Term
| WHAT ARE THE 10 DWELLING PROPERTY CONDITIONS? |
|
Definition
1) Policy Period
2) Mortgage Clause
3) Liberalization Clause
4) Concealment or Fraud
5) Recovered Property
6) Duties After Loss
7) Settlement Considerations
8) Other Insurance and Service Agreement
9) Loss Payable Clause
10) Legal Action Against Insurer |
|
|
Term
| WHEN DO ALL POLICIES EXPIRE? |
|
Definition
| Except in 11 states (not including Texas), Policies expire at 12:01am. |
|
|
Term
|
Definition
| any loss payable under Coverage A or B will be paid to the mortgagee and the named insured, as interests appear. |
|
|
Term
| THE MORTGAGEE CLAUSE ACKNOWLEDGES THE INSURABLE INTEREST OF THE MORTGAGEE BY AGREEING TO: (2) |
|
Definition
1) Notify the mortgagee 10 days before cancellation takes effect
2) Allow the mortgagee to submit a proof of loss within 60 days if the insured fails to do so |
|
|
Term
|
Definition
| If the insurer makes a change that broadens coverage without additional premium charge, that change will automatically apply to an insured's policy as of the date the insurer implements the change. |
|
|
Term
|
Definition
| If the insurer or insured recovers any property, the recovering party must notify the other of the recovery. The insured has the option to keep the property and the loss payment will be adjusted. |
|
|
Term
|
Definition
The insured must:
1) give the insurer prompt notice
2) protect from further loss
3) keep accurate records when repairing
4) cooperate
5) show damaged property
6) send proof of loss within 60 days |
|
|
Term
| SETTLEMENT CONSIDERATIONS |
|
Definition
1) Personal Property-Actual Cash Value
2) Dwelling & other structures-Replacement Cost (except DP-1) |
|
|
Term
| LOSSES TO DWELLING AND OTHER STRUCTURES ARE PAID ON A REPLACEMENT COST BASIS AS LONG AS: |
|
Definition
| The insured carries insurance equal to 80% or more of the full replacement cost of the building. (DP-1 pays for both building and contents losses on an actual Cash Value basis only) |
|
|
Term
| OTHER INSURANCE AND SERVICE AGREEMENT |
|
Definition
| If there is other insurance covering the property the insurer will only pay its percentage of the loss as their limit bears to the total amount of insurance. |
|
|
Term
| COMPANY A HAS $40,000 ON THE DWELLING AND COMPANY B PROVIDES $60,000 ON THE DWELLING. THERE IS A $30,000 COVERED LOSS. HOW MUCH WILL COMPANY A PAY? |
|
Definition
| Company A is responsible for 40% of the covered loss because 40/100*Total Coverage=40,000 Since total coverage loss is $30,000, Company A is responsible for 40% of $30,000. A*100/30,000=40 40*30,000/100=12,000 |
|
|
Term
| COMPANY A HAS $75,000 ON THE DWELLING AND COMPANY B PROVIDES $80,000 ON THE DWELLING. THERE IS A $50,000 COVERED LOSS. HOW MUCH WILL COMPANY B PAY? |
|
Definition
75000+80000=155000
80,000*100/155,000=51.6%<-Comp.B responsibility
A*100/50,000=51.6
51.6*50,000/100=25,800 |
|
|
Term
| COMPANY A HAS $7,630 ON THE DWELLING AND COMPANY B PROVIDES $3,957 ON THE DWELLING. THERE IS A $2,957 COVERED LOSS. HOW MUCH WILL COMPANY A PAY? |
|
Definition
7,630+3,957=11,587
7,630*100/11,587=65.8%<-Comp.A responsibility
65.8*2,957/100=$1,945.71 |
|
|
Term
| COMPANY A HAS $X ON THE DWELLING AND COMPANY B HAS $Y ON THE DWELLING. THERE IS A $Z COVERED LOSS. HOW MUCH WILL COMPANY A PAY? |
|
Definition
X+Y=Total Coverage(TC)
X*100/TC=%Comp.A pays(A)
A*Z/100=$Comp. A pays |
|
|
Term
|
Definition
| If a loss payee is listed in the Declarations for personal property, the loss payee will be notified in writing if the insurer cancels policy. |
|
|
Term
| LEGAL ACTION AGAINST INSURER |
|
Definition
| The time allowed to bring legal action against the insurer is 2 years |
|
|
