Frankenmuth Insurance would like to offer further clarification regarding rate and rule differences in its Group and Non-Group Homeowner Programs. These changes are effective April 1, 2011.
Rate Changes
The Group Program base rates are set 11.8% lower than the Non-Group program. All members of a qualifying group enjoy this decreased base rate. In addition to the decreased base rate, some groups will receive an additional discount varying up to 7%. This discount is based upon the demographics of the group.
Rule Changes
As a result of our filing review, changes have been made to the Michigan Homeowner Group Program. The following rule is being removed from the Ineligible Risks section of the manual:
· Renewals with a claim history of (excluding liability claims):
o Three paid claims within the immediately preceding three years totaling $3,200 or more, exclusive of weather-related claims
o Three paid claims within the immediately preceding three years totaling $4,300 or more, including weather-related claims
Consequently, the Claims Surcharge has been adjusted to be applicable for all claims, not just those within the insured’s control.
The Claims Surcharge will remain applicable to claims within the insured’s control for the Non-Group Homeowner Program.
Additionally, the following two rules have also been removed from the Ineligible Risk section:
· Dwellings with an adjacent physical hazard presenting a significant risk of loss directly related to the perils insured against (i.e., a burned-out building that could collapse onto the insured risk, a vacant structure not properly protected against vandalism or malicious mischief or arson, a high-hazard manufacturing risk where a fire might spread to the insured risk). Neighborhoods or traffic patterns are not considered to cause significant risk of loss
· A person who has committed one or more incidents involving a threat, harassment, or physical assault for insurance on an insurer employee, agent, or agent employee while acting within the scope of his or her employment so long as a report of the incident was filed with a law enforcement agency
As a result, we are revising the “Increased Liability Hazard Surcharge.” This surcharge, also known as the “dog surcharge,” will now be called “Increased Hazard Surcharge” and the eligibility of this surcharge has been expanded, but not limited to, what is shown below:
A. The ownership of vicious dogs or other dangerous animals. A surcharge is applied; regardless the number of vicious dogs or other dangerous animals, per each insured location. Exposures considered in the category include, but are not limited to, the following dog breeds (full or mixed):
i. Akita
ii. Alapaha Blue Bull Dog
iii. American Bull Dog
iv. Chow
v. Doberman
vi. Mastiff
vii. Pit Bull/Staffordshire Bull Terrier
viii. Presa Canario
ix. Rottweiler
x. St. Frances Terrier
xi. Tosa Inu
xii. Wolf
B. Dwellings with an adjacent physical hazard directly related to a peril insured against, such as, but not limited to:
i. A burned-out building that could collapse onto the insured risk
ii. A vacant structure not properly protected against vandalism, malicious mischief or arson
iii. A high hazard manufacturing risk where a fire might spread to an insured risk
C. A person who has committed one or more of the following acts against an insurer employee, agent or agent employee while he or she was acting within the scope of their employment:
i. Threat
ii. Harassment
iii. Physical Assault
As always, should you have any questions, comments or concerns, please do not hesitate to contact your Field Manager or Underwriter. Thank you for your continued loyalty to Frankenmuth Insurance.
