ISO Enhances Policy-Verification Solution

November 17, 2004

ISO has enhanced its Coverage Verifier policy-verification solution with four new services to help insurers manage third-party account relationships more efficiently.

Insurers who report coverage data to the ISO system will be able to use these new services. As part of ISO’s Automobile-Property Loss Underwriting Service (A-PLUSTM) suite of products, Coverage Verifier Services will provide insurers information for rating and pricing policies based on current and prior coverage experience.

“Writing an insurance policy requires insurers to manage several different relationships with different audiences — customers, state insurance regulators, state motor vehicle departments, banks and the U.S. Treasury’s Office of Foreign Assets Control (OFAC) — and all these relationships are critical to business success,” Richard Boehning, senior vice president of ISO, said. “The Coverage Verifier Services are designed to leverage information for more efficient workflow and ensure compliance so that the right information gets to the right place at the right time.”

The Coverage Verifier Services include:

• Coverage Verifier: Allows insurers to check current and previous coverages for homeowners and auto, as well as other policy-level information, such as lapsed or suspended policies.
• Automobile Liability Insurance Reporting (ALIR): Satisfies statutory obligations to report auto coverage to state motor vehicle departments. This service is provided through a relationship with AIG Technologies.
• Loss Payee Reporting: Helps notify loss payees and additional insureds of policy changes affecting their collateral.
• OFAC Compliance: Ensures compliance with the U.S. Department of the Treasury’s requirements to verify all customers against the government’s watch list of terrorists, international narcotics traffickers and those engaged in activities related to the proliferation of weapons of mass destruction.
• Application Prefill: Automatically prefills an insurance application with information as reported to the Coverage Verifier database.

With the Coverage Verifier database, insurers will be able to check instantly both current and previous coverages to identify prospective customers with lapsed or suspended auto policies. Insurers will be able to price policies more accurately by applying prior coverage discounts and assigning appropriate pricing tiers for insureds. This information, used in conjunction with loss-history data from the A-PLUS system, will be valuable for insurers, brokers and agents to evaluate applications from prospective insureds. Information on suspended homeowners policies will be available from Coverage Verifier at a later date.

“The additional services make Coverage Verifier a more powerful and complete system,” Boehning added. “Customers will find Coverage Verifier Services useful for streamlining the underwriting workflow, maintaining effective customer relationships, fulfilling contracts accurately, complying with mandatory coverage reporting requirements, and generally reducing the cost and complexity of account support operations.”

Customers can choose to participate in Coverage Verifier and its additional services or can select one or more of the additional services independently. The additional services will be available by year-end.

ISO will provide Coverage Verifier information through ISO PassportSM, ISO’s enterprise-based delivery system that supports Internet access, mainframe-to-mainframe interactive capability and batch processing. ISO Passport’s advanced search technology enables users to access and retrieve underwriting information faster and more efficiently.

Agents, brokers and MGAs of participating insurers will be able to access Coverage Verifier information through the delivery platforms of ISO’s Insurance Information Exchange unit.

Topics Carriers Auto

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