Farm Insurance.

Farm Insurance

Agenda General Company/Industry Statistics Country Pac
Farmowner Property A-G Settlement Terms Misc. Coverages Farmowner Liability Review, Q & A

Wisconsin Farms Wisconsin Farm Data
Number of Farms in Wisconsin: 69,800 Average Size of Farms (acres): Acres of Land Operated: ,600,000 *A farm is defined as “any establishment from which $1,000 or more of agricultural products were produced or sold, or would normally have been sold, during the year.” Source: Wisconsin 2014 Agricultural Statistics

Wisconsin Farms Number of Farms by Sales and Size
(gross sales value) (# of farms) (ave. acreage) 1,000 – 9, , 10,000 – 99, , 100,000 – 249, , 250,000 – 499, , 500,000 – over 5, ,078 Source: Wisconsin 2014 Agricultural Statistics

Mt. Morris Mutual Farms Farm Size - Annual Premium
Farmowner Premiums: $9,053,177 Number of Farms Insured: ,439 (Premium Levels) (# of Farms) (% of Total Farms) $0 – $1, % $1,001 - $3, , % $3,001 - $5, % $5,001 - $10, % $10,000 – over % Average Premium: $2,633 Source: Y/E Company Data

Mt. Morris Mutual Farms Farmowners/Country Pacs Combined Average Premium: $2,633 Farmowners Only Annual Premium: $6,984,009 Policy Count: 1,741 Average Premium: $4,011

Total Insured Value (TIV)
What is Total Insured Value (TIV): A property insurance term referring to the sum of the full value of the insured's covered property, business income values, and any other covered property interests. Primarily coverages A – G

Mt. Morris Mutual Farms Farms Size - TIV (Total Insured Value)
Number of Farms Insured: ,439 Total Insured Value: $2,594,121,340 (TIV Category) (# of Farms) (% of Total Farms) 0 – 250, % 250,001 – 500, , % 500,001 – 1,000, , % 1,000,001 – 5,000, % 5,000,001 – over % Average TIV: $754,324 Source: Y/E Company Data

Mt. Morris Mutual Farms Farmowners/Country Pacs Combined Average TIV: $754,324 Farmowners Only Annual TIV: $1,850,679,043 Policy Count: 1,741 Average TIV: $1,062,998

Insurance Capacity Largest Insured Farm (TIV): $28,013,252 Average Farm (TIV): $ 754,324 Comfort Zone (TIV): Up to $20MM Comfort Zone (Premium): $20,000 Premium

Insurance Capacity

Insurance Capacity Chippewa County

Insurance Capacity Lincoln County

Farm Insurance Ineligible Risks
Vacant, seasonal, or unoccupied farms All non-farm or Commercial risks including commercial operations, saw mills, and buildings used for commercial storage Farms where the principal business is training of horses for racing purposes Cattle dealers or sale barns Farms used for recreation (Agri-tainment) Risks with vicious dogs, dogs that have a dog bite or property damage incident and/or history, or where the following breeds or crossbreeds are present – Pit Bulls, Dobermans, and Rottweilers Business on Premise – Underwriting must be made aware of any insured property with a business on premise. If the business address and home premise address are the same, both risks must qualify to be eligible for coverage. Exotic animals, reptiles, aviary, and fish. “Exotic” is not native to the United States. Any rental property that does not have functioning smoke detectors Any insured who has been cancelled or refused coverage by a prior carrier

Farm Insurance Ineligible Risks
Risks with swimming pools containing diving boards &/or slides Property which is run down or where there is rubbish or trash/debris on the premise or poor housekeeping Any insured and/or property with unfavorable claims history Any insured that you cannot recommend or who has a poor character reference Any insured with unfavorable financial history Dwellings where the only source of heat is wood Solid fuel units that are not U.L. listed or contain accessories that are not U.L. listed Any insured who has poorly maintained fences Any insured who poorly maintains his/her equipment (removes guards, improper lights, no slow moving vehicle signs, etc.)

Country Pac vs Farm Country Pac Insurance is available to small, full-time, hobby, part-time, or limited term farmers. The owner-operator may farm the land or rent it (if rented, the renter is not covered under Section II Liability). General Rules 40 acres or less cultivated land 200 acres or less of total land 10 or less head of livestock (goats, horses, cattle…)

Country Pac Advantages Premium relief for the smaller farm exposure
Provides products liability coverage Coverage included for: Private power and light poles and accessories; and Wells and pumps

Country Pac Limited Equipment Breakdown Coverage
No Coverage B, all structures must be scheduled Mt. Morris Special Endorsement, unavailable Farm Extension or Farm Master Pac, unavailable Only Coverage F (Scheduled Personal Property) available

