The Kansas FAIR Plan Fair Access to Insurance Requirements

Contact Us: Phone: (785)271-2300 Fax: (785)271-2341
Toll Free: (800)777-1513 Email: customerservice@ksfairplan.com

KANSAS FAIR PLAN

The Kansas All-Industry Placement Facility, also known as the Kansas FAIR Plan, is a not-for-profit insurance association formed by Kansas insurers to assist responsible applicants, who have been unable to obtain insurance through the voluntary markets, in securing basic property and casualty insurance.

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SUBMITTING APPLICATIONS

 

ACV VALUATION

 

SUBMITTING ENDORSEMENT AND CANCELLATION REQUESTS

 

PREMIUM QUOTES

 

RATES, RULES, AND FORMS

 

PAYMENTS AND RETURN PREMIUM CHECKS

 

RENEWALS - CONVERTING TO THE NEW SYSTEM

 

EXCLUSIONS IN COVERAGE

 

INSURED'S CORRESPONDENCE

 

AGENT’S COMMISSION AND CORRESPONDENCE

 

SUBMITTING CLAIMS

 


 

SUBMITTING APPLICATIONS

  • The agent will electronically submit applications directly to the Kansas FAIR Plan.

    All applications will be submitted electronically in the new user friendly system. After the agent signs in, they will select “Submit an Application” from the menu provided. There will be modules for instruction in the system and you may also contact our customer service department for assistance.

    Since applications are submitted online with access to online payments, we will no longer accept applications mailed certified or registered mail to bind coverage.

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  • When submitting an application on a vacant property, a current photo of the property will be required. The photo can be uploaded into the system when the application is submitted.

    We require that vacant property be well maintained to be eligible for FAIR Plan coverage. A current photo of the property confirming that the property is being maintained should be uploaded in the system as you complete the application.

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  • We will no longer accept an application without premium payment to bind coverage. Refer to the Payment section for the insured’s payment options. This does not apply to mortgagee bill.

    We will not process an application without premium to bind coverage unless the policy is set up to bill the mortgage company direct. The following payment methods are available when submitting an application:

    1. Credit/debit card

    2. Electronic check

    3. Check/money order (Payment by mail)

    4. Mortgagee bill

    Please note that if the “Check/Money Order” option is selected, coverage will not be bound and processing of the application will not begin until the premium is received in the FAIR Plan office.

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  • When an agent has multiple policies for the same insured, the system has the ability to link them together using a Client Name and Client Number

    When submitting an application, the system creates a client with the information provided. Any additional properties that the insured has should be linked to that client by client name and number.

    A complete listing of all the policies written under one Client/Named Insured will now be available.

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ACV VALUATION

  • E2Value will be the only method used to establish ACV. The agent will have access to complete the valuation when they are submitting an application.

    FAIR Plan will use e2Value as the only method to determine ACV (replacement cost less depreciation). Access to e2Value will be provided as the application is being completed in the system. Any property with a requested amount of coverage of $20,000 or greater will be automatically sent through the e2Value evaluation process. We are using their calculation for replacement cost and have built in FAIR Plan depreciation factors as shown below:

    DEPRECIATION GUIDE
    (Percentage to be taken off replacement cost figures)
    Age Excellent Very Good Good Average Fair Poor
    (Years)
    0-3 0% 0-5% 5% 10% 15% 20%
    4-8 0-5 5-10 10 15 20 25
    9-13 5 10 15 20 25 30
    14-18 10 15 20 25 30 35
    19-23 15 20 25 30 35 40
    24-28 20 25 30 35 40 45
    29-38 25 30 35 40 45 50
    39-49 30 35 40 45 50 50
    Over 49 35 40 45 50 50 50

    The definitions we use to determine the condition of the property are as follows:

    Excellent – The building is in perfect condition

    Very Good – The building has slight evidence of deterioration

    Good – The building has minor deterioration

    Average – The building has apparent deterioration

    Fair – The building has marked deterioration

    Poor – The building has substantial deterioration

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  • When coverage is requested on an outbuilding, ACV calculations through e2Value will be required.

