March 30, 2015
To Our MAX Agency Partners:
YOU ASKED FOR A CHANGE, AND WE'VE RESPONDED!
As a result of feedback we received in our recent Agents Survey we are making some changes to our New Business Underwriting criteria. You may recall that our current claim acceptance guideline calls for no more than one weather-related claim within the prior three years in our Homeowner, Farmowner and Dwelling Property programs.
However, in an effort to provide you with more opportunity to write New MAX business, effective immediately, we are expanding our new business claim acceptance criteria as follows on all lines:
We will now accept new business with no more than two weather claims within the prior three-year period OR we will accept one non-weather claim where the total claim payment does not exceed $5,000, again within the prior three years.
Furthermore, we are amending our â€œsystemsâ€ eligibility update requirements as they apply to the plumbing, electrical and HVAC systems within the homes we write. This change will now include required updates for all homes built in 1949 and prior versus our current rule that updates must have occurred within the last 40 years of construction.
We have reviewed our loss performance over the past few years and feel a broadening of these acceptance rules is allowable with the other underwriting measures we currently have in place. We do ask that you continue to provide detail on each prior loss incurred as well as prior system updates so that we have a complete picture of the risk we are assuming.
These changes will require system updates and will take time to get implemented into the Stingray system. During this interim period, Underwriting will manually apply the expanded guidelines noted above. Therefore, we do ask that you proceed with submitting applications within the above parameters for review by the MAX Underwriting Team.
Again, we appreciate your input on the recent Agent Survey and thank you for selling MAX Insurance!
MAX (MutualAid eXchange)
4400 College Boulevard, Suite 250
Overland Park, KS 66211
877-971-6300, ext. 126