Why Country Pac Insurance with MMM?
Competition (Limited?) Proper pricing and coverages Package/Bundle Policies Rural settings Farm outbuildings Unique items Acreage Tractors/Implements Livestock Semi or Unprotected risks Underwriting expertise

COUNTRY PAC DWELLING (Coverages A,C & D)
Coverage A (The Dwelling) All Risk Coverage (Form 5) Seven Star Program (Optional) Replacement Coverage (Forms 2-3) Seven Star and Select Homeowners MVE Program (Actual Cash Value) Repair Cost Endorsement Available Homeowner Equipment Breakdown Homeowner Plus (MM 240) [-0- Deductible] Coverage C (Dwelling Personal Property) Replacement included in Seven Star and Select Optional in other programs Coverage D (Additional Living Expense) Actual Amount Sustained

(Transition Slide)

Eligible Farming Operations
Farmowner Insurance Eligible Farming Operations Dairy Vegetable (Potatoes, Cranberries, Canning Crops) Grain Beef Horse (Boarding, Stables, Training, Breeding) Orchards Exotics (Elk, Deer, Bison, Ostrich, Emu…) Honey Farms Organic Farms

Farmowner Insurance Property Coverages A to G
Coverage A, C & D (Farm Home) Homeowner rates and guidelines apply No Coverage B included (All unattached structures must be scheduled) 309-A Form (Additional Farm Residence) Coverage A, C & D Owner occupied (Named/Additional insured) Form following coverage

Homeowner Coverage What makes us unique…
Log Homes, any qualifying program Solid fuel units allowable Homeowner plus endorsement Homeowner equipment breakdown coverage

Homeowner Coverage Case Study #1
Jeb Genetics has his farm insured with MMM. His new home is written under the 7 Star program and heated by an outdoor wood stove (ODWS). The same ODWS heats his milk house and parlor area. The ODWS is 60’ from any insured structure and meets all underwriting guidelines. In May a wind storm causes a tree to fall on the ODWS, rendering the stove a total loss. Jeb never informed his agent he uses the unit to also heat his milk house. An estimate to replace the wood stove comes in at $7,300. Jeb carries the base $1,000 deductible. He reluctantly calls in the claim and is advised of the following?

No coverage afforded as unit is not scheduled on policy.
Replacement coverage provided. Up to $6,300 is allowed for replacement of stove. Up to $1,500 is provided. Homeowner plus endorsement applies. No coverage due to the fact that the stove services a building listed under Coverage E. ___________________________________

Wood Stoves Type Exposure Surcharge Wood boilers in the home: $75 Fireplace inserts: $75 Pellet, corn or coal burners(if professionally installed): $ 0 ODWS 50’ from any insured structure: $ 0 ODWS within 50’ of any insured structure (approval required): $75 ODWS servicing Coverage A Dwelling capacity charge $30 Wood burners, pellet stoves, and/or corn burners in any structure must be installed in accordance with safety-regulation guides. Ineligible: Solid fuel units in tenant occupied risks. ODWS inside a structure.

Marvin Stanchions insures his farm with MMM. He is an avid ice fisherman and will often take his Farm/Ag registered ATV valued at $8500 to the local lake. His nephew is up for the weekend and he decides to load up his fishing gear and head to the local lake. Entering the lake he hits a hole and flips the ATV. Both Marvin and his nephew incur serious injuries. The ATV is listed under Coverage G as farm personal property and the GL-2 is the applicable liability form. How does his policy respond?

Marvin is not covered by his farm policy, but coverage is afforded to his nephew. His nephew is not considered an insured, the broad language in the GL-2 form could provide liability. No Coverage provided for the ATV. 2. Neither individual is covered. 3. Coverage for the ATV, but not for any injuries. ____________________________________

Is there a way to provide coverage for this situation??
Off-premises liability coverage for the ATV: Endorse the TMS-164 Off-premises physical damage coverage for the ATV: Endorse the TMS-217 Special Property Form

William and Zelda Holstein, who are both over 80 years old have their farm insured with MMM. Due to re-occuring medical issues they had no choice but to sell their 20 beef steers and rent out their 200 acres to a local farmer. An early summer wind/hail storm shreds the leaves from all their beautiful maple trees and distributes large limbs and debris all over their front yard. An estimate from a local individual to clean up the limbs and debris is $470. Their home and buildings are fortunately spared of any damage. The policy has a base $1,000 deductible. Will their policy respond? If so, how?

Answer to Question? The policy will not respond, no damage to insured property Policy responds but nothing is paid, under deductible The entire bill is paid, $470 _____________________________________________ Homeowner Plus, MM-240 Debris removal – provides up to $ for the removal of trees, shrubs, and plants caused by windstorm damage or hail damage within 200 feet of the owner-occupied dwelling. Although the storm did not damage any structures, up to $500 coverage is still provided.

