P&C MOST COMMON CAUSES OF REVIEW DELAYS FOR PROPERTY & CASUALTY SUBMISSIONS

 The following is a list of "commom causes"  of omissions and/or filing errors which, in our observation, cause the majority of processing delays. For more details, please review a comprehensive exhibit of filing requirements by product line.

REGARDING FORMS

Vermont State Amendatory Endorsements
New or updated State Amendatory endorsements must be included with any policy or coverage part filing.

Reference Filings
Filings must include copies of forms, endorsements or rates being referenced. Per Regulation I-2010-03.

"Side-By-Side" Comparison
Each "Prior Approval" or "File and Use" filing submission must be accompanied by a side-by-side comparison, per Regulation I-2010-03.

ISO Adoptions / Non-Adoption
ISO Adoptions requests must be accompanied by the appropriate ISO circular letter or Executive Summary.
Non-Adoptions should provide specific information about the nature of the non-adoption and the ISO effective date, which in turn becomes the non-adoption effective date.
You cannot Adopt an ISO filing prior to the ISO effective date.

Cancellation / Non-Renewal
Notice of cancellation, notice of non-renewal and renewal must comply with Title 8, § 3879-3883, 4223-4225 and 4711-4715 inclusive, effective September 1, 1990.

"Indemnity" Insuring Agreement Wording
We require liability policies to be written on a "pay on behalf of" rather than an "indemnification" basis, per Title 8, § 4203.

Pollution
Pollution liability may not be excluded in Vermont except by Individual Risk Filing where a known hazard exists, per Bulletin 111.

Uninsured / Underinsured Motorists
Uninsured/Underinsured Motorists coverage must be provided for every policy providing motor vehicle liability coverage in Vermont, per Title 23, § 941.

Binding Arbitration
Binding arbitration is not permitted if the process can be demanded unilaterally, as it may deprive the insured of access to the court. Binding arbitration is approvable only if both parties agree to the arbitration process. 

Defense Within Limits
We do not allow defense within limits. It is potentially misleading and deceptive, since a verdict against the Insured may find the limits too impaired by defense expense to pay the judgment to the injured party. We are, however, willing to consider a separate limit for defense which is equal to the liability limit. 

Fraud
If an Insured obtains a policy through fraud or material misrepresentation, that policy may be voided. If this occurs after the effective date, the company may only deny the claim on that basis, but has grounds for cancellation. 

Claims Made - Extended Reporting Periods
Extended reporting periods must reinstate the limit or have a separate limit of liability equal to that of the expired policy. Also, any Optional Extended Reporting Period must begin when elected, rather than at the end of the "Basic" ERP. 

Type Size
We have a minimum 10 point type size requirement, per Regulation I-2010-03.

Readability
Readability must be at a minimum of 40 on the Flesch scale, per Regulation I-2010-03.

Named Insureds
As of 1/1/01, parties to a Civil Union under Vermont law need to be recognized as insureds. See Regulation 2000-01-1H and Bulletin 127 for options.
With respect to motor vehicle liability, we do not allow any intra-insured or intra-family exclusions.

Alcohol
Acts committed under the influence of alcohol may not be excluded.

Lead / Lead Paint
We do not allow lead exclusions in primary Liability policies.

Asbestos
We do not allow asbestos exclusions in primary Liability policies.

Disclosure
The insured must be given written notice whenever a coverage has been modified or eliminated, per our Disclosure Regulation 78-1 (1).

REGARDING RATES

General
Rating guidelines and methodology must be provided, per Title 8, section 4688.
We will accept the CLM Classification Table, as filed, by you and other insurers.

"a" Rates
For (a) rate filings, please also furnish your rating guidelines and methodology. 
It is not acceptable to simply indicate that "(a) rating applies" or to state "refer to company", per Title 8, § 4688 (a).

Loss Costs
For instructions and forms needed for loss cost filings, please see Bulletin 99.
With respect to changes in company loss cost multipliers, please provide documentation and explanation for the reasons for a change.

Reductions in Coverage
We require rating documentation to accompany reductions in coverage, since we consider a coverage reduction to be a de facto rate increase, in addition to the inclusion of the previous loss cost multiplier, previews rate change, and previous effective date.

Exemptions From Filing

The following types of rates, rules and forms are exempt from the filing requirements pursuant to 8 V.S.A Sections 3368(a), 3541(a), and 4682.

  1. Reinsurance policies and rates.
  2. Surplus lines policies and rates.
  3. Commercial Risk Wet Marine policies and rates.
  4. Commercial Risk Marine Protection and Indemnity Insurance policies and rates.
  5. Policies covering specially rated (i.e., one of a kind) inland marine risks.
  6. Surety bonds, but this exemption does not apply to policy forms for other types of surety insurance as defined in 8 V.S.A. Section 3301(a)(8)(A) and (D) or to indemnity and collateral agreements required by an insurer or its agent in connection with bonds provided pursuant to 13 V.S.A. Chapter 229.
  7. Rates for aircraft liability and aircraft hull insurance.  However, the policy forms used in connection with aircraft liability and aircraft hull insurance are subject to the filing requirements of this regulation.
  8. Unique (i.e., one of a kind) policy forms used in connection with insurance on a particular subject and not intended for sale to any other policyholder in this state.