Accelerant National Insurance Company introduced its Leap Lease Insurance Program in Kentucky in 2022, filing new forms including a Kentucky Amendatory Endorsement and a Signature Page. The program, submitted with authorization from Accelerant M&C, was processed in SERFF with documents dated between September 6 and September 29, 2022.

Designed as a B2B offering, the Leap Lease program combines Security Deposit Replacement for eligible units with a Rent Guaranty feature tailored for students, serving as an alternative to a traditional co-signer. The filing classified the product under Inland Marine (TOI 09.0 / Sub-TOI 09.0005).

Regulators flagged two key issues during review:

• Premium Surcharge Notice: The declarations page omitted the required Kentucky Insurance Premium Surcharge (KRS 136.392 and 806 KAR 2:100), which must be separately itemized on billing documents.

• Deductible Clarity: The deductible was tied to the remaining balance of premium owed rather than a flat or percentage amount, appearing on the declarations page as “See Policy for Details.” The company explained that when tenants abandon units and eviction removes the premium charge from the ledger, the insurer cannot recoup the remaining premium, effectively creating a complex deductible mechanism.

The filing underscores both the innovative structure of Leap Lease as a rent and deposit replacement product and the regulatory complexity of introducing such programs at the state level.