Agents know that offering personal umbrella coverage to every client is essential. But did you know that the Big "I" has developed a customizable declination form that you can use to document that you've offered umbrella coverage in your client files? Visit www.iiaba.net/RLI to download the form from the right hand menu. Simply add your agency name to the bottom using the PDF form field.

For clients who choose to invest in umbrella coverage, here are some policy features from our standalone umbrella partner RLI:

• Limits up to $5 million available ($1M in NM)
• Excess UM/UIM available in all states.
• The insured can keep their current homeowner/auto insurer
• New drivers accepted - no age limit on drivers
• Up to one DWI/DUI per household allowed
• Auto limits as low as 100/300/50 in certain cases
• Competitive, low premiums for increased limits of liability
• Simple, self-underwriting application that lets you know immediately if the insured is accepted
• E-signature and credit card payment options
• Immediate coverage available in all 50 states plus D.C.

Keep Abreast of National Flood Insurance Program Changes

"The sea never changes and its works, for all the talk of men, are wrapped in mystery." - Joseph Conrad

While the sea may never change, flood insurance through the National Flood Insurance Program does. Some of the change is aimed at providing a better customer experience for policyholders while other changes continue the implementation of the Biggert-Waters Flood Insurance Reform Act and the Homeowner Flood Insurance Affordability Act. A new series of short videos explains the key elements of changes to the NFIP that are effective April 1, 2017.

This series is presented in three short video segments. Watch them all or just those you'd like to review. The series covers the following topics:

Segment One: Premiums and Surcharges
Segment Two: Newly Mapped Multiplier
Segment Three: Pre-FIRM Substantially Improved Buildings and Updates to the Community Rating System List

FEMA periodically issues WYO Program Bulletins related to legislative changes and clarifications to the NFIP Flood Insurance Manual. FEMA recently published Bulletin w-17010 - October 1, 2017 Program Changes.

The NFIP also offers free online courses covering basic and advanced flood insurance topics through the FEMA Emergency Management Institute's Independent Study Program. Visit the NFIP Training pages for agents or claims adjusters for course details, or view this list of NFIP courses offered through the Independent Study Program.

We can't talk about flood without mentioning the Big "I" Flood program! Big "I" Flood and Selective's relationship helps deliver members an unparalleled flood program. Together, we offer agents several layers of support to meet any and all flood insurance needs. Get to know the Big "I" and Selective staff and get your flood questions answered. With personalized support, competitive commissions, and an easy-to-use quoting platform, it is an easy decision to start writing your flood business through the Big "I" Flood-Selective partnership today. Learn more at www.iiaba.net/Flood.  

• Direct Written Premiums: For all the fanfare, a relatively unimpressive premium total so far. Written premiums for 2016 were $179,715 after the much ballyhooed start-up on 9/15/2016. At $500 a policy (a guess), that's about 350 insureds.
• Capital Burn Rate: It's unfair to assess profitability of anyone so early in start-up mode, but the burn rate of capital would get my attention if I invested with premiums coming in the door at only $1,600 per day. The burn-rate for 2016 equates to a negative Net Income of $1,884,719. With stated capital in the "Management Discussion" of $10,700,000 in holding company parent, Lemonade, Inc. as of 1/31/2017, they would appear to have some time to get thing started but they will have to make progress or move some more cash to the actual licensed insurer, Lemonade Insurance Company, as they show $5,665,766 as "Surplus as Regards Policyholders."
• Licenses: They are now licensed in NY, IL, NC, RI and TX but have given up trying in AK, IN, KS, KY, SC, SD, UT, VT and WV. They never attempted to get licenses in DC, MS, WA and WY. Presumably they continue to pursue authorization to conduct business in the other 38 states.
• Claims: They have claims paid out of $3,941 and total incurred losses, including all reserves for unknown claims and development of $11,028. With premiums coming in at the end of the year, the earned premium is only $24,502. That would then be a pure loss ratio of about 45%.
• CEO/President: The CEO and CFO of Lemonade Insurance Company are different than the public face of Lemonade and the three guys in T-shirts in the launch videos talking about their definition of peer-to-peer, flat fees, and how insurance as we know it is evil.
• Foreign Ownership: Ownership of this evil-avoiding insurer on our U.S. shores is actually very foreign. There is listed ownership of the parent corporation by 71.2% by individuals and limited partnerships from Cayman Islands, Israel and Great Britain. The organizational chart leaves unanswered who/what owns the remaining 28.8% of the ultimate parent. There is also an Israeli technology company (Lemonade, Ltd.) and a NY licensed insurance agency (Lemonade Insurance Agency, LLC)