1. Insurance Community University AgOP 1  The webinar will begin shortly.  There is no audio at this time.  This presentation is being recorded for your viewing pleasure at a future date.  The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.  The PowerPoint presentation is also available under ‘Materials’.  You will receive the course number for your state near the end of class.  Use the ‘chat’ window for questions on the content.  100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

2. Insurance Community University Welcome to your Insurance Community University All of you are currently on mute – Un-mute your own system – Telephone Option Select Telephone on your screen Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option You can use this option if you have a headset that you use with your computer Audio 2

3. Insurance Community University Participation & Chat Window You will receive information from the monitor via the ‘Chat’ window. –Please locate window in the control panel Q & A is welcomed during the presentation and at the end of the presentation You will find the question box on your control panel –Write your question in that box and send it to the presenter/organizer The presenter will take those questions in the order submitted 3

4. Insurance Community University DOI Requirements When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only If you do not raise your hand, the monitor will be in contact with you in the chat box If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

5. Insurance Community University Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5

6. Insurance Community University Forms To Complete for CE After class ends – Return attendance form – Proctors – return your form to email address Email address is in chat window or in email sent to you today 6

7. Insurance Community University DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. 7

8. Insurance Community University Internet Disruption If the presenter looses internet connection STAY ON THE LINE The administrators will communicate with you

9. Insurance Community University Internet Failure If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated You will receive instructions by email as to how we will proceed This is a precautionary notice, only 9

10. Insurance Community University This class is being recorded Available in the University This course is approved for CE in CA Only

11. Insurance Community University Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by the instructor or the creator(s) of this material do not modify or revise insurance policy language. In providing these materials, the authors assume neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2013 All Rights Reserved www.insurancecommunitycenter.com 11

12. Insurance Community University Your Instructor Today Laurie Infantino, CIC, AFIS, CISC, ACSR, CISC, CRIS President and Co-Founder of The Insurance Community Center

13. Insurance Community University What This Course Will Cover Background on AgOP Eligibility Review of AgOP Coverage Form Review of available endorsements 13

14. Insurance Community University Polling Question #1 14

15. Insurance Community University Background on AgOP—It is all about Vertical Integration Processing Warehousing Transportation Farming Sales Distribution 15

16. Insurance Community University Background on AgOP Developed by the AAIS Designed for insuring the business of processing agricultural products from production through processing to distribution There are 80 eligible classes of businesses for the AgOP 16

17. Insurance Community University Eligibility (AAIS) Risks involved in one or more of the following agricultural operations are eligible for the program – Buying, selling, storage, or processing of agricultural products – Manufacturing goods from agricultural products 17

18. Insurance Community University Eligibility (AAIS) – The sale of goods or services to agricultural or agribusiness customers; or – Farming operations that supply agricultural commodities for manufacturing or processing 18

19. Insurance Community University AgOP vs Farm Owners Policy It is designed for the “agribusiness risk” Higher limits are available Higher minimum premiums are applicable There are similarities, however farm owner risks are often owner occupied with dwellings as a key component. Dwellings can be written on the AgOP 19

20. Insurance Community University Farm Forms in the ISO Series Farm Property Coverage Form (A-D) Farm Dwelling, Appurtenant Structures and Household Personal Property FP00 12 Farm Property Coverage Form (E) Farm Personal Property FP00 13 Farm Property Coverage Form (G) Barns, Outbuildings and Other Farm Structures FP00 14 20

21. Insurance Community University Farm Forms in the ISO Series Mobile Agricultural Machinery and Equipment FP00 30 Livestock Coverage Form FP00 40 Cause of Loss Form FP10 60 21

22. Insurance Community University Polling Question #2 22

23. Insurance Community University AgOP The AgOP is a monoline property policy The AgCGL is the monoline CGL policy However, it is a “package” of property coverages all on one policy including: The policy avoids gaps in property coverages 23

24. Insurance Community University AgOP 24 AAIS Agricultural Output Program PROPERTY BUSINESS INCOME INLAND MARINE

25. Insurance Community University It is all about the trigger of coverage Most coverages are within the primary coverage form Triggered by the Declarations page 25

