Excess--Vertical v. Horizontal--#3 (1/15/13)


     OK, we have talked about this issue but what can you do about it? Since demands will now be made to change horizontal to Vertical, can you do it? Yes. Excess Carriers have started to come out with endorsements to solve this problem. In most cases nothing will be done unless you ask and there might be a premium. It very well might have to be negotiated one by one but demanding parties are going to want this done.

      You could even do it with ISO. Here is a link to such an endorsement—CU 22 40 HOWEVER, a broker gave this to me in class and I thought that this was a specific ISO endorsement. NO! Only page #1 is specific. On page #1 you check what is being changed and page #2 shows the change. So, while page #2 is an example of changing things it was done specifically between the broker and the carrier for this ONE policy. This is manuscript language. Keep that it mind but notice what the carrier was willing to do---

       *Contract must lay out a SPECIFIC amount of insurance.

       *Primary Request must be in the contract

       *And, of course, the contract must be executed prior to the loss (notice it does not say that it must be executed prior to the inception of the policy---just the loss).

   So---it will follow the contract and you can make the limits go VERTICAL. It appears that more and more carriers will be willing to do this because of competition but the carrier may want the agent/broker to supply the language.

   As always--some Umbrellas are great and some let in some rain. Make sure that they do what you want them to do.