Policy Structure Flashcards
Declarations Page
-Name of insured/Address
-Name of insurer/Address
-Effective Dates
-Coverage
-Premium
-First page of policy
Coverage A
Dwelling
Coverage B
Other Structures
-10% of A
Coverage C
Personal Property
-50% of A
Coverage D
Loss of Use
-30% of A
Coverage E
Liability
Coverage F
Medical Payments
Definitions
Insured
Name Insured
First Named Insured
Additional Insured
First Named Insured
The person who is listed first on the policy
Insured
Anyone covered
Name Insured
Person who bought policy
Additional Insured
Business added to the policy in regard to specific interest
-Example: Mortgage, loanholder; these are added as an endorsement
Insuring Agreement
-Explains in detail how all the coverages work
-Promise to pay
—Parties
—Perils
—Period
*Premium is on the declarations page
Insuring Agreement VS Declarations Page
Insuring agreement lists the perils, parties, period, and promise to pay
Declarations page lists the name of insured, name of insurer, address, dates, and coverage
Additional/Supplementary Coverages
Built-in automatic coverages included on all policies; can’t be removed (side dishes in restaurant)
Conditions
-Rules, duties, obligations, ways of behaving
-Liberalization
-Changes to the policy
-Inspections
-Return of premiums
Liberalization
Says the insurer can change the policy without permission as long as the changes are better without increasing premium
Changes to the policy
Must be done in writing
Inspections
The insurer is allowed to inspect the property
Return of premiums
Explains how premium is returned if the policy is cancelled.
Endorsements
Written changes
-Additional Insureds
-Water Sewer back up
-Earthquake
-Home day care
-Permittable incidental occupancies
Policy Exclusions
-Lists out perils not covered
-Earth movement
-Water Damage/Flood
-Power failure
-War
