Maine Businessowner Program - MMG Ins

Maine Businessowner Program

EXPLANATION:

The MMG Businessowner Policy is designed for a select class of risks that display exceptional maintenance, management and operational characteristics. The coverages provided are comprehensive, flexible and competitive. Your careful front-line underwriting is essential in maintaining the characteristics of this program.

ELIGIBILITY:

A specific list of eligible occupancies is provided in the rating section of these pages. A brief summation of the guidelines is as follows:

Eligible occupancies: 1) Mercantile/Wholesale - Not to exceed 25,000 square feet of mercantile area. 2) Office - (Building) not to exceed 100,000 square feet of area 3) Apartments - Not to exceed 20 units or 25,000 square feet of mercantile area.

Eligibility Wholesale Risks: Any mercantile class also designated as eligible for wholesale under the classification table. A wholesale risk is defined as having no more than 25% annual gross sales derived from retail operations and no more than 25% of the total floor area may be open to the public.

In some cases, due to the unique quality of the risk, eligibility may be unclear. In those cases, please feel free to call your underwriter for clarification.

BINDING AUTHORITY:

Agents have full binding authority on the BOP Program up to $500,000 property coverage.

EXCEPTION: See Habitational Underwriting Guidelines

POLICY TERM & ISSUANCE:

Policies may be written on a one-year or a three-year term. The issuance of any MMG Businessowner Policy shall be contingent upon a completed application from the agent and shall be issued by the Home Office.

ELIGIBILITY CRITERIA FOR 3-YEAR BOP OPTION

1) Any new submission must be loss free for the prior three-year period in order to qualify for the 3-year option. 2) Any new submission must generate an annual premium of no more than $750 in order to qualify for the 3-

year option. 3) Habitational risks are ineligible for the 3-year option. 4) Risks written on an ACV basis are ineligible for the 3-year option.

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PORTFOLIO ELIGIBILITY: Portfolio ? A 5% credit is available for BOP policies written in conjunction with at least one other MMG policy.

MINIMUM PREMIUMS: The minimum annual premium for any MBP policy shall be $415 + $35 for Equipment Breakdown. When the liability limit is $2,000,000, the minimum premium shall be $508 + $42 for Equipment Breakdown.

INFLATION GUARD: Any Businessowner Policy written for a term of 1 year is eligible for inflation guard options of 2%, 4%, or 8% annually.

GENERAL UNDERWRITING GUIDELINES: In order to maintain the competitive nature of the program, we would ask that you adhere to the following guidelines closely.

1) Any risk not specified on the eligibility list must be discussed with your underwriter to determine eligibility.

2) Photographs must accompany any application or quote submission.

3) No authorization will be allowed without a completed application and photos of the risk submitted (reimbursement according to our present schedule for photos will be allowed).

4) Only those risks with evident signs of exceptional maintenance, upkeep and management should be submitted.

5) Loss prone risks (those with two or more losses in the last three years) will require underwriter approval prior to submission.

6) Property must be occupied in its entirety. Risks with partial occupancy or vacant areas shall not be eligible.

7) Property should be insured to full replacement cost value (underwriters may refuse or reject risks which are underinsured).

8) Risks located in congested areas or adjacent to hazardous occupancies shall not be considered eligible (100' shall be the minimum distance in judging subject or hazardous occupancies).

9) Information regarding the following characteristics or features should be available to the underwriters:

a) alarm systems or preventive and protective devices; b) access to premises after business hours; c) safes on premises (classification); d) deposit routines or methods; e) surveillance devices or personnel; f) how long has insured operated the business or occupied the premises; g) financial history of the business itself (newly opened or in operation for years).

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PREFERRED BUSINESSOWNERS UNDERWRITING GUIDELINES:

1) Risk that have been in business 3 years or more at the same location.

2) Business must be loss free for 3 years.

3) Property must be 25 years old or newer. Any building, whether we insure the building itself or a tenant in the building must have an "effective age" of no more than 25 years. This means it must have been built within 25 years prior to the inception date of the policy or have had the electrical wiring, plumbing, heating and roof updated within that time frame.

4) Combined Building and Business Personal Property Limits must meet or exceed a minimum value of $200,000.

