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RULE 10.14 - CHANGES
ON POLICY
1) Requested
by Insured
The following changes
may be made on the policy during the annual term as requested using
the rates in effect at the inception of the current policy period:
A. Change in policy
limits
B. Change in coverages
C. Adding or deleting options
D. Change in deductibles
E. Change in the effective date because of financial reasons, other
than to take advantage of or to avoid the application of a rate change.
If an endorsement
is added to a policy after the current effective date and there is a
rate change between the current effective date of the policy and the
date of endorsement, the rate charged for the endorsement will be the
rate that was in effect at the inception of the current policy term.
No endorsement with
an effective date prior to the current policy term shall be approved
without a detailed explanation from the submitting Sales Agent and approval
by the Director of Underwriting.
2) Change
in Protection Class
If there is a change
in the Protection Class which affects the premium applicable to the
described dwelling, the premium will be adjusted as of the effective
as of the next renewal date.
3) Discovery
of Misclassification
Upon discovery of
misclassifications requiring a rate adjustment, which may have existed
at the time of issuance or renewal, changes are to be made as follows:
A. If discovery
is made by means of an investigation of new business (consumer report,
building inspection, verification questionnaire), the change is made
by endorsement effective as of the discovery date.
B. If discovery is made by means of a policyholder's rating questionnaire,
the change is made by endorsement effective as of the discovery date.
C. If discovery is made as the result of the investigation of a reported
claim, the change is made by endorsement effective as of the date
of loss.
If discovery is made
as the result of an internal audit, the change is made effective as of
the next renewal date.
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