Bulletin 03-01 January 13, 2003

INSURANCE DEPARTMENT REQUEST

The South Carolina Department of Insurance has asked that we share the following information with you:

During the week of February 5, 2003, the Department of Insurance will be sending a mailing to all licensed unlimited lines resident and nonresident South Carolina producers. It will include:

     * Invoice for $35 administrative fee as prescribed by the Producer Model Law, as adopted by the South Carolina General Assembly. This one-time fee is for the implementation and administration of the individual licensing requirements of South Carolina.

     * Personal Data Form. This information will be used to update the Department’s records.

To avoid duplication, the fee must be submitted by the producer, not the insurer. Producers must submit the fee and data form within 30 days of the Department mailing the notice. Failure to submit will result in the suspension of the Producer’s license.

Please be aware that an insurance producer must file a change of address form within 30 days of the changing of the home address. You can avoid a fine by correcting your home address using the change form available at www.doi.state.sc.us. Changes must be submitted to the Department by January 30, 2003, in order to have the address updated prior to the February 5, 2003, mailing.

Download/View a copy of bulletin 03-01 here.

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Bulletin 03-02 March 12, 2003

PRODUCER FEE AND DATA SHEET

Don’t forget that the new Producer Model Act requires resident and non-resident licensed agents and brokers to . . .

     * Pay a one-time $35 fee
     * Submit a data sheet
     * Report any change in home address.

The deadline for this is April 15, 2003. Failure to comply will result in the loss of your license.

This is a state law. It is not a requirement of the South Carolina Wind and Hail Underwriting Association; however, failure to comply will result in the loss of access to this facility.

In addition, it is not necessary to send copies of compliance documentation to this Association.

RACKLEY RATING SYSTEM

A number of producers have contacted the Association concerning the availability of Rackley software. In response to these inquiries, we have contacted Rackley Systems. Here is their response . . .

“SCWHUA rates are now available for Personal and Commercial Lines within the Rackley for Windows® rating system. Rating everything SCWHUA offers, including personal and commercial buildings, other structures, outdoor property coverage and replacement cost coverage, the Rackley for Windows® system provides a great opportunity for South Carolina agents wanting a Windows® based system for wind and hail rating. The SCWHUA application is also available with a merge option that sends the rating information directly into the application.

For more information about Wind & Hail rating within the Rackley for Windows® rating system, contact a Rackley Sales Associate at 1-800-874-2616 or visit Rackley’s website at http://www.rackley.com.”

The South Carolina Wind and Hail Underwriting Association does not endorse any vendor for rating software. This information is being shared with you in response to numerous inquiries.

INSURED LOCATION

On SCWHUA applications, there is space for the physical location of the property. This is extremely important data as that inspections are completed on all new business (and selected rewrites). At time of loss, we need to send adjusters to the physical location.

For this reason, we need to have the physical location listed in this space, not the mailing address.

For example, a condo unit at Litchfield by the Sea has a Pawley’s Island mailing address. However, we need for you to show the property location as Litchfield.

Some properties on Seabrook Island have a John’s Island mailing address. We need for you to show the physical location as Seabrook Island.

FAQ

     When does a policy go into Loss Scale?

A risk will go into loss scale when the value of the structure, value of the contents, and the indirect coverage amount exceed the maximum limit available from the Association.

For example, the following policy would be issued using the loss scale formula:

                  Insurance Requested        ACV
Dwelling             $500,000          $550,000
Contents              $ 50,000           $ 70,000
Loss Of Use         $100,000          $100,000

Both the dwelling and contents coverages would be rated using the formula.

Download/View a copy of bulletin 03-02 here.

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Bulletin 03-03 March 31, 2003

JULY 1st UPDATES!

The Association announces the following changes for policies effective as of July 1, 2003, or later . . .

     * 10% Rate Increase Across the Board
     * Additional 25% Rate Surcharge on Skelton Construction (Commercial Risks only)
     * Increase in Maximum Limits For Personal Lines To $1,000,000
     * Increase in Maximum Limits For Commercial Lines To $2,500,000
     * Change To Underwriting Guidelines For Loss Of Business Income
     * Change To Underwriting Guidelines For Loss of Use
     * Proposed Changes To Deductibles

These updates are described below. We have also included some of the common questions related to each change.