26. Insurance Community University Review of the AgOP Coverage Form 26

27. Insurance Community University Policy Structure Common Policy Declarations Agribusiness Property Coverage Declarations (many) Common Policy Conditions Agribusiness Property and Income Coverage Part AgOP Endorsements State Amendatory Endorsements 27

28. Insurance Community University AgOP Coverage Part AG 0100 0101 Coverage can be written on a “blanket” (combined limit/category) or “scheduled (brings in the inland marine approach) This is one reason the Declarations Page has numerous pages available to specify Example; pasture fences which is property not covered—the pasture fences can be scheduled. 28

29. Insurance Community University Polling Question #3 29

30. Insurance Community University Polling Question #4 30

31. Insurance Community University AgOP Coverage Part AG 0100 0101 Core coverages – Building including residences – Personal property including household property – Computers – Stock – Mobile Equipment – Builders Risk 31

32. Insurance Community University Definitions The AAIS Forms begin with the definitions ISO forms define terms at the end of the forms/endorsements All forms that are defined will be in parenthesis throughout the policy 32

33. Insurance Community University Key Definitions Computer hacking Computer virus Covered location Dependent location – Contributing location – Recipient location – Leader location – Manufacturing location 33

34. Insurance Community University Key Definitions Finished stock Mobile equipment Pollutant Perishable stock Public health authority Rents Restoration period Specified Perils 34

35. Insurance Community University Coverage Set UP Property Covered Declarations Additional Coverages Additional, No Coinsurance Coverage Extensions DEC Part of limit Supplemental DEC Additional Limit Property Not Covered Schedule 35

36. Insurance Community University Property Covered Property covered can be covered on a “blanket basis” under the – broad categories or be – “specifically scheduled property” 36

37. Insurance Community University Property Covered Lead in language on Building and Stock, for example will say: – Other than property that is specifically described on the “declarations” and covered as Specifically Scheduled Property or not specifically excluded on the Declarations 37

38. Insurance Community University Property Covered Building Property Builders’ Risk Property Computers Mobile Equipment Personal Property 38

39. Insurance Community University Property Covered BUILDING PROPERTY – “covered location” – Including within 1000 feet BUILDERS RISK PROPERTY – In Course of Construction subject to above 39

40. Insurance Community University Property Covered COMPUTERS – Scheduled – Blanket MOBILE EQUIPMENT – Scheduled – Blanket 40

41. Insurance Community University Property Covered PERSONAL PROPERTY – Other then computers, mobile equipment, excluded property, stock – TIB – Leased – Property of Others – Household Personal Property 41

42. Insurance Community University Property Covered STOCK Other then specifically scheduled – Grain, seed, other agricultural products – Raw materials – Goods in process and finished goods – Goods held in storage or for sale – Stock of others in insured’s care – Supplies used in packing or shipping 42

43. Insurance Community University 43 Stock Endorsements Hay, Straw & Fodder AG 0136 Mortgaged and Stolen Grain AG0144 Livestock Coverage AG 0140 Poultry Coverage AG 0152

44. Insurance Community University Specifically Scheduled Property This means property that is specifically described on the “declarations” as covered property and for which a separate “limit” is shown in the “declarations”. Items that are specifically described on the “declarations” and covered as Specifically Scheduled Property will not be subject to “terms” under Property Not Covered that exclude or restrict coverage for the specifically described item.

45. Insurance Community University Polling Question #5 45

46. Insurance Community University Property Not Covered 46

47. Insurance Community University Property Not Covered 1.Airborne & Waterborne Property (Supp) 2.Aircraft & Watercraft (Supp) 3.Animals (End) 4.Automobiles and Vehicles(Dec) 5.Contraband 6.Crops (Crop Insurance) 7.Exports & Imports (Supp) 8.Fences (schedule) 9.Fine Arts (Supp) 10.Foundations 11.Furs (Supp) 12.Guns (Supp) 13.Hay, Straw, or Fodder (End) 47

