AGENCY INTERNAL PROCEDURES MANUAL - …

1 AGENCY INTERNAL PROCEDURES MANUAL 8 Copyright 1999 Alpine Risk Management Corporation, LLC. All rights reserved (Rev 1-01) DISCLAIMER * * * * * * * * * * * * * * * * * * * Alpine has designed this Errors and Omissions Risk Management and Loss Prevention MANUAL of PROCEDURES for our subscribers as a suggested procedural guide and reference when analyzing and setting up INTERNAL office PROCEDURES . It is not intended to be used as a strict, unchangeable, unalterable procedural MANUAL . The contents of this MANUAL are strictly guidelines. Every AGENCY has its own PROCEDURES . The intent of this MANUAL is to provide you, our subscriber, with suggested PROCEDURES to develop consistency of operations.

2 In addition, Alpine Risk Management Corporation, LLC. is not engaged in the rendering of legal counsel or legal opinions. Any question involving the law or a legal opinion should be referred to legal counsel. Our sole purpose is to offer suggestions and guidelines to our subscribers for setting up consistent PROCEDURES to reduce the possibility of a potentially costly errors and omissions claim. All of the forms shown in this MANUAL of PROCEDURES are merely suggested forms for use by our MANUAL subscribers for their INTERNAL usage only. The use of any of them by our subscribers is authorized by Alpine Risk Management Corporation, LLC.

3 , providing they are for their INTERNAL use only and are not to be distributed to third parties for any purpose nor shall they be used in any way for commercial purposes by our subscribers or any employee or agent thereof. Alpine does not and legally cannot attest to the legal propriety or validity of any of these forms and recommends they be reviewed and approved by your legal counsel prior to using. All of the forms contained in this MANUAL of PROCEDURES are protected under the copyright laws of the United States of America and are the exclusive property of Alpine Risk Management Corporation, LLC.

4 8 Copyright 1988-2003 Alpine Risk Management Corporation, LLC. All Rights Reserved (Rev 1-01) Risk Management Corporation, LLC A MANUAL OF PROCEDURES AND ERRORS AND OMISSIONS LOSS PREVENTION AND RISK MANAGEMENT GUIDE FOR AGENTS OF THE UNITED FARMERS AGENTS ASSOCIATION PUBLISHED BY ALPINE RISK MANAGEMENT CORPORATION, LLC. (A Delaware Corporation) P. O. Box 20128, Oakland, CA 94620-0128 Phone (510) 653-5117 FAX (510) 653-6394 ** This MANUAL has been published for the exclusive use of our subscribers. All rights reserved. No part of this MANUAL may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior ex-press written permission of the President and Chief Executive Officer of: ALPINE RISK MANAGEMENT CORPORATION, LLC.

5 AGENCY INTERNAL PROCEDURES MANUAL TABLE OF CONTENTS Copyright 2010 Alpine Risk Management Corporation, LLC. Page No: TOC - 1 All rights reserved (Rev 06- 108 ) SUBJECT PAGE NUMBER CHAPTER 1 - INTRODUCTION (03-01) 1. Introduction Intr 1 - 3 2. AGENCY Procedural Review Findings Intr 4 - 7 2. Purpose and Use of MANUAL of PROCEDURES Intr 7 - 9 3. INTERNAL Audit Program Intr 9 - 11 4. Errors and Omissions Coordinator Intr 11 5. Conclusion Intr 13 CHAPTER 2 - BINDERS, CERTIFICATES OF INSURANCE, PRODUCER OF RECORD LETTERS (02-97) A.