10% Rate Increase

A 10% rate increase has been approved for the Association. It will impact new and rewrite business with an effective date of July 1, 2003. The increase will impact all programs and rates.

Rate pages will be distributed in the near future.

     When was the last increase?

The last increase was on June 1, 1998. In other words, it has been five years since the last increase.

     Will the July 2003 rewrite applications include the new rates?

Yes.

25% Skeleton Surcharge

In addition to the 10% rate increase, commercial risks with the construction classification of skeleton will receive an additional 25% surcharge. This will take place on new and rewrite business effective July 1, 2003.

This surcharge will be included in the rates pages to be distributed.

     Why is there a surcharge?

Loss experience has indicated that the previous rates were inadequate. If you have attended a Wind and Hail Update Seminar, you have seen the information on this type of construction.

     Does this apply to dwellings?

No. Construction is a factor only for commercial risks.

$1,000,000 Personal Lines Maximum Limit

The Independent Insurance Agents and Brokers of South Carolina asked that the Association review the maximum available limits for Personal Lines risks. The current limit of $650,000 was set in 1995.

Effective July 1, 2003, the maximum limit for new and rewrite Personal Lines risks will be $1,000,000. This limit is comprised of structure, contents, and loss of use coverages.

     Can we purchase additional limits mid-term?

No. The change is effective for new and rewrite business as of the effective date. Besides, many of the providers of excess wind coverage mandate that their premiums are fully earned. It would be of no value to cancel those policies at this time.

     Do we have to purchase the additional limits at rewrite time?

The guidelines require insurance to value. The limits must be adequate.

In addition, state law requires that the Association’s maximum limits must be used prior to purchasing excess wind coverage.

     Will this impact many structures?

Of the dwellings currently valued (structure, contents, and loss of use coverage) at $650,000 or greater, 84% of them will benefit from the increased limits.

     Will the increased limits be shown on the rewrite applications?

The Association is unable to determine how the insured may want to allocate the increased capacity. For this reason, we will not increase the coverage limits for you. However, we will note on the rewrite application that limits need to be increased.

You may return the rewrite applications with the increased limits for a Notice of Acceptance.

$2,500,000 Commercial Lines Maximum Limit

The Big I also asked that the Association review the maximum available limits. The current limit of $1,500,000 was set in 1985.

Effective July 1, 2003, the maximum limit for new and rewrite Commercial Lines risks will be $2,500,000. This limit is comprised of structure, contents, and loss of business income coverages.

The additional limits may not be obtained mid-term. Risks must be insured to value. Excess wind coverage, by state law, can not be purchased until the full maximum limits from the Association are purchased.

     Will this impact many structures?

Due to the high value of many commercial risks, 35% of the commercial risks currently valued (structure, contents, loss of business income) at $1,500,000 or greater will benefit from the increased limits.

     Will the increased limits be shown on the rewrite applications?

Commercial risks will be handled in the same manner as described above for personal lines risks.

Loss Of Business Guidelines

The Agents’ Association also asked that the guidelines for loss of business income be examined. Their concern was that commercial risks with small building values or small contents values are not able to purchase adequate loss of business income coverage.

In examining the 409 policies with loss of business income coverage, only 12 policies purchased the maximum coverage. Many small “contents only” policies purchased only a minor amount of coverage.

Just the same, to address this issue, the following change will be made to the underwriting guidelines for policies effective July 1, 2003, or later:

     ( b ) If the applicant / insured is not the building owner, the limit for Loss of Business Income shall be:

          (1) An amount up to $100,000, or

          (2) An amount not to exceed the lesser of 200% of the Business Personal Property limit or $500,000.

This will allow a “contents only” policy to purchase up to $100,000 loss of business income coverage even if the business personal property limit is less than $50,000.

Loss of Use Guidelines

The Association has been asked to review the guidelines for loss of use coverage. This is an optional coverage for dwellings, mobile home, and condo-unit owners policies.

Currently, the limit is 20% of Coverage A for risks where the Association insures the building. For contents policies, the limit is 40% of Coverage C.

For policies effective July 1, 2003, or later, loss of use coverage will be available at 10% or 20% of Coverage A. For contents only policies, the coverage will be available at 20% or 40% of Coverage C.

