Predictika · Commercial DIC and earthquake submissions

An AI sales agent's commercial earthquake submission, checked before it goes out

An AI sales agent prepares a submission for a commercial property that needs earthquake, earthquake sprinkler leakage or flood cover. Before it goes to the underwriter, the agent sends it to Predictika, which checks it against a declarative model of the underwriting criteria Palomar publishes for its Commercial DIC/Earthquake program, and returns a verdict and every reason. It computes no premium: the public criteria give no rates.

Scope: Palomar Commercial DIC/Earthquake submissions: states, limits, total insured value, occupancy, restricted risk characteristics, flood zones and term. No premiums or rates. See everything this validator covers

This validator models submissions to Palomar's Commercial DIC/Earthquake program against the underwriting criteria published on Palomar's website, not just the scenarios shown below. It checks eligibility and program terms only; it does not compute a price.

  • Where and how much — the program is offered in 15 states (AK, AR, AZ, CA, IL, IN, KS, KY, MO, NV, OK, OR, TN, UT, WA). The limit is capped at $25 million with a $25 million maximum total insured value in California, and at $30 million with unlimited total insured value elsewhere.
  • Coverages and term — earthquake, earthquake sprinkler leakage and flood (flood is not available in zones A and V); earthquake can be written alone. The standard term is 12 months; course of construction risks may have 24 months. Deductibles start at 2 percent.
  • Occupancy and restricted risks — apartments and condos, nursing homes, mercantile and shopping centers, offices, hotels and motels, lessors risk, light manufacturing (assembly only) and course of construction are listed as eligible. Business interruption above 40 percent of total insured value, highly damageable contents above 10 percent, tuck-under or soft-story parking, very high liquefaction or bay mud and soft soil, unreinforced masonry, frame construction before 1956, and other construction before 1975 without retrofit proof are restricted; an older building with retrofit proof is described as one that may be considered, so it goes to a person to confirm.

Any commercial earthquake submission that touches these rules is in scope — not only the scenarios pictured here. Not covered: rates, minimum premiums, fees and the state-by-state deductible tables (the public page gives none), endorsements, and any underwriting criteria Palomar does not publish. Palomar's page calls these risk characteristics “restricted”; this validator flags each as a blocking finding. Occupancies that are not on the published list, and flood written without earthquake, are not modeled because the page does not say how they are handled. The page is undated, so the rules reflect it as read in October 2026.

The AI sales agentBuilds the submission from the conversation and says it is ready.
Predictika validatorChecks every rule at once and returns the verdict, each finding, and the computed figures.

7 scenarios in 3 groups · each group runs from the agent’s first attempt to the outcome · click one to switch

What the agent proposes

The AI sales agent says

Illustrative agent statement. The validator receives the structured request below.

Proposing agent: AI sales agent (scripted)

Before sending, the agent must call Recorded run

Predictika validator


      

        
        
        
      

      
Waiting for the call.

      
    

  

  
  

    
Where rules-based CPQ gets it wrong
Click to expand
    
Our assessment of what a typical rules-based CPQ (product rules, price rules and validation rules, as in Salesforce CPQ) does with the same cases. It is a judgment about effort and reliability, not a claim that nothing can be built.

    
What the validator caughtTypical rules-based CPQPredictika
A limit cap that depends on the stateOnly with care
California has its own limit and total insured value caps, so a rule has to be written per state and kept in step as the program changes.		The state sets the caps and the limit and total insured value are checked against them in the same pass.
A stated figure that must agree with the programOnly with workarounds
The maximum limit the agent states is compared with the maximum the program allows for that state, a cross-field check that product rules do not express naturally.		The stated maximum is checked against the one the state implies, whichever field changed last.
A list of restricted risk characteristicsOnly with care
Business interruption and contents percentages, parking type, soil, construction class and year built are each a separate validation rule, easy to miss one when the criteria change.		Every restricted characteristic is checked on every call and every one that applies is returned.
Age rules that depend on constructionOnly with workarounds
Frame before 1956, unreinforced masonry and other construction before 1975 (with a retrofit-proof exception) interact, so the rules need nested conditions and careful ordering.		The construction class, the year and the retrofit proof are evaluated together, and retrofit proof turns a block into a referral.
Every problem returned in one answerOnly with workarounds
Rules tend to fire as the submission is saved or a step is completed, so a rep often fixes one error and meets the next.		All findings come back together, whatever order the choices arrived in.

  

  

    
What this validator catches: findings from its test cases
Click to expand
    
Every rule is checked on every call, in any order the choices arrive; one problem never hides another. Blocking findings stop the quote; approval findings need a person to sign off; everything else is computed.

