COVERAGE HIGHLIGHTS

HOMEOWNERS:

Overview

The AIG Private Client Group offers one of the broadest Homeowners forms in the industry. Designed specifically for homes valued at $1 million or more, their Homeowners policy offers comprehensive coverage to provide your clients with maximum protection for their residences.

Their pricing is most competitive for homes exceeding $1,000,000 or more in value. However, they will consider coverage for lower valued homes for your high net worth clientele as needed. AIG provides comprehensive protection for:

• Homes, including secondary dwellings and dwellings rented to others
• Condominiums
• Cooperatives
• Tenants

Benefits

• All risk coverage for dwellings, contents, condominiums and co-ops protects against property damage or loss. Some exculsions may apply.
• Replacement Cost coverage for contents covers the repair or replacement of damaged personal property in the home. Reimburses up to the coverage limit without depreciation.
• Concierge-level Claims Service® — the AIG team is specially qualified to address damage to complex and distinctive properties. They respond to all new losses on the same day of report. Of course, claims specialists are always available 24 hours a day, seven days a week.
• Residential Services — provides a mechanical inspection of your clients property (including electrical systems, air conditioning, back-up electrical generators, heating systems, fire protection systems, home theaters, alarm systems and more) to identify potential loss-producing conditions before an incident occurs. Residential Engineering Services also offers expert review of new home construction plans. This review in the design stage can include recommendations for integrating the latest loss prevention technology, which can help protect valuable belongings.
• Wildfire Protection Unit® — a complimentary loss prevention service available only to AIG Private Client Group policyholders. This first-ever personal wildfire protection program brings the latest in fire mitigation technology directly to an insured's home.
• Hurricane Protection UnitSM — the Hurricane Protection Unit serves policyholders who reside in one of three Florida counties: Collier, Miami-Dade and Palm Beach. A team of hurricane specialists closely tracks the progress and projected landfall of approaching storms. Based on this information, AIG identifies the homes that are likely to be most vulnerable. After the hurricane passes and it is safe to mobilize, we can dispatch response teams to residences in the affected areas and assess exterior damage.

Features

LIABILITY

• Personal Liability coverage with limits of $300,000, $500,000 and $1,000,000.
• Medical Payments To Others coverage of $10,000.
• Can be extended to property locations on a global basis

PROPERTY

• Base rates that include Contents coverage at 50% or 70% (depending on the state) of the dwelling amount. The insured may increase this amount, based on need. The insured may also decrease this amount to as low as 10% or 0%, based on need. Our goal is to ensure that your clients are insured for the full value of their contents.
• Base rates that include 20% of the dwelling amount for Other Structures coverage. The insured can increase or decrease the amount as needed. A Residential Services Specialist can help clients determine proper home valuation.
• The ability to “package” multiple dwellings, contents, condominium, cooperative and tenants locations in one Homeowners policy, depending on the state and writing company.
• For condominiums and co-ops, a single limit is offered for Additions & Alterations and Contents coverage to facilitate easier management for you and your clients. Our Residential Services staff can assist with Additions & Alterations valuations.
• In states where filed, primary flood coverage is available on the Homeowner policy for low to moderate hazard flood zones (B,C,X).
• Non-admitted solution is available for risks with unique characteristics.
• Guaranteed Building Replacement — for homes insured to 100%, or greater, of their replacement cost AIG offers unlimited Guaranteed Rebuilding Cost coverage to rebuild the dwelling and other structures at the same location. This replication-based coverage extends far beyond normal replacement cost or limited “like kind and quality” settlements. Replication based coverage allows for significantly increased loss settlements needed to cover exceptional building quality, historic homes and unique structures.
• Replacement Cost — for homes insured to at least 90% of their replacement value or greater, AIG offers Full Replacement Cost coverage up to the dwelling limit. Your clients are further protected against the effects of inflation because the dwelling limit is automatically increased at the time of loss to reflect any increase in the U.S. Consumer Price Index from the beginning of their current policy period.
• Partial Loss Repairs — unlike many deluxe Homeowners policies, AIG Private Client Group does not mandate that repairs begin within 180 days to make a claims settlement.
• Cash Settlement Option on Contents — when a covered loss occurs the insured has the option to receive a cash settlement, even for partial losses, in lieu of replacing lost or damaged property.

