ISO’s introduction of Limit of Insurance relativity factors for calculating property loss costs may affect your ability to accurately estimate the premium impact of policy changes.

The new process for calculating loss costs is based on property exposures, and the assumption the probability of a total loss decreases as the limit of insurance increases.  Among the rating differences are the following:

·         The introduction of a transition factor to spread the impact of the change over time

·         Elimination of the contents theft increment

·         New base rate adjustment factors for time element coverages

·         Potential impact to the loss cost as a result of changes to territory, protection class, construction, and valuation

If your customer is looking for an estimated property premium prior to making policy changes, let us quote it for you. You can submit your request for quotation through iBIS, change line, your Underwriting Assistant, your Underwriter, or your Field Manager.

Your Frankenmuth Insurance team is anxious to assist you.