     Why has the Association been offering only the higher limits?

When the coverage was first offered, coverage was designed to match the ISO forms.

While the additional options are being offered, agents and brokers need to be careful of an E&O exposure. Many insurance professionals feel that the maximum exposure to loss of use is only a few weeks. However, it is important to note that Hurricane Floyd put some homeowners out of their homes for over a year.

In addition, a recent review of beach real estate guides indicated that a number of homes rent for $5,000 to $8,000 per week.

Proposed Deductible Changes

The Association has been asked to consider offering additional optional deductibles such as 3%, 4%, 5%, and 10%. Currently, the data is being modeled. The resulting report will be referred to the Association’s actuaries for pricing.

Additional information will be forthcoming.

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If you have any questions, please feel free to contact any of our four underwriters. Or, you may email us at und@scwind.com.

Download/View a copy of bulletin 03-03 here.

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Bulletin 03-04 April 3, 2003

REWRITE NOTICES FOR JULY 2003

In the last issue, The Association announced the following changes for policies effective as of July 1, 2003, or later:

     * 10% Rate Increase Across the Board
     * Additional 25% Rate Surcharge on Skelton Construction (Commercial Risks only)
     * Increase in Maximum Limits For Personal Lines To $1,000,000
     * Increase in Maximum Limits For Commercial Lines To $2,500,000
     * Change To Underwriting Guidelines For Loss Of Business Income
     * Change To Underwriting Guidelines For Loss of Use

As a result of these changes, the procedures for rewrites will be modified for the next twelve months.

$1,000,000 Personal Lines Maximum Limit
$2,500,000 Commercial Lines Maximum Limit

If the total value of the structure plus the total value of the contents plus the indirect coverage limit equals or exceeds $650,000 for personal lines risks or $1,000,000 for commercial risks, the new maximum limits will come into play.

     For such risks, we will notify you two ways:

     * First, there will be a listing of such expiring policies included with the monthly rewrite notices. This check list is provided to you to assist in identifying such policies.
     * Second, each such risk will receive an “interim rewrite application.” Since we do not know how you want to allocate the increased limits, we are unable to rate the risk.

Please use the “interim rewrite application” to note the revised limits. Mail the dated and signed updated application back to the Association Office. We will issue a Notice of Acceptance with the updated limits and current premium.

     Why are “interim rewrite applications” being issued on $650,000 personal lines risks and $1,000,000 commercial lines risks?

Many of the risks at the current maximum amounts have been there for several years. We believe that some agencies are reluctant to update the limits and exceed the maximum limits. With the increased limits, we wanted such risks to be reviewed and limits updated as needed.

     Can we stay at the old maximum limits and continue with excess wind coverage “as is?”

No. At rewrite time, the new maximum limits must be utilized. State law requires that the Association’s maximum limits must be used prior to purchasing excess wind coverage.

Loss Of Business Guidelines
Loss of Use Guidelines

There is now an option to purchase 10% of Coverage A for Loss of Use for personal lines risks where SCWHUA insures the structure. For tenant policies, there is now an option for 20% of Coverage C for Loss of Use.

For contents only commercial risks, policies with less than $50,000 in contents may now purchase up to $100,000 of Loss of Business Income Coverage.

Please note these changes on the rewrite application and mail it to the Association Office for a Notice of Acceptance.

Revised Rates

The new rates will be included in the July 2003 rewrite notices.

Rewrite Applications

Remember . . . Please sign, date, and mail the rewrite applications. If you want the Association to rate any coverage changes, submit the rewrite application at least 30 days prior to expiration to allow us time to process the changes.

Download/View a copy of bulletin 03-04 here.

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Bulletin 03-05 April 25, 2003

DON’T FORGET!

The Association has announced the following changes for policies effective as of July 1, 2003, or later . . .

     * 10% Rate Increase Across the Board
     * Additional 25% Rate Surcharge on Skelton Construction (Commercial Risks only)
     * Increase in Maximum Limits For Personal Lines To $1,000,000
     * Increase in Maximum Limits For Commercial Lines To $2,500,000
     * Change To Underwriting Guidelines For Loss Of Business Income
     * Change To Underwriting Guidelines For Loss of Use
     * Proposed Changes To Deductibles

The changes were described in the Wind and Hail Update, Issue 03-03. If you need an additional copy of the newsletter, please email your request to info@scwind.com. Or, call Laura at 803/779-8373, ext 10.

