OTHER COVERAGES

National Flood Insurance Program NFIP Dwelling Form Definitions Application

An application is a statement made and signed by the named insured when applying for this policy.

National Flood Insurance Program NFIP Dwelling Form Definitions Base Flood

A base flood is a flood that has a one percent chance of being equaled or exceeded in any given year.

National Flood Insurance Program NFIP Dwelling Form Definitions Basement

A basement is an area of a building. It includes sunken rooms or the sunken portions of a room that have a floor below ground level on all sides.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Claim

A claim is a demand for monetary damages from an insured.

National Flood Insurance Program NFIP Dwelling Form Definitions Condominium Association

A condominium association is an organization made up of the owners of units that is responsible for the maintenance and operation of the following items as long as membership in the organization is required in order to own a unit... Common elements owned in undivided shares by unit owners. Other real property which the unit owners have a right to use.

National Flood Insurance Program NFIP Dwelling Form Definitions Condominium

A condominium is a form of ownership of real property in which each unit owner has an undivided interest in common elements.

National Flood Insurance Program NFIP Dwelling Form Definitions Flood

A flood includes any of the following... A partial or complete inundation of two or more acres of dry land (a flood can also be an inundation of two or more properties, the inundation has to be caused by an overflow of inland or tidal waters, unusual and rapid accumulation, or runoff of surface water or mudflow) The collapse of land that sits along the shore of a body of water, like a lake, as a result of erosion, or undermining caused by waves or currents of water.

National Flood Insurance Program NFIP Dwelling Form Definitions Mudflow

A mudflow is a river of liquid, flowing mud on the surfaces of normally dry land. Mudflows are not other earth movements like landslides and slope failure.

National Flood Insurance Program NFIP Dwelling Form Definitions Post-FIRM Building

A post-FIRM building is a building that was constructed or substantial improved after December 31, 1974, or after the effective date of an initial Flood Insurance Rate Map (FIRM), whichever happens to be later.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Relative

A relative is a person who resides in the same household as the named insured, and is related to the named insured by blood, marriage, or adoption. This includes a ward, stepchild, or foster child. Unmarried dependent children of the named insured who are temporarily away from home will qualify as a relative if they intend to continue to reside in the named insured's household.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Scheduled Premises

A scheduled premises is a residence or rental property that is shown on the declarations page. It can also be any other residence or rental property that the named insured schedules within 30 days of acquisition.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Scheduled Vehicle

A scheduled vehicle is any one of the following... A vehicle that is shown on the declarations page, any other vehicle that is acquired by the named insured within the policy period, and scheduled within 30 days of acquisition, a trailer that is not being used as an office, a store, for display purposes, or as a passenger conveyance (such trailers are not required to be reported to be considered "scheduled")

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Scheduled Watercraft

A scheduled watercraft is any watercraft shown on the declarations page or any other watercraft that the named insured schedules within 30 days of acquisition.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Self-Insured Retention

A self-insured retention is an established amount of money that must be paid out before an umbrella policy will take effect. It is essentially a deductible that the insured must pay before coverage takes over. It typically ranges from $10,000 to $50,000. A self-insured retention is only required if there is no underlying coverage.

National Flood Insurance Program NFIP Dwelling Form Definitions Special Flood Hazard Area

A special flood hazard area is an area having special flood, mudflow, and/or flood-related erosion hazards.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions Suit

A suit is a civil proceeding which seeks monetary damages because of bodily injury, property damage, personal injury, or advertising injury.

National Flood Insurance Program NFIP Dwelling Form Definitions Unit

A unit is a single-family unit owned by the named insured in a condominium building.

National Flood Insurance Program NFIP Dwelling Form Definitions Valued Policy

A valued policy is a policy in which the insured and the insurer agree on the value of the property that is insured. That value is what is payable in the event of a total loss. The Standard Flood Insurance Policy is not a valued policy.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Vehicle

A vehicle refers to the following... A private passenger, pickup body, or cargo van motor vehicle that is designed to operate on public roads and has at least four wheels, motorhome or motor coach, two or three wheel motorcycle, a motor vehicle that is designed for recreational use off public roads, trailer.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Watercraft

A watercraft is a boat, craft, vessel or ship designed for use on water.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Advertising Injury

Advertising injury is an injury that is solely caused by an insured's advertising. The injury has to be a related of one of the following offenses... Spoken, written, televised, videotaped, or electronic publication of material that slanders or libels a party or disparages a party's goods, products, or services. Spoken, written, televised, videotaped, or electronic publication of material that violates a person's right of privacy. Misappropriation of advertising ideas or misappropriation of a style of doing business. Infringement of a copyright, title, or slogan. Mental injury, mental anguish, humiliation, or shock, if happens to be directly caused by the previously mentioned offenses.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Auto

An auto is a land motor vehicle, trailer or semitrailer designed for travel on public roads. This includes any attached machinery or equipment. An auto is not the same thing as mobile equipment.

