Travelers 2014 Annual Report Download - page 18

Table of Contents
Company also may choose to write business it might not otherwise write in some states for strategic purposes, such as improving access to other
commercial or personal underwriting opportunities. In choosing to write business in some states, the Company also considers the costs and
benefits of those states' residual markets and guaranty funds, as well as other property and casualty business the Company writes in those states.
Product Lines
The primary coverages in Personal Insurance are personal automobile and homeowners and other insurance sold to individuals. Personal
Insurance had approximately 6.2 million active policies (e.g., policies
- in - force) at December 31, 2014.
The Personal Insurance segment writes the following types of coverages:
•
Personal Automobile provides coverage for liability to others for both bodily injury and property damage, uninsured motorist
protection, and for physical damage to an insured's own vehicle from collision, fire, flood, hail and theft. In addition, many states
require policies to provide first
- party personal injury protection, frequently referred to as no - fault coverage.
•
Homeowners and Other provides protection against losses to dwellings and contents from a variety of perils (excluding flooding) as
well as coverage for personal liability. The Company writes homeowners insurance for dwellings, condominiums and tenants, and
rental properties. The Company also writes coverage for boats and yachts and valuable personal items such as jewelry, and also
writes coverages for umbrella liability, identity fraud, and weddings and special events.
Net Retention Policy Per Risk
The following discussion reflects the Company's retention policy with respect to the Personal Insurance segment as of January 1, 2015.
Personal Insurance generally retains its primary personal auto exposures in their entirety. For personal property insurance, there is an $8.0 million
maximum retention per risk. Personal Insurance issues umbrella policies up to a maximum limit of $10.0 million per risk. Personal Insurance may also
retain amounts greater than those described herein based upon the individual characteristics of the risk.
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