    
1The requested limit of $26 million is above the $25 million maximum in this state.
2A total insured value of $26 million is above the $25 million maximum in this state.
3The requested limit of $31 million is above the $30 million maximum in this state.
4The property is in a state where the commercial DIC and earthquake program is not offered; it is offered in Alaska, Arkansas, Arizona, California, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, Oklahoma, Oregon, Tennessee, Utah and Washington.
5The submission requests no coverage; earthquake, earthquake sprinkler leakage or flood is needed.
6Flood coverage is not available in flood zones A and V; the property is in zone A.
7Business interruption exposure of 41 percent of total insured value is above the 40 percent restriction.
8Highly damageable contents of 11 percent of total insured value are above the 10 percent restriction.
9Tuck-under or soft-story parking is a restricted risk characteristic.
10Poor soil conditions (very high liquefaction or bay mud and soft soil) are a restricted risk characteristic; the soil is bay mud or soft soil.
11Unreinforced masonry construction is a restricted class.
12Frame construction built before 1956 is a restricted class; the building was built in 1955.
13Other construction built before 1975 is restricted unless there is proof of retrofitting; the building was built in 1974 and no retrofit proof is on the submission.
14The building was built before 1975 and the submission has retrofit proof; older buildings may be considered with proof of retrofitting, so a person should review it.
15A policy term of 24 months is not available; the standard term is 12 months and course of construction risks may have 24 months.
16Light manufacturing is eligible for assembly only; the operation includes other processes.
17A deductible of 1 percent is below the 2 percent lowest deductible the program lists.
18The submission states a maximum limit of $25 million for this state; the program maximum is $30 million.
192 required submission items are missing; year built, construction type, occupancy, height and stories, parking type, square footage and the total insured value breakdown are all needed.

  

  

    
Scenarios and results
Click to expand
    
The recorded result of the validator for each scenario on this page: the request the AI agent sent, the verdict, and every finding, in the order they appear above.

    
1. California apartment portfolio: A California apartment portfolio at a $28 million limit on $32 million of total insured value

    
The agent's request. Please submit a commercial earthquake program request for an apartment property in California, built in 2004 of other construction, asking for a limit of $28 million on a total insured value of $32 million, with a 5 percent deductible and a 12 month term, covering earthquake. My understanding is that the maximum limit available in California is $30 million. It is ready to send.

    
Verdict: Blocked.

    
    
      
  • Limit above the state maximum. The requested limit of $28 million is above the $25 million maximum in this state.
    • 
      
  • Total insured value above the state maximum. A total insured value of $32 million is above the $25 million maximum in this state.
    • 
      
  • Stated maximum limit does not match. The submission states a maximum limit of $30 million for this state; the program maximum is $25 million.
    • 
    

    
2. California apartment portfolio: The agent resubmits after fixing the errors

    
The agent's request. Please submit a commercial earthquake program request for an apartment property in California, built in 2004 of other construction, asking for a limit of $25 million on a total insured value of $25 million, with a 5 percent deductible and a 12 month term, covering earthquake. My understanding is that the maximum limit available in California is $25 million. It is ready to send.

    
Verdict: Allowed.

    
    
      
  • Submission summary. Apartments in California: limit $25 million on a total insured value of $25 million, deductible 5 percent, term 12 months, built in 2004, state maximum limit $25 million.
    • 
    

    
3. Washington hotel built in 1968: A Washington hotel with a flood zone A listing, heavy contents and a 1968 building

    
The agent's request. Please submit a commercial earthquake program request for a hotel or motel property in Washington, built in 1968 of other construction, asking for a limit of $15 million on a total insured value of $60 million, with a 5 percent deductible and a 12 month term, covering earthquake and flood in zone A, with highly damageable contents of 12 percent. My understanding is that the maximum limit available in Washington is $30 million. It is ready to send.

    
Verdict: Blocked.

    
    
      
  • Flood in zone A or V. Flood coverage is not available in flood zones A and V; the property is in zone A.
    • 
      
  • Highly damageable contents above 10 percent. Highly damageable contents of 12 percent of total insured value are above the 10 percent restriction.
    • 
      
  • Building before 1975 without retrofit proof. Other construction built before 1975 is restricted unless there is proof of retrofitting; the building was built in 1968 and no retrofit proof is on the submission.
    • 
    

    
4. Washington hotel built in 1968: The agent resubmits after fixing the errors

    
The agent's request. Please submit a commercial earthquake program request for a hotel or motel property in Washington, built in 1968 of other construction, asking for a limit of $15 million on a total insured value of $60 million, with a 5 percent deductible and a 12 month term, covering earthquake, with highly damageable contents of 8 percent and proof of retrofitting attached. My understanding is that the maximum limit available in Washington is $30 million. It is ready to send.