ADDITIONAL COVERAGE

• Rebuilding to Code — coverage includes those additional costs to rebuild structures damaged by a covered loss to meet current building standards; some limits may apply.
• Additional Living Expense — unlimited in most states, based on actual additional living expenses incurred when the insured home in uninhabitable due to a covered loss; includes loss of rental income.
• Damage by Domestic Pets — coverage for damage caused by domestic pets to your home and items such as oriental rugs, antique furniture and wallpaper. This unique coverage is typically excluded from most Homeowners policies.
• Breakage of Fragile Items — a special contents limit of $50,000 exists for the breakage of fragile items. Most homeowners policies exclude this coverage unless specifically scheduled with breakage.
• Back-up of Sewers and Drains — coverage for water damage caused by the back up or overflow of sewers, drains or sum pumps at the insured residence. This coverage is offered up to policy limits without special deductibles.
• Landscaping Coverage Increased Limit — the AIG Homeowners policy includes coverage for landscaping up to 5% of the Dwelling or Contents coverage, whichever is greater, for named perils and includes a $5,000 limit for any one tree, shrub, or plant. Landscaping coverage for losses caused by wind is not included; in some states this coverage is available by endorsement. The 5% and $5,000 limits can be increased through this endorsement.

OPTIONAL COVERAGE ENHANCEMENTS

• Equipment Breakdown — covers the repair or replacement of critical home equipment due to breakdown.
• AIG Fraud SafeGuard® — the possibility of personal financial loss can come in many forms: identity theft, investment schemes, dishonest advisors, forgery, etc. Coverage is now available to help protect your clients and their family members.
• AIG Household SafeGuardSM — goes beyond property protection; it responds to physical and mental recovery following a traumatic covered loss, such as kidnapping, abduction, home invasion, violent threat, and car-jacking or hijacking.
• Business Property — up to $25,000 for a covered loss to business property owned or leased at a particular residence. Coverage is offered on a per $2,500 basis. Additional limits are available
• Increased Limits of Incidental Business Property — our Homeowners policy provides up to $10,000 for incidental business property. Increased limits are available to cover loss to property owned or leased for incidental business conducted at a residence. Coverage is offered on a per $2,500 basis.
• Deductible Waiver for Large Losses — when this endorsement is purchased the standard deductible will be waived for a covered loss exceeding $50,000. This endorsement can be purchased with deductibles of up to $25,000. An additional premium is charged based on the deductible chosen.
• Earthquake Coverage Extension — in most states the peril of earthquake is automatically included in the Contents coverage. However, coverage can be purchased to cover losses to dwellings or other permanent structures. This coverage is offered on a per $1,000 basis. This coverage is subject underwriting discretion.
• Increased Loss Assessment Coverage — our Homeowners policy provides $50,000 in Loss Assessment coverage. The coverage can be increased up to $100,000. Coverage is offered on a per $1,000 basis.
• Earthquake Coverage Extension for Loss Assessment — provides Earthquake coverage for Loss Assessment claims. Deductibles do not apply to this coverage. Coverage is offered on a per $1,000 basis.
• Miscellaneous Club Assessment Coverage — provides coverage for an individual who is a member of a club for any loss assessment charges that the club imposes on its members. Coverage is offered on a per $1,000 basis. Deductibles do not apply.

Deductibles

Generous uncapped credits make higher deductibles more attractive. The dollar amount of the credit will increase as the value of the homes increases. AIG offers the following deductible options from $250 - $100,000 Deductibles in excess of $100,000 may be available. In some coastal areas, a wind or hurricane deductible is required. AIG offers optional wind and hail deductibles in many states. Increasing wind deductibles, along with approved hurricane protective devices will result in a premium savings.

Credits

The following credits are available to reduce your client’s Homeowners premium:
• Central Station Burglar Alarm Credit — a 5% credit is available for homes with burglar detection equipment that is monitored on an ongoing basis by an Underwriting Laboratories approved central station monitoring facility.
• Central Station Fire Alarm Credit — a 5% credit is available for homes with fire detection equipment monitored on an ongoing basis by a U.L. approved central monitoring facility.
• New House Credit — a credit is available for dwellings built within the last 10 years as shown below. The age of the dwelling is computed by subtracting the year of construction from the effective year of the policy. Credits vary by state. This credit does NOT apply if the Renovated House Credit applies.