    When an amount of coverage is requested for outbuildings, information regarding the outbuilding is required when establishing ACV through the e2Value.

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SUBMITTING ENDORSEMENT AND CANCELLATION REQUESTS

  • The agent will electronically submit endorsement and cancellation requests directly to the Kansas FAIR Plan.

    After the policy is issued, the agent will request policy changes and cancellation requests through the system by selecting the “Action” tab.

    The requested changes will be submitted to underwriting for approval, however mortgagee changes are not subject to underwriting approval.

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PREMIUM QUOTES

  • Provisional premium quotes are available as a new property is submitted to the FAIR Plan for both dwelling and commercial.

    When “Full Quote” is selected and the requested information is completed, the provisional premium quote will be displayed. The premium is considered provisional until the inspection is reviewed and premium is adjusted if applicable.

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  • A “Quick Quote” is available on dwelling properties so that a provisional premium can be obtained without completing the full application.

    A “Quick Quote” can be selected if an agent wants an estimate of the provisional premium but does not want to enter the information required for a full quote.

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RATES, RULES, AND FORMS

  • The Kansas FAIR Plan has adopted AAIS rates, rules and forms.

    FAIR Plan replaced Insurance Service Office (ISO) with American Association of Insurance Services (AAIS) for rates, rules and forms. AAIS forms can be viewed and printed in the new system. Go to my.ksfairplan.com, sign in and select “Forms” from the menu.

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  • We are no longer using ISO public protection classes. The system will assign the appropriate classification as the application is completed.

    AAIS protection class rules will now be used. The system will assign the appropriate classification when the application is entered into the system.

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  • FAIR Plan has filed and received approval to adjust rates due to experience. The effective date of the new rates will be October 1, 2016.

    In addition to the AAIS rating changes, we have filed and received approval for the following rate adjustments for all new and renewal policies:

    Dwelling Rates: -2.5%
    Commercial Rates:    -9.5%

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  • Because of the new AAIS forms, there is no longer a 10% extension for Coverage B, outbuildings. If the insured requires this coverage, a separate amount of coverage can be requested.

    The AAIS forms do not extend any automatic coverage to outbuildings. The 10% coverage that was extended in the ISO form is no longer available. If your insured has outbuildings and requires coverage, a specific amount of coverage must be requested.

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PAYMENTS AND RETURN PREMIUM CHECKS

  • New payment plan options are available. Fees have also been adjusted for payment plan options.

    FAIR Plan offers payment options of annual, semi-annual and quarterly. The following is an example of the new payment plan options:

    Payment Plan Schedule
    These examples are based on a $500.00 annual premium with a policy inception date of 10/1/2016
     
    Annual Premium Payment
    (New or Renewal Business)
    Full premium payment due on policy inception date
    Payment 1: Premium: $500.00 Fee: $0.00 Due: $500.00 Due Date: 10/1/2016
    * Total Cost: $500.00
     
    Semi-Annual Premium Payments    
    (New or Renewal Business)
    Down payment 50% of premium due on policy inception date and 1 payment of remaining premium due 6 months after inception
    Payment 1: Premium: $250.00 Fee: $0.00 Due: $250.00 Due Date: 10/1/2016
    Payment 2: Premium: $250.00 Fee: $7.50 Due: $257.50 Due Date: 4/1/2017
    * Total Cost: $507.50
     
    Quarterly Premium Payments
    (New Business)
    Down payment 35% of premium due on policy inception date and 3 payments of remaining premium due quarterly
    Payment 1: Premium: $175.00 Fee: $0.00 Due: $175.00 Due Date: 10/1/2016
    Payment 2: Premium: $108.00 Fee: $7.50 Due: $115.50 Due Date: 1/1/2017
    Payment 3: Premium: $108.00 Fee: $7.50 Due: $115.50 Due Date: 4/1/2017
    Payment 4: Premium: $108.00 Fee: $7.50 Due: $115.50 Due Date: 7/1/2017
    * Total Cost: $522.50
     
