Property Insurance 2 Flashcards
Explain the differences between an insured, a named insured, a first named insured, and then additional insured
When there is more than one named insured listed on a policy, the policy may assign a higher level of duties or rights to the first named insured, the person listed first on the declarations page.
In addition to the named insured, the policy may cover other specifically designated person’s, businesses, or entities as insureds under the policy, such as family members. Such designations are usually found in the definition of insured listed in the definitions section of the policy.
Compare and contrast blanket and specific insurance, named peril and open peril policies, and direct losses and indirect losses
A
Describe the five broad categories of exclusions commonly found in property insurance policies
1:
2:
3:
4:
5:
Explain the purpose of policy conditions
A
Describe an insured’s duties when a loss occurs
A
Compare and contrast various methods used to value losses under insurance policies
A
Explain the purpose of coinsurance and how the coinsurance penalty may reduce loss payment
A
Describe the purpose of the pair or set provision
A
Compare and contrast various methods used to determine reimbursement one other insurance applies to a loss
A
Explain how appraisal for arbitration may be used to determine the amount paid for a loss
A
Describe the purpose of the following policy conditions:
1: salvation and abandonment
2: subrogation
3: liberalization
4: assignment
5: no benefit to bailee
6: mortgage/loss payable
7: policy period and policy territory, and,
8: vacancy and unoccupancy
1: salvation and abandonment
2: subrogation
3: liberalization
4: assignment
5: no benefit to bailee
6: mortgage/loss payable
7: policy period and policy territory, and,
8: vacancy and unoccupancy
Compare and contrast reporting and nonreporting insurance policies
A
“We’ll Focus on or concentrate on basic, frequently used policies. You will learn their purposes and their unique characteristics”
there is some in uniformity, but not all insurance policies are alike.
Hey degree of standardization has been introduced by insurance service organizations such as insurance services office (IS0).
Although companies may deviate from ISO’s forms or use their own with state approval, it is customary for member companies to use the standardized forms.
Even when companies design their own forms for particular coverage, they tend to be more similarities than differences between the policies is by various insurers.
Because there are so many different types of insurance contracts, there are a number of ways to organize a review of key policies. We’ve chosen an organization that builds logically so that each unit hope you prepare for the next.
The first part of the policy review bills with personal lines policies. We start with a personalized property contract, the dwelling policy, and then talk about personal lines policies that combine both property and casualty coverages.
The second part of the policy review covers commercial lines policies, beginning with package policies that include both property and casualty coverages, and then commercial policies that cover individual lines of insurance.
Question: John purchases and auto policy for his new car. There are no other insurance listed on the decorations. John is considered the:
1) additional insured
2) named insured
3) first named insured
2
Pedro’s homeowners policy lists the mortgage company that has an outstanding loan on the home. The mortgage company is:
1: A named insured
2: an additional insured
3: a first named insured
2
Jamal and Claire are owners of a carpet cleaning company. Both are named insureds on the companies insurance policy. Because Jamal’s name appears first on the declarations, he is the:
1: additional insured
2: named insured
3: first named insured
Incorrect 2: named insured
Correct: 3: first named insured
What property is covered and where
The declarations also describe the property to be insured. The description can be very specific, designating a particular item to be insured (specific insurance).
Or, it can be a blanket description, such as “personal property located at 1550 Willow” blanket insurance)
Blanket coverage may also mean that the insured’s covered property is insured at any location, rather that than at only a particular location.
And almost endless variety of property can be insured: buildings (real property), tangible and intangible business and personal property, property owned by the insured, and non-owned property.
In addition to the brief description contained in the declarations, the insured agreements will describe in detail the property that is covered by the policy.
You’ll learn more about the types of property that can be insured as you progress through the course
A policy declarations indicates the insured property is a 2009 Toyota Camry. This property is covered on a:
1: specific basis
2: blanket basis
1: specific basis
A policy declarations indicates the covered property is business property located at 3489 maple street. This policy is covered on a:
1: specific basis
2: blanket basis
2: blanket basis
Insurance policies specify the date and time, including where and in what time zone coverage begins and ends. This is known as the policy period.
In some states, the exact time of day policy start and stop is set by law to maintain uniformity between companies and to prevent to get some coverage when an insured changes insurance companies.
Finally, the declarations show the policy limit, also known as the limit of coverage, limit of liability, or limit of insurance.
These limits represent the maximum amount the insurance company will pay for a loss. Within this framework, the principle of indemnity (in-dem-na-tea) and applicable policy conditions are used to determine the exact reimbursement in the event of a loss.
