ISO Circular - Mitigation Classification Changes Effective October 1 2006

BULLETIN 06-27 To: All Property & Casualty Insurers RE: Insurance Services Office ("ISO") Circular dated June 30, 2006 - Community Mitigation Classification Changes Effective October 1, 2006 - ISO Circular # CC- AA-2006-009 Date: November 6, 2006 The purpose of this Bulletin is to remind property and casualty insurers that rely upon Insurance Services Office's ("ISO") public fire protection classifications that the changes reflected in ISO Circular # CC-AA-2006-009 apply to policies issued or renewed on or after October 1, 2006. As a result of improvements in public fire protection systems, ISO changed the Fire Protection Class ("FPC") applicable to certain areas in Baltimore County from FPC 9 to FPC 6. These changes are reflected in ISO's Community Mitigation Classification Manual. ISO notified its subscribers of this change on June 30, 2006, via the aforementioned Circular. The changes were effective October 1, 2006. Consequently, policies issued or renewed on or after October 1, 2006 for residences and businesses in those affected areas in Baltimore County with improved fire protection that were previously classed as FPC9 and that qualified as FPC6: a) should have been classified or reclassified appropriately in accordance with the ISO fire protection rules at issuance or renewal; and b) should have been rated appropriately. An insurer that intends not to adopt ISO's changes to the public fire protection classification or that intends to deviate from the effective date of those changes may only do so by filing the deviation with this Administration. R. STEVEN ORR Commissioner JAMES V. MCMAHAN, III Deputy Commissioner P. RANDI JOHNSON Associate Commissioner Property & Casualty ROBERT L. EHRLICH, JR. Governor MICHAEL S. STEELE Lt. Governor 525 St. Paul Place, Baltimore, Maryland 21202-2272 Direct Dial: 410-468-2301 Fax: 410-468-2306 Email: prjohnson@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us Those insurers that do not rely upon ISO public fire protection classifications, but, instead, classify and rate policies based on their own specific fire protection classification system must re-visit their classifications for the affected areas in Baltimore County. Any insurer that has failed to implement the changes set forth in the Circular or that fails to otherwise revisit its fire protection classification system in light of the improvements made to fire protection systems in certain areas of Baltimore County is subject to administrative action under, inter alia, §§ 4-113 and 27-212 of the Insurance Article. Any questions or comments regarding this Bulletin should be addressed to Cathy Ruppel, Insurance Analyst, Property & Casualty Rate and Form Unit, 410-468-2316 or cruppel@mdinsurance.state.md.us. R. Steven Orr, Insurance Commissioner By: ______________________________ P. Randi Johnson, Associate Commissioner Property & Casualty