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May 9, 2011
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2011 Annual Meeting of Members
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The 2011 Annual Meeting of Members of the Mutual Assurance Society of Virginia was
held Monday, May 9, 2011 at 10:00 a.m. at the Society’s office at 4001 Fitzhugh
Ave., Richmond, Virginia 23230.
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The following Class B directors were reelected for three-year terms of
office expiring at the 2014 Annual Meeting of Members:
Julius P. Smith, Jr., Richard T. Wheeler, Jr. and Richard W. Wiltshire, Jr.
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2011 Base Annual Assessment Rate Remains 12%
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The Society's base annual assessment
rate for 2011 remains 12%. Therefore the 2011 homeowner policy assessment rates are
12% for primary residences, 24% for secondary residences and an additional
9% assessment for either type residence if it is located in a territory subject
to our coastal exposure assessment. The minimum annual assessment per policy for
2011 continues to be $100.00.
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Coverage Changes for 2011
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Coverage changes that are being implemented effective on each policy’s 2011 policy anniversary date are summarized below:
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HOMEOWNER POLICIES
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Equipment Breakdown Coverage is being expanded to include equipment insured under Coverage C-Personal Property in addition to the built-in equipment previously insured. There is no change in premium for this expanded coverage.
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Identity Recovery Coverage, effective on and after February 1, 2011, is being included on all homeowner policies without charge. This coverage will include Lifestages Identity Management and Resolution Services, which will be provided to our homeowner policyholders by Identity Theft 911, LLC. If you purchased Identity Recovery Coverage from the Society previously, the additional premium for that coverage will be deducted from your policy premium on your policy anniversary. Due to copyright privileges of our previous identity theft partner, it was necessary for us to discontinue the fraud coverage and the other coverage enhancements we added in 2010. We regret this reduction in coverage; however, we believe it best for all of our policyholders to receive this identity recovery protection automatically rather than continuing to offer it only as an optional coverage for an additional premium.
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Form MAS-51 Standard Amendatory Endorsement (Ed. 1/1/2011) is being amended to add a new section 3 to provide coverage for the cost of tearing out and replacing any part of a building necessary to repair the system or appliance even though resulting damage is excluded under the Seepage or Leakage Exclusion Applying to Coverages A and B.
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Form MAS-62 Named Windstorm Deductible (Ed. 1/1/2007) is being discontinued and a new Form MAS-94 Special Windstorm or Hail Deductible (Ed. 1/1/2011) is being added to make varying percentage deductibles applicable to all windstorm or hail losses on property located within designated territories of the state rather than being applicable only to losses from Named Windstorms.
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Form MAS-92 Standard Policy Deductible Schedule (Ed. 1/1/2011) is being added to provide an escalating standard policy deductible that increases as the Coverage A-Residence amount of insurance increases. This maintains an equitable relationship between the size of the applicable standard policy deductible and the size of the risk insured and maintains a more consistent percentage of loss sharing between the Society and its members.
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Form MAS-66 Expanded Replacement Cost Terms (Ed. 1/1/2011) is being amended under Our Limit to waive the Standard Policy Deductible for any covered loss to which Form MAS-66 is applicable but excluding the waiver of any special windstorm or hail deductible required by Form MAS-94 Special Windstorm or Hail Deductible (Ed. 1/1/2011).
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DWELLING PROPERTY POLICIES
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Form MAS-88 Named Windstorm Deductible (Ed. 1/1/2007) is being discontinued and a new Form MAS-91 Special Windstorm or Hail Deductible (Ed. 1/1/2011) is being added to make varying percentage deductibles applicable to all windstorm or hail losses on property located within designated territories of the state rather than being applicable only to losses from Named Windstorms.
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Form MAS-93 Standard Policy Deductible Schedule (Ed. 1/1/2011) is being added to provide an escalating standard policy deductible that increases as the Coverage A-Residence amount of insurance increases. This maintains an equitable relationship between the size of the applicable standard policy deductible and the size of the risk insured and maintains a more consistent percentage of loss sharing between the Society and its members.
