item(s) will be closed as well.
Return of Checked Policies: Discrepancies
If discrepancies are found between the issued policy and the items listed in the Getting Started section, the Policy Checking Team will create an
activity item to the CSC or AM for policy checking notes follow-up.
Doc. Type – DM Author – CSC
To – AM responsible for follow-up Follow-up Days – 10
Memo Description – YY POLCK LOB FOLLOW UP
The discrepancies will be outlined in an email to the CSC and AM and saved to CBDDoc using the Commercial Lines CBDDoc Guidelines with the activity
item as a point of attachment at the policy level. The checked policy(s) will be updated to show the checked date with the checker’s initials and moved
to the appropriate Line of Coverage folders(s) using the Commercial Lines CBDDoc Guidelines.
The CSC or AM will request changes to the policy in accordance with the Endorsements procedure for requesting changes. Not completing the
necessary follow-up on questionable items listed in the policy checking notes is unacceptable.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
POLICY CHECKING
PROCESS & PROCEDURE
Policy Checking: What to Check
In addition to checking the current policy, any updated or new forms added will need to be reviewed for content prior to binding coverage. Before
completing the word-by-word review, check the Insurance Coverage Forms add hyperlink folder to see if the form has already been reviewed. If you
do complete the word-by-word review, add it to the Insurance Coverage Forms folder for others to use. Note: This is a tool to help, not to replace
your knowledge of the form and how it affects coverage. You still need to make notes on the form and compare to the intent of coverage.
You may also want to compare the policy(s) with the Holmes Murphy Insurance Standards to ensure minimum coverage requirements are being met
from year-to-year.
What to Check: Coverage Checklist –
This brief checklist is not all inclusive and may need to be adjusted based on the client’s needs and/or exposures.
□ Declarations page(s)
□ Is the First Named Insured the same on both the Policy and Sagitta? (Verify Named Insured on each line of coverage)
□ Mailing address
□ Policy number
□ Effective and expiration dates
□ Premium issued as bound
□ Limits Correct
□ Locations correct
□ Deductibles
□ Endorsements
□ Mortgagees, Loss Payees and/or Lienholders
□ Vehicle Rating/Cost New/Garaging Location
□ Property
□ Coverage/Limits as Bound
□ Make sure location schedule matches SOV
□ Deductibles
□ Blanket Limits
□ Coinsurance
□ Agreed Value
□ Cause of Loss
□ Valuation
□ Additional Interests – Mortgagees/Loss Payees
□ Joint Loss Agreement
□ Equipment Breakdown
□ Broadening Endorsement
□ Earthquake & Flood as Options
□ Sewer Back up
□ Ordinance or Law
□ Off Premises Utility Services
□ Inland Marine
□ Coverage/Limits
□ Deductibles
□ Valuation
□ Coinsurance
□ Equipment Schedule – Year, Serial #, Description & Amount
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 3
POLICY CHECKING
PROCESS & PROCEDURE
□ Additional Interests
□ EQ, FLD or Sewer Back Up
□ EDP – include mechanical breakdown, computer virus, etc.
□ Lease or Rented Equipment FROM and TO others
□ General Liability
□ Occurrence or Claims Made
□ If Claims Made – Retroactive Date and Extended Reporting Period
□ Coverages/Limits
□ Any PD or BI deductibles
□ Hazards – Class Codes/Rates/Exposures
□ Employee Benefit Liability? Retroactive Date, Extended Reporting Period
□ General Aggregate Per Location/Project
□ Definition of Products Changed for Restaurants
□ HVAC and Hostile Fire Exceptions to Pollution Exclusion are in most of the newer ISO editions. If not, get endorsed.
