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Newsletter
Letter to Members
Underwriting / Policy Change Summary
Electrical Service Panel Photos
Letter to Members
To Our Valued Members,
The Association would like to thank each of you for your continued support this past year. We can look back and see that change has been a constant factor in our daily life. The insurance industry is no different. We have seen legislative changes in privacy, terrorism, and financial accountability reforms. The effects of the investment markets have resulted in increasing our focus on underwriting. We have also seen many carriers exit the property and casualty markets. Rates across all sectors of the market have taken a dramatic increase. Profitability has become a mandated priority. The net effect has been to tax the resources of those companies who continue to do business. The Association is constantly monitoring these changing situations in our attempt to secure a stable marketplace.
During 2003, we were blessed to have good weather and the cooperation of the policyholder and agents as we assumed the book of business from Hancock Mutual Insurance Association of Garner, Iowa. This merger has allowed us to improve our spread of risk and enhance our profitability position. This merger reflects the vision of the Association in meeting the needs of our policyholders. Stability and profitability in the pricing of our product and services was improved by this transaction.
A progressive Board of Directors has identified priorities for the future to focus on the well being of the policyholder. We have designed, combined and expanded coverage to provide products to meet the changing needs of the members. As in the past, a detailed examination of the rating structure was conducted. Problem areas with premiums vs. loss experience have been identified and addressed. The necessary changes were made. The foundation of insurance is the assumption of risk. Those that assume more risk should be rewarded with premium savings. Those who assume less risk can expect to experience a higher cost.
On behalf to the Association, I would like to thank you for your support and cooperation. The Association is constantly faced with a rapidly changing business environment. Our commitment to you is aimed at providing cost effective products and services. The Board of Directors and the staff of Heartland Mutual Insurance Association are honored to serve you.
Sincerely,
Bruce D Thomas,
President
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Underwriting / Policy Change Summary
There will be a mandatory $100 deductible on all existing policies. All new policies will carry a $250 all peril deductible.
IMT’s Quarterly and Semi-Annual liability installment billings attached to your policy will carry a $5 service charge. Your agent may have requested a change to an annual liability billing to avoid this service charge.
Coverages increased to meet current underwriting guidelines:
Personal Property with Broad Form Coverage | $15,000 |
Residence with Broad Form Coverage | $20,000 |
“Standard” Homeowners Package | $30,000 |
“Select” Homeowners Package | $50,000 |
“Elite” Homeowners Package | $150,000 |
Golden Security Tenant Package | $20,000 |
Farm Blanket Personal Property | $15,000 |
All Physical Loss Farm Blanket Personal Property | $25,000 |
In addition to minor wording changes required to have adjusting procedures match contract language, please note the following policy provision changes:
A $10,000 limitation has been added to all policies for “Wet Rot, Dry Rot, Bacteria, Fungi, and Protista” coverage.
Loss caused by freezing to hot tubs, swimming pools, their pumps and controls has been excluded.
The Deferred Loss Endorsement will supersede the vacancy provision in the general policy terms.
Supplemental Coverage for “Refrigerated Products” has been increased from $300 to $500
Replacement Value is no longer available on flat roofs. Flat roofs will be adjusted on an actual cash value method.
Coverage for grain in the open is now provided under “Scheduled” insurance on farm products. A maximum of $2,000 or up to 10% of the total amount scheduled is the payable limitation.
New forms have been developed to provide coverage for Camping or Travel Trailers and Docks, Lifts and Motorboats.
Extended Plus Endorsement on Farm Service Buildings and Structures will now carry a coinsurance clause.
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Electrical Service Panel
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