Property Insurance Flashcards
Hurricane Occurrence and Deductible
Defined as a storm system that has been labelled a hurricane by the National Hurricane Center of the National Weather Service.
Mandatory Deductible Offerings
Must offer Hurricane Deductibles in the amounts of $500, 2%, 5%, and 10% of the policy dwelling limits
-If deductible is less than $500, the insurer should offer the higher fixed amount of $500 instead
Policies covering Dwelling Risks of $100,000 to Less Than $250,000
2% deductible instead of $500; guarantee that insurer will not nonrenew policy for one renewal period due to reasons of reducing hurricane loss
Policies covering Dwelling Risks of $250,000 or more
Not required to offer a $500 deductible
They must offer hurricane deductibles of 2%, 5%, or 10%
Wind Mitigation and Code Issues
-State law for insurers to provide savings to consumers who install or implement windstorm damage mitigation techniques.
Continued Education (Premium discounts available on property insurance policies; hurricane)
1 hour every 2 years
Catastrophic Ground Cover Collapse
-Any geological activity resulting in the following:
—Abrubt collapse of the ground cover
—Depression in visible ground cover
—Structural damage to covered building
—Condemnation from a govnt agency
Sinkhole Deductible
1%,2%, 5%, or 10% of dwelling policy limits
Inspection of property before issuance of sinkhole loss coverage
Limited Sinkhole Coverage Insurance
-Not Mandatory
-Provides personal lines residential coverage only
-policy limits cannot be less than $50,000, unless costs exceed the replacement cost of the property
-Insurer who offers limited coverage must notify the Office of Insurance Regulation of any change in rates, no later than 30 days from becoming effective. Rate data must be maintained for at lease 2 years.
Insurers must notify the Office at least 30 days from becoming effective. Must be maintained for at least 2 years.
Fungi
Limited Fungi, wet or dry rot, or bacteria coverage is an endorsement that may be used to add special limits for losses caused by fungi, dry, and wet rot, and bacteria.
Loss Assessment (HO-6)
Must include $2,000 in property assessment coverage for all assessments made as a result of the same covered loss. No more than $250 deductible
-Maximum amount is the coverage limit
Loss Settlement
20 days after the settlement; if late insurer will pay 12% interest
Dispute Resolution
Mediation helps parties to establish forum for claim disputes (nonthreatening)
Motor Vehicle and casualty insurance contracts
(Dispute Resolution) less than 10,000, either party may demand mediation; must state reason, can reject mediator selected; share costs unless determined no good faith
Flood
Standard Flood insurance
Preferred flood insurance - same as standard; outside water sources; living expenses; repair or replacement
Customized flood insurance - broad
Flexible insurance - self explanatory
Supplemental flood insurance- May cover jewelry, art, deductibles, and additional living expenses.
