In an effort to make it easier for agents to enter and calculate MPIUA Fair Plan’s new Primary Insurance Coverage endorsement in SinglePoint, we’ve made a number of changes:
The endorsement is currently called “Excess over $1 Million” in SinglePoint, but will be changed to “Primary Insurance Coverage”. This is the actual name of the endorsement and how it appears on MPIUA’s website and Dec pages.
The most important change we are making is that agents should enter the full Replacement Cost amount in the Coverage A field in SinglePoint Basics tab.
So if, for example, you’ve determined the Replacement Cost to be $1,400,000, then you should enter $1,400,000 in Coverage A. (Previously, we instructed you to enter $1,000,000 in Coverage A field and $400,000 in “Excess over $1 Million” endorsement field.)
With our new update, SinglePoint will rate $1,000,000 of the total Cov A with the standard rating calculation and also rate the remaining $400,000 of Cov A as the excess. You must, of course, select the Primary Insurance Coverage endorsement in the Options tab. This is the agent’s way of declaring their insured will get excess coverage for this risk and, also, triggers the appropriate rate calculation in SinglePoint.
Please note some additional changes:
- You the agent must select either Primary Insurance Coverage endorsement or Special Loss Settlement endorsement if Coverage A exceeds $1M. You cannot choose both.
- SinglePoint will provide an “info bubble” next to the Primary Insurance Coverage and Special Loss Settlement that lists out the Cov A thresholds and percentages allowed for Special Loss Settlement to help you choose the correct endorsement.
- If the insured fails to get the excess coverage, MPIUA will remove the Primary Insurance Coverage endorsement on the policy and switch it to Special Loss Settlement if possible.
- SinglePoint will display the following message “MPIUA is designated as the primary carrier and is only insuring for $1 Million in coverage. Additional coverage must be obtained through an excess carrier or broker.” This message will display in the Plan Summary and on both the short and long Quote printouts.
- If the amount entered in Cov A exceeds $1M and proper conditions are not being met, SinglePoint will guide you through Hints & Warnings so you may correct any issues. This makes it almost impossible to enter data incorrectly.
NOTE for Dwelling Fire Policies:
The changes for HO policies described above will apply to Dwelling Fire policies, with a couple notable exceptions:
For properties with Coverage A over $1M, agents must choose between Primary Insurance Coverage endorsement or Actual Cash Value for the excess. Unlike Homeowners which has limits for Special Loss Settlement, agents can simply choose one or the other. There is no Cov A limit on either Primary Insurance Coverage and Actual Cash Value.
If Actual Cash Value is slected, there is no limit on the amount you can enter in Coverage A.
