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Click on the question to
review the answer.
GENERAL INFORMATION
ELIGIBILITY
COVERAGES AND FORMS
APPLICATION AND BINDING COVERAGE
AMOUNT OF COVERAGE
RATING INFORMATION AND PROVISIONAL QUOTES
PAYMENT OPTIONS
UNDERWRITING
POLICY CHANGES AND CANCELLATIONS
CLAIMS
AGENT INFORMATION
Q: WHAT IS THE KANSAS FAIR PLAN?
A: The Kansas FAIR Plan is an insurance industry funded not-for-profit
association
established for the purpose of making basic property
insurance available to responsible applicants who have been refused
coverage by three voluntary market companies before applying to the
FAIR Plan.
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Q: WHO IS COLUMBIA NATIONAL INSURANCE COMPANY?
A: Columbia National Insurance Company is the Servicing Insurer for
the
Kansas FAIR Plan. Policies are issued and claims are settled by
Columbia National on behalf of the Facility.
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Q: WHAT PROPERTIES ARE ELIGIBLE?
A: Habitational Property
Dwelling properties used for residential purposes up to 4 units
and contents coverage in any number of dwelling units.
Owner occupied Tenant occupied Mobile homes at a fixed location Vacant, unoccupied or idle dwellings will be considered
on an individual basis
Commercial Property
Apartment buildings with 5 or more units Mercantile Service risks Manufacturing risks with no more than 20 production
employees Vacant, unoccupied or idle commercial property will be
considered on an individual basis
Dwelling and Commercial risks that have been refused coverage by three
voluntary market companies are eligible. Applicants must have an
insurable interest in the property.
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Q: WHAT PROPERTIES ARE INELIGIBLE?
A: Ineligible dwelling and commercial properties include the following:
Vacant, Unoccupied or Idle Property considered on an
individual basis Manufacturing risks with over 20 production employees Farm Properties Automobile Risks Other risks excluded by the Governing Committee with the
approval of the Commissioner of Insurance
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Q: DOES THE FAIR PLAN ACCEPT VACANT PROPERTY?
A: Vacant, unoccupied or idle property will be considered on an individual
basis.
We require the property be well maintained. Properties must meet FAIR Plan underwriting standards to be acceptable. Some examples of conditions that do not meet underwriting standards include properties with roofs that are worn out or leaking, excessive high weeds, overgrowth, open to trespass, broken windows, trash, accumulation in the yard, etc. The property must have an intended use; for example, owner or tenant occupied or being held for sale. Utilities should be turned on at the property.
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Q: DOES THE FAIR PLAN WRITE MOBILE HOMES?
A: Mobile homes may be written through the FAIR Plan.
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Q: DOES THE FAIR PLAN WRITE HOMEOWNERS POLICIES?
A: The FAIR Plan does not write a homeowners policy.
We do offer an optional Personal Liability Supplement that may be
added to our basic fire policy if eligibility requirements are met.
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Q: DOES THE FAIR PLAN WRITE RENTERS POLICIES?
A: The FAIR Plan does not offer a renters policy under a homeowner's
program.
We do offer renter's contents coverage under our basic fire
policy.
A Personal Liability Supplement may also be added to the policy if
eligibility requirements are met.
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Q: DOES THE FAIR PLAN WRITE FARM PROPERTY?
A: FAIR Plan will write rural property, however, any dwelling located on
farm
property is not eligible for coverage. Contact FAIR Plan
Customer Service for assistance in determining eligibility.
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Q: DOES THE FAIR PLAN OFFER EARTHQUAKE OR FLOOD
INSURANCE?
A: FAIR Plan does not offer coverage for earthquake or flood.
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Q: WHAT DWELLING COVERAGES AND FORMS ARE OFFERED?
A: FAIR Plan uses the ISO Dwelling Property 1 - Basic Form DP 00 01 and
other
applicable forms.
Building and Contents coverage is available up to a $400,000 combined
limit.
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Perils available: |
Fire – Fire or Lightning and Internal Explosion |
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Extended Coverage – |
Windstorm or Hail, Explosion, Riot or
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Civil Commotion, Aircraft, Vehicles,
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Smoke and Volcanic Eruption
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Vandalism or Malicious Mischief |
Outbuildings – Up to 10% of the Coverage A limit can extend for
other structures, however, this does reduce the
Coverage A limit. If requested, a separate amount
of coverage for other structures may be written.