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Reminders
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Credit Card Payments Now Accepted
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You have the option of paying your annual assessments or
policy premiums by credit card from the Member Login Section of our web site,
www.mutual-assurance.com. A convenience fee of 3% is charged to your credit card to use
this payment option in order to cover the Society’s direct cost of processing your
credit card payment.
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Also, you can now pay by credit card over the telephone for a $5.00 convenience fee.
Unfortunately, we are unable to accommodate credit card payments for walk-in
customers due to the credit card companies’ contractual restrictions on non-retail
businesses such as ours.
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Annual Assessments are Fully Earned When Paid
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Annual assessments are fully earned when paid by you and in the event
of cancellation of a policy or any endorsement thereon there is no refund of assessments.
This change was made because the Society operates on a fixed budget and needs the
assurance that the funds paid by members, as evidenced by low annual assessments,
are available to fund the entire budget as planned, especially for
reinsurance costs, which are contracted for on an annual basis.
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Returned Check Fee is $30.00
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The Society’s returned check fee is $30.00. The credit card payment
options noted above have been provided for our members as a convenient alternative
payment method.
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Policy Forms Available Online at: www.mutual-assurance.com
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Please remember that your policy forms and related endorsements are available for
review or download from the Member Login section of our web site, www.mutual-assurance.com.
Making your policy forms available to you in this manner saves the cost of printing,
handling and postage and contributes to the preservation of our natural resources
and the protection of our environment.
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Optional Homeowner Coverage Available
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Following is a brief summary of some of the optional coverages that are available
for an additional premium. Please review the summary and give your agent or company
representative a call at the number shown on your declarations page. If you have
not already added these coverages, we strongly encourage your consideration of them,
especially the Equipment Breakdown Coverage. Equipment Breakdown
expands the coverage your homeowner policy provides for lightning and electrical
surge damage to include mechanical and electrical breakdown of any built-in equipment
and beginning on your 2011 policy anniversary date it covers equipment insured under
Coverage C-Personal Property. Although all equipment in your home will be covered by
this endorsement, the most valuable protection is for your heating and cooling systems.
Members who have purchased this coverage have saved thousands of dollars from heating
and cooling system breakdowns.
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Equipment Breakdown Coverage provides up to $50,000 for mechanical or electrical
breakdown of any equipment in a residence, subject to a $500
policy deductible. The premium is $40.00 if the amount of Coverage A-Dwelling insurance
is less than $500,000 and $85.00 if the amount is $500,000 or more. Currently the premium
for this coverage is subject to a 80% annual assessment. The addition of this
coverage will be subject to a 30-day waiting period unless it is added within 15
days after your policy anniversary date.
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Water Damage-Sewer, Drains and Sumps-Increased Limits provides the option
to purchase increased limits of coverage for sewer and drain back ups and sump pump
overflows in excess of the $5,000 provided by Form MAS-65. The premium for this
coverage is $5.00 for each additional $1,000 of coverage requested.
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Earthquake Coverage provides coverage for earthquake, including land shock
waves or tremors before, during, or after a volcanic eruption, explosion or effusion.
The premium for this coverage depends on the construction classification for your
home and the amount of Coverage A-Dwelling insurance on your home.
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Unscheduled Personal Property-Increased Special Limits provides the option
to purchase increased limits of coverage for the following classes of unscheduled
personal property: Money (cash), etc. can be increased from $250 to $1,000 for $45.00;
securities, etc. from $1,000 to $2,000 for $40.00; jewelry, watches, furs, etc.
from $2,500 to $5,000 for $50.00; and guns from$2,500 to $7,500 for $150.00. The
premiums for increased special limits of coverage currently are subject to the same
annual assessment as the primary homeowner policy.
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Scheduled Personal Property provides coverage for all loss to property unless
the type of loss is expressly excluded by the endorsement. Typical classes of scheduled
property are jewelry, furs, silverware, fine arts, cameras, musical instruments
and guns. A current and qualified appraisal is required in order to schedule property.
The premium for this coverage depends on the property classification and amount
of insurance required based on the appraised value. The premiums for scheduled property
currently are subject to the same annual assessment as the primary homeowner policy.
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