National Flood Insurance Program NFIP Dwelling Form Definitions Elevated Building

An elevated building is a building that does not have a basement. The lowest elevated floor has to be raised above ground level by things like foundation walls, shear walls, posts, piers, pilings, or columns.

National Flood Insurance Program NFIP Dwelling Form Definitions Emergency Program

An emergency program is the initial phase of a community's participation in the National Flood Insurance Program. During the "emergency program" phase, only limited amounts of insurance are available under the act.

Specialty and Professional Liability Insurance Employee Benefits Liability

An employee benefits liability insurance policy is designed to protect an employer if they are found liable for mismanagement of an employee benefit program. Many companies have programs that provide benefits to the employees such as medical insurance or retirement accounts. If an error or omission is committed by someone who is administering one of these employee benefit programs, it can cause significant harm to the employees that depend on the benefit program. With an employee benefits liability policy in place, the employer would be financially protected if an employee sued the employer over the failure to provide the promised employee benefits.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Insured Contract

An insured contract is an oral or written contract or agreement that is entered into by a named insured. This kind of contract relates to a business through which the named insured assumes another party's tort liability to pay for bodily injury or property damage to a third party. The bodily injury or property damage has to occur after the establishment of the contract or agreement. Tort liability is a civil liability that would have been imposed by law if there had not been a contract or agreement.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Bodily Injury

Bodily injury is physical injury, sickness, or disease (including someone's death). Bodily injury can also refer to mental injury, mental anguish, humiliation, or shock if it is directly caused by physical injury, sickness, or disease.

Umbrella and Excess Liability Policies: Commercial Umbrella Broad Coverage

Broad coverage deals with exposures which are not handled (or are excluded) by the underlying insurance.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Business

Business includes a trade, profession or occupation of any kind, including farming and any other activity (or series of related activities) that is done for money or compensation. Business doesn't include land use, newspaper delivery, babysitting, caddying, routine lawn care, similar activities done by insured who is a minor.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Business Property

Business property refers to a property which business is carried out on, or property that is rented (or held for rental) to others by the insured.

Specialty and Professional Liability Insurance Directors and Officers Liability Corporate Reimbursement Coverage

Corporate reimbursement coverage is a type of directors and officers liability insurance that pays money to a company or organization for the following... Losses that result from wrongful acts for which each director or officer would be required to pay. Sums that arise from the defense of a lawsuit.

National Flood Insurance Program: Other Coverages Debris Removal

Debris removal is included in the other coverages section.

National Flood Insurance Program NFIP Dwelling Form Definitions Direct Physical Loss By or From Flood

Direct physical loss by or from flood is a loss or damage to an insured property, which is directly caused by a flood. There must be some evidence of physical changes to the property.

