An applicant's liability loss history over the past three years is a key factor in determining eligibility. Here's what you need to know when reviewing an applicant's loss record.
Eligibility Criteria
An applicant is eligible if they meet both of the following conditions:
Fewer than 4 liability losses in the past three years
Total liability payouts under $25,000 in the past three years
An applicant is not eligible if they have:
4 or more liability losses, or
$25,000 or more in total liability payouts
What Counts as a Liability Loss
The following types of payouts are considered liability losses:
Bodily injury (BI) payouts on home or auto policies
Third-party property damage payouts on home or auto policies
How the Lookback Period Works
The three-year lookback period is calculated from the date of loss, not when the claim was reported or closed. This means even recently closed claims may fall outside the review window if the loss itself occurred more than three years ago.