Rating FAQ

This page contains answers to common questions handled by our support staff.

1.  Why does a warning message about rates / loss costs appear during rating?
2.  Why does my quote not exactly match the company?
3.  Why is the key rate still required for Personal Property rating?
4.  What do we enter as the key rate when the community is not listed?
5.  Why do I get the message "Farm & Ranch now uses Loss Costs"?
6.  Which Commercial Property rules do I select?
7.  Why does the system ask me F.O.B. list price on symbol 27 automobiles?
8.  Why do I get zero premium when rating Workers’ Comp?
9.  We’ve recently changed out computers / networks and now nothing prints!
10. Does the system automatically delete old rate releases, symbols, flex bands or loss costs?
11. How to include replacement cost enhancement endorsements on an HO-A

Why does a warning message about rates / loss costs appear during rating?

The rules selected and the rates / loss costs selected don’t match. Refer to the "Rules Filings" document in the Release Letters section of the software to verify which rules your company is using. We suggest you order the pre-programmed Flex Bands and Loss Cost Multipliers from IRS-AIMS to insure accuracy.

Why does my quote not exactly match the company?

The rate filings are very complex. Keeping up with the changes yourself is virtually impossible. We suggest you order the pre-programmed Flex Bands and Loss Cost Multipliers from IRS-AIMS to insure accuracy. We update the filings weekly.

Why is the key rate still required for Personal Property rating?

Personal Property rating has a transition factor in the rating process which caps the difference in premium from the old key rate methodology and the new PPC (public protection class) methodology. Both the old key rate and new PPC are necessary to determine the transition factor. The transition is for two years from the company’s original adoption date of the new PPC methodology.

What do we enter as the key rate when the community is not listed?

The same key rate you would have used with the old key rate rating methodology. In most cases this would be .50.

Why do I get the message "Farm & Ranch now uses Loss Costs"?

The rules selected and the rates selected don’t match. This most often occurs when the 4/15/98 Loss Cost Rules are selected and the rates used by the company are for the old TDI benchmark rates. Verify which rates your company is using. If they are using the new loss costs then select the 4/15/98 Rules. If they are using the old benchmark rates then select the 10/1/96 Rates.

Which Commercial Property rules do I select?

ISO Countrywide rules must be used by all companies. You’ve got three choices based on the filings of your company:

1.  ISO Countrywide 1/1/99 (New Group II / New Special)
2.  ISO Countrywide 7/1/98 (New Group II / Old Special)
3.  ISO Countrywide 1/20/90 (Old Group II / Old Special)

Refer to the "Rules Filings" document in the Release Letters section of the software to verify which rules your company is using.

Why does the system ask me F.O.B. list price on symbol 27 automobiles?

Symbol 27 vehicles have a list price over $80,000. The TDI rating rules require an additional rate per $1,000 on vehicles valued over $80,000.

Why do I get zero premium when rating Workers' Comp?

You selected Custom Company Rate Relativities by mistake. You should have selected the appropriate TDI Rate Relativities. We suggest you order the pre-programmed Flex Bands and Loss Cost Multipliers from IRS-AIMS.

We've recently changed out computers / networks and now nothing prints!

Changing computers or the network requires printers to be setup again. Contact support for assistance.

Does the system automatically delete old rate releases, symbols, flex bands or loss costs?

No. You need to determine what should be deleted. As a general rule, delete old rate releases, flex bands and loss cost multipliers you won’t need for endorsement processing and symbols over 15 years old.

How to include replacement cost enhancement endorsements on an HO-A

Because of the mold issue, the industry has begun using the HO-A form and filing enhancement endorsements to include replacement cost coverage for the Dwelling and/or Personal Property. Most companies are requiring 60% of the Dwelling amount as a minimum for replacement cost coverage on Personal Property (just like the HO-B). Pricing varies from company to company. Many are charging a percentage of the Basic premium. Since the standard HO-A policy does not allow Replacement Cost endorsements, we modified the HO-A rating in release 3.2B to accommodate the use of the replacement cost enhancement endorsements.

Release 3.2B added a 60% Personal Property option for HO-A's. Select this option if your company offers replacement cost on Personal Property and requires 60% of the Dwelling Amount. On the endorsement screen, select the User Defined endorsement and type in the endorsement description and the premium.

If the premium is a percentage of the basic premium, rate the quote without the enhancement endorsement, then use the calculator function to determine the charge. Update the quote to include the enhancement endorsement premium.

Note- Magic For Windows includes the ability to enter an optional surcharge. If your company is charging a percentage of the basic premium, you can simply enter the endorsement description and surcharge percentage in Optional Credits/Surcharges. The premium will automatically be included without separate calculation. We've already done this for several companies. Clients that subscribe to our Company Filing service will automatically receive the filings. Contact our support department if you have any procedural questions.

We also relaxed the edit for TWIA Replacement Cost coverage if the primary policy is an HO-A. Select TWIA Replacement Cost if appropriate. Note - no Replacement Cost reduction is being computed on HO-A policies in conjunction with a TWIA policy.

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