Homeowner Coverage Coverage A-D
Corporate Farms (No owner-occupied residence) Form Language relates to Corporate type farms Manipulate system by writing as an FO-4 Credit back premium Contact Underwriter for assistance

Homeowner Coverage Questions/Comments ???

Farm Structures Coverage E

Farm Structures (Coverage E)
Building Classifications Steel Buildings (all steel construction) 60% Variable Replacement Cost (Type 1 Guidelines apply) Type 1 – Above average condition/quality, used for intended purpose Type 2 – Average construction, condition and quality Type 3 – Structures that do not qualify for Types 1 or 2, or Steel Rating Mobilehomes Replacement Coverage and Special Form Type 1 Steel Buildings 60% Variable Replacement MM-220 Rebuilding Endorsement Applicable on all classifications except when replacement coverage applies. 20% Roof Limitation Freezes Depreciation Falling Objects Available on all classificationsexcept Type 3 Structures Weight of Ice, Snow and Sleet Available on all classifications except Type 3 Structures

Farm Structures Steel Buildings For a building to qualify for the steel building rate, it must have continuous concrete foundation, be of all steel construction with no glass, and a minimum value of $10,000. All structures meeting these requirements will qualify.

Farm Structures Steel Buildings Coverage Options: Special Form
Replacement Coverage Weight of Ice, Snow or Sleet Falling Objects MM-220 (Default Coverage)

Farm Structures Steel Buildings

Farm Structures Case Study #1
The machinery is all sold, with the exception of a small JD front end loader retained to do odd jobs around the premises. The cattle are gone and the land is rented out. Retired farm couple Bev and Orval Utterly approach you for a quote on their farm. It is a well kept property, but your one concern is a nice pole shed on the property.

Farm Structures Case Study #1
The couple has the pole shed currently listed for $42,000, with replacement coverage. Your quote is competitive, but this building could make or break the deal. With their current company, they understand that in the event of a loss they get ACV up front and need to replace the structure to possibly get the limit listed. They really have no need for the structure, but they are insistent on insuring it properly. What do you do?

Farm Structures 60% Variable Replacement Cost You advise the couple that you have a product that is ideal for their situation. Your cost estimator affirms the $42,000 limit currently listed. You explain that they will have replacement coverage for partial losses. But, the big selling point is they only have to insure the building for 60% of it R/C value ($25,200) and at the time of loss they would receive the full limit of $25,200 less their deductible. SOLD!

60% Variable Replacement
Farm Structures 60% Variable Replacement This endorsement provides a method of insuring qualifying structures at 60% of the predetermined replacement value, without the impact of depreciation. All Type I Guidelines apply. Additional Guidelines: A. Insured limit is a minimum of 60% of replacement value. B. A Replacement Cost Estimator is required from e2Value. C. Dwellings are ineligible for this endorsement.

Farm Structures Type 1 Structures
A. Minimum amount on barns $40,000.00, structures $2, B. Buildings must be fully utilized for their intended purpose. C. Buildings must have better than average construction and maintenance, with neat appearance around buildings. D. Buildings must be fully enclosed. E. Buildings designed and used for housing cattle which contain certain type openings, may qualify for Type I (Contact Company). F. Pole buildings with gravel or dirt foundations and floors. – Structure(s) must be 20 years old or newer. G. Inflation guard (4% annually) will be applied to all structures with replacement coverage.

Farm Structures Type 1 Coverage Options Special Form
Replacement Coverage Weight of Ice, Snow or Sleet Falling Objects MM-220 (Default Coverage)

Farm Structures Type 1

A. Minimum amount on barns $40,000.00, structures $2, B. Structures must be of average construction and neat appearance around buildings. C. Buildings not used for the purpose for which constructed. D. All concrete and metal silos. (silage is to be insured as part of the farm personal property)

Farm Structures Type 2 Mandatory Form Coverage Options MM-220
Weight of Ice, Snow or Sleet Falling Objects

A. Barns and buildings not eligible for Type I or Type II. B. Barns and buildings used for incidental commercial purposes, if acceptable – i.e. boat storage C. Outdoor wiring and/or submersible pumps.

Farm Structures Type 3 Mandatory Form Coverage Options MM-220
No optional coverages

Farm Structures Case Study #1 – Total Loss
Allis Chalmers has his insurance with ABC Farm Insurance. He has his 60 year old 2 story dairy barn, which he uses for hay storage, insured for ACV at $150,000. In July a fire caused by spontaneous combustion renders the barn a total loss. ABC Insurance attempts to settle the loss under the ACV provisions of the policy. The company offers $120,000 His contractor estimates the ACV of the barn at $170,000 and recommends they pay the limit An assessment of the property places a value of $65,000 on the barn Who’s right?