FAIR Plan reserves the right to limit perils offered due to underwriting
reasons.
OPTIONAL HABITATIONAL COVERAGES
FAIR Plan offers the following optional coverages to the dwelling
fire policy:
Theft Coverage - Available on owner occupied 1 or 2
family dwellings and mobile homes and
renter’s contents coverage policies that meet
eligibility requirements. Seasonal dwellings
and dwellings with roomers or boarders are
not eligible.
Limits are written in even thousands with a minimum of $1,000 and a maximum of $10,000.
Liability Coverage - Available on owner occupied 1 or 2 family dwellings and mobile homes and renter’s
contents coverage policies that meet eligibility requirements. Seasonal dwellings are not eligible.
| Limits: |
Coverage L -
| $100,000 each occurrence |
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$200,000 aggregate per policy period |
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Coverage M - |
$1,000 each person medical payments to others |
FAIR Plan uses modified ISO forms for optional coverages offered.
Additional eligibility requirements, special limits and exclusions apply.
For additional information, go to Dwelling Coverages and Limits.
FAIR Plan reserves the right to limit perils and coverages offered due to
underwriting reasons.
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Q: WHAT COMMERCIAL COVERAGES AND FORMS ARE OFFERED?
A: FAIR Plan uses ISO Building and Property Coverage Form CP 00 10 with
Cause
of Loss - Basic Form CP 10 10 and other applicable forms.
Building and contents coverage is available up to a maximum $1,000,000
combined limit.
Perils available: Group I - Fire, Lightning, Explosion, Vandalism,
and Sprinkler Leakage
Group II - Windstorm or Hail, Smoke, Aircraft or
Vehicles,
Riot or Civil Commotion,
Sinkhole Collapse and Volcanic Action
Optional perils to exclude: Vandalism, Sprinkler Leakage and Windstorm or Hail
FAIR Plan offers 80% coinsurance or nil coinsurance. Actual cash
value figures must be submitted if 80% coinsurance rates are requested.
FAIR Plan reserves the right to limit perils offered due to underwriting
reasons.
For additional information, go to Commercial Coverages and Limits.
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Q: IS LIABILITY COVERAGE AVAILABLE ON RENTAL DWELLINGS,
VACANT DWELLINGS OR COMMERCIAL BUILDINGS?
A: Liability coverage is not available on rental dwellings, vacant dwellings
or
commercial buildings. We only offer the Personal Liability Supplement
on 1 or 2 family owner occupied dwellings and mobile homes (not seasonal) and renter's contents coverage policies in any number of dwelling units.
For additional information, go to Dwelling Coverages and Limits.
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Q: IS THEFT COVERAGE AVAILABLE ON RENTAL DWELLINGS,
VACANT DWELLINGS OR COMMERCIAL BUILDINGS?
A: Theft coverage is not available on rental dwellings, vacant dwellings
or
commercial buildings. We only offer theft on 1 or 2 family owner
occupied dwellings and mobile homes (not seasonal and not with
roomers or boarders) and renter's contents coverage policies in any
number of dwelling units.
For additional information, go to Dwelling Coverages and Limits.
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Q: WHAT IS REQUIRED TO SUBMIT AN APPLICATION?
A: Every effort should be made to place business in the voluntary market.
Applicants must have been refused coverage by three voluntary market
companies before applying to the FAIR Plan.
A FAIR Plan application must be completed in full and mailed to the
FAIR Plan office. Click on the link Online Applications to complete
and print a Dwelling or Commercial Application online or refer to
Forms and Documents for copies.
The application must be signed by an agent licensed to write property and
casualty insurance in the State of Kansas.
Under no circumstances will the processing of an application begin until
all necessary information is received in our office. All applications
submitted, with or without binding money, which are not completed
in full will be returned to the agent.
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Q: DOES THE APPLICATION HAVE TO BE SUBMITTED BY AN AGENT?
A: All applicants must be represented by an agent licensed to write property
and
casualty insurance in the State of Kansas. The application must be
signed and submitted by the agent.
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Q: WILL THE APPLICATION BE RETURNED IF IT'S NOT COMPLETE?
