February 9, 2005 Tip 67: American Modern Watercraft Program Changes are on the Horizon New Program Changes Take Effect March 1, 2005! March 1st is right around the corner and we wanted to remind you of the changes that will be taking effect in the following states: Alaska, Arizona, Arkansas, Colorado, D.C., Idaho, Illinois, Indiana, Kansas, Kentucky, Mississippi, Missouri, New Mexico, North Dakota, Oklahoma, Pennsylvania, South Carolina, Texas, West Virginia, Wisconsin and Wyoming. You will be receiving the appropriate product bulletins and updated materials in the mail soon. First Choice Program (for powerboats, pontoons, sailboats, etc) Ownership Experience, Renewal, and Diesel Fuel Discounts added. Reduced rates for Trawlers and Sport Fishing boats. The boat owner's age will be utilized for rating, so older owner's get reduced rates. The Advantage Plus Endorsement will include Uninsured Watercraft coverage at a limit equal to standard liability. Coverages like Advantage Endorsements, Watersports Liability and increased Med Pay no longer packaged. Med available up to $10,000. Will accept more MVR violation combinations (for surcharges of 50% and 100% depending on circumstances) Lesser limits of liability such as 25/25/25 and 25/25/50 will be made available for reduced rates. Some liability only restrictions have been reduced. Fewer American Modern submission requirements to allow for more agent friendly underwriting. An overall rate change of -3.0% is expected. MPS rating software updated with new edits and quoting capability. JetSport Program (personal watercraft) Operators as young as 14 years old allowed for no surcharge. Some segmented rate decreases for units under 1000 cc's. Ownership Experience and Renewal Discounts added. New, higher cc range included which will allow for rate reductions for lower cc units. The JS Advantage Endorsement now includes PE coverage. Creating the Advantage Plus Endorsement for JetSport that will include Uninsured Watercraft coverage at a limit equal to standard liability. Coverages like Advantage Endorsements, Watersports Liability and increased Med Pay no longer packaged. Med available up to $5,000. Will now accept major violations and greater combinations of violations (for surcharges of 50% and 100% depending on circumstances). Available liability limits will match First Choice, including 500/500/500. Fewer American Modern submission requirements to allow for more agent friendly underwriting. Rates will decrease for 2005. Pocketed segments will see decreases of 15% or more if qualified for credits. MPS rating software updated with new edits and quoting capability.