□ Waiver of Subrogation
□ Additional Named Insureds
□ Blanket Additional Insureds
□ Broadening endorsement
□ Fellow Employee
□ Notice and Knowledge of an Occurrence
□ Unintentional Failure to Disclose Hazards
□ Bodily Injury definition to include Mental Anguish
□ Automobile
□ Limits/Symbols
□ Symbol 1 for Liability and Symbol 2 for MP, UM/UIM, PD
□ Symbol 10 for fleet Comp/Coll and coverage is not common on all vehicles and carrier will not do symbol 2
□ Hired Auto Physical Damage
□ Employees as Insureds
□ Employee Hired Auto
□ Broadening endorsement
□ Vehicle Schedule – Class Codes, Cost New, Garaging, VIN
□ Additional Named Insured
□ Blanket Additional Insureds
□ Waiver of Subrogation
□ Fellow Employee
□ Pollution Liability – CA9948
□ Notice & Knowledge of an Occurrence
□ Bodily Injury Definition to include Mental Anguish
□ Unintentional Failure to Disclose
□ Vehicle Rating/Cost New/Garaging Location
□ Workers Compensation
□ States that are covered under Item 3.A
□ All other states under Item 3.C except for Monopolistic – ND, OH, WA, WY
□ Voluntary Compensation & Employers Liability
□ Higher limits than 100/500/100
□ Experience Mod
□ Rating Info – Class Code/Classification/ Exposure
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 4
POLICY CHECKING
PROCESS & PROCEDURE
□ Any USL&H exposures (near water)
□ Is this a Corporation? Know laws of your state for coverage election requirements.
□ Is this an LLC or proprietor? Know laws of your state for coverage election requirements.
□ Stop Gap for Monopolistic States
□ Umbrella/Excess Liability or Both
□ Umbrella/ Excess or Both? Make sure this is clarified on PSR.
□ Coverage/Limits
□ Underlying schedule completed with underlying CGL, CAU, EL and any other liability coverages? Is the company name,
effective dates and policy number and term correct?
□ Fellow Employee follow underlying form
□ Same Pollution exception (new form has the HVAC and Hostile Fire exceptions built into policy wording)
□ Do all Underlying policies have the same effective date? If not, unimpaired aggregate endorsement is needed.
□ Follow Form Per Location/Project
□ Products Completed Operations Aggregate endorsement attached (CU2436) if there is not a Products Completed Operations
limit on the Declaration page.
□ Products Completed Operations Redefined CU2405 (for restaurants)
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 5
POLICY CHECKING
What is it? PROCESS & PROCEDURE
Nonrenewal is the discontinuation Policy Nonrenewal
of a policy beyond the current
expiration date. This includes Policy nonrenewals can be completed on a policy-by-policy basis or on an entire account depending on the
nonrenewal of an entire policy or reason why coverage is no longer needed by the client or being provided by the carrier. Policy nonrenewals
nonrenewal of conditions/terms are different than Policy Cancellation and are determined by the termination date of coverage.
included within a policy.
Policy Nonrenewal: Conditional Notice of Nonrenewal
Why is it done?
Conditional Notices of Nonrenewal address policy terms and/or conditions which are being changed by the
Nonrenewal of a policy may be carrier for the upcoming renewal term. State regulations typically require notice for significant changes to
done for several reasons certain aspects of a policy such as rates, coverage removal, and deductible amounts. Notices must usually
including: be sent within 10-75 days depending on the state unless other terms are negotiated with the insured/agent.
Carrier no longer wishes to
Conditional Notice of Nonrenewal: Rights & Responsibilities
provide coverage for an
exposure; When a conditional notice of nonrenewal is received from carrier, the CSC or AM must contact the underwriter
Client no longer has a need to determine the following as applicable:
for coverage; or
Coverage has been included □ What is the basis of the conditional notice?
in another policy (i.e. CAU □ Is a coverage being discontinued or amended?
coverage is being added to □ Why is the rate being increased?
an existing PKG policy). □ Why is the deductible amount being increased?
How is it done? □ Are alternate coverage solutions being offered?
□ Can we negotiate policy terms or conditions?