FAQ’S

     We will rewrite a wind and hail policy on May 1, 2003. Can we raise the limits on July 1, 2003?

Good question!

No. The change in limits is for policies effective on or after July 1, 2003.

You may cancel and rewrite the policy to take advantage of the higher limits, but you would need to reapply for coverage in advance of July 1, 2003, in order to avoid a waiting period and gap in coverage.


     When will revised rates pages be available?

They are included with this mailing!

There is a problem with some of the July rewrite apps!

Actually, those are risks where the current values are at or exceed the current maximum limits. You have received interim rewrite apps on these risks. Please update the values subject to the new maximum limits and return the rewrite apps. Be sure to sign and date them. We will send you a Notice of Acceptance with the premium figure noted.

     What is the status of the deductible revisions?

The data has been submitted to the actuaries for review. We hope to have a proposal from them in the near future.

PRODUCER FEE AND DATA SHEET

The information we have distributed on the producer fee involved a legislative change. It required all licensed producers to pay a $35 fee and submit a data sheet to the South Carolina Department of Insurance.

This is NOT an Association requirement. This is a South Carolina Law. However, failure to comply will result in your license being revoked and your inability to place business with this Association. The deadline is May 2, 2003.

Please send your check and data sheet to the South Carolina Department of Insurance.

For further information, please check the DOI website at www.doi.state.sc.us.

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If you have any questions, please feel free to contact any of our four underwriters. Or, you may email us at und@scwind.com.

Download/View a copy of bulletin 03-05 here.

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Bulletin 03-06 May 16, 2003

SC PRODUCER NUMBER

With the implementation of the Producer Model Act, each agent and broker licensed by the South Carolina Department of Insurance has been assigned a unique Producer Number. Effective immediately, you should provide the S. C. Producer Number as your license number on all applications. This is in lieu of your Social Security number.

“Privacy is a major concern for the Insurance Industry and for Consumers,” says Jim Byrd, Senior Advisor to the South Carolina Director of Insurance. “By using the S. C. Producer Number, there is less access to a producer’s Social Security number. An individual’s Social Security number is a major key to identity theft.”

Please use your S. C. Producer Number on all future applications as your agent or broker license number.

FAQ’S

     Will the SCWHUA Applications be revised to ask for Producer Number?

Yes! This project is underway. We hope to have revised applications to you in the near future.

     The NAIC is talking about an NAIC Producer Number. Is this the same as the S. C. Producer Number?

No. The National Association of Insurance Commissioners (NAIC) is working on a unique number for every agent and broker in the country. Currently the South Carolina Department of Insurance has its own producer number. This Association needs the South Carolina Producer Number to verify license status. Hopefully, the NAIC number will eventually become the national standard for all states.

     What is this Model Producer Act you keep referring to?

The best answer is to refer you to the South Carolina Department’s web site at www.doi.state.sc.us/. On the right hand side of the screen are links to information about the Model Producer Act.

     How can I check my status with the South Carolina Department of Insurance?

Go to the web site for the South Carolina Department of Insurance. On the left hand side is a list of Quick Links. The last one is Search SCDOI Database. Click on this link and you can search for your status by name or Producer Number.

The quickest method is by typing in your first and last name. Then follow the instructions on the screen. A producer’s license status (active or inactive) will appear on the screen. If your license status is inactive, you will need to contact the Department for additional information. An inactive license will not permit a producer to submit or service a risk written through the Association.

     What if the Association cannot verify my producer number through the S. C. DOI database?

By state law, you must be licensed and in good standing with the S. C. DOI in order to place business with the Association. This includes complying with the Producer Act.

MORE FAQ’S

     What is the status of the deductible revisions?

The data has been submitted to the actuaries for review. We hope to have a proposal from them in the near future.

     When will the Rates, Rules, and Forms Manual be updated?

The Manual is in the final draft status. We hope to distribute an updated manual soon.

     What about the Association’s Web Site?

We are redoing the Association’s web site. We will announce the changes when they are completed. The revised manual as well as updated forms will be on the site.