• Renovated House Credit — for dwellings that have been renovated within the last 10 years as shown below. A “renovated house” has had the plumbing, heating and electrical systems completely upgraded, including wiring, receptacles, circuit boxes and conduits in exposed areas. All renovations must be completed by a licensed contractor and comply with the local building codes. The actual amount of this credit varies by state. This credit does NOT apply if the New House Credit is applicable.

• Guard/Gated Community Credit — depending on the state, a 5% or 10% credit is available for dwellings located in a guarded/gated community that meets all of the following criteria:
• Vehicle access is limited to entrances controlled by guards or locked gates at all times
• Proper identification is required to enter
• Visitors are announced

• Residential Sprinkler System Credit — a 5% credit is offered for dwellings that are partially protected by a properly maintained sprinkler system. A 10% credit is available for dwellings if ALL enclosed spaces are protected by a properly maintained sprinkler system. Protected areas must include:
• All living areas
• Basements
• Garages
• Mechanical areas

• House Replacement Cost Credit — AIG offers a $5.00 credit if the Guaranteed Rebuilding Cost coverage on the dwelling is removed and Replacement Cost coverage is selected as the payment basis for the dwelling.
• Companion Policy Credits — in some states, a credit is available on a Homeowners policy when the client has an Auto, Collections, Excess Liability, or Excess Flood policy. The exact percentage will vary.
• Superior Protection Credits — credits are available for risks with extra protection. The maximum credit an insured can receive for superior protection is 10%. Not all of the Superior Protection Credits listed below are available in every state. Please contact your representative at PMA Private Client Group Services to determine if your client qualifies for any of these credits.
• A 5% superior protection credit is available if there is security protection for the entire external perimeter of the house consisting of one or more of the following:

-- 24 hours-a-day closed circuit TV camera monitoring
-- 24 hours-a-day motion activated detection system, external to the residence
-- 24 hour on-site security guard

• 2% superior protection credits available:

-- A full-time caretaker who lives at the residence year round. This credit applies only if a 24 hour on-site security guard is not present.
-- A 24 hour signal continuity protection for central station or direct fire and burglar alarm systems which ensures uninterrupted communication with the central station in the event that primary communication is interrupted.
-- A 24 hour signal continuity protection for central station or direct fire and burglar alarm systems which ensures uninterrupted communication with the central station in the event that primary communication is interrupted.
-- A sprinkler system/water flow alarm that activates a central station or direct alarm.
-- A temperature monitoring system, to protect against freezing, which activates a central station alarm.
-- A temperature monitoring system, to protect against freezing, which activates a central station alarm.
-- A permanently installed, electrical power, back-up generator capable of servicing heat, light, alarm and sprinkler systems.
-- An explosive gas leakage detector that activates a central station alarm.
-- A lightning protection system with a U.L. Master Label installed by a certified Lightning Protection Institute installer. The system must include lightning rods and lightning surge arresters to protect the electrical wiring and all electronic devices for the entire residence.
-- Approved storm shutters on all exterior openings.
-- A residence protected by a perimeter gate where vehicular and pedestrian access is limited to entrances controlled by locked or electronic gates. This credit does NOT apply if the Guard Gated Community Credit applies.
-- An automatic seismic shut-off valve to gas lines which activates automatically in the event of an earthquake.

Surcharges

If applicable, the following surcharges will be applied to your client’s Homeowners premium:
• 25% Rented to Others Surcharge
• 25% Minor Renovation Surcharge for homes undergoing minor renovations
• 10% Seasonal/Secondary House Surcharge (may vary by state); does not apply if a full-time caretaker is present during the owner’s absence
• 25% Vacancy Surcharge for homes that are vacant for more than 30 days
• Course of Constructions Surcharges vary by state

Submission Requirements

To obtain a quote, please submit a completed Acord Application to your representative at PMA Private Client Group Services. Please be sure to include as much information as possible, such as (but not limited to) the following:

INSURED: • Age, occupation, approximate net worth, marital status
• Existing customer or new business to agency
• If existing, length with agency
• Current carrier
• Loss history
• Commercial tie to agency and/or AIG
• Total account premium