Carriers are required to send
advanced notice of nonrenewal, Note: Notify client using Quick Part and notify account executive as to reason. Take appropriate action
similar to cancellations, based on based upon future renewal and attach Conditional Notice of Nonrenewal in CBDDoc.
state regulations usually 10-75 Conditional notices of nonrenewal also impact the Account Renewal process when determining the
days prior to the current term’s remarketing plan with an AE.
expiration date. The time
requirement can be impacted by Policy Nonrenewal: Notice of Nonrenewal
the reason for nonrenewal.
Notices of Nonrenewal address situations when the carrier will no longer provide coverage for an exposure
Nonrenew or Cancel? and/or account. Notices must usually be sent within 10-75 days depending on the state unless other terms
are negotiated with the insured/agent.
A policy is nonrenewed when the
carrier will provide coverage for Notice of Nonrenewal: Rights & Responsibilities
the remainder of the current term
but will not issue a renewal upon When a notice of nonrenewal is received from a carrier, the CSC or AM must contact the underwriter to
expiration. determine the following as applicable:
A policy is cancelled when the
carrier is terminating coverage □ What is the basis of the nonrenewal?
prior to the normal expiration □ Can changes be made to the account management to make it an acceptable risk? (i.e.
date. new payment terms or billing methods, increased loss control, etc.)
□ Are alternate coverage solutions available?
□ Can we negotiate policy terms or conditions to make the exposure acceptable?
Notices of nonrenewal also impact the Account Renewal process by requiring a policy(s) to be marketed to
new carriers for coverage placement.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY NONRENEWAL
PROCESS & PROCEDURE
Policy Nonrenewal: Sagitta Procedure
When a notice or conditional notice of nonrenewal is received from a carrier, the CSC or AM will need to update Sagitta to reflect the notice.
□ Update the Miscellaneous Remarks field for the policy(s) to show (conditional) notice of nonrenewal received (i.e. Notice of
nonrenewal received from Chubb or Conditional notice of nonrenewal received from Hartford).
□ Save a copy of the nonrenewal notice to CBDDoc at policy-level using the Commercial Lines CBDDoc Guidelines.
Sagitta Procedure: Nonrenewal
When a policy is completely nonrenewed, the Policy Record in Sagitta must reflect this using the NONRENEW transaction type. Nonrenewing a policy in
Sagitta removes the individual LOB(s) from future expiration lists.
See the Non-Renew portion of the Policy Transactions section in the Property Casualty Reference Manual for instructions.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 2
POLICY NONRENEWAL
PROCESS & PROCEDURE
Why is it important? Policy Receipt
When policies are received, they Policies can be received electronically or by paper. Electronic delivery includes emails with the policy
must be tracked through the entire attached or containing a link to download the policy, TransactNow, or file transfer from the carrier.
policy workflow for completion
and accuracy. Policy Receipt: Saving a Complete Copy
Adhering to policy setup standards
ensure our clients receive the All policies must include all forms and be saved to the WIP folder upon receipt even if policy checking does
policy in an easy-to-use format. not occur immediately.
Who handles it? Saving a Copy: Electronic Receipt
□ Verify a complete policy copy has been received. See Policy Assembly & Delivery for more
Depending on how the policy is information.
sent to Holmes Murphy by the
carrier, policy receipt may be □ Save policy to CBDDoc WIP (Preferred) or S:drive WIP folder, as appropriate, using the Policy –
handled by Office Services or a Received (but not checked) information on the Commercial Lines CBDDoc Guidelines.
member of the service team.
Policy setup is typically handled by □ Create a POLCK activity from the Policy Details screen in Sagitta. See Policy Checking for more
the service team (AM or specified information.
individual). Format: Diary Doc Type: POLCK
Author: CSC or ROSD1 Follow-up Days: 1 day from creation
Memo Description: YY POL NEW/REN RCD YYYYMMDD to be checked – desc
Saving a Copy: Paper Receipt
□ Check the carrier website for an electronic copy of the complete policy or ask underwriter to
provide an electronic copy.