Download/View a copy of bulletin 03-06 here.

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Bulletin 03-07 June 25, 2003

REVISED APPLICATION

The Wind and Hail application has been revised! The new form number is SCWHUA 2.2(05/03)

The three changes are:

     * Skeleton is included as a type of construction. Please check this block if the construction involves artificial stucco or Exterior Insulation Finishing System (EIFS). Several common manufacturers of EIFS systems include Bonsal, Dryvit, Durabond, and Corev.

     * Space is provided for other deductibles. This option is not yet available. The Association plans to file for additional deductible options. If they are approved, then this space would be used to note the applicant’s choice.

     * Producer number is now requested instead of Social Security Number. Further information on Producer Number appears below.

Enclosed is a copy of the application for your agency. Your agency name and number are pre-printed on the form. Please duplicate this form for use in your agency. Additional master copies can be requested if needed.

When duplicating the form, please copy both sides of the application. Forward the front and rear of the application when submitting the new or rewrite submission.

Use of the previous application should be discontinued. We will be unable to accept the previous application effective August 1, 2003.

PRODUCER NUMBER

With the implementation of the Producer Model Act, each agent and broker licensed by the South Carolina Department of Insurance has been assigned a unique Producer Number. Effective immediately, you should provide the S. C. Producer Number as your license number on all applications. This is in lieu of your Social Security number.

Use your S. C. Producer Number on all future applications as your agent or broker license number.

For more information about the use of the Producer Number, please see the last issue of Wind and Hail Update.

FAQ’s

     What is the status of the additional deductible options?

Our actuarial committee has finished its analysis and is in the process of preparing a filing with the South Carolina Department of Insurance. As soon as additional information becomes available, we will pass it on to you.

     Our rating vendor has not updated the new wind and hail rates. When will you do something about this?

Two answers to the question . . .

First, this Association is not affiliated with any rating vendors. As such, we have no control over them or their time schedules.

Second, we do work with the rating vendors whenever possible. We send them the rates and any rule changes. We answer any questions that they may have. For the latest rate change, we have spent extensive time with a vendor’s staff assisting them in getting the software updated.

If you have a problem with the rating software . . . You should contact your marketing representative at the vendor.

The Association Office Will Be Closed on Friday, July 4, 2003.

Download/View a copy of bulletin 03-07 here.

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Bulletin 03-08 August 19, 2003

UPDATED MANUAL

The Rates, Rules, and Forms Manual has been updated.  It includes the July 1, 2003 rates as well as the rule changes involving the increases in the maximum limits, loss of use coverage, and loss of business income. 

Your copy is enclosed on a CD.  You may . . .

* Use the CD on your computer
* Load copies of the manual to the computers in your office or the office network
* Print out the manual so that you may have a “hard copy”

The manual is in a PDF format.  A free copy of Adobe Acrobat Reader is included on the CD.  This program will allow you to read and print the manual.

For further information, please see the Read Me file on the CD.

FAQ’s

     Our office does not have a CD reader.  How can we get a hard copy of the manual?
Please request a hard copy of the manual by sending a note to:

Manual Request
SC Wind and Hail
PO Box 407
Columbia, SC  29202

     Will the manual be available on the web site?

Yes.  The web site has been updated.  The manual is available for viewing or downloading.  You are able to look at the entire manual or a section of the manual.  The address of the web site is www.scwind.com.

     Can we obtain additional copies of the CD?

A limited number of additional copies are available.  Please send a note to the Association to the attention of “Manual Request.”

     My CD does not work!

Try this . . .
     1. Insert the CD in your computer.
     2. Go to the Start Menu.
     3. Select “Run.”  Select the CD device.  (This is usually “d” on most systems.
     4. You will see the icons for manual, the Read Me file, and Adobe Acrobat Reader.
     5. Click on the Read Me file.
     6. Follow the instructions and click on the manual.

Download/View a copy of bulletin 03-08 here.

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Bulletin 03-09 October 20, 2003

ISABEL RESPONSE

Hurricane Isabel’s near miss with the South Carolina Coastline has generated a number of questions from brokers.  Please allow us to share some of them with you.

     Why did you send us all of those claims notices?  Did our insureds have claims?