HOME:
• Construction, roof type
• Protection (water sources, etc.)
• Year built
• Alarms
• Occupancy
• If coastal, are shutters present?
• If coastal, what is the flood zone & elevation?
• If applicable, please include a copy of a recent home appraisal
• If the home Is Under Construction or Renovation:

-- Completed and signed Course of Construction application
-- General Contractor Certificate of Liability
-- Extent of construction or renovation
-- Timeframe for completion
-- Special protection measures (i.e., guards, alarms)

AUTOMOBILE:

Overview

AIG Private Client Group offers one of the most cost-effective automobile products on the market. Their well-established preferred driver program combines a high level of financial protection at competitive rates for high net worth individuals who own high-value and collector vehicles.

Benefits

• Deductible options ranging from $0 to $10,000
• Program eligibility for collector cars, motorcycles, motor homes and vehicles of all types on a single policy
• Virtually unlimited number of vehicles can be included on a single policy.
• Automatic coverage for newly acquired vehicles
• Worldwide liability coverage included at no addition charge
• Concierge-level Claims Service®

Customer Profile

This program will be particularly enticing for your high net worth customers in households where there are more cars, especially classic or collector cars, than drivers.

Submission Requirements

Please submit a completed Acord application electronically by e-mail to Jamie Perugino.

Rating Factors

The AIG Private Client Groups rates are based upon a tiered system. The following factors are taken into consideration:
• Age of drivers
• Driver’s motor vehicle records
• Limits, coverage(s) and deductibles selected
• Year, make and model of vehicles
• Garage location
• Vehicle usage
• Credit scoring
• Household composition
• Number of vehicles and drivers on the policy

Product Highlights

The AIG Private Client Groups rates are based upon a tiered system. The following factors are taken into consideration:
• Automatic Agreed value coverage included at N.A.D.A. value, at no additional charge
• Loan and lease gap coverage is included with no additional cost
• Deductible waived on total losses
• Automatic Loss of Use coverage at $5,000 with no daily maximum.
• Up to $1,000,000/$1,000,000/$200,000 Liability and Uninsured/Underinsured Motorist Split Limit or $1,000,000 Combined Single Limit. Availability and limits vary by state.
• Choice of auto repair facility after a covered loss
• The ability to obtain replacement parts from the original manufacturer
• Electronic equipment coverage at no additional charge
• Glass, key/lock replacement, and air bag replacement without the application of a deductible
• Numerous credits* that can help lower your clients’ Automobile premiums, including:

-- Multi-Car — credit of up to 30% is available when two or more cars are insured by AIG Private Client Group
-- Extra vehicle discount — policies with more vehicles then divers will receive on average of 30% discount on each extra vehicle on the policy.
-- Air Bag and/or Automatic Seat Belt—Clients insuring automobiles with air bags or automatic seat belts qualify for a 30% credit off of their No Fault and Medical Payments Coverage premiums.
-- Anti-Theft Devices—Insured vehicles containing a qualified passive anti-theft device may be eligible for a credit of up to 15% off of their Comprehensive Coverage premium. Insured vehicles containing a qualified manual anti-theft device may be eligible for a credit of up to 5% off of their Comprehensive Coverage premium.
-- Anti-Lock Braking System—Clients who own vehicles equipped with anti-lock brakes are eligible for a 3% credit on their Bodily Injury and Property Damage Liability, Personal Injury Protection and/or Medical Payments and Collision Coverage premiums.
-- Daytime Running Lights Discount—A 3% discount is available on Bodily Injury and
-- Property Damage Liability, Personal Injury Protection, Medical Payments and Collision Coverage premiums for vehicles with factory installed daytime running lights. This credit is only available in New York State.
-- Driver Training Discount—up to 15% discount is available for drivers under age 21 who have completed a driver training course.
-- Defensive Driver Discount—Drivers may qualify for a discount of up to 10% if they have completed a defensive driving course recognized by the Department of Motor Vehicles or Licensing within the past year.
*Credits may vary by state. Please consult with your representative at PMA Private Client Group Services for more information.