    
Verdict: Needs approval.

    
    
      
  • Older building with retrofit proof. The building was built before 1975 and the submission has retrofit proof; older buildings may be considered with proof of retrofitting, so a person should review it.
    • 
      
  • Submission summary. Hotel or motel in Washington: limit $15 million on a total insured value of $60 million, deductible 5 percent, term 12 months, built in 1968, state maximum limit $30 million.
    • 
    

    
5. Oregon shopping center: An Oregon shopping center with a 24 month term and a 1 percent deductible

    
The agent's request. Please submit a commercial earthquake program request for a mercantile or shopping center property in Oregon, built in 1999 of other construction, asking for a limit of $12 million on a total insured value of $45 million, with a 1 percent deductible and a 24 month term, covering earthquake. My understanding is that the maximum limit available in Oregon is $30 million. It is ready to send.

    
Verdict: Blocked.

    
    
      
  • Policy term. A policy term of 24 months is not available; the standard term is 12 months and course of construction risks may have 24 months.
    • 
      
  • Deductible below 2 percent. A deductible of 1 percent is below the 2 percent lowest deductible the program lists.
    • 
      
  • Required submission information missing. 2 required submission items are missing; year built, construction type, occupancy, height and stories, parking type, square footage and the total insured value breakdown are all needed.
    • 
    

    
6. Oregon shopping center: The agent resubmits after fixing the errors

    
The agent's request. Please submit a commercial earthquake program request for a mercantile or shopping center property in Oregon, built in 1999 of other construction, asking for a limit of $12 million on a total insured value of $45 million, with a 3 percent deductible and a 12 month term, covering earthquake. My understanding is that the maximum limit available in Oregon is $30 million. It is ready to send.

    
Verdict: Allowed.

    
    
      
  • Submission summary. Mercantile or shopping center in Oregon: limit $12 million on a total insured value of $45 million, deductible 3 percent, term 12 months, built in 1999, state maximum limit $30 million.
    • 
    

    
7. Nevada office: A Nevada office building from 1948

    
The agent's request. Please submit a commercial earthquake program request for an office property in Nevada, built in 1948 of unreinforced masonry construction, asking for a limit of $8 million on a total insured value of $30 million, with a 5 percent deductible and a 12 month term, covering earthquake. My understanding is that the maximum limit available in Nevada is $30 million. It is ready to send.

    
Verdict: Blocked.

    
    
      
  • Unreinforced masonry. Unreinforced masonry construction is a restricted class.
    • 
    

  

  

    
Narration transcript
Click to expand
    
The text of the narrated walkthrough, step by step.

    
    
      
  1. Welcome to a demo of Predictika's Validator. An AI sales agent prepares a submission for a commercial property that needs earthquake, earthquake sprinkler leakage or flood cover. Before it goes to the underwriter, the agent sends it to Predictika, which checks it against a declarative model of the underwriting criteria Palomar publishes for its Commercial DIC/Earthquake program, and returns a verdict and every reason. It computes no premium: the public criteria give no rates.
    2. 
      
  2. I will start with the first request by the agent.
    3. 
      
  3. The agent says. Please submit a commercial earthquake program request for a mercantile or shopping center property in Oregon, built in 1999 of other construction. My understanding is that the maximum limit available in Oregon is $30 million. The rest of the request is on screen.
    4. 
      
  4. Before it goes out, the agent calls the validator.
    5. 
      
  5. Blocked, with three findings, all in one answer. A policy term of 24 months is not available; the standard term is 12 months and course of construction risks may have 24 months. A deductible of 1 percent is below the 2 percent lowest deductible the program lists. 2 required submission items are missing; year built, construction type, occupancy, height and stories, parking type, square footage and the total insured value breakdown are all needed.
    6. 
      
  6. The validator returned three blocking findings in one answer. A check that reads one field at a time would pass most of this; it shows only when the choices in the quote are checked against each other.
    7. 
      
  7. What this shows: for every problem returned in one answer, a rules-based CPQ can do this only with workarounds.
    8. 
      
  8. Now the agent resubmits.
    9. 
      
  9. The corrected request. It changes the deductible to 3 percent and the term to 12 months. It removes the required items missing.
    10. 
      
  10. It calls the validator again.
    11. 
      
  11. This time the validator clears it.
    12. 
      
  12. All three earlier findings are cleared.
    13. 
      
  13. Three problems caught in one call, fixed in one pass, and a clean quote. That is the value of Predictika's validator: catching mistakes before they reach the customer. Now you can try the other scenarios yourself.
    14.