With Mt. Morris Mutual, WHO CARES!
If Allis had MMM’s MM-220 he would have known at the time of purchase what his settlement payments would be. $74,000 at the time of loss, with a maximum $75,000 available up to 12 months from date of loss 2. $149,000 at time of loss 3. ACV at time of loss, with a maximum of $150,000 available 12 months from date of loss ACV payment, who knows??? ________________________________

Farm Structures Key Language of the MM-220 METHOD OF LOSS SETTLEMENT
If the loss or damage is not repaired or replaced by the insured within 12 months of the date of loss or damage, on the insured premises as stated on the declarations, the “limit” which proportionally applies to such building shall be reduced by 50% of such amount. If the loss or damage is repaired or replaced by the insured within 12 months of the date of loss or damage, on the insured premises as stated on the declarations, the liability of the Company shall not exceed the smallest of: (a) the “limit” which proportionally applies to the damaged or destroyed structure, (b) the amount actually and necessarily expended in repairing or replacing the damaged or destroyed building structure.

Farm Structures Key Factors of the MM-220 Total Loss
The limit of coverage is made available to the insured A structure can be built on any insured premises Like, kind and quality is not a restriction on this form The insured has the flexibility to insure the structure at any limit, not to exceed the R/C value of the structure. 2. Partial Loss 20 % Roof Limitation Losses are settled in proportionate to the limit

Farm Dwellings/Mobilehomes
Effective ACV will apply to Coverage E Dwellings and Mobilehomes

Farm Structures Case Study #2 – Partial Loss
Joe Farmer has his older, Type 3, two story barn insured for $40,000. A hail storm totals the 30 year old shingles on the entire roof. An estimate for $9,000 is submitted to re-roof the structure. His Coverage E deductible is $1,000. What will his settlement be? A. $4,000 initial payment, with $4,000 available 12 months from the date of loss. B. $3,000 initial payment, with $4000 available 12 months from the date of loss. C. ACV is taken on the 30 year old shingles, $0 paid, below deductible. _________________________________________________

Answer to Question?? ANSWER:
B. $3,000 initial payment, with $4000 available 12 months from the date of loss. The MM-220, 20% Roof Limitation is applied. The structure is insured for $40, % of the limit is $8,000. $3,000 initial payment is 50% of $8,000, less the $1,000 deductible. The form states that 50% of the limit will be paid at the time of loss (less the deductible), with the balance available should the structure be rebuilt or replaced within 12 months of the date of loss or damage. * Again, Depreciation is not considered when adjusting the settlement on the 30 year old shingles! Imagine what the settlement might be if the depreciation was applied??

Farm Structures Cosmetic Damage Exclusion – Applies to all Coverage E Structures This form will exclude coverage on metal roofs and/or metal siding caused by windstorm or hail when the damage is strictly cosmetic and does not alter the intended function or life expectancy of the metal roof and/or metal siding of the structure. Form is automatically applied to all Coverage E Structures. Buy Back Option – The insured has the option to buy back this exclusion. Rate is $1.00 per $1, of coverage. Coverage must equal the total building limit. Underwriting approval required. The cosmetic form was designed to serve as an insulator between public adjustors and their broad interpretation and manipulation of the form language “Direct physical damage”.

Farm Structures Misc. Coverages
New construction – up to $50,000 of coverage on new structures (60 days from first date of delivery of supplies of materials), not otherwise reported to agent or company Permanant Bulk Milk Tanks, Pipe Lines Systems, or Manure Removal Systems Primarily are listed and included w/barn limit Woodstoves Allowable in outbuildings, strict guidelines apply $75 Charge Roof Exclusions Flexibility Limited to Type 2 Classification

Farm Structures/Qualifying Equipment Included Coverages
Equipment Breakdown Coverage Farm Buildings and Non-mobile Farm Personal Covered Equipment > Irrigation Pivots > Deep Well Pumps > Water Heaters > Bulk Milk Tanks > Computers > Boilers & Sterilizers > Electrical Systems > Milking Systems

EQUIPMENT BREAKDOWN CLAIMS
Farmowners Claim reported as “Malfunction in Brock 27 bin dryer and bin caved in” Conclusion: Mechanical pressure failure occurred to stirator due to metal fatigue that caused a bolt to snap/shear which led to ensuing damage of structure which then led to an electrical connection to make contact with the structure to cause an ensuing electrical failure. $11, paid after deductible.

Farmowners Claim reported as “something broke on the irrigation pivot, system flipped over”
Conclusion: Electrical failure of the tilt switch which enabled the pivot irrigation system to keep going and topple over and become mechanically damaged. $10, paid after deductible.