To assist brokers in the event of a major storm, we pre-print loss notices with wind and flood information from our data files.  If your client has a loss, you can simply describe the damage and fax the loss notice to the Association Office for assignment.  The loss notices are sent out in advance so you can have them prior to the storm.  Since some vendors, such as Fed Ex, pull their trucks from the coastal area before the evacuation order, we have to ship the notices early.

     Do we need to complete an ACORD Loss notice?

You should use the loss notice we provide you.  It is generated to include the needed information from our data files.  Each loss notice is unique for a given risk.

     What do we do with the loss notices now?

Please destroy them.  The pre-printed loss notices contain policy data as of a specific date.  That information may have changed by now.  You should note that the loss notices contain non-public information that should be safeguarded.  For that reason, properly dispose of the notices.

     When was the hurricane restriction put in place for Isabel and when was it lifted?

The hurricane restriction was eliminated in January 1996.  It was replaced with a waiting period.  The waiting period worked well this year as Henri, Isabel, Juan, and Kate were in the Atlantic.  If the hurricane restriction had been in place, the Association would have stopped writing new business and would have denied coverage changes for an extended time.  For more information about the waiting period and the grace period, please see the Rates, Rules, and Forms Manual or attend a Wind and Hail Update seminar.

     Why was the flood information wrong on our loss notices?

We use the data from our policy files.  The source of the information is the application you have submitted.  Remember to update the flood information on the back of the rewrite applications.  If you have changed flood companies, please contact Underwriting Manager David Leadbitter.  We are automatically changing over the Royal & Sun Alliance flood policies to Harleysville. 

OTHER FAQ’s 

     We cannot read the manual from the web site or the CD.  Why?

To view the Rates, Rules, and Forms Manual, it is necessary to have Adobe Acrobat Reader.  This program is available for free from the web site.  We also included a copy on the CD.

     What is the web site address?

www.scwind.com

     How can we obtain an additional CD?

Simply send us a note and we send you another copy by return mail.

Download/View a copy of bulletin 03-09 here.

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Bulletin 03-10 October 30, 2003

PLEASE USE CURRENT APPLICATION,
BINDER REQUEST FORM

Please use the current application form when applying for coverage.  The current form is SCWHUA No. 2.2 (05-03).  Incorrect applications received December 1, 2003, or later, will be returned.

In addition, the updated Mortgage Closing / Property Transfer Binder Request form should be used when a binder is needed.  Incorrect binder request forms received on December 1, 2003, or later, will be returned.

     How can our agency obtain current copies of these forms?

Both forms are available on our web site at www.scwind.com.  Click on “Forms” and this will transfer you to the proper page.  The application is the first form on the list.  The binder request is the second form on the list.

     Our agency does not have internet access.  How can we obtain the current forms?

You can send a request to the Association Office.  We will send you a small supply of each form.  You may duplicate them for future use.

One advantage of requesting the application from the Association Office is that we will pre-print your agency name and number on the application.

FAQ’s

     How can we obtain an additional Rates, Rules, and Forms CD?

Simply send us a note and we will send you another copy by return mail. You can also download the Manual from the web site.

     Why did the Association contact us about our Tax-Payer ID Number?

The Association is required to report commission income by agency to the Internal Revenue Service.  The IRS has rejected a number of tax-payer identification numbers as being incorrect.  The source of the problem appears to be the scanning process at the IRS.

However, the Association is required to contact each tax-payer and update W-9’s.  Failure to do so would result in mandatory federal withholding.

While we apologize for the inconvenience, it is necessary for the agencies involved to complete and return the necessary paperwork.

     What is the fax number at the Association Office?

Main Fax Number                           803/ 779-0324
Claims Fax Number                        803/ 779-3678
Storm Claims Fax Number              Will be announced prior to the storm

     How can we email a question or a response to the Underwriters?

Please send it to und@scwind.com.

Download/View a copy of bulletin 03-10 here.

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Bulletin 03-11 November 6, 2003

CERTIFIED AGENCY EXTENSION

The current certification has been extended until June 30, 2005!

If your agency is certified for the July 1, 2002, to June 30, 2004 period, your certification is automatically extended until June 30, 2005.  No action is required on your part.