□ Verify a complete policy copy has been received. See Policy Assembly & Delivery for more
information.
If electronic is not available, scan the complete paper copy. This can be sent to Office
Services for completion after the CBDDoc profile is created.
□ Save the policy to the CBDDoc or S: drive WIP folder, as appropriate, using the Policy –
Received (but not checked) information on the Commercial Lines CBDDoc Guidelines.
□ Create a POLCK activity from the Policy Details screen in Sagitta. See Policy Checking for more
information.
Format: Diary Doc Type: POLCK
Author: CSC or ROSD1 Follow-up Days: 1 day from creation
Memo Description: YY POL NEW/REN RCD YYYYMMDD to be checked – desc
Policy Receipt: Updating Worklists
Some offices use renewal/service workflow checklists or worklists to track policy receipt in addition to the
POLCK activity. These lists should be updated as applicable
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY RECEIPT
What is it? PROCESS & PROCEDURE
A policy reinstatement occurs Policy Reinstatement
when a previously cancelled policy
resumes active coverage as of the Policy reinstatements allow previously cancelled policies to resume active coverage without a lapse in
original effective date. This may coverage. The original policy effective date is still in effect.
require payment of premium Reinstatements are different than policy rewrites which indicate coverage was terminated and written to a
and/or fees as determined by the new effective date.
carrier. Note: If a Sagitta activity was created make a note that the policy was reinstated, attach document(s) and
close the activity.
Why is it used?
Reinstatement is used to reverse a
cancellation and resume the
original terms of the policy with
no lapse in coverage by
continuing with the original policy
effective date.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY REINSTATEMENT
PROCESS & PROCEDURE
What is it? Policy Renewal or Remarket
Policy renewal is the continuation A policy is renewed to continue coverage from one term to the next and is a part of the overall Account
of a policy at expiration of the Renewal process.
existing term.
The continuation of coverage may Policy Renewal: Sagitta Transactions
be renewed with the incumbent
carrier or marketed to a new
carrier.
How is it done? In Sagitta, a policy renewal transaction can be created using the RENEW or REMARKET transaction types
based on the Account Renewal process and creates an automatic activity.
Policies can be renewed using a
renewal policy or a renewal Sagitta Transactions: Renew
certificate which take effect upon
the expiration date of the prior The RENEW transaction type in Sagitta is typically used for “direct renewals” when the policy is not being
policy term. marketed to new carriers. It is also used when a policy is automatically renewed per expiring by the carrier.
A new policy number may or may Using the RENEW transaction type mirrors the continuous coverage provided from one term to the next and
not be issued but coverage is still connects the Policy Records in Sagitta.
continuous and considered a Changes (endorsements) requested prior to the renewal term effective date should be made on the expiring
renewal. Policy Record in Sagitta before the RENEW transaction is created. See the Renew portion of the Policy
Transactions section in the Property Casualty Reference Manual for instructions.
Key Terms
Sagitta Transactions: Remarket
Renewal Policy – An
insurance policy issued to The REMARKET transaction type in Sagitta is typically used for a policy which is being marketed to new
replace an expiring policy. carriers. It is also used when a carrier requests updated renewal applications. Using the REMARKET
transaction type creates an interim Policy Record in Sagitta while keeping the current Policy Record active.
Renewal Certificate – A Changes (endorsements) requested while the policy is being remarketed should be recorded on both the
limited method of policy interim and current Policy Record. See the Remarket portion of the Policy Transactions section in the
renewal using a certificate Property Casualty Reference Manual for instructions.
which references the original
policy but does not itemize
policy conditions.
Incumbent Carrier – The
carrier currently providing
coverage.
Remarket – Refers to the
process used to identify
potential, alternative carrier(s)
to provide coverage.
Full Policy Copy – A policy
copy containing all policy
forms as required by Holmes
Murphy service standards.
