RULE 05.5 - CATASTROPHE PROCEDURES
Writing or binding new business or endorsing additional coverage on existing business must stop when public information sources including the news media, U. S. Weather Bureau, etc. announce that the area in which a risk is located may be subject to any of the following potential catastrophe conditions:
1) Tornado "watch" or "warning".
2) Hurricane Watch - issued when there is a threat of hurricane conditions within 24 to 36 hours.
3) Hurricane Warning - issued when hurricane conditions are expected in 24 hours or less.
4) Gale Warnings - may be issued when winds of 39 - 54 mph are expected. When such warnings are issued in conjunction with the potential for hurricane development, writings should cease as indicated in the opening paragraph.
5) Storm Warnings - may be issued when winds of 55 to 73 mph are expected; not necessarily limited to hurricane activity.
6) Forest, range or brush fire - areas subject to damage from an existing fire, either in a direct line or announced as susceptible to an existing fire if wind conditions or other factors are unfavorable.
7) Volcanic Eruption - if a volcano becomes active or a reliable source indicates that eruption is a distinct possibility, or that ash and lava could endanger property.
8) Other National Disasters or Massive Power Failure - when there is the possibility of fire, increased crime or looting or contamination.
These restrictions shall remain in effect until the appropriate governmental agency or the Home Office personnel announce the emergency conditions have expired.
Depending on the size of an earthquake, Home Office may place a moratorium on writing earthquake coverage within 100 miles of the epicenter of an earthquake. The moratorium will continue for 72 hours after any shock, including aftershocks. The Home Office may extend the moratorium period. Following an earthquake that results in severe or widespread damage, an inspection by an independent inspector, appraiser or a member of the Auto Club Family Insurance Company claims department may be required in some areas. The Home Office will communicate such requirements when necessary.
Flood coverage may only be bound or issued in accordance with the rules and regulations of the National Flood Insurance Program.