48. Insurance Community University 48 Property Not Covered 14.Jewelry, Watches, (Supp) 15.Land, Water, and Cost of Excavation 16.Money and Securities (Crime 17.Newly Acquired and Newly Constructed Buildings (Extension) 18.Property More Specifically Insured 19. Property of Others (Supp) 20.Property You Have Sold 21. Silverware (Supp) 22. Trees, Shrubs, Plant, Lawns (Supp) 23. Underground Pipes, Flues Drains 24. Valuable Papers (Supp)

49. Insurance Community University Additional Coverages Applicable limits shown on Schedule or Supplemental Dec Additional insurance, unless otherwise indicated Not subject to coinsurance Subject to deductible, unless otherwise indicated 49

50. Insurance Community University Additional Coverages 1.Consequential Loss - (Incl.) Debris Removal 2.Emergency Removal - (Incl.) 3.Emergency Removal Expense 4.Fire Department 5.Glass Repair (Incl.) 6.Inventory & Appraisal 7.Pollutant Cleanup 8.Recharge of Fire Protection 50

51. Insurance Community University Coverage Extensions Applicable limits shown on Schedule or Supplemental Dec Not Additional Insurance Not subject to coinsurance Subject to deductible, unless otherwise indicated 51

52. Insurance Community University Coverage Extensions 1.Fraud or Deceit - 2.Newly Acquired Computers 3.Newly Acquired, Constructed Buildings 4.Newly Acquired Mobile Equipment 5.Personal Effects 6.Personal Property Acquired 7.Property Away 8.Stock Acquired Locations 9.Trees, Shrubs, Plants and 52

53. Insurance Community University Supplemental Coverages Applicable limits shown on Schedule or Supplemental Dec Additional insurance Not subject to coinsurance Subject to deductible, unless otherwise indicated 53

54. Insurance Community University Supplemental Coverages 1.Accounts Receivable 2.Brands or Labels Expense 3.Carrier Liability 4.Fine Arts, Furs, Guns, Jewelry, 5.Loss of Use of Dwellings 6.Ordinance or Law 7.Overseas Transit & Location 8.Property in Transit 9.Property on Exhibition 10.Property Sold Under Installment Sales 11.Salesmen’s Samples 12.Sewer Backup 13.Spoilage 54

55. Insurance Community University Supplemental Coverages 14.Surface Water Run-Off 15.Tank Leakage 16.Utility Service Interruption 17.Valuable Papers and Records 18.Watercraft 19.Wrongful Delivery of Liquid Property

56. Insurance Community University Income Coverage 56

57. Insurance Community University Polling Question #6 57

58. Insurance Community University Polling Question #7 58

59. Insurance Community University Income Coverage Four Income Options Available: – Earnings, Rents, and Extra Expense – Rents and Extra Expense – Earnings and Extra Expense – Extra Expense Only 59

60. Insurance Community University Earnings Options Maximum Period of Indemnity Monthly Limit of Indemnity 60

61. Insurance Community University Earnings Coverage Loss/expense incurred within 12 months after the date of direct physical loss Actual loss of net income (net profit or loss before income taxes) Caused by a covered peril And continuing operating expenses normally incurred including payroll 61

62. Insurance Community University Extra Expense Coverage Necessary during “restoration period” that you would NOT have incurred if there had not been a loss Extra Expense includes Mobile Equipment Rental Reimbursement, subject to a 72 hour waiting period Basic Loss of Income Coverage is not otherwise subject to a waiting period 62

63. Insurance Community University Exclusions and Limitations 1.Finished Stock 2.Leases, Licenses, Contracts, Orders 3.Mobile Equipment (various requirements) 4.Radio and Television Antennas (Dec) 5.Software - 60 Days or Longer... 6.Strikes, Protests, Other Interference 63

64. Insurance Community University Income Coverage Extensions 1.Interruption by Civil Authority – Up to 30 Days from date of order 2.Period of Loss Extension – Up to 90 Days 3.Grain Storage Income – Up to 90 Days beyond restoration period 4.Seasonal Coverage – Up to 1 Year if that period is longer than restoration period 64