5) Preferred Program Credit ? multiply the building, business personal property and liability rates by .80

HABITATIONAL UNDERWRITING GUIDELINES:

1. All habitational risks constructed prior to 1978 must be submitted for prior approval. It is necessary that the agent inspect each risk and that a recent photo and a completed habitational questionnaire be sent with the application or endorsement request. Any application or endorsement request that is submitted without all of the required information will be sent back to the agent. Only those risks displaying characteristics of exceptional quality should be submitted.

2. Pre 1978 habitational risks will no longer be eligible for IRPM credits.

3. Tenant occupied habitational risks with wood stoves are not eligible.

4. All multi family habitational risks must have two means of egress. Ladders attached to the side of the dwelling or access to a roof from which the tenant must jump will not suffice as a second means of egress.

ELIGIBILITY ? MOTELS AND BED & BREAKFASTS WITH LIMITED COOKING

The following types of businesses are the only risks eligible for coverage under the Businessowner Policy.

Limited Cooking

1. Definition ? Limited Cooking exposures are those where foods are prepared cold or cooked using appliances which do not emit smoke or grease-laden vapors that require an exhaust system (for example, electric sandwich grills, toasters, warming ovens, roller warmers, infrared snack warmers, microwave ovens, domestic ranges, domestic ovens and pizza ovens).

No open broiling, deep fat frying, barbecuing, solid fuel cooking (for example, mesquite, charcoal or hardwood or other processes capable of producing grease-laden vapors requiring an exhaust system are permitted.

2. Additional Eligibility ? Limited Cooking restaurants are subject to the following additional eligibility:

a. No more than 7,500 square feet in total floor

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b. Seating capacity no greater than 75 c. With or without tables d. Sales of beer or wine only. Sales of beer and wine no greater than 25% of total sales. No other

liquor sales. e. Catering service (this is, service involving serving food away from the insured's premises) must

not exceed 10% of total sales.

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RATE PROMULGATION/PREMIUM DEVELOPMENT:

ELIGIBLE OCCUPANCIES - RISKS

RATE RATE CLASS of

OCCUPANCY - RISK DESCRIPTION

NO.

GROUP BUSINESS

____________________________________________________________________________________

Air Conditioning-Heating-Refrigeration/Sales Antique Stores Apartments (no over 20 Units) Appliance Store-excluding Radio-TV-Stereo Appliance Store-including Radio-TV-Stereo Art Gallery Artists Supplies Audio & Visual Equipment & Supplies Auto Body Shops Automobile Parts-Accessories-(no repair-installations) Automobile Repair Garages Bagel Shops Bait & Tackle Shops Bakeries (no baking on premises) Bakeries (with baking on premises) Barbers & Beauticians Supplies (S) Barber Shops Bath & Accessory Shops Beauty Parlor & Hair Styling Shops Beauty Supply Store ? No Mfg or Repackaging Beverage Distributors ? Soft Drinks Beverage Distributors ? Water ? no bottling Bicycle Stores ? incidental repair, no rentals Blankets - Bedspreads - Sales Book Stores (New &/or Used Books) Books, Magazines Distributors Bridal Shop Building Material & Supplies Camera Stores Candy Stores Card Shops (greeting cards & gifts) Carpet & Rug Stores Cellular Telephone Stores Church Clocks & Watches Clothing Stores (no specialty - general) Coffee Bars Computer & Computer Software Stores Condominium Condominium Association ? Residential Condominium Association ? Mercantile Condominium Association ? Office Confectionery Store (no cooking) Consumer Electronics Repair Shop ? on Premise

6

2

1.00

4

2

1.00

SEE APT. RATES

1.00

5

3

1.00

5

10

1.00

4

2

1.00

4

2

1.00

2

4

1.00

SEE GARAGE RATES 1.00

2

3

.90

SEE GARAGE RATES 1.00

7

1

1.00

5

2

1.00

7

3

1.00

7

5

1.00

1

6

1.00

2

3

1.00

2

2

1.00

2

3

1.00

2

3

1.00

4

2

1.00

4

2

1.00

5

9

1.00

1

4

1.00

2

4

1.00

2

4

1.00

3

2

1.00

2

4

1.00

4

1

1.00

4

1

1.00

2

4

1.00

1

4

1.00

1

4

1.00

SEE CHURCH RATES 1.00

3

4

1.00

3

7

1.00

7

3

1.00

5

4

1.00

SEE CONDO RATES

1.00

1.00

1.00

1.00

4

1

1.00

2

4

1.00

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