For certain hard–to–value items, the insurance company will issue a …valued or agreed amount contract. Valued contracts are written for a specified amount, and they list the value of the insured property as agreed to by both the insured and insurer at policy inception. If the item is damaged, this is the amount that will be used to value the loss.
This avoids the difficultyof trying to determine the value of such property after it has already been damaged or destroyed. An example of property frequently covered on the value basis is art work.
The insuring agreement… Explains what property is covered & the perils the property is insured against.
Several different coverages may be provided in a single policy. The insuring agreement describes the key policy coverages in detail.
The insuring agreement may also specify that certain additional coverages apply.
These coverages, which may also be called: extended coverages, coverage extensions, or other coverages,
…and may have reduced or separate limits of liability or require the insured to meet certain policy requirements before they apply.
Perils insured against: Named Peril and Open Peril policies
Policies that list the SPECIFIC PERILS or causes of loss insured against under the contract, such as lightning, fire, and windstorm, are called NAMED PERIL or Specified Peril policies. Named Peril contracts insure property only against the PERILS specifically listed in the policy.
This type of contract is sometimes called all–risk or specific coverage.
1: A policy that covers any peril that is not specifically excluded by the policy is a ______ policy.
2: A policy that ensures property against the perils specifically listed in the policy is a _________ policy.
1: an open peril
2: wrong: an open peril… Correct: all risk or special coverage???
Direct Loss versus Indirect (Consequential) Loss
In addition to specifying the property covered and the perils issued insured against, the insuring agreement will state whether it covers direct loss, indirect loss, or both.
Direct loss: this is financial loss resulting directly from the loss to property, such as a house being damaged in a windstorm or a valuable piece of jewelry being stolen.
Indirect Loss: this comes as a result, or consequence, of the original loss.
For this reason, it is…also known as consequential loss. For instance, suppose a hotel burns down. In the one-year required to rebuild, the owner loses over $2 million in room rentals. This loss of rent would be an INDIRECT, or CONSEQUENTIAL, loss resulting from the direct loss to the hotel by fire.
Common types of exclusions:
Every property insurance contract contains exclusions. In a named peril policy, any peril that is not specifically listed as covered is automatically excluded. However, named peril policies also list certain exclusions separately to explain or emphasize perils or property that is an excluded from the coverage.
In an open peril policy, the exclusions are especially important, because ANY peril not specifically listed as excluded is insured against.
1: Non-accidental losses
2: losses controllable by the insured
3: extra – hazardous Perils
4: catastrophic losses
5: property coverage in other policies
Identify the types of information found in a policies declarations and insuring agreement
Like all insurance contracts, property insurance contracts are made up of declarations, insuring agreements, conditions, exclusions, and definitions.
1: declarations section:
The first job of the declarations section is to state who is insured, whether it is an individual or a business.
Remember, insurance contracts are personal. Even though we sometimes talk about insuring homes or other types of property, such as cars, it is the party named in the declarations who is insured, not the property.
In some circumstances, another individual or business may be listed on the declarations as an additional insured–for example, a mortgage company that has an outstanding loan (and therefore an insurable interest) on the property.
Limitations
Concurrent causation refers to a situation where two or more perils act – concurrently – at the same time or in sequence to cause a loss.
Insurers maintained they never intended for earthquake coverage of the peril of collapse….. …some courts concluded for the insured on the grounds that the collapse was due to collapse of the building whether earthquake was a concurrent or contributing cause.
To clarify the intent of the policy, insurers remove the ?? is a peril insured against and made it an additional coverage.
1: losses controllable by the insured: losses that can be controlled or provided with extra care of the insurance part are excluded. This encourages the insured to be responsible and the use of the property. Marring, scratching, and breaking or chipping of fragile object you’re all examples of losses that are controllable by the insured.
2: extra – hazardous perils: certain girls are extra hazardous. The insurance company could provide coverage, but the unique nature of the peril prefers a substantial increase in the premium the insured with fake. Extra – hazardous Pierells for used excluded from the policy because most insureds would not want to corn need the coverage. Insured to do require the coverage can often obtain it through an endorsement to the policy, for which an extra premium is charged. An example of extra - hazardous Peril is earthquake.
3: catastrophic losses caused some losses are so broad in their school that they could bankrupt against them. Plus his arising from war or nuclear disasters are generally uninsurable because of their catastrophic nature.
4: another policies: property customarily covered and other insurance proceeds is excluded. For example, a full suit covering your personal property would normally exclude your car because there is a separate bill policy to provide coverage for your vehicle.
