CurrentAlabama Department of InsurancePolicy 2013-02

Outline of Coverage and Comprehensive Policy Checklist

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This bulletin requires surplus line brokers to provide an outline of coverage and comprehensive policy checklist to insureds for specified residential property classes effective for policies effective on or after July 1, 2013; it applies to Alabama-licensed producers and surplus line brokers handling surplus lines business in Alabama.

Policy Summary

PayerAlabama Department of Insurance

PolicyOutline of Coverage and Comprehensive Policy Checklist

Policy CodePolicy Policy 2013-02

Change TypeRevised (signature requirements removed)

Effective DateJul 1, 2013

Next Review Date

Key ActionProvide the insured a completed outline of coverage and policy checklist within 30 days after the policy issue date.

SourceLink

POLICY UPDATE CHANGES

Bulletin 2013-02, issued January 28, 2013, is revised to delete signature requirements concerning the outline and checklist form.

30 daystimeframe to provide outline/checklist after policy issue date

Jul 1, 2013effective date for applicability

5 yearsminimum retention period

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CurrentAlabama Department of InsurancePolicy 2013-02

Outline of Coverage and Comprehensive Policy Checklist

Customize your policy alerts

Sign up for Alabama Department of Insurance Policy 2013-02 alerts

Get alerted when Policy 2013-02 changes without checking for updates manually.

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Policy Summary

PayerAlabama Department of Insurance

PolicyOutline of Coverage and Comprehensive Policy Checklist

Policy CodePolicy Policy 2013-02

Change TypeRevised (signature requirements removed)

Effective DateJul 1, 2013

Next Review Date

Key ActionProvide the insured a completed outline of coverage and policy checklist within 30 days after the policy issue date.

SourceLink

POLICY UPDATE CHANGES

Bulletin 2013-02, issued January 28, 2013, is revised to delete signature requirements concerning the outline and checklist form.

30 daystimeframe to provide outline/checklist after policy issue date

Jul 1, 2013effective date for applicability

5 yearsminimum retention period

Outline & Checklist Requirements

Outline/checklist requirements for surplus lines residential policies

Applicability and substantive requirements for the outline of coverage and comprehensive policy checklist.

Applies to new or renewal surplus line policies effective on or after July 1, 2013 for the following residential classes: dwelling; dwelling fire; and mobile home / manufactured housing property. Farm-owner and condominium (unit owner) policies are excluded.

Insured must be provided a completed outline of coverage and policy checklist within thirty (30) days after the policy issue date.

If the outline and checklist are not furnished directly to the insured by the surplus line broker, the broker shall provide the completed outline and checklist to the retail producer for delivery to the insured within the thirty (30) day period.

In format and content, the outline and checklist must substantially conform to the Department's attached form and contain all items that apply to the individual policyholder.

ALL of the following

If an insured's individual policy does not include an exclusion displayed on the Department's form (for example, sewer back-up), then that exclusion should not be displayed on the insured's outline and checklist.
The broker may replace the Department's language with similar wording more appropriate to the surplus line insurer's policy form (for example, differing definitions of RCV or ACV).
The broker may add types of coverage, perils, exclusions, discounts, or additional disclaimers to the outline and checklist but may not delete items on the Department's form that apply to an insured.

A copy of the outline and checklist as provided to the insured or sent to the retail producer for delivery must be retained by the broker in the insured's policy file for the longer of: (i) five years following issuance of the policy or (ii) the period required by Ala. Code §27-10-29.

If there is any contradiction between the checklist and the policy, the terms of the policy govern.

Outline Fields and Recordkeeping

Outline/checklist fieldsmixed

Covered Property - Dwelling (Limits)	Covered Property, 1 = Limits of Insurance. Dwelling, 1 = .
Covered Property - Dwelling (Loss Settlement Basis)	Covered Property, 2 = Loss Settlement Basis (ACV or RCV). Dwelling, 2 = .
Covered Property - Other Structures (Limits)	Other Structures (Detached from Dwelling), 1 = .
Covered Property - Other Structures (Loss Settlement Basis)	Other Structures (Detached from Dwelling), 2 = .
Covered Property - Personal Property (Limits)	Personal Property (Contents), 1 = .
Covered Property - Personal Property (Loss Settlement Basis)	Personal Property (Contents), 2 = .
Covered Property - Roof Repair/Replacement Settlement Basis (Limits)	Roof Repair/Replacement Settlement Basis:, 1 = .
Covered Property - Roof Repair/Replacement Settlement Basis (Loss Settlement Basis)	Roof Repair/Replacement Settlement Basis:, 2 = .
Deductible - Hurricane/Named Windstorm	Deductible Amounts ($): Hurricane/Named Windstorm = $
Deductible - Other Property Perils	Deductible Amounts ($): Other Property Perils, 1 = ; Other Property Perils, 2 =

1–10 of 20

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inv-03: Retention period

Retention periodCopy retained for the longer of five years following issuance of the policy or as required by Ala. Code §27-10-29.

Location of recordRetained in the insured's policy file by the surplus lines broker.

Triggering eventApplies to the copy of the outline and checklist provided to the insured or sent to the retail producer for delivery.

Delivery and Broker Responsibilities

Documentation Required

Provide completed outline/checklist to insured within 30 days

Within thirty (30) days after the policy issue date, provide the insured a completed Outline of Coverage and policy checklist; if the surplus line broker does not furnish it directly to the insured, the broker must provide the outline and checklist to the retail producer for delivery to the insured within the 30‑day period.

Applies to surplus lines residential policies (dwelling fire and mobile home/manufactured housing) effective on or after July 1, 2013; farm‑owner and condominium unit owner policies are excluded.
Outline/checklist must substantially conform to the Department's attached form and include all items applicable to the individual policyholder.
Broker may replace Department wording with insurer‑appropriate language and may add items but may not delete applicable items from the Department's form.

Defined Terms

inv-05: Outline/checklist — definition of 'Outline of Coverage and Comprehensive Policy Checklist'

DefinitionOutline of Coverage and Comprehensive Policy Checklist: a department-developed form (or substantially conforming alternative) that lists types of coverage, perils, other coverages, exclusions/limitations, limits, loss settlement basis, and discounts applicable to the individual policyholder.

Required timing of deliveryA completed outline and checklist must be provided to the insured within thirty (30) days after the policy issue date; broker may provide it to the retail producer for delivery if not furnished directly.

Content rulesMust substantially conform to the Department's attached form; brokers may substitute insurer-appropriate wording and add items but may not delete applicable items from the Department's form.

Form fields (examples)Includes fields for Covered Property (limits), Perils Covered (Y/N), Other Coverages (limits/yes-no), and special limits/loss settlement basis as shown on the Department's form.

inv-06: Retention requirement — definition clarifying broker's retention of copy in policy file per Ala. Code