New Rule from MPIUA: Primary Insurance Coverage Enhancements
Learn about the new rule from MPIUA that enhances primary insurance coverage, allowing insureds to purchase excess coverage beyond the $1,000,000 limit for greater protection. Find out which risks and policies are affected, the benefits to insureds, and how agents can address the rule in SinglePoint. Stay informed and updated on the changes effective April 15, 2025.
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Presentation Transcript
MPIUAs New Primary MPIUA s New Primary Insurance Rule Insurance Rule M ALL QUESTIONS WILL BE ANSWERED AT END Hosted by Michele Gillen and Paul Driscoll
What is this new rule from MPIUA? What is this new rule from MPIUA? Previously, MPIUA policies were capped at $1,000,000 for Coverage A. Now, with the new Primary Insurance Coverage Endorsement, MPIUA will serve as the primary insurer, allowing insureds to purchase separate excess coverage to go beyond the $1,000,000 limit providing greater flexibility and protection.
What risks, policies are affected? When does What risks, policies are affected? When does it begin? it begin? For Homeowners Policies (HO2 & HO3) For Dwelling Fire Policies (DP2 & DP3 only) For risks with Cov A at 1MIL and Replacement Cost greater than 1MIL For New Business Only Existing Policies s/b Rewritten Effective April 15, 2025
What are the Benefits to Insureds? What are the Benefits to Insureds? Expands coverage beyond $1,000,000 by allowing excess policies. Remember, excess insurance covers the gap, provides full value for home and could rebuild fully! Ensures MPIUA remains the primary insurer, simplifying claims handling. Mandatory for properties where 90% of replacement value exceeds $1,000,000 (unless a Homeowners with the Special Loss Settlement Endorsement (HO 04 56)). Up until now, all properties required coverage at 80% of Replacement Cost to avoid co-insurance penalty. We all agree, more coverage is better.
How do agents address rule in How do agents address rule in SinglePoint SinglePoint? ? SinglePoint SinglePoint will be updated for Homeowners rating first, then Dwelling will be updated for Homeowners rating first, then Dwelling fire shortly thereafter. fire shortly thereafter. SinglePoint SinglePoint will add a Ma Fair Plan Carrier Option to select if Excess will add a Ma Fair Plan Carrier Option to select if Excess coverage is in place. Be sure to select in MPIUA site too! coverage is in place. Be sure to select in MPIUA site too!
In General Options, under L select Loss Settlement Special HO 0456 or Loss Settlement ACV HO 0481 In General Options, under L select Loss Settlement Special HO 0456 or Loss Settlement ACV HO 0481
When choosing either type of Loss Settlement in When choosing either type of Loss Settlement in SinglePoint drop down options. drop down options. SinglePoint, both have , both have - -For Special select percentage of RC (50%, 60% or 70%) For Special select percentage of RC (50%, 60% or 70%) - -For ACV select 80 if RC is between 50% For ACV select 80 if RC is between 50%- -79% and select 50 when RC is less than 50% less than 50% 79% and select 50 when RC is
Example #1 of New Rule Insuring a Home with Replacement value of 1.5MIL 90% of RC is 1.35MIL MPIUA still has maximum Coverage A of 1MIL Hence, MPIUA will only cover 66% of RC Mandatory steps below: Insuring a Home with Replacement value of 1.5MIL Agent will do the following: 1- Obtain excess coverage of 350k from a surplus/excess market, OR 2- Add Special Loss Settlement HO 04 56 with no co-insurance penalty up to Cov A limit (see rule 302 in ISO manual) 3-Agent must notify MPIUA of excess coverage in the amount of 350k, or policy will be endorsed automatically with Special Loss Settlement HO 04 56 or ACV HO 04 81. Notification s/b within 30 days of effective date and a premium will be added.
Example #2 of New Rule Example #2 of New Rule Insuring a Home with Replacement value of 2.3MIL 90% of RC is 2.07MIL MPIUA still has maximum Cov A of 1MIL Hence, MPIUA will only cover for 43.5% of RC Agent will do the following: 1- Obtain excess coverage of 1.3MIL from a surplus/excess market 2-Agent must notify MPIUA of excess coverage in the amount of 1.3MIL, or policy will be endorsed automatically with ACV HO 04 81. Notification s/b within 30 days of effective date and a premium will be added.
Who can agents contact with additional questions? Who can agents contact with additional questions? Call MPIUA Customer Service 617 Call MPIUA Customer Service 617- -723 Send proof of excess coverage to: excesspolicy@mpiua.com Send proof of excess coverage to: excesspolicy@mpiua.com 723- -3800 3800 If there is a technical or rating issue in If there is a technical or rating issue in SinglePoint 781 781- -449 449- -8585, Press 1 for Tech Support or use our Live Chat 8585, Press 1 for Tech Support or use our Live Chat or email us at support@bostonsoftware.com or email us at support@bostonsoftware.com SinglePoint, , contact Boston Software at contact Boston Software at