Some policies also include limitations that are less sweeping then exclusions. A limitation may eliminate or reduce coverage but only under certain circumstances or when specified conditions apply. For example, after building has been vacant for 60 days, some Types of commercial property losses will not be covered at all, while the amount paid for other types of losses forward be reduced by 15%.
Common types of exclusions
Named peril policy, any peril that is not specifically listed as covered is automatically excluded.
However, named peril policies also list certain exclusion separately to explain or emphasize girls were property that is excluded from coverage.
In an open girl policy, the exclusions are specially important, because any peril not specifically listed as included is insured against.
Exclusions in a policy very with the type of prep your situation the country is designed to cover. However, there are five broad categories of exclusions that are commonly found in property policies.
1: non-accidental losses
2: losses controllable by the insured
3: extra – hazardous peril
4: catastrophic losses
5: Property covered in other policies
Duties following loss
The conditions section of property insurance policies list the duties and rights of both the insured and the insurer.
Most contracts include conditions that specify with the insured and insurer must do when the last occurs. Together, these provisions may be referred to as LOSS PROVISIONS
The duties following loss condition list the insured’s responsibility after a loss, including:
1: giving prompt notice of claim to the insurance company or agent;
2: protecting the property from further damage;
3: completing a detailed proof of loss (an official inventory of the damages)
4: making the property available for inspection by the company;
5: submitting to examination under oath if required; and,
6: assisting the insurer is required during the claim investigation procedure
Valuation
The insurance company also has duties when a loss occurs. Determining adequate indemnification is an important concern. Some such provisions are sometimes contained in the valuation of how losses will be paid condition.
In general, the insured can collect the lesser of:
1: insurable interest;
2: policy limits;
3: actual cash value;
4: cost to repair; and,
5: replacement cost
The insured can never collect more than the policy limits are the insurable interest he has in the property.
Actual Cash Value (ACV)
Usually determined by calculating the items replacement cost (what it would cost to buy a replacement) and subtracting an amount for depreciation
Replacement cost - depreciation = actual cash value
Depreciation is subtracted because the insured has already had use of the property. If the full amount were reimbursed so the insured could real place it with a new item, the insured would be better off after the loss than before. This violates the principle of indemnity.
Repair Cost: although actual cash value is a common method for reimbursing a loss, the insured may be reimbursed on the basis of the items repaired when the cement is less than the actual cash value.
Replacement cost & functional replacement cost:
In some policies, the insurance company agrees to automatically pay the replacement cost for cover glasses with no allowance for depreciation. This is known as replacement cost.
Some policies pay losses on a functional replacement cost basis, and which damage property is repaired replaced with less expensive, but functionally equivalent, materials. This method is used most frequently for losses to antique, or late, or custom construction.
Market Value
Occasionally, property is insured for market value, or what it would be sold for at the time of the loss. Market value is different from a CV or replacement cost.
Coinsurance:
The coinsurance condition encourages policyholders to ensure property to its full value. It lists the minimum amount of insurance in church should carry on the property, which is expressed as a percentage of the properties value. For instance, a policy with an 80% coinsurance condition means he insured must into the property for at least 80% of its value.
As long as the insured carries the amount of insurance required by the coinsurance condition at the time of loss, the insurer will indemnify losses up to glimpse of the policy. If the insured does not carry enough insurance one less occurs, the company will only pay a percentage of what full contract reimbursement would otherwise have been. You might not paid by the company is sometimes called…THE COINSURANCE PENALTY.
Because it is sometimes difficult to predict property values accurately enough to avoid the possibility of a coinsurance penalty, some policies contain an AGREED VALUE or STATED AMOUNT provision. This specifies a certain value that would meet the crew at church record. As long as the photos equals exceeds this will not be assessed a COINSURANCE penalty.
When losses are paid:
Although it may not be specifically stated in the policy, the insurer is obligated to pay claims promptly. Some policies provide that a claim must be paid within a certain number of days after the insurer has received proof of loss and the parties have reached agreement on the amount of the loss. Others state only be settled within a “reasonable” time frame.
Pair or Set
The PAIR or SET condition is a loss settlement condition that appears many property contracts.
It states that if part of a pair or set is lost or damage, loss will be valued as a fair proportion of the total value of the set, giving consideration to the importance of the damaged article to the set. The Insurer is not obligated to pay for the loss of the whole set when one only one part has been damaged.
Deductible
Many property insurance policies have a deductible. This means insured pays the first part of every loss up to the amount of the deductible. This reduces the cost of insurance for reducing the number of small claims. The amount of the deductible as specified in the declarations.
