New Markets
Excess Auto Liability
Nuts & Bolts: Freberg Environmental, Inc. has announced an excess automobile liability program. The program is designed to provide excess limits over FEI’s hazardous material and hazardous waste trucking program with Arch Insurance Group. The Arch program provides a maximum limit of liability of $1M. With the addition of the excess program FEI has the capacity to offer $5M in limits of liability to hazardous material and hazardous waste trucking accounts.
Dollars: $1M to $4M, Minimum Premium, $7,500.
Non admitted, AM Best rating
States: Ala., Ark., Ariz., Calif., Co., Conn., Del., Fla., Ga., Hawaii, Idaho, Ill., Ind., Iowa, Kan., Ky., Maine, Md., Mich., Minn. Miss., Mo., Neb., Nev., N.H., N.J., N.M., N.C., N.D., Ohio, Okla., Ore., Penn., R.I., S.C., S.D., Tenn., Texas, Utah, Vt., Va., Wash., D.C., W.Va. and Wyo.
Contact: John Fusie, assistant vice president, Transportation manager, 303-534-1171 or email, www.feiinsurance.com.
Contingent Auto and Cargo Liability
Nuts & Bolts: Greenwich Transportation Underwriters, Inc. offers coverage for contingent auto liability and contingent cargo for truck brokers. Non-admitted: two carriers. Deductible, none on auto/$1,000 with options on cargo.
Dollars: Up to $1M.
States: Ala., Ak., Ark., Ariz., Calif., Co., Conn., Del., Fla., Ga., Hawaii, Idaho, Ill., Ind., Iowa, Kan., Ky., La., Maine, Md., Mich., Minn. Miss., Mo., Mont., Neb., Nev., N.H., N.J., N.M., N.Y., N.C., N.D., Ohio, Okla., Ore., Penn., R.I., S.C., S.D., Tenn., Texas, Utah, Vt.., Va., Wash., D.C., W.Va., Wis. and Wyo.
Contact: Jim Savage, vice president marketing, 800-488-8852, or email jsavage@gtu-ins.com.
bh:Aging Services Operations
Nuts & Bolts: Aging services operations is being offered by Aon Association Services including, but not limited to assisted living facilities, independent living facilities, nursing homes, personal care and services for the elderly.
Dollars: Minimum premium $25,000.
States: All
Contact: Maria Mareno, senior vice president, 800-865-7307 or email info@aahsa-insurance.com.
Towing and Recovery Program
Nuts & Bolts: BISYS is the program manager working with Universal Casualty Company (A-VII) to insured professional towing and recovery operators. The program insures towing operators and towing operators with service garages or body shops. The program prohibits insuring re-possessors, salvage yards or garages where the primary operation is something other than towing. The package includes; auto liability and physical damage, garage keepers, general liability, on hook cargo and inland marine. The program is approved in 17 states and more state approvals are pending.
Non-Admitted: Texas, Wisc.; binding authority rests with BISYS.
Dollars: From $300,000 CSL to $1M CSL.
Carrier: Universal Casualty Company.
States: Ala., Ariz., Del., Hawaii, Ill., Ind., Iowa, Miss., Mo., N.D. Ohio, Okla., Ore. Penn., S.C., Texas, Vt. and Wis.
Contact: Lynn Roach, vice president program manager, 866-754-7658 ext. 3240, or email towing@bisys.com.
Medical Malpractice for Prison Physicians
Nuts & Bolts: U.S. Risk Underwriters, Inc. offers medical malpractice coverage for prison physicians.
Dollars: Policy limit $1M per occurrence/$3M aggregate. Deductible is $15,000.
States: All states except: Ind., Kan., La., N.M., N.Y., Penn., S. C., and Va.
Contact: Michael L. Davis, executive vice president, branch manager, 480-922-4441 or email, miked@usrisk.com.
Lexington eyes 2004 repeat
Lexington Insurance Group, the largest U.S.-based surplus insurance company, said it is assuming this year will look more like 2004 than 2005 as it goes about deciding where and what properties to write at what prices and terms.
In 2004, the industry lost $27 billion, compared to twice that or $55 billion in 2005. If the patterns of 2004 return this year, Lexington would make a profit, Kevin Kelly, Lexington chairman and chief executive of the American International Group affiliate, told investors during a Domestic Group Brokerage presentation.
The company plans to reduce its net coverage in catastrophe areas by 20 to 25 percent this year, targeting New Orleans and Hawaii.
Noting that the company suffered more than $2 billion in hurricane losses in 2005, Kelly said that “our market couldn’t swallow a repeat of 2005 right now.” In 2005, the company began reducing its exposure in Florida, Texas and California.
Lexington will employ a number of strategies including raising rates up to 30 percent in catastrophe-prone areas, raising wind and flood deductibles, and placing more limits on coverages to achieve better results in 2006.