PRODUCER INFORMATION – ALL LINES

AUTHORITY OF PRODUCERS

The Iowa FAIR Plan has no appointed insurance agents.  We use the term “producer” to refer to the agents who assist applicants in applying for coverage through the Plan.  Producers are not representatives of the Plan.

Producers cannot:

 

PRODUCER REQUIRED

The Iowa FAIR Plan cannot write coverage directly.  All applications for coverage through the Plan must be submitted by an insurance agent with a current Iowa license.  Applicants seeking coverage should not contact the Iowa FAIR Plan directly.

SUBMITTING APPLICATIONS VIA FAX (515-255-6549)

Dwelling Property and Commercial Property

If we receive an application via fax before noon the policy effective date will be noon that same day.  If we receive an application after noon the policy effective date will be effective the following day at noon.  In either case the effective date will be dependent upon receiving the original application and correct premium that are postmarked the date the fax is received.  A later effective date can also be chosen if the policy is not needed immediately.

Homeowners and Farm Property

If we receive an application and required photos via fax the policy effective date will be 12:01 am the following day provided the original application and correct premium are postmarked the date the fax is received.  Later effective dates can also be chosen if the policy is not needed immediately.

Miscellaneous Information

If producers and/or applicants have any questions with regard to submission of applications they should call or e-mail the Iowa FAIR Plan office for clarification.

The Plan is not and will not be responsible for late or otherwise incorrect postmarks.

Applications received via fax are not automatically bound and are subject to underwriting just as would be any application received via mail.

NEW & RENEWAL BILLING OPTIONS

Full payment with the application and with the Renewal Premium Notice is preferred.  Mortgagees and/or additional insureds can be billed only on renewals.  The following payment plan is also available on new business and renewals: 

Insureds may choose to pay their premiums using a 4-pay plan.  This plan requires 40% of the provisional premium as a down payment (plus a $5 service fee), 20% of the provisional premium (plus a $5 service fee) due 30 days from the inception, 20% of the provisional premium (plus a $5 service fee) due 60 days from inception, and 20% of the provisional premium (plus a $5 service fee) due 90 days from inception.  If an insured chooses to use the 4-pay plan a notice explaining how the plan works will be mailed to the insured, along with payment coupons, after the down payment has been received and the policy has been issued.  Additional premium due as a result of deficiency charges and/or other endorsements will be due and payable when billed; any additional premiums will not be added to future payments. If an insured fails to make any payment by the due date the Iowa FAIR Plan will send Direct Notice of Cancellation for nonpayment of premium.  At that time the payment plan will be suspended, and if the insured wants to keep the policy in force the remaining balance must be paid in full.  If an insured fails to make a payment when due the Plan will not offer to reinstate the payment plan, and the Plan will have the right to refuse to offer a payment plan to that insured at renewal.  An insured can choose to pay the balance of the premium at any time, along with a $5 service fee.  Details with regard to how the payment plan works are subject to change without notice.

RENEWAL PREMIUM NOTICES

Renewal premium notices are mailed to the Named Insured(s), the producer, mortgagees, and additional insureds 45-60 days prior to the expiration date, assuming we have been properly notified of the existence of any such mortgagees and/or additional insureds and of their agreement to pay on behalf of the insured.

ACTION REPORT

The Iowa FAIR Plan will immediately fax an “Action Report” to the producer on applications received by mail or fax provided we have a current fax number and we can get the fax to go through within a reasonable amount of time and/or a reasonable number of attempts to do so.  This report will indicate if (a) the risk has been accepted and is subject to inspection and final underwriting, or (b) the risk has been declined.

REQUEST FOR POLICY CHANGES

All requests for policy changes must be made in writing via mail, fax, or e-mail.  Any requests for decreases in limits will require the signature of the Named Insured(s).  Cancellation requests from insureds require the signature of all Named Insureds.  Requests for backdating of more than thirty (30) days will require proof of replacement insurance.  Policies issued by the Iowa FAIR Plan cannot be assigned; new applications will be required whenever there is a change in ownership.

SEARCH OF THE VOLUNTARY MARKET

Administrative rules require that at the completion of thirty-six (36) months of coverage and prior to the completion of forty-eight (48) months of coverage each of the Plan’s policies shall be nonrenewed.  Producers will receive advance notice of such nonrenewals.

Producers are then expected to search the voluntary market for replacement coverage for any such nonrenewed risks.  If such a search is unsuccessful the applicant may reapply for coverage through the Iowa FAIR Plan.  This can be accomplished by submitting a new application, the correct premium, and a letter indicating that the producer cannot place the risk with another company represented by the producer.  There will be no exceptions to these requirements.

PREMIUMS AND DEDUCTIBLES

Rate pages in the Producer’s Manual display annual premiums.  Deductible options shown approximate the actual savings that may be realized by using a higher deductible.

CLAIM REPORTING

Producers should report claims promptly.  Claims can be submitted via phone, mail, fax, or e-mail.  We accept ACORD forms or any other insurer’s claims forms as long as they contain adequate information that will allow us to evaluate the claim.  The Iowa FAIR Plan uses independent claims adjusting services for all claims.

INSPECTIONS

All properties written by the Iowa FAIR Plan are subject to inspection for eligibility and pricing.  Inspectors usually will not go inside the property unless there is evidence of a wood burning device or such a device was reported on an application.  In such cases appointments will be made with customers so inspectors can inspect the wood burning device, check clearances, take photos, etc.  Failure of an insured to comply with such an inspection or failure to keep an appointment with an inspector will result in the termination of the policy.  The Iowa FAIR Plan uses independent inspection firms to inspect all properties, and such inspections are done at the expense of the Plan.  Generally speaking, the Plan re-inspects properties every five (5) years, but in some cases inspections may be done more frequently.

THE UNDERWRITING PROCESS

The general underwriting guidelines used by the Iowa FAIR Plan are outlined in the Producer’s Manual and are also available on the “Underwriting Rules & Guidelines” tab of this website.  Producers who do not have a copy of the Manual can contact us to receive a copy.

SYSTEMS

The Iowa FAIR Plan maintains its own accounting, claims, and policy issuance systems.