Farmowners Claim reported as “electrical surge from storms damaged electrical and milking equipment”
Conclusion: Electrical failure occurred to insured’s barn, electrical service and milking equipment due to disturbance of electrical line supply due to weather causing the components to electrically burn out. $6, paid after deductible.

Farm Structures

Farm Structures Question and Answers on Farm Structures…

Farm Personal Property
Coverages F-G

Coverage F (Scheduled Farm Personal Property) Scheduled Farm Personal Property – No minimum. Required to be Scheduled (Described Machinery and Equipment) Limits under $25,000 Irrigation Equipment High valued Livestock (Exceed $3000 per head) Exotics (Deer, Elk, Buffalo, Emu…) Horse Tack Ginseng & Roots Organic Farms

Farm Personal Property Miscellaneous Coverages
Coverage F Replacement Items: If you replace an item under Coverage F you have 30 days from the purchase date to inform the company of the new purchase and any change in limits. Should a loss occur within that 30 days the most the company will pay the smaller of the following: The ACV of the item, or The limit shown on the declarations for that item, plus up to $50,000 per occurrence. Newly Acquired Items: If you purchase a new Coverage F item, We cover these items for their actual cash value. The most we pay for all newly acquired items is $50,000 per occurrence: 30 days from the date of acquisition Machinery Not Described: “Misc. tools and equipment” The most we pay is $2,500 per covered item.

Unscheduled/Blanket Coverage

Farm Personal Property Coverage G
Unscheduled (Blanket) Coverage Minimum $25,000 limit Reduced rates per $1,000 on higher “blanket” limits Flexibility: Ability to excluded coverage on feed and certain items (Company Option) - Feed/Grain in bags or trench silos Blanket Farm Personal Property requires that at review the insured shall maintain insurance at 100% of the actual cash value of the total inventory. If at time of loss, the insurance is not 80% of the inventory or higher, the loss payment will be reduced accordingly. When the inventory is properly done at the time of writing, considerable fluctuation can take place in the value of the Blanket Insurance during the year at no penalty to the insured at the time of loss.

Coverage G Notable Restrictions and Limitations Coverage excluded for: Fences, windmills, wind chargers and their towers Bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, silo unloaders, and any permanent fixtures attached to or within the building Non-farm vehicles Portable buildings and structures Farm operation records Irrigation equipment Sawmill equipment

Farm Personal Property Included Coverages
Coverages F and G Mt. Morris Mutual Special Endorsement (Deductible Applies) Borrowed Farm Machinery, Vehicles and Equipment – We provide coverage for borrowed farm machinery, vehicles and equipment for the loss by the perils insured. The limit of liability is 5% of the Farm Personal Property with a $5, maximum coverage. B. Added Animal Perils – Excluding sheep and poultry. We provide coverage against the death of livestock resulting from: 1. Accidental Shooting – Except by you, member of your family, employees of the insured or persons residing on the insured’s premises. 2. Drowning – Only livestock over 30 days of age. 3. Attack – By wild animals or dogs. C. Weight of Ice, Snow, or Sleet – Of a building on Personal Property when weight of ice, snow, or sleet is part of the coverage on the building. No additional premium for Special Endorsement.

Cab Glass Breakage (-0- Deductible) $500 Limit per occurrence Fire Department Service Charge Outdoor Signs Raw Milk Endorsement Hot Milk Coverage for first party milk (In Farms Bulk Tank) First dollar coverage (no deductible)

Pollution Clean Up and Removal Up to $10,000 to extract pollutants from land or water On the insured premises Caused by a peril insured against Debris Removal Coverages E & F, may apply up to 25% for debris removal of the limit for the damaged property, not to exceed the limit for the scheduled item. However, when the covered loss and debris removal exceed the applicable limit, we will pay up to an extra 5% of the applicable limit to cover the cost of debris removal. Coverage G, apply up to 5% of the Coverage G limit not to exceed the ACV of the item.

Farm Personal Property – Replacement Cost on Partial Loss - This endorsement provides Replacement Cost Coverage for partial losses to Farm Personal Property (Blanket and Scheduled). We will pay the cost of repairing the damaged property with materials of equivalent kind and quality to the extent practical, without deduction for depreciation. We will not pay more than the actual cash value of the item or items damaged.

Farm Personal Property Case Study #1
Guernsey Brothers Farms Inc has their farm blanket inventory insured at 100%. Their 2000 Case IH 7140 is itemized for $40,000 on the blanket. The tractor experiences a short in a wiring harness which ignites a fire under the hood by the engine of the tractor. An on-board fire extinguisher limits the damage to $17,000 for new wiring harnesses and additional damage to the motor area. Labor to repair the tractor is $3,000. The Coverage G deductible is $1,000.

