Identity Fraud Expense Coverage Seminar Accessible Via Online Recording

Property/casualty professionals can learn about coverage for identity fraud expenses by accessing an online recording of a Web seminar on the topic, held recently by the American Association of Insurance Services (AAIS).

AAIS recently developed and filed an “Identity Fraud Expense Coverage” endorsement for its Homeowners, Farmowners, and Mobile-Homeowners Programs, and has made an equivalent endorsement available to companies that do not use those programs.

The Web seminar features exhibits and commentary by Susan Luecke, AAIS director of personal lines,and Kim Ward, AAIS chief actuary.

In her presentation, Luecke describes the growth of identity fraud and the provisions of the AAIS endorsement for covering expenses people incur when rectifying their financial profiles after being victimized.

“I read story after story of people whose credit histories, unbeknownst to them, depicted them as free-spending deadbeats,” Luecke said. “Sometimes the victim’s first clue that his identity has been stolen is a call from a creditor or collection agency.”

“The sad truth is that no one but the victim can do what it takes to sort out the nightmare after the discovery of an identity theft,” Luecke continued. “For some, this ordeal can be quite time-consuming and costly. That’s where the Identity Fraud Expense Coverage option comes in.”

Luecke explains in detail how the AAIS endorsement provides the coverage on a discovery basis with optional sublimits, then turns to Ward, who describes the development of the loss cost rating information provided for the endorsement.

In her comments, Ward describes how she used data from the Federal Trade Commission as the basis for estimating the frequency and severity of identity fraud expense claims, how she arrived at a pure premium, and how she adjusted the loss costs to reflect the discovery basis of the coverage.

To access the online recording of the Web seminar and learn more about the Identity Fraud Expense Coverage endorsement, contact Joseph Harrington, AAIS communications manager, at