Salvage and abandonment
Many property insurance policies contain a salvage condition that provides that the insurance company can take possession of damage property after payment of the loss. So it’s good skin reduce the cost of the claim to the insurance company.
Well the insurance company may retain the right of salvage, it does not allow the insured to relinquish the property to the company at the option of the insured. The ABOMDONMENT condition states that the insured may not abandon property to the company and asked to be in reimbursed for its full value.
Suppose the insured hits a deer, causing major damage to his 10-year-old vehicle. The ABANDONMEMT condition prohibits the insured from abandoning the car to the insurance company and collecting the settlement for the total loss of the other. However, the SALVAGE condition allows the company to settle with the insured for taking position of the current reimbursing the insured for the loss of the auto.
Subrogation
Most policies give the insurance company subrogation rights.
Suppose an insured servers a loss for what she is not at fault, and the party that cause the damage has no insurance or refuses to pay for the damages. Insureds insurance company may step in and pay for the damages and then bring suit or file a claim against the other party or the other parties insurance company on the insureds behalf.
This transfer to the insurance company of the insureds right of recovery against others is called subrogation.
The subrogation condition may also be called “transfer rate of recovery against others to us”.
Appraisal and arbitration
There are times when the insured and insurer cannot agree on the amount of indemnification.
The appraisal condition provides that either party may demand an appraisal of a loss. In this event, each party to may demand an appraiser. The two appraisers then select an umpire. If the appraisers fail to agree on an amount, they submit their differences to the umpire. The decision agreed to buy any two of the three is the final amount of indemnification. Each party pays its own appraiser and shares the cost of the Umpire.
The ARBITRATION condition is worded similarly., But it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured insurance company, between the company and a third-party in the case of a liability insurance, or between two insurers.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Policy Period & Policy territory
The Policy Period & Policy Territory provisions state that a loss will not be covered unless it occurs within the policy territory while the policy is in effect. The territory may vary, but a typical policy includes the United States, Puerto Rico, and Canada. The effective date and time of coverage or listed in the decorations.
Vacancy and Unoccupancy
Because of the increased chance of loss, property insurance policies may exclude or limit coverage for losses when property is vacant or unlock your break. Vacant means the absence of both people and property from the premises; unoccupied is the absence of people.
Reporting forms
Property contracts may be issued on a non-reporting or reporting basis.
Non-reporting policies: these are contracts for which a flat premium is charged every time the policy is renewed. Auto and homeowners policies are examples of non-reporting forms.
Policies are issued on a REPORTING BASIS when it is difficult to determine in advance what amount of coverage should be purchased. Instead of paying a flat premium, the insured pays a deposit premium, or estimated premium, and then periodically submits reports to the insurer showing the status of those factors on which the premium is based.
After the insurance company has calculated the premium, it is charged against the deposit. When the deposit is used up, the insured begins to pay the premium calculated by the insurance company at the end of each reporting period
The insurance company may conduct a premium audit of the insured’s records before calculating the final premium and making a final adjustment.
What type of insurance policy covers any loss that is not specifically excluded by the policy?
1: blanket peril policy
2: specified peril policy: doesn’t exist??
3: named peril policy
4: Open Peril policy
Wrong 1: Blanket Peril
An OPEN PERIL policy ensures against all risks of physical loss, except those specifically excluded in the policy. This type of contract is sometimes called “all risk” or “special coverage”.
What type of insurance policy lists pacific pearls are causes of loss insured against under the contract?
1: Open peril policy
2: named peril policy
3: blanket peril policy
4: all risk policy
They named peril policy list the specific pair also causes of loss insured against under the policy. These are the only perils the property is insured for.
Walt and Joanna are code–owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that ensures the business, with Joanne’s name appearing first. The declarations also lists first State Bank, which is an outstanding loan on the business. Who is the first name of insured on the policy?
1: both Walt and Joanna
2: Joanna
3: Walt, Joanna, and First State Bank
4: First State Bank
Yea…Joanna
When there is more than one named insured listed on the policy, the policy may assign a higher level of duties are rights to the first named insured, the person listed first on the declarations page.
Losses that are paid on the basis of the cost to replace the property, without an allowance for depreciation, are paid on:
1: replacement cost basis
2: actual cash value basis
3: market value basis
4: repair cost basis
1: Replacement Cost basis
What a loss is paid on the market value basis, the insured receives the amount the property could be sold for at the time of loss.