A: All applications submitted, with or without binding money, which are
not
completed in full will be returned to the agent. Under no
circumstances will the processing of an application begin until all
necessary information is received in our office.
We suggest agents complete our online applications to insure that all required information is included.
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Q: DO I NEED TO SUBMIT PREMIUM OR PHOTOS WITH THE
APPLICATION?
A: An application may be submitted with or without premium. For
coverage to
be bound, the required premium must be received in our
office.
Photos are helpful when submitted with a new application, but are not
required.
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Q: HOW DO I BIND COVERAGE?
A: Coverage may be bound if both of the following are received in the FAIR Plan
office and all
eligibility requirements are met:
If the full annual premium is not submitted, the payment plan will apply.
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Q: WHEN CAN COVERAGE BE BOUND?
A: Coverage can be bound one of three ways:
When the application and required premium are received together in
the FAIR Plan office:
Coverage on eligible properties will be effective at 12:01 a.m. on the
date the fully completed application and required premium are
received in the FAIR Plan office, or at a later date if requested on the
application.
When the premium is received in the FAIR Plan office after the
application has been submitted:
Coverage on eligible properties will be effective at 12:01 a.m. on the date the required premium is received in the FAIR Plan office, or at
a later date if requested.
By special mailing:
Coverage on eligible properties will be effective at 12:01 a.m.
on the date either of the two options above are mailed if sent
by certified mail, registered mail, overnight mail or priority mail
with delivery confirmation.
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Q: HOW DO I DETERMINE THE APPROPRIATE AMOUNT OF
COVERAGE?
A: The maximum limit of liability placed through the FAIR Plan in one fire
division
under one ownership, is the lower of its insurable market value,
actual cash value or the limit below:
Maximum Limits: Dwelling - $ 400,000
Commercial - $1,000,000
Limits apply jointly to real and personal property.
FAIR Plan defines Actual Cash Value (ACV) as Replacement Cost less
Depreciation.
For dwellings, an agent must submit ACV calculations with the application
or the following guidelines will be used to determine ACV.
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FAIR Plan Actual Cash Value Guidelines:
(Used if agents figures are not submitted.)
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Multiply the total ground floor square
footage of the dwelling by:
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An additional $5 per square foot is allowed
for masonry/brick construction.
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Depreciation is applied as shown in the FAIR
Plan Depreciation Guide.
To view the Depreciation Guide, go to Dwelling Coverages and Limits.
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FAIR Plan considers a recent purchase price to be the current market
value unless we receive evidence of increased value; such as, contracts,
a list of improvements or real estate appraisal.
Mobile home values are established using the N.A.D.A. Manufactured
Housing Appraisal Guide or market value, whichever is lower.
Commercial actual cash value figures must be submitted by the agent.
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Q: WHAT IS ACTUAL CASH VALUE?
A: Actual Cash Value (ACV) is defined as Replacement Cost less Depreciation.
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Q: WHAT PERCENTAGE SHOULD I USE FOR DEPRECIATION?
A: The following chart can be used to determine the appropriate amount
of
depreciation to be deducted from replacement cost figures:
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DEPRECIATION GUIDE
(Percentage
to be taken off replacement cost figures.)
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Age
(Years)
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Excellent
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Very Good
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Good
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Average |
Fair
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Poor
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0-3
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0%
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0-5%
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5%
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10%
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15%
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20%
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4-8
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0-5
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5-10
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10
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15
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20
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25
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9-13
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5
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10
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15
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20
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25
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30
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14-18
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10
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15
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20
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25
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30
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35
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19-23
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15
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20
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25
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30
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35
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40
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24-28
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20
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25
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30
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35
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40
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45
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29-38
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25
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30
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35
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40
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45
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50
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39-49
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30
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35
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40
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45
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50
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50
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Over 49
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35
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40
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45
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50
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50
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50
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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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Q: HOW DO I KNOW IF A COMMERCIAL PROPERTY QUALIFIES FOR
THE 80% COINSURANCE CLAUSE?
A: Coinsurance is based on actual cash value (ACV). In order to qualify
for the 80%
coinsurance clause, the amount of coverage must be within
80% of ACV.
