As you begin a career in insurance, it will be critical that you develop a familiarity with applications used in the Agency Management System (AMS). Continue reading for more details on the applications you will be using every day to manage client information.
What Are Acord Forms?
ACORD forms are universally recognized documents that contain information which most, if not all, insurance carriers require be completed in order to provide a quote back to the agency. There are several Acord forms and each serves a purpose specific to the type of coverage that it represents. Of all of the forms, however, the first one you will see frequently is the Acord 140.
What is an Acord 140 form?
The Acord 140 form is more commonly known as the Property Section. This application is used to record specific property information including the insured’s business locations/buildings, property values and other necessary property details. This form cannot be submitted by itself and is always used in combination with the Acord 125.
You may be looking at this and wondering if you need to know how to fill out accord 140? The answer is, yes! This application is used for almost every Commercial Property policy so it is important that you understand how to complete an Acord 140.
Let’s look over a few key points in the form that you will want to make sure you pay attention to when completing the Acord 140:
On Page 1 of the form you will need to enter the Agency and Insured Information including the Agency Name, Named Insured and Effective date.
In the section immediately following, you will need to enter several Premises Information details including: Premises and Building number along with the premises address which should be complete with street address, city, state and zip code.
On the following line you will see several columns. The first, labeled Subject of Insurance, should be used to list all coverage needed at this location and building like Building, Business Personal Property, and Business Income. In the next column, you will need to enter the amount of coverage needed for each item in the “subject” column. The amount entered should be representative of 1005 of the cost to replace the property. Immediately to the right is the field for Coinsurance. The coinsurance percentage is the percentage of the total value of the subject of insurance being insured and is typically 80%, 90% or 100% depending on what the insured has selected. The next column is for the Valuation. This will either be “A” for Actual Cash Value or “R” for Replacement Cost. Over to the right you will find a column labeled Causes of Loss which could be: Basic, Broad, Special, Special including theft and Special excluding theft. Next over you will enter the Deductible which applies to the subject of insurance. Before moving on to the next area of the form, you will want to be sure to enter a Blanket # if applicable.
Once you have completed the Premises Information you will move onto the Additional Coverage area of the application. There are a lot of fields in this section, but you will likely start with the box marked Construction Type. The most common selections for this field would be: Frame, Joisted Masonry, Non-Combustible, Masonry Non-Combustible, Modified Fire Resistive and Fire Resistive. As you move along that row you Fire Distract and Protection class information, # of stories in the building, # of basements, year built for the property and total area of the building.
Right below construction type you will find a section to enter the year of Building Improvements for wiring, roofing, plumbing and heat. As you move down the form you will also need to enter the description and distance of the buildings, structures, activities conducted, or use of the adjacent property to the right, left, front and rear of the insured building. You can also enter details regarding and burglar alarm or sprinkler system in the building.
In the last section on this page, there is a section for Additional Interest information. This is where you will want to enter information for any party that has an interest in the insured’s property. Check the box that applies and enter the name and address for the additional interest. You will also need to note the applicable location, building and item information in the Interest in Item Number area.
On Page 2 of the form, you will find the Additional Premises Information section which can be used to enter details for any additional properties and details that need to be listed.
At the bottom of Page 3 you will find the signature area for producer and insured signatures. You will not need signatures for quoting purposes, but they may be required in order to bind coverage.
Other Important Notes:
An Acord 140 fillable form (as well as other Acord forms) should be available in your Agency Management System. You can complete the form and then send an Acord 140 PDF to the client to review and sign.
Some of the details reviewed will pre-fill in your AMS. This will save you time when completing the Acord 140 form.