When losses paid on an actual cash value basis, and amount for depreciation is deducted from the replacement cost.
Consuelo’s homeowners policy has an 80% coinsurance condition. Her homes value is $125,000. What is the minimum amount of coverage she must carry to be indemnified for losses up to the policy limits?
1: $100,000
2: $120,000
3: $125,000
4: $80,000
Wrong: $120,000
Coinsurance condition requires an insured to carry a certain amount of insurance, which is expressed as a percentage of the properties value. In this case, Consuelo must carry insurance equal to 80% of the homes value, or $100,000.
It will cost Gary $10,000 to put a new roof on his home after the old one was destroyed by a tornado. Assuming the roof depreciated $300 per year and the roof was 10 years old when the loss occurred. If this loss is valued an actual cash value basis, how much will Gary’s insurer pay for the loss? Assume the loss is within the policy limit.
1: $10,000
2: $7000
3: $13,000
4: $3000
2: $7000
Linda’s sofa television set and entertainment center were destroyed in the fire. The total amount of the loss is $5000; the actual cash value of the items is $3000. If this loss is valued on the replacement cost basis how much Melinda’s insurance policy paid? I assume the losses within the policy limit.
1: $5000
2: $8,000
3: $3000
4: $2000
$5000
Bills home was demolished in a fire that started when a neighbor misdirected fireworks he set off to celebrate the 4th of July. Bills insurance company pays him for the damage, then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?
1: assignment
2: abandonment
3: subrogation
4: liberalization
Subrogation
The subrogation condition transfers the insureds right to collect from a responsible third-party to the insurance company.
Byron sold his car to his friend Annette but does not notify his insurance company. Assuming that Byron’s policy will transfer to who are automatically, Annette doesn’t buy insurance for the car. When the car is stolen, Annette files a claim with Byron’s former insurer. The insurer denies the claim. This is an example of the application of what policy condition?
1: assignment
2: no benefit to Bailee
3: co-insurance
4: subrogation
Assignment
The same condition specifies that the policy may not be transferred to anyone else without the written consent of the insurer, except in the event of the death of the named insured.
Which one of the statements concerning the Mortgage Condition is NOT correct?
1: The mortgagee can file a proof of loss when the insured fails to do so to protect its rights under the policy.
2: The mortgagee may have to pay the premium if the insured doesn’t
3: The mortgagee has no insurable interest in the cover property
4: The mortgagee may have coverage under the policy even if something insured does causes a claim to be denied
3: The mortgagee has no insurable interest to the covered property
A heavy snowfall causes the roof over Shanda’s living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?
1: duties after a loss
2: arbitration
3: appraisal
4: Bailment
1: duties after loss
Most insurance policies include conditions that specify what the insured and insurer must do when this occurs.
The insured’s responsibilities after loss include 1: giving notice of claim to the agent or company, 2: protecting property from further damage, and 3: completing a proof of loss form
An indirect loss is:
1: A type of loss that results from a direct loss
2: an insignificant property loss
3: not a type of property loss
4: The cause of a direct loss
1: A type of loss that RESULTS from a direct loss
And indirect loss is one that comes as a result, or consequence, of the original loss
The policy period is an insurance policy
1: both of these
2: may be by state law
3: neither of these
4: specifies the date and time coverage begins and ends
Both
Which of the following would normally be excluded under a property contract?
1: catastrophic losses
2: non-accidental losses
3: Losses controllable by the insured
4: extra – hazardous perils
1: 2 & 5
2: 1,3 & 5
3: 1& 2
4: 1,2,4 & 5
Wrong: 1 & 4
Right: 1, 2, 4 & 5
Property insurance policies typically exclude 1: nonaccidental losses, 2: losses controllable by the insured, 3: extra – hazardous perils, 4: catastrophic losses, and 5: property covered in other policies.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
No Benefit to Bailee
Hey Bailey is a person or organization that has temporary possession of someone else’s personal property.
Examples of Bailee’s include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.
Mortgage condition
Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy.
For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so.
The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee’s interest.
Other insurance
The “OTHER INSURANCE” CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called “other sources of recovery” or “insurance under two or more coverages”.
Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss.
….company “Y’s” policy is considered “primary insurance” and Company “X’s” policy is “excess insurance”.
Pro rata
Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method.
For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.
Policy A’s limit of liability/Policy A’s limit of liability + Policy B’s limit of liability = amount of loss = amount paid by policy A (and vice versa)
Liberalization
The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
Assignment
The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured’s legal representative. This condition is sometimes called the “transfer of rights” or “duties under this policy” condition.