    Quarterly Premium Payments
    (Renewal Business)
    Down payment 25% of premium due on policy inception date and 3 payments of remaining premium due quarterly
    Payment 1: Premium: $125.00 Fee: $0.00 Due: $125.00 Due Date: 10/1/2016
    Payment 2: Premium: $125.00 Fee: $7.50 Due: $132.50 Due Date: 1/1/2017
    Payment 3: Premium: $125.00 Fee: $7.50 Due: $132.50 Due Date: 4/1/2017
    Payment 4: Premium: $125.00 Fee: $7.50 Due: $132.50 Due Date: 7/1/2017
    * Total Cost: $522.50
     
    * Payments are based on a provisional premium that may be adjusted after inspection.

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  • Online payments by credit/debit card or electronic checks are now available on policies written through the new system.

    Credit cards, debit cards and e-checks are now available in the system. Payment is made through the system at my.ksfairplan.com. There will be no charge for paying premiums on-line.

    Since payments can now be submitted online, we will no longer accept payments sent certified or registered mail to prevent a lapse in coverage.

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  • If the premium is escrowed, the mortgagee will be billed direct. The insured will not be required to submit premium to bind coverage.

    If the premium is escrowed, you can set up the policy to bill the mortgage company direct. The insured will no longer be required to submit the down payment in order to bind coverage.

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  • When submitting an application, the insured will have 4 options for paying the premium:

    1. Credit/debit card

    2. Electronic check

    3. Check/Money order (Payment by mail)

    4. Mortgagee bill

    Credit and debit cards can be used to pay premium payments online for policies written in the new system. The agent or insured will go to my.ksfairplan.com, sign in and select the payment option.

    Electronic checks can also be used to pay premiums online for policies written in the new system. The same payment procedure is followed as stated above.

    Payments can also be mailed to the FAIR Plan in the form of a check, money order or certified check. When submitting an application, and payment by mail is selected the system will display a payment coupon that should be printed and mailed with the payment. It is important to note that no coverage will be bound until the required premium payment is received in the FAIR Plan office.

    When the policy is set up to be paid by escrow, the mortgagee will be billed direct. It will no longer be required that the insured send in a down payment to get coverage bound. Coverage on eligible properties will be considered bound when the application is submitted provided the mortgage company submits the premium within 30 days.

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  • All return premium checks will be made out and mailed to the insured.

    All return premium checks will be made out and mailed to the insured. We will no longer send return premium checks to mortgage companies.

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RENEWALS – CONVERTING TO THE NEW SYSTEM

  • Because of the new AAIS forms, there is no longer a 10% extension for Coverage B, outbuildings. If the insured requires this coverage, a separate amount of coverage can be requested.

    When the renewal policy is sent to the insured, it will contain the new AAIS forms. The AAIS forms do not extend any automatic coverage to outbuildings. The 10% coverage that was extended in the ISO form is no longer available. If your insured has outbuildings and requires coverage, a specific amount of coverage must be requested.

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  • A Notice of Change in Policy Terms and Conditions will be sent to the insured 65 days prior to the expiration of the current dwelling policy. The notice will advise the insured of the change in forms and will tell them they can receive their documents electronically.

    A notice to the insured will be sent 65 days prior to the expiration of their policy with a copy sent to the agent. The notice will advise the insured that their policy will have a change in forms. It will also advise the insured that they may elect to receive documents from us electronically. The insured will be directed to their agent for assistance.

    If the insured would like to receive documents electronically and the renewal has already been processed, go to my.ksfairplan.com, sign in, search for your client, then select “Edit/Modify”. Once the insured’s email address is entered, the system will set up the policy to send documents to the insured electronically.