How will Mt. Morris respond? Select the correct answer:
20% depreciation is taken for parts. The labor is paid in full. The 1,000 deductible is applied. Total paid once tractor is repaired - $15,600 20% depreciation is taken for parts and labor. The 1,000 deductible is taken. Total paid once tractor is repaired - $15,000 No depreciation was taken for the parts or labor. The 1,000 deductible was applied. Total paid once tractor is repaired - $19,000. ________________________________________

Answer: C. No depreciation was taken for the parts or. labor
Answer: C. No depreciation was taken for the parts or labor. The 1,000 deductible was applied. Total paid once tractor is repaired - $19,000. MM-300 applies to Coverage F & G

Farm Personal Property and Structures
Coverages E, F & G Included Perils Fire and Lightning Windstorm and Hail Explosion Riot or Civil Commotion Aircraft Vehicles Smoke Vandalism and Malicious Mischief Theft Collision, Upset, or Overturn Electrocution of Livestock Sinkhole Collapse Volcanic Action Earth & Flood Loss to Livestock Loading & Unloading of Livestock Equipment Breakdown

Farm Personal Property and Structures
Irrigation Equipment – Coverage F Equipment must be scheduled Coverage for Center Pivots Wells Underground Wiring Panels Invertors Pipe and Related Components Insured to Replacement Value 4% Inflation Guard Applies

Ineligible Structure/Equipment
Wind Turbines (Property or Liability) Cell Phone Towers (Property or Liability) Manure Digesters (Contact Underwriter) Solar Panels (Contact Underwriter) Know the Contract between the Lessee and the Farm. Who is the contract between? Is power sold back to the electric company (Who’s responsible for what…??) Is the Unit on a separate Premises? Do they need to be added as an additional insured and if so why?

Farmowner Endorsements

Farmowner Master Pac Outdoor Private Power and Light Equipment $ 5,000
Farm Income and Extra Expense (MM-520) [No Deductible] $25,000 Borrowed, Rented, or Leased Farm Machinery $50,000 Intake of Foreign Objects $20,000 Fire Department Service Charge [No Deductible] $ 5,000 Pumps and/or Water Systems [No Deductible] $ 5,000 Debris Removal [No Deductible] $10,000 Emergency Removal of Produce [No Deductible] $ 5,000 Manure Run-Off (Liability Coverage) [No Deductible] $25,000 Additional Perils – Coverage F & G (Weight of Ice, Sleet or Snow) $25,000 Ordinance and Law $10,000 Breakage of Glass [No Deductible] $ 5,000 Lightning or Electrocution Loss to Livestock [No Deductible] $ 5,000

Farmowner Master Pac Premier Endorsement for Agricultural Operations
Customize the Form for Specific Farm Operations Increase limits by specific category within endorsement Protects Potential Gaps in Coverage Minimum Premium $350, Maximum $650 Rating per $1,000 of coverage on total limits F & G

Farmowner Optional Endorsements “ALA CARTE”
Farm Operation Records Glass Coverage Income and Extra Expense Peak Season Inventories Transit Coverage Intake of Foreign Objects Identity Fraud Coverage Custom Farming ($80,000)

Farm Property Coverage
Questions????

Farmowner Liability

Farm Liability The Insureds
The person or entity named on the declarations; the spouse living in the same household as the insured; a person living with the insured and related by blood, marriage, or adoption; a ward, foster child or foreign exchange student living with the insured; and any unmarried and financially dependent child under the age of 25 who is away at school. Only one individual or entity may be named as the named insured. All others are considered additional insureds and a premium will be charged.

Farm Liability Additional Insured (Limited) – Provides liability to additional named insureds, the additional named entity’s coverage is limited to the operation, maintenance, or use by the described named insured. Ex. Insured’s son, who has a home in town, is purchasing the father’s farm machinery, as he can afford it. He currently only owns a 7140 tractor.

Farm Liability The Employees
Employee Coverage – The policy may be endorsed to provide up to 60 months of employee labor (additional premium applies). Medical Payments to employees may be increased for an additional rate. Caution: Agents should be aware of the minimum requirements before state law requires workers compensation. (Custom Farming exceeding $80,000)

Farm Liability The Coverages
Farm Liability – all Farm Liability policies have an annual aggregate limit that is twice the occurrence limit. Ex. $500,000 Occurrence, $1,000,000 Aggregate Fire Legal Liability – Protects tenants for damage caused to rented property by their negligence – $50,000 limit provided. Increased limits available for an additional premium.