65. Insurance Community University Additional Income Coverages Newly Acquired Locations, Earnings and Extra Expense Newly Acquired Locations, Extra Expense

66. Insurance Community University Polling Question #8 66

67. Insurance Community University Supplemental Income Coverages 1.Public Health Shutdown (30 days or resumption) 2.Dependent Locations (Dec limit) 3.Utility Service Interruption (Dec limit) 4.Contract Penalty (Dec limit) 5.Property In Transit, On Exhibition, or In Custody Of Sales Representatives (Dec limit) 67

68. Insurance Community University Optional Income Expense Deductions 1.Ordinary Payroll Expense can be excluded on Dec 2.Power, Heat, and Refrigeration Expense can be excluded on Dec 68

69. Insurance Community University Perils 69

70. Insurance Community University Polling Question #8 70

71. Insurance Community University Perils – Covered/Excluded Open Perils Coverage – Endorsements that cover hay, livestock, and poultry provide named perils coverage 71

72. Insurance Community University Perils Excluded a.Ordinance or Law (Supp) b.Earth Movement or Volcanic Eruption (Scheduled EQ AG 0172) c.Civil Authority d. Nuclear Hazard e.Utility Failure (Supp) f. War g.Water (End Flood AG 0176) 72

73. Insurance Community University Perils Excluded Do not pay for loss or damage if one or more of the following exclusions apply to the loss. a. Animals b. Collapse c. Computer Virus or Computer Hacking d. Contamination or Deterioration e. Criminal, Fraudulent, Dishonest or Illegal Acts 73

74. Insurance Community University Perils Excluded f.Defects, Errors and Omissions g. Electrical Currents (EB) h. Explosion i.Freezing j.Increased Hazard k.Loss of Use l.Mechanical Breakdown (EB) m. Neglect n.Pollutants o.Rain, Snow, Ice or Sleet p.Seepage q.Settling…. 74

75. Insurance Community University Perils Excluded r.Smog, Smoke, Vapor, or Gas s.Temperature/Humidity (Specified Perils) t.Theft ( for only certain categories) u.Voluntary Parting v.Wear & Tear w.Weather x.Windstorm or Hail ( for only certain categories) 75

76. Insurance Community University Additional Property Not Covered or Subject to Limitations 1.Accounts Receivable 2.Boilers 3.Glassware/Fragile Articles 4.Gutters and Downspouts 5.Interior of Buildings 6.Missing Property 7.Tobacco Barns 8.Valuable Paper and Records 76

77. Insurance Community University Other Coverages For clarity purposes 1.Collapse 2.Computer Disturbance 3.Electrical Breakdown (EB) 4.Ordinance or Law (Dec) 5.Tearing Out and Replacing 6.Theft Damage—Non owned Property 77

78. Insurance Community University Valuation Dec Page Entries Trigger: 1.Actual Cash Value When Replacement Cost is NOT on Dec Limited Replacement Cost ($15,000) 2.Replacement Cost 3.Builders Risk 4.Stated Amount (suspends coinsurance) 78

79. Insurance Community University Valuation 5. Fine Art (ACV) 6. Glass 7. Pair or Set (entire set) 8.Loss to Parts 9.Property of Others (ACV) 79

80. Insurance Community University Valuation 10. Special Stock Valuation Terms – ACV – Market Price – Selling Price – Cash Shipping Value – Point of Origin - Imported Stock – Valued Seed, Foundation Seed – Other, as shown on Declarations 80

81. Insurance Community University How Much We Pay Deductible Peak Season Increase, Inflation Protection Coinsurance Value Reporting Coinsurance Income 81

82. Insurance Community University Endorsements See attached AAIS current endorsement list 82

83. Insurance Community University Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 12/3Surety Bonds 12/5CA Property Valuation 12/10Crop 12/17Equine 12/19 & 20 th Insight on Errors and Omissions 83 THE 2014 CLASS SCHEDULE IS NOW PUBLISHED Sign Up Early!!! Join the University TODAY. www.insurancecommunitycenter.comwww.insurancecommunitycenter.com Click Join University at the top of the bar