FAIR Plan coverage is based on the lower of market value, actual cash
value or $1,000,000. Many properties do not qualify for the 80%
coinsurance clause because the current market value of the property is
less than 80% of the ACV.
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Q: WHAT IS A PROVISIONAL QUOTE?
A: A provisional quote is an estimate of the total annual premium based on
the
FAIR
Plan rating structure prior to the inspection of the property.
The provisional quote does not include condition charges or other
premium adjustments that may apply after review of the inspection
report.
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Q: WHAT DEDUCTIBLE OPTIONS DOES FAIR PLAN OFFER?
A: Dwelling - Standard deductible - $500
Other options include $1,000 and $2,500
Commercial - Standard deductible - $500
Other options include $1,000, $2,500, $5,000, $10,000,
$25,000, $50,000 and $75,000
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Q: HOW DO I DETERMINE THE TERRITORY CODE OR THE PROTECTION
CLASS?
A: Territory codes are obtained from the ISO Dwelling Policy Program
Manual - Territory Pages. Territory codes are determined by using the
property's zip code.
Click on Territory codes
for a complete listing.
Protection class codes are obtained from the ISO Public Protection
Class Manual.
If you do not have access to this information, contact the FAIR Plan
office for assistance.
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Q: DOES THE FAIR PLAN OFFER A PAYMENT PLAN?
A: We offer the following payment plan to insureds that elect not to pay
the policy
in full:
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PAYMENT PLAN
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Due Date
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Installment Charge
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Amount Due
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1st
Installment - Due on effective date of
policy
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$5.00
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50% of premium plus installment
charge
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2nd Installment - Due
90 days from effective date of policy
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$5.00
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25% of premium plus installment
charge
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3rd
Installment -
Due 200 days from effective date of policy
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$5.00
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Balance of premium due plus installment charge
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Q: WHAT TYPES OF PAYMENTS WILL BE ACCEPTED AND WHO DO WE
MAKE THE CHECK OUT TO?
A: Payments can be submitted to the FAIR Plan office in the form of a
certified
check, money order, agency check or personal check of the
insured. We do not accept credit cards or cash.
Make checks payable to the Kansas FAIR Plan.
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Q: CAN POLICIES BE SET UP TO BILL THE MORTGAGE COMPANY?
A: Policies may be set up to bill the mortgage company in lieu of the
insured if
requested.
No coverage will be in force until the application is accepted and the
required premium is received in the FAIR Plan office.
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Q: SHOULD THE INSURED SEND PREMIUM IF THE POLICY IS SET UP TO
BILL THE MORTGAGE COMPANY?
A: The insured may need to submit the required premium with the
application if
coverage is needed before the mortgage company is billed.
The mortgage company cannot be billed until after the inspection of the
property is completed and the property is accepted by the FAIR Plan.
Normally, this process takes up to 60 days.
Under no circumstances will coverage be bound until the application is
accepted and the required premium is received in the FAIR Plan office.
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Q: DOES THE FAIR PLAN ACCEPT ALL PROPERTIES?
A: All eligible properties are inspected to confirm that underwriting
standards are
met. The lack of a satisfactory inspection can lead to
coverage being excluded by restrictive endorsement, declined or
canceled.
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Q: WHAT ARE THE FAIR PLAN UNDERWRITING STANDARDS?
A: Reasonable
underwriting standards include:
- Physical
condition of the property, including its construction, heating,
wiring, evidence of previous fires, or general deterioration;
- its
present use or housekeeping;
- any
other exposure determined by the Governing Committee and
approved by the Commissioner of Insurance; or
- any
combination of the above.
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Q: DOES THE FAIR PLAN APPLY CONDITION CHARGES?
A: Final premiums may include condition charges for substandard
conditions
noted from the inspection of the property.
Specific substandard conditions and applicable charges are shown on
the policy and may be removed midterm (pro rata) if conditions are
corrected.
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Q: HOW DO I REMOVE CONDITION CHARGES FROM THE POLICY?
A: Written notification must be sent to the FAIR Plan when conditions
are
corrected. This notification must outline specifically what work
was done to correct each condition that would warrant re-evaluation
and possible deletion of the condition charges. If possible, submit
invoices and photos to confirm the conditions have been corrected.
Return premium will be calculated on a pro rata basis.