$300,000 Aggregate per policy period
Farm Liability Limited Farm Pollution Liability Sudden and Accidental Arises out of farming operations on an insured premise Operations being conducted are not in violation of any ordinance or law Limit of Liability = $100,000 Each Occurrence $300,000 Aggregate per policy period

Farm Liability Damage to Property of Others – Regardless of an insureds legal liability we pay for property of others damaged by an insured, or we repair or replace the property to extent practical with like kind and quality. Base Limit $500 Medical Payments to Others – We pay the necessary medical expenses if they are incurred or medically determined within three years from the date of an accident. Base Limit $1,000

Farm Liability Medical Pay to Employees – Under exclusions P (bodily injury to a farm employee of an insured), if it occurs in the course of employment by the insured is deleted and coverage provided when a limit of coverage and a premium is shown on the declarations. Base Limit $1,000

Farm Liability Medical Payments for Named Insured – This endorsement provides reimbursement for medical and funeral expenses of the named insured and members of his family, if: A. Named in the declarations and an additional premium is paid, B. The injuries are the direct result of an accident, C. The injuries occurred in connection with the farming activities incidental to the operation of the farm premises, D. This coverage is excess and subject to a mandatory deductible of $ per person, and E. The insured must be at least 10 years old but not over years old. A common endorsement utilized to offset an insured’s health insurance deductible.

Farm Liability Rental Property Endorsement – Residential property rented to others is considered business property and excluded from the definition of premises. This endorsement waives this exclusion for the insured, allowing coverage for the rented residential property under the Farm Liability policy. Farm hand lives in the old farm house, do I have the necessary coverage? Farm rental home has extensive damage from the tenants I just evicted. Do I have coverage?

Farm Liability Personal Injury Endorsement – This endorsement extends Liability to Public Coverage to include personal injury, as defined in the form. This endorsement may only be used for non-professional insureds that are of good integrity and reputation.

Farm Liability Recreational Vehicle Endorsement – Coverage is extended for off-premises usage. Uninsured and Underinsured Implement of Husbandry Coverage – This coverage is available on the Farm Liability policy. Premium is fully earned. Schedule or Blanket coverage options available

Farm Liability Case Study #1
Red Angus has his farm policy with Mt. Morris Mutual. His farm policy provides un-scheduled (blanket) coverage for his farm personal property with a 1,000 deductible. His employee is driving his farm owned, farm registered UTV on a blacktopped county highway, traveling 4 miles from the main farm to deliver a grease gun to Red. This parcel is not owned by Red, but is a rented piece of farm land where he is chopping his corn. Red has a farm liability limit of $500,000/$1,000,000. Would the farm policy respond to a liability incident which occurs on the blacktop road, in this situation?

The farm policy describes a farm premises:
No coverage, this is a county road for licensed vehicles only. No coverage, rented land. No coverage, the rented land is more than two miles from the main insured premises. Yes _____________________________________ The farm policy describes a farm premises: "Insured Premises" means (Relative Language): - other land "you" use for "farming purposes and new farm premises acquired by "you" during the policy period; all access ways adjoining the "insured premises"

Farm Liability Case Study #2
While traveling to the corn field, the employee approaches a marked intersection. The employee has the right of way, but an approaching vehicle, blows the stop sign and T-bones the UTV. The UTV is a total loss ($6,500 ACV) and the employee has incurred injuries. Final medical bills for the employee are $280,000. To add insult to injury, the other party carried auto liability limits of $50,000/$100,000. The driver is a 20 year old who rents a local apartment and has minimal assets.

The UTV Coverage is afforded. The company pays $5,500 for the UTV.
Coverage is not afforded as the incident took place on a county highway. Coverage is not afforded, as the vehicle is a UTV and not considered a tractor under the policy. ___________________________________

The Employee The employee is responsible for his medical bills.
The farmer is responsible for the employee’s medical bills. The employee receives $50,000 limit from the third party’s auto policy and is responsible for the remainder of his bills. ___________________________________

The Ideal Situation Red chose to purchase the optional UM/UIM implements of husbandry coverage on the UTV. The third party’s auto insurance company pay’s its $50,000 limit. On behalf of the employee, MMM negotiates a settlement for the remainder of the medical bills owed.

Farm Liability Hired Auto Liability – Provides coverage for autos leased, hired, or borrowed by the insured. Non-owned Auto Liability – Provides coverage for any auto that is not owned, borrowed, or hired by the insured. I have my Farm and Farm Auto with MMM, should I put the hired and non-owned coverage on my CAP policy or my FO policy? MMM would prefer to place this coverage on the CAP policy.

Farm Liability Milk Contamination Endorsement – This endorsement provides bodily injury, property damage, and product coverage arising out of damage the insured’s contaminated milk causes to others. A $1,000 deductible applies. (Full coverage may be purchased for a premium of $75 annually.)