6 BINDERS 1. Binders - I ntroduction Bind - 1 2. Definition of a Binder Bind - 1 3. Term of a Binder Bind - 1 4. Binding Authority Bind - 3 5. Binder Preparation Bind - 5 6. Binder Invoicing Bind - 8 7. Binder Suspense Bind - 9 8. Binder Clearance Bind - 9 B. CERTIFICATES OF INSURANCE 1. Introduction Bind - 11 AGENCY INTERNAL PROCEDURES MANUAL TABLE OF CONTENTS Copyright 2010 Alpine Risk Management Corporation, LLC. Page No: TOC - 2 All rights reserved (Rev 06- 108 ) SUBJECT PAGE NUMBER 2. Certificate of Insurance - Definition Bind - 11 3. Certificate Preparation Bind - 11 4.

7 Signature Bind - 13 C. AGENT AND/OR BROKER OF RECORD LETTERS 1. Introduction Bind - 14 2. Recommended PROCEDURES Bind - 14 3. Suggested Company Binder Confirmation Letter Bind - 16 4. Suggested Agent or Broker of Record Letter Bind - 17 5. CHAPTER CHECKLIST Bind - 18 CHAPTER 3 - CASH MANAGEMENT PROCEDURES (07-02) 1. Introduction Cash - 1 2. Accounts Cash - 1 3. Checks Cash - 2 4. Cash Cash - 3 5. Payment by Credit Card Cash - 3 5. Collection of Accounts Cash - 5 6. Trustee Account Reconciliation Cash - 5 7. Sample Check Request Form Cash - 6 AGENCY INTERNAL PROCEDURES MANUAL TABLE OF CONTENTS Copyright 2010 Alpine Risk Management Corporation, LLC.

8 Page No: TOC - 3 All rights reserved (Rev 06- 108 ) SUBJECT PAGE NUMBER 8. Trustee Account Test Audit Statement Cash - 7 9. Sample Letter for Authorization to Retain Interest Cash - 8 10. Sample Form: Acknowledgement of AGENCY Fee Cash - 9 10. CHAPTER CHECKLIST Cash - 10 CHAPTER 4 - MAIL PROCEDURES (09-03) 1. Introduction Mail - 1 2. Incoming Mail Mail - 1 3. Outgoing Mail Mail - 2 4. FAX Mail - 3 5. E-Mail and E & O Exposures Mail - 3 6. Automated Data - Discovery Mail - 4 7. CHAPTER CHECKLIST Mail - 4 CHAPTER 5 - RECORDS MANAGEMENT AND AUTOMATION (09-08) 1. Introduction Recd - 1 2.

9 Retention of Files Recd - 1 3. MANUAL PROCEDURES - File and File Folder Organization Recd - 4 4. MANUAL File Audit PROCEDURES Recd - 7 5. E-Mail Recd - 11 6. Automation Recd - 12 AGENCY INTERNAL PROCEDURES MANUAL TABLE OF CONTENTS Copyright 2010 Alpine Risk Management Corporation, LLC. Page No: TOC - 4 All rights reserved (Rev 06- 108 ) SUBJECT PAGE NUMBER 7. Transactional Filing Recd - 16 8. Paperless Filing Recd - 23 9. Duplication of Automated Data Recd - 24 10. Insured's Index Recd - 25 11. CHAPTER CHECKLIST Recd - 25 CHAPTER 6 - SUSPENSE PROCEDURES (07-99) 1.

10 Introduction Susp - 1 2. Entry Susp - 2 3. Suspense Duration Susp - 3 4. Suspense Call-Up Susp - 4 5. Suspense Follow-Up with Insureds Susp - 6 6. Purging Susp - 6 7. CHAPTER CHECKLIST Susp - 8 CHAPTER 7 - TELEPHONE AND FAX PROCEDURES (10-01) 1. Introduction Phon - 1 2. Incoming Calls Phon - 2 3. Outgoing Calls Phon - 3 4. Telephone Call Records Phon - 3 AGENCY INTERNAL PROCEDURES MANUAL TABLE OF CONTENTS Copyright 2010 Alpine Risk Management Corporation, LLC. Page No: TOC - 5 All rights reserved (Rev 06- 108 ) SUBJECT PAGE NO.