Exceptions to Insurer Rating Requirements

The following are exceptions to Homium’s insurer rating requirements:

• Reinsurance Arrangements — Policies written by an insurer that do not meet Homium’s rating requirements are acceptable provided all conditions outlined in the following table are met.

	The insurer is covered by reinsurance with a company that meets the AM Best Financial Strength Ratings or S&P Global Insurer Financial Strength Rating, as listed in Property Insurer Rating Requirements.
	The primary insurer and the reinsuring company are authorized (or licensed, if required) to transact business within the state where the property is located.
	The reinsurance agreement has a “cut-through” endorsement that provides for the reinsurer to become immediately liable for 100% of any loss payable by the primary insurer in the event the primary insurer becomes insolvent.
	Both the primary insurer and the reinsuring company execute an Assumption of Liability Endorsement (Form 858), or any equivalent endorsement that provides for 100% reinsurance of the primary insurer’s policy and a 90-day written notice to Homium of the termination of the reinsurance arrangement. Note: Form 858 (or the equivalent endorsement) must be attached to each insurance policy covered by the reinsurance agreement.
	The reinsurance agreement does not allow contributions or assessments to be made against Homium or to become a lien on the property that is superior to Homium’s lien.
	The insurance written under the policy cannot exceed any dollar limitation amount specified in the reinsurance endorsement.