Alternative Markets and E&S Lines
Page 8 of 9




Submissions

When it comes to submissions, get it right the first time.

Submit a complete application with loss runs. In this market you cannot afford to have missing information because the underwriters will not provide a quote. You shouldn't be going back and forth with questions to the your broker, because your broker doesn't have the time for that.

What information makes a difference to an underwriter? Loss runs, narratives, and reasons why this has become an E&S submission are all important. The underwriter will also be keen to know what is the target premium desired by the agent and if this is a renewal account or "just fishing".

What kind of an impression do you want to make with your submission? The best submissions get sent out the quickest. Delays will result if the broker has to ask questions and wait for responses. Because of the nature of the E&S submission, more information may be required than with a standard carrier, though the converse may also be true.

It is imperative that submissions contain accurate and up-to-date information. If not WE lose credibility with the underwriter/broker, and it jeopardizes our relationships with the carriers.

Submission checklist
  • Consider all lines of coverage with applications for each:
  • Property: breakdown of all blanket amounts
  • Business income limits and how they were arrived at
  • Liability: payrolls, sales, sub costs, brochures, ads, etc.
  • Auto: class, cost new, actual cash value (ACV), gross vehicle weight (GVW), territories, garaging, radius, drivers list, etc.
  • Umbrella
  • Professional
  • Crime
  • Cyberspace
  • Intellectual
  • Narratives describing the history of the insured, its operations, owners, attitudes, and goals
  • Identification of buildings and businesses in the immediate area
  • Financial reports for the past 5 years
  • Annual reports
  • 401(K) figures
  • Loss runs for the past 5 years
  • Tenants list, if applicable
  • Employee manuals and safety manuals
  • Flow charts for organization management and product flow
  • Plot pictures and plans
  • Contracts, leases, vendors agreements
  • Motor vehicle records (MVRs)

    Various E&S submission checklists are available through your association or other venues.

    Financing
    Most finance companies will finance depending on the rating of the carrier, whether or not admitted. Many E&S brokers have in-house financing capability, as do many of the E&S carriers themselves.

    Summary
    In summary, the advantages of the E&S marketplace include:
  • Market diversity: worldwide
  • Carrier expertise on classes of business
  • MGA programs
  • Coverages not available in the standard marketplace

    The disadvantages of the E&S marketplace, on the other hand, include:
  • Pricing
  • Unavailability of a market or particular coverage
  • Limitation of forms and coverages
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    Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.