EXCESS LIABILITY :

Overview

In today’s litigious climate, asset protection is a very important consideration for your clients. The greater your clients’ net worth the greater their potential for loss due to an event that results in a personal injury or property damage lawsuit. AIG Private Client Group provides extensive worldwide coverage for personal injury (including libel and slander) and property damage, with significantly broader protection than most traditional policies.

Benefits

• Broader protection than traditional policies
• The highest limits available in the industry on one convenient policy
• Competitively priced
• Access to AIG’s Concierge-level Claims Service®

Features

• Worldwide Coverage - broad, worldwide protection for personal injury (including libel and slander) and property damage; unlimited owned and non-owned vehicles, homes and watercraft. Coverage responds at home or abroad
• High Limits – lover $100 million in coverage available1; can be purchased in increments of $1 million
• Excess Uninsured/Underinsured Motorist Coverage – limits up to $10 million available1, in $1 million increments, to cover accidents involving underinsured or uninsured drivers Panel Counsel - in the event of a covered lawsuit, policyholder have a choice of representation from a nationwide network of preeminent defense firms
• Expanded Defense Coverage - one's personal attorney can participate in the defense strategy and be reimbursed for reasonable expenses; $10,000 included; an additional $90,000 of coverage is available in $10,000 increments
• Employment Practices Liability Insurance (optional coverage enhancement) – coverage for up to 5 employees, including part-time and full time, working more that 15 hours per week. This policy endorsement covers the full cost of defense against allegations of employment-related discrimination, sexual harassment or wrongful termination made by private staff, up to five resident employees, and includes a $25,000 public relations Employment . In addition, the coverage provides up to $250,000 for any ™CrisisFund settlement or judgment awarded as a result of the allegations; a $10,000 deductible applies.
• Not-for-Profit Board Liability Coverage (optional coverage enhancement) - provides up to $1,000,000 of protection on top of existing corporately purchased board coverage; for named insureds, and their spouse, who serve on the board of up to five qualifying not-for-profit organizations
• Registered Vehicle Credit - reduces the Registered Vehicles component of an insured’s premium if all of the vehicles listed on the declarations page have required underlying vehicle liability limits equal to or greater than the limits listed below. This credit does not apply to the Uninsured/Underinsured Motorists portion of an insured’s premium.

-- $500,000 (combined single limit) or $500,000/$500,000 (split limits) 15%
-- $1,000,000 (combined single limit) or $1,000,000/$1,000,000 (split limits) 20%

Customer Profile

High net worth individuals will benefit from AIG’s Personal Excess Liability Program. Their rates our based on the following factors:
• Location of primary residence
• Number of additional residences and property
• Presence of a pool at any residence
• Number of regular use registered vehicles
• Number of collector vehicles
• Number of unregistered vehicles
• Number of youthful drivers
• Number of boats less than 26 feet
• Number of boats 26 to 42 feet
• Number of boats 43 to 55 feet
• Number of boats more than 55 feet
• Limit of liability selected
• Underlying vehicle limits
• Limit of uninsured/underinsured motorist coverage selected


Submission Requirements

Completed Acord application which includes the following information:
• Age, occupation, approximate net worth, marital status
• Existing Customer or New Business to agency (if existing customer please provide length with agency)
• Current carrier
• Loss history
• Commercial tie to agency and/or AIG Private Client Group
• Total account premium

The following are AIG’s minimum limits of underlying insurance required:
• Private Passenger Auto, Motorcycle or Motor Home Liability: $250,000/$500,000; Bodily Injury and $25,000 Property Damage OR
• $300,000 Single Limit Liability ($325,000 in Texas) Private Passenger Auto/Uninsured Motorist Coverage $250,000/$500,000; Bodily Injury and $25,000 Property Damage OR
• $300,000 Single Limit Liability ($325,000 in Texas) Personal Liability/Comprehensive Personal Liability and Section II of Homeowners Multi-Peril Policies
• $300,000 Single Limit Liability Unregistered Vehicles and Recreational Vehicle Liability
• $300,000 Single Limit Liability Watercraft Liability—Watercraft less than 26 feet in length and 50 horsepower or less
• $300,000 Single Limit Liability Watercraft Liability—Watercraft 26 feet or more in length or more than 50 horsepower
• $500,000 Single Limit Liability Higher underlying limits may be required on large yachts ($1,000,000 in hull value or more).