Property Flashcards
Agreed Amount Clause
Insure & insured agree amount of insurance carried will satisfy coinsurance claue - eliminates need to determine if amount carried equals percentage of ACV listed i coinsurance clause
Blanket Insurance
Single contract for 1) multiple types of property at one location; or 2) one or moe types of property at multiple locations
Builders Risk
Cov. for buildings in course of construction
Most commom reasons for SL property (5)
- Risk not desired by admitted mkt.
- Terms not available in admitted mkt
- Admitted carrier reinsurance treaty exclusions.
- Larger deductibles & retentions
- Limits capacity need filling
Coinsurance Clause
Insured shares in losses to the extent he is underinsured at the time of loss.
Coinsurance Calculation
limit carried divided by agreed limit times amount of loss
Consequential Loss (Damage)
- Indirect loss from insured’s inability to use property over time
- Indirect loss - not directly caused by covered peril
Difference In Conditions (DIC)
Separate contract that expands or supplements property cov. written on a named perils basis
Direct Loss (Damages)
Loss that is a direct consequence of a particular peril.
Direct Written Premium
Premiums collected without any allowance for premiums ceded to reinsurers
Earth Movement
Peril incl. landslide, mud flow, earth sinking/rising/shifting & earthquake
Earthquake
covers damage caused by earthquake
FAIR Plan
Fair Access to Insurance Requirements (pooling reinsured by US govt for high risk areas)
Boiler & Machinery
Sudden & accidental breakdown. Covers 1) damage to object; 2) expediting expenses; 3) pd to property of others; 4) suup payments; 5) add objects
PML (Probable Maximum Loss)
max loss expected under ordinary circumstances