“Going Green” Policy
Copy – A renewal policy
copy issued by a carrier
containing only new and/or
updated forms.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY RENEWAL OR REMARKET
What is it? PROCESS & PROCEDURE
A policy rewrite occurs when a Policy Rewrite
previously cancelled policy
resumes active coverage with a Policy rewrites occur when a policy has been cancelled and is rewritten with a new policy effective date.
new policy effective date. Coverage is resumed, but there is a lapse in coverage.
Rewrites differ from policy reinstatements as there is no lapse in coverage with a reinstatement. The
Why is it used? original policy effective date is used to resume coverage for a reinstatement.
A rewritten policy is commonly
used in the following situations:
To resume the original terms
of the policy with a lapse
in coverage by using a new
policy effective date;
The carrier has cancelled the
original policy and issued a
new one in its place using a
new policy number and/or
effective date; or
In Sagitta to show a policy
has been moved from one
carrier to another midterm.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
POLICY REWRITE
PROCESS & PROCEDURE
What is it? Premium Audit
A premium audit is a review of the Premium audits are issued by carrier usually within 60 days of the auditable policy expiration date and
policy exposure basis after a should be verified and forwarded to the client as applicable within five (5) days of received by the
policy term ends to determine the carrier. See the Property Casualty Time Standards guide for more information on all audit related
final premium charge for coverage timeframes.
provided.
Premium Audit: Agency Bill Audits
When is it used?
We are responsible for reviewing agency bill audits for accuracy and billing the client for any additional or
Policies are typically audited when return premium. Any changes in class code(s) or significant premium increases need to be discussed with the
there is an opportunity for change AE and/or client.
in exposure during the policy Since we issue the invoice, we are responsible for collection efforts. We advocate on behalf of our client for
term. Some coverage types such any audit disputes.
as General Liability and Workers’
Compensation are auditable more Premium Audit: Company/Direct Bill Audits
often than others.
Increases or decreases in policy It is still our responsibility as the agent to review company/direct bill audits for accuracy even though the
exposure indicate a change in the carrier communicates directly with the client. Any changes in class code(s) or significant premium increases
level of risk associated with the still need to be discussed with the AE and/or client.
coverage and premium is adjusted The carrier sends the audit form and invoice directly to the client so we are not responsible for collection
accordingly. issues. However, some carriers may ask us to make a courtesy call to our client on unpaid audits. We
Audits are typically issued by the remain the client advocate for any disputes.
carrier within 60 days of policy
expiration.
Key Terms
Class – Group of risks with Premium Audit: Sagitta Procedure
similar characteristics used
for rating. This procedure is typically created as a part of the Renewal Workflow but can be completed at any time after
the policy has been renewed.
Class Code – Unique
number assigned to each 1. Create AUD transaction on expiring policy term.
class. a. Verify follow-up days – Sagitta defaults to 90 but can be adjusted as needed.
2. Optional Client Touch: Create activity item to email the audit tip information to the client using
Exposure Basis – Unit used Audit Tips Quick Part.
to calculate probability of Format: Diary Doc Type: COR
loss (i.e. payroll, total sales, Author: CSC or AM Follow-up Days: 7 days after renewal effective date
area, receipts, etc.). Memo Description: Email Audit Tips to client
Rate – Amount charged by Premium Audit: Processing the Audit
carrier per unit of exposure.
These documents are necessary to complete the audit review process:
Deposit Premium – □ Audit from carrier;
Premium charged at policy □ Expiring policy for audited term;
inception based on projected □ Premium-bearing endorsements issued during the audited term; and
exposure. Also called □ Current term policy
Estimated Premium.
Audited Premium – Final
premium charged based on
audited exposures at end of
policy term. Also called Actual
Premium.
PROPERTY CASUALTY LEARNING & DEVELOPMENT 8/9/2016 1
PREMIUM AUDITS
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