Farm Liability Hunting and Fishing Endorsement – This endorsement provides bodily injury, property damage, and medical payments when an insured allows these activities on the premises. The gross receipts may not exceed $5,000 in any calendar year. If receipts are over $5,000, a Commercial General Liability Policy may be written.

Farm Liability Custom Farming Endorsement – This endorsement provides coverage for custom farming when receipts for this activity exceed $5,000. Ineligible (Gross receipts exceeding $80,000)

WHO OWNS THE COMBINE? Smith Farms Inc, or Smith Custom Farming LLC

Farmowner Credits

Farmowner Credits Creating a competitive quote…
Mortgage Free Credit – 10% discount Claim Free Credits – Claim Free Credits are based on the total policy premium at inception or renewal provided the Policyholder has completed the following: 3 years claim free – 5% discount 7 years claim free – 8% discount 10 years claim free – 10% discount Prior insurance is required for Claim Free Credit On new Mt. Morris policies we will allow the 5% discount with proof of prior coverage.

Farmowner Credits Applies to Coverage A Premium only:
A. Brick Construction – A dwelling with 100% brick construction may be eligible for a 2% – 10% credit on premium (Company option). B. Fire Protection Device – Homes with an approved fire protection device may qualify for credit from 2% – 10% (Company option). C. Burglary Protection Device – Homes with an approved burglary alarm system may qualify for a credit from 2% – 10% (Company option). D. New Construction Discount 1 year or newer – 10% 2 years or newer – 9% 3 years or newer – 8% 4 years or newer – 7% 5 years or newer – 6% 6 years or newer – 5% 7 years or newer – 4% 8 years or newer – 3% 9 years or newer – 2% 10 years or newer – 1%

Farmowner Specific Credits
Livestock Exclusion Endorsement – By request this endorsement will apply to the Farm Liability policy. No coverage will be provided for bodily injury or property damage caused by livestock owned by, or in the care, custody, or control of the insured. A 20% credit from the base liability premium will apply.

Deductible Options Deductibles – A policy may be written with one of the following deductible options at the premium credits or charges shown below: Amount Deductible Credit or Charge $ % $ % $ 1, (Base) $ 2, % $ 5, % $10, % Would you (agents) utilize higher deductible options ($15,000, $20,000)?

Implement of Husbandry, Ag-CMVs, Commercial Vehicles

Implement of Husbandry (IoH)
(An Example of a Category A) (An Example of a Category B) (An Example of a Category C)

AG-CMV’s

(Also called Category 1)
Ag-CMV? For directly distributing feed to livestock or for directly applying fertilizer (but not manure), lime, spray, or seeds to a farm field. (Also called Category 1)

Commercial Vehicles Vehicles or Trailers to be licensed for road usage
Do not meet definition of an IoH or Ag-CMV

Mt. Morris Mutual Farm Auto Insurance
Personal Auto Insurance > Competitive base rates > Enhanced discount for Farm usage > Limits up to 500/500/250 Commercial Auto Insurance > Limits up to 1MM (Effective 1/1/2017) > Intra-state filings > Ability to insure farm semi tractor trailers > Fleet Discounts

Farm Umbrella Coverage
In-house Limits up to 5 Million Minimum Underlying Limits (BI/PD, UM/UIM) Auto 250/500/100 or 300,000 CSL Rec. Vehicles 250/500/100 or 300,000 CSL Farm Liability 300,000 Required to have your underlying auto insurance with MMM

“Bundle” the Farm with MMM!
Farmowners Farm Personal Autos Farm Commercial Autos Farm Umbrella

Our Future Coverages and Forms Farm Pollution Workers Compensation
Expanded Coverage “Environmental Coverage” Workers Compensation Care, Custody and Control Endorsement Horse Farms Updating Wisconsin Amendatory Tractors in parades Raw Milk Exclusion Definition of Pollutant – including manure Exclusion for bullying via social media sites

Our Future Ease of Doing Business On-line Check Payments Software
Web-based system Enhanced services

Why Mt. Morris? A LEADER IN FARM INSURANCE
5th Largest Writer of Farm Insurance in Wisconsin We know farming First in the Nation to provide Equipment Breakdown Coverage to Farmers MMM assisted with the first EB farm forms Insure your Farm, Farm Autos, Rentals and Umbrella Bundle your coverages with a proven leader

Why Mt. Morris? A PARTNER FOR THE FUTURE Strength Consistency
$22MM in Premiums Over $16MM in Surplus Consistency History of Limited Rate Volatility Common Sense Approach Dedicated and Professional Staff MMM 4 Vice Presidents share over 90 years of combined insurance experience The entire MMM team has vested interest in your success

MOUNTAIN OF EDUCATION CUSTOM FARMING

Farm Insurance.

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