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Q: HOW DO I SUBMIT ENDORSEMENT REQUESTS?
A: A policy change request form may be completed and printed online.
To
complete this form online and print, click on Endorsement Request.
The Endorsement Request form should be sent to the FAIR Plan office by
email, fax or mail along with the applicable attachments as stated below in
the Endorsement Request Requirements chart.
All requests are subject to FAIR Plan guidelines and, if acceptable, will
be effective the day after the request is received or at a later date if
requested.
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ENDORSEMENT REQUEST REQUIREMENTS
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Increase in Coverage
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Submit new actual cash value figures, and if
improvements have been made, submit a list
of the improvements, signed by the insured, that have increased the market value of the property
or a new real estate appraisal.
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Decrease in Coverage
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Advise a specific reason for the decrease
and/or submit an updated real estate appraisal.
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Change in Mailing
Address
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Advise if the change affects the occupancy
of the dwelling. For example, previously owner
occupied and now changing to tenant or vacant.
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Deletion of Condition
Charges
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Submit a written request signed by the
insured that
outlines specifically what work was done to
correct each condition that would warrant
reevaluation and
possible deletion of the condition charges
on a
pro rata basis. If possible, submit invoices and
photos to confirm the conditions have been
corrected.
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Assignment of Policy
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Prior to the submission of a request to
change the name of the insured, please contact our
office to discuss eligibility. If the assignment of policy is approved, an Assignment of Policy, Form
KF-2, and a new fully completed application are
required.
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All Other Changes
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Advise a specific reason for the change.
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Q: HOW DO I CANCEL A POLICY?
A: A Cancellation Request/Policy Release Form or a written request signed by
the
named insured is required to cancel a policy. For a copy of the Cancellation Request/Policy Release Form, click on
Form and Documents.
Cancellation requests may be sent by mail or fax.
The effective date of cancellation is limited to no more than 30 days
prior to the receipt of the request unless we are provided with proof
of sale or proof of coverage through the voluntary market.
Cancellations are calculated on a pro rata basis with a $35 minimum
premium retained.
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Q: HOW DO I REPORT A CLAIM?
A: Claims should be reported online to our Servicing Insurer by clicking on
Report A Loss.
Claims may also be submitted by email or fax to our Servicing Insurer:
Columbia National Insurance Company
124 Iowa Ave
PO Box 2180
Salina, KS 67402-2198
Fax: (785) 825-0338
Email: fairplanclaims@colinsgrp.com
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Q: HOW DO I CHECK THE STATUS OF A CLAIM?
A: You may check status of a claim by email at
fairplanclaims@colinsgrp.com
or by
contacting Columbia National Insurance Company Claims Department
at
(800) 998-8902 or in Salina at (785) 825-5531, ext. 5305.
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Q: WHAT SHOULD AN AGENT KNOW ABOUT THE FAIR PLAN?
A: Any agent licensed in the State of Kansas to write property and casualty
insurance may submit an application.
Agents do not have binding authority and may not sign any form as an
authorized representative of the FAIR Plan.
Agents are responsible for explaining all forms and coverages to their
insureds. Insureds should not be referred to the FAIR Plan office for
explanations.
An agent must notify the FAIR Plan office in writing when any agent or
agency changes occur.
A detailed FAIR Plan Manual of Rules and Procedures is available online for your use by clicking on Manual of Rules and Procedures. This Manual will assist you in answering questions you may have regarding placing business
in the Kansas FAIR Plan.
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Q: HOW DO I GET AN AGENT NUMBER?
A: Once an agent submits an application to the FAIR Plan, an agent number
will be assigned. This number will be displayed on all future policies and
commission statements.
Agents should record this number on all future applications submitted.
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Q: HOW MUCH IS THE AGENT'S COMMISSION?
A: The agent's commission is 10%.
The agent's commission will be paid after the inspection of the property
has been completed and the final policy is issued. Agent’s monthly
commission statements will be mailed at the end of each month settling
that month’s commission activity.
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Disclaimer:
The information contained
here is a general summary of the program offered by
the Kansas FAIR Plan. The insured's legal rights are determined by the insurance
policy and the Kansas Insurance Laws and Regulations, not by the contents of this website.
The contents of this website are subject to change without notice.
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