demarc

Resource Logic Client/Server Development Services

Project

Employment Practices Liability Insurance Application



A commercial line insurance agency entered the EPLI market with a product that improved substantially on existing offerings. Many insurors had, up to that point, only offered EPLI coverage in single states, or in certain cases single facilities. Coverage was also limited, in many cases, to an employment pool of less than 500 workers. The product offered in this case spanned not only all fifty states but some client operations in US possessions and Canada. It started at 501 employees and could range into the tens of thousands. It was possible to build a three-tiered layering of insurance policies, with a 'baseline' intended to cover 'common' claim situations, followed by supplemental policies which cover more extraordinary circumstances.

This system contained several elements, some of which were developed by us and others developed by the broker or the insuror. The Application (a document which was a formal requisition for insurance) was developed by the insurance company and the broker. This ran about 5 pages long, plus attachments.

We took this Application (the document) and built it into a web site, from which prospective purchasers could enter their initial application, review their submission, make revisions, and print summarizations for their own review. Once this application was reviewed by the broker, the record was made 'visible' to the insurance company, who was then able to rate the prospect.

Another component of this system was a rating spreadsheet. EPLI risks are different depending on the state, some have a substantial history of EPLI awards and others less so. Therefore, it is necessary to compute risks by jurisdiction, combined with the number of employees in those respective locations. Other factors involved the stability of the employer; the probability it would be reducing staff, service duration of members of the management team, and steps the prospect was willing to take to reduce it's exposure to lawsuits.

This system contained a state-by-state table of risk factors, which were then averaged by the weight of employees in each state to identify an aggregate risk. This was then fed through the other rating criteria to provide an estimate.

The operational platform was Windows Server NT 4.0, SQL Server 7, and 'classic' Active Server Pages.