Louisiana Plans Management System (LPMS) Commercial Training July 2006

Major Operational Changes New Telephone System and Call Center Market Equalization Charges Effective 07/01/2006 Commercial/Commercial W&H Application in LPMS Effective 07/01/2006– Tentative quote fee no longer required. Emergency Assessments Effective 01/01/2007

Builder’s Risk Renovation Policies Effective July 2006 Gubernatorial Declared Disaster Areas Only Personal and Commercial One Annual Term May be unoccupied but must have building permit or signed contract Fully earned premium payable at time of application – no payment options Mandatory minimum deductible and hurricane deductible

Gubernatorial Declared Disaster Areas JeffersonTangipahoa OrleansWashington PlaqueminesCalcasieu St. Bernard Cameron St. TammanyVermilion

Producer Binding Authority Effective Date TBD Must submit application via LPMS Qualifications to be established Effect on fees and other charges Application Fee MEC Emergency Assessments

Commercial Program Requirements ISO Commercial Lines Manual ISO Classification Manual Knowledge of commercial codes Access to PIAL commercial rating information for non-class rated risks PIAL member company authorization to access PIAL commercial rating system Access to LPMS does not include access to PIAL

Current Binding Procedures Producers do not have binding authority Coverage bound upon receipt and acceptance of application package by LA Citizens Determination of Bound Date FAX Binders – Not Available for Commercial Hurricane Binding Restrictions Submission procedures

Application Package Properly Completed Signed Application Properly Completed Signed Supplement Commercial Hurricane Loss Statement At least two COLOR pictures - 3x3 minimum size Check or money order – no cash Mobile Home Tie Down/Anchoring Certificate Premium Finance Contract

Commercial Policy Limits MAXIMUM POLICY LIMIT OF LIABILITY IS $10 MILLION MAXIMUM LIMITS OF LIABILITY AT ANY ONE LOCATION** Building - $2,000,000. Business Property - $1,000,000. School Property Limits subject to acceptance by the Plan. **Location is defined as the entire area within a described premises or site bounded by public thoroughfares or open waterways. Underwriting – Penny O’NeilClaims – Caroline Baker Linda Kemp

How Commercial Limits Can Be Utilized Building must be insured to a minimum of 80% of ACV 90% and 100% coinsurance options available LA Citizens will participate up to its limits on a contributing insurance form basis LA Citizens cannot act as primary insurer Deductible Any layer

Commercial Deductible Options Policy Limit $3 Million or Less Mandatory 2% W/H Other perils $500, $1000, $2500, $5000, $10000, $25000, $50000, $75000 Policy Limit more than $3 million and $10 Million or Less Mandatory 5% W/H Other perils $500, $1000, $2500, $5000, $10000, $25000, $50000, $75000 Higher deductibles will be offered in future

Commercial Risks Any seasonal dwelling or camp owned in a commercial name or LLC Any dwelling risk with more than four (4) families regardless of ownership Any risk used for commercial purposes regardless of ownership Any risk owned in a commercial name (Exception: Risk with four (4) families or less occupied by tenants as a primary residence

Eligible Commercial Risks Reasonable Underwriting Standards Satisfactory housekeeping and maintenance Sound construction with controlled access Insurance requested reasonable to policy valuation requirements Subject to condition surcharges, increased deductible, declination of risk

Ineligible Commercial Risks Risk that qualify for dwelling program (Four families or less occupied as a primary residence) Less than 50% occupied (new construction has 60 days to comply) Structural damage or foundation problems Personal storage facilities

Perils Insured Against – Only Basic Property Coverage Fire, Lightning, Explosion Windstorm or Hail, Smoke, Aircraft or Vehicle, Riot or Civil Commotion, Sinkhole Collapse, Volcanic Action Vandalism or Malicious Mischief (Optional) Not available for bars, vacant, unoccupied, or seasonal buildings. Sprinkler Leakage (Optional) All the above as defined by CP

Exclusions Ordinance or Law Earth Movement Governmental Action Nuclear Hazard Utility Services War and Military Action Water All above as defined by CP

Current Commercial Status Requests for Quotes – May 2006 We will process and keep fee or return with check for fee Returning significant number for lack of properly completed application package Type of coverage requested Building number versus location number Co-Applicant versus additional named insured Endorsements, Billings, and Commissions

August 2006 Renewals and Subsequent New application must be submitted via LPMS Cannot complete in house because old system did not capture the required information Less than 1,000 commercial policies in force Can change requested effective date up to sixty (60) days in advance

Producer reports claim via LPMS – Currently only available if application submitted via LPMS Bankers is Service Provider (SP) for all commercial policies SP assigns IA to adjust claim IA submits report to SP SP conducts final review and determines settlement SP requests claims checks via LPMS Checks/report mailed to Insured/Producer Claims Process

Bankers Insurance Group 3636 S. I-10 Service Rd. #204PO Box 1434 Metairie, LA 70001Metairie, LA (800) Phone(800) FAX Katrina/Rita Claims (866) Underwriting – Michael Emery (Commercial) Amy Roth (Personal) Claims – Andy Condrey NOTE: Bankers handles all commercial business.

First Premium Ins. Group 112 Innwood DrivePO Box 77 Covington, LA 70433Covington, LA (800) Phone(800) FAX LA Citizens Line(888) Underwriting – April Najolia Claims – Eddie Cole

The MacNeill Group 235 Highlandia Drive PO Box Baton Rouge, LA Baton Rouge LA (877) Phone (877) FAX Katrina/Rita Claims (866) Underwriting – Elaine (Bunny) McMorris Claims – Ronnie Landry

LA Citizens Contacts Underwriting and PaymentsClaims 433 Metairie Rd. Ste Hilton Avenue, Ste. 320 Metairie, LA 70005Baton Rouge, LA PO Box 60730PO Box New Orleans, LA 70160Baton Rouge, LA 70808(888) Phone (504) FAX(225) FAX

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