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  • Commercial policies will expire and will not be offered an automatic renewal. It is necessary for agents to complete an application online through the new system to keep coverage in force.

    The insured will not automatically be sent a renewal offer on commercial policies. The agent will need to submit an application for the property in the new system.

    The insureds will be sent an expiration notice advising them to contact their agent to reapply for coverage.

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EXCLUSIONS IN COVERAGE

  • When completing the application, the insured will consent to any restriction in coverage deemed necessary as a result of the inspection.

    There is a section in the application where the insured agrees to any restrictions in coverage deemed necessary as a result of the inspection. The insured will electronically sign this section giving their consent.

    This will enable us to get the policy issued more quickly and with less follow up for the agent and the FAIR Plan office staff.

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  • There is a cosmetic metal roof exclusion that will apply to all properties with metal roof coverings.

    FAIR Plan has adopted a cosmetic metal roof exclusion for all properties with metal roof coverings. For specific wording, see form KF 306.

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  • If the condition of the roof is marked poor on the application, a roof exclusion will automatically be added to the policy.

    Form KF 304 excluding the roof will be automatically added to the policy when the condition of the roof is marked poor.

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  • Change in wording on form KFSE-1

    The wording on form KFSE-1 has been amended to include all metal siding.

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INSURED'S CORRESPONDENCE

  • The insured will have the option to receive and print their documents electronically.

    If the insured would like to receive their documents electronically, they will provide their email address when submitting the application. They may opt out of electronic delivery and receive all documents through the mail by selecting the “Opt Out” option.

    If the insured would like to receive documents electronically and the policy has already been processed, go to my.ksfairplan.com, sign in, search for your client, and then select “Edit/Modify”. Once the insured’s email address is entered, the system will set up the policy to send documents to the insured electronically.

    There will be modules available on the system to demonstrate how this is done. Our customer service department can assist you with this option.

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AGENT'S COMMISSION AND CORRESPONDENCE

  • The agent will receive commissions by direct deposit and will be paid after we receive the required premium and the inspection has been processed on new business.

    All commission will be paid by direct deposit with the bank account information provided to the FAIR Plan.

    The agent’s commission will be paid after the inspection of the property has been completed and the amended policy is issued. If an insured pays the policy in full, the commission is paid in one lump sum after the premium is received. If an insured is utilizing a payment plan option, the commission will be paid based on each payment.

    The agent’s commissions are processed the 1st business day of the month.

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  • Notice of policies, invoices and correspondence will be sent electronically through email.

    The agent will receive notice when a policy or an invoice has been issued as well as all other correspondence via email. Your email address will be requested when you go into the system the first time and create your password. The user name and temporary password has been sent to your agency by mail.

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  • The new system will allow agents access to view and print policies, forms and invoices.

    Agents will have access to their insureds policies, forms and invoices. Go to my.ksfairplan.com, sign in and select the “Billing/Documents” tab.

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  • The system will allow the agents to check on the status of submissions.

    Agents will able to see the payment history of the insured through the system. Go to my.ksfairplan.com, sign in and select the “History” tab.

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  • If there is more than one agent in your agency, the system can give you the option to select the specific agent that is writing the policy.

    If there is more than one agent writing coverage under the agency, you can specify which agent is submitting an application. There will be a module on the system to demonstrate this function.

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SUBMITTING CLAIMS

  • MII Management Group, Inc. will be handling all FAIR Plan claims for policies with an effective date of October 1, 2016 and after.

    For all policies effective October 1, 2016 and after, MII Management Group will handle the Kansas FAIR Plan claims. All policies with an effective date prior to October 1, 2016 will still submit claims to Columbia National Insurance Company.

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  • Claims will be submitted directly to MII Management Group, Inc. through the system.

    Claims can be submitted through the system by going to my.ksfairplan.com. Sign in and then select the appropriate policy. To check the status of a FAIR Plan claim you can call toll free at 855-629-5737.

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