The original intent of the certification program was that the certification period would begin in an “off South Carolina CE Year.”  Unfortunately, the implementation resulted in producers meeting the state requirements as of May 1^st and then facing the SCWHUA deadline on June 30^th.

To break this cycle, there will be a one-time extension until 2005.  The next cycle for certification will be July 1, 2005 to June 30, 2007.

Questions???  Please contact one of our four underwriters.

PRODUCER NUMBER

With the implementation of the Producer Model Act, each agent and broker licensed by the South Carolina Department of Insurance has been assigned a unique Producer Number.  Effective immediately, you should provide the S. C. Producer Number as your license number on all applications.  This is in lieu of your Social Security number.

Please use your S. C. Producer Number on all future applications as your agent or broker license number.

PLEASE USE CURRENT APPLICATION,
BINDER REQUEST FORM

You must use the current application form when applying for coverage.  The current form is SCWHUA No. 2.2 (05-03).  Incorrect applications received December 1, 2003, or later, will be returned.

In addition, the updated Mortgage Closing / Property Transfer Binder Request form should be used when a binder is needed.  Incorrect binder request forms received on December 1, 2003, or later, will be returned.

     How can our agency obtain current copies of these forms?

Both forms are available on our web site at www.scwind.com.  Click on “Forms” and this will transfer you to the proper page.  The application is the first form on the list.  The binder request is the second form on the list.

     Our agency does not have internet access.  How can we obtain the current forms?

You can send a request to the Association Office.  We will send you a small supply of each form.  You may duplicate them for future use.

One advantage of requesting the application from the Association Office is that we will pre-print your agency name and number on the application.

# # #

The Association Office will be closed November 27 – 28, 2003 for Thanksgiving.

Download/View a copy of bulletin 03-11 here.

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Bulletin 03-12 December 3, 2003

DEDUCTIBLE UPDATE

At the request of the Independent Insurance Agents and Brokers of South Carolina, the Association developed a filing to allow for optional deductibles of 3%, 4%, 5%, and 10%.  The filing was made in July of this year.

Unfortunately, the filing results in a possible rate increase.  In South Carolina, insurers are allowed only one rate increase per year.  This Association had a rate increase effective July 1, 2003.  And therefore, the Department of Insurance has informed us that they cannot approve the filing at this time.

The Association will re-file the deductibles in 2004 with a proposed effective date of July 1, 2004.

CERTIFIED AGENCY EXTENSION

The current certification has been extended until June 30, 2005!

If your agency is certified for the July 1, 2002, to June 30, 2004, period (i.e. you are currently receiving 10% commission), your certification is automatically extended until June 30, 2005.  No action is required on your part.

The original intent of the certification program was that the certification period would begin in an “off South Carolina CE Year.”  Unfortunately, the implementa-tion resulted in producers meeting the state requirements as of May 1^st and then facing the SCWHUA deadline on June 30^th.

To break this cycle, there will be a one-time extension until 2005.  The next cycle for certification will be July 1, 2005 to June 30, 2007.

Questions???  Please contact one of our underwriters.

PRODUCER NUMBER

With the implementation of the Producer Model Act, each agent and broker licensed by the South Carolina Department of Insurance has been assigned a unique Producer Number.  Effective immediately, you should provide the S. C. Producer Number as your license number on all applications.  This is in lieu of your Social Security number.

Please use your S. C. Producer Number on all future applications as your agent or broker license number.

PLEASE USE CURRENT APPLICATION,
BINDER REQUEST FORM

You must use the current application form when applying for coverage.  The current form is SCWHUA No. 2.2 (05-03).  Incorrect applications received December 1, 2003, or later, will be returned.

In addition, the updated Mortgage Closing / Property Transfer Binder Request form should be used when a binder is needed.  Incorrect binder request forms received on December 1, 2003, or later, will be returned.

     How can our agency obtain current copies of these forms?

Both forms are available on our web site at www.scwind.com.  Click on “Forms” and this will transfer you to the proper page.  The application is the first form on the list.  The binder request is the second form on the list.

     Our agency does not have internet access.  How can we obtain the current forms?

You can send a request to the Association Office.  We will send you a small supply of each form.  You may duplicate them for future use. One advantage of requesting the application from the Association Office is that we will pre-print your agency name and number on the application.

Download/View a copy of bulletin 03-12 here.

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