Umbrella and Excess Liability Policies: Personal Coverage - Exclusions

Coverage under this policy is excluded for bodily injury, personal injury, or property damage liability that results from the following... The ownership, maintenance, or use of any vehicle or watercraft while it is being used to carry persons or property for compensation or a fee (this includes pickup or delivery of magazines, newspapers, food, or any other products, this exclusion does not apply to shared-expense car pools) An accident that involves a vehicle or watercraft while it is being maintained or used by a person who is employed in the following businesses... Selling Vehicles or Watercraft Leasing Vehicles or Watercraft Repairing Vehicles or Watercraft Parking Vehicles or Watercraft Storing Vehicles or Watercraft Servicing Vehicles or Watercraft Delivering Vehicles or Watercraft Testing Vehicles or Watercraft (this exclusion does not apply to the named insured, a relative, an agent, or an employee of the named insured, when using a scheduled vehicle or scheduled watercraft as long as any required underlying insurance provides coverage for the occurrence) A Nuclear Reaction or Radiation (insurance is provided under a nuclear energy liability insurance contract, or would be provided if the contract it had not been terminated upon exhaustion of its limit of liability) The Ownership, Maintenance, or Use of Any Watercraft That... exceeds 50 feet in length, is designed to go more than seventy-five miles per hour, is powered by more than a 500 horsepower (horsepower is the maximum power rating assigned to the engine or motor by the manufacturer) inboard or inboard-outdrive engine or motor power or is powered by more than a 1,000 horsepower twin inboard or twin inboard-outdrive engine or motor power. The ownership, maintenance, or use of any vehicle or watercraft (other than a scheduled vehicle or scheduled watercraft) that is owned by the named insured or furnished or available for regular use by the name insured. The ownership, maintenance, or use of any vehicle or watercraft (other than a scheduled vehicle or scheduled watercraft) that is owned by a relative or furnished or available for regular use by a relative This exclusion does not apply to the named insured's maintenance or use of that kind of vehicle or watercraft. The ownership, maintenance, or use of a premises (other than a scheduled premises) that is owned by the named insured or a relative, or furnished or available for regular use by the named insured or a relative. The named insured's or a relative's use of a vehicle or watercraft without the permission of the owner of the vehicle or watercraft (or the person in lawful possession of the vehicle or watercraft) (this exclusion does not apply to the operation of a scheduled vehicle or scheduled watercraft by the named insured or a relative as long as the required underlying insurance provides coverage for the occurrence) The use of a scheduled vehicle or scheduled watercraft while it is leased or rented to others or given in exchange for compensation (this exclusion does not apply to the operation of a scheduled vehicle or scheduled watercraft by the named insured or a relative as long as the required underlying insurance provides coverage for the occurrence) A criminal act or omission of any insured party (this exclusion applies regardless of whether the insured person is actually charged with, or convicted of, a crime) An act or omission by the insured when they are acting as an officer, director, trustee, or member of a board of directors of a corporation, organization or association (this exclusion does not apply if the corporation, organization or association is not-for-profit, does not involve a business of the insured; and the insured receives no compensation) The business or business property of an insured person, unless required underlying insurance provides coverage for the occurrence (this exclusion does not apply to a child care business) A Child Care Business (this exclusion does not apply to a mutual exchange of child care services by an insured that does not involve monetary or other compensation or occasional or part-time child care services provided by the insured) The Rendering of Professional Services The presence, use, discharge, dispersal, release, migration, seepage or escape of the following... Solid, Liquid, Gaseous, or Thermal Irritants or Contaminants, Including Smoke (except smoke arising solely from a hostile fire or the sudden and accidental discharge from a fireplace or furnace) Vapors Soot Fumes Acids Alkalis Toxic Chemicals and Wastes Toxic Liquids Toxic Gases Fuel Oil and Other Petroleum Products Waste Materials or Pollutants War (the discharge of a nuclear weapon will be deemed a warlike act even if it is accidental) Controlled Substance(s) (this exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician) Incidental Land Use (his exclusion does not apply to the insured or a relative to with regard to the coverage provided by the required underlying insurance) Excluded Land Use An Animal (this exclusion does not apply with regard to the coverage provided by the required underlying insurance)

National Flood Insurance Program Becoming an NFIP Agent

Every licensed property and personal lines insurance agent can sell flood insurance through the NFIP (unless restricted or prohibited by their agent agreement with their company). Federal regulations require agents selling flood insurance from the NFIP to take three hours of flood insurance training. The NFIP offers additional training programs for adjusters to meet the requirement of national flood insurance and for lenders who want to learn how to handle flood insurance requirements for mortgages. Continuing education (CE) in flood insurance is also available as an option for meeting state CE requirements even if the three hours of initial training has already been completed or for producers who don't sell flood insurance.

Umbrella and Excess Liability Policies: Commercial Umbrella Excess Coverage

Excess coverage reimburses the insured when a loss is more than the policy limits of the underlying policy.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Excluded Land Use

Excluded land use refers to the following... Land use by (or on behalf of) the named insured or a relative that generates more than $10,000 in gross receipts in a 12-month period, land use by any other parties that generates more than $10,000 in gross receipts for those parties in a 12-month period, land use by any other party for any organized recreational activities, but only if those activities occur on more than 28 days in a 12-month period.

Specialty and Professional Liability Insurance Fiduciary Liability

Fiduciary liability insurance was developed in response to the increase in responsibilities for fiduciaries and trustees following the passage of the Employee Retirement Income Security Act (ERISA) of 1974. ERISA required, among other things, that trustees of pensions and benefit plans must behave as a "prudent expert". This kind of insurance principally protects the personal assets of parties that act as trustees from suits that allege wrongful acts in the handling of invested funds. This kind of insurance covers the following breaches of fiduciary duty if alleged in a suit against a fiduciary... Negligent Errors and Omissions Improper Disclosures to Plan Participants Faulty Investment Advice An Unwise Selection of an Investment Advisor Improper Amendments to plan Documents

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Appeals

If an insured or an insurer that provides underlying insurance chooses not to appeal a judgment that exceeds the retained limit, the insurer may appeal at their own expense. Any amount the insurer of the umbrella policy pays, with respect to an appeal, is in addition to the limit of liability of the umbrella policy.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Incidental Land Use

Incidental land use is land use that is not classified as excluded land use.

Specialty and Professional Liability Insurance Internet Liability and Network Protection

Internet liability and network protection insurance are a recent development that reflects the increasing importance of the internet as a part of standard business practices. The purpose of this form of insurance is to protect a business from liability associated with internet operations and computer based-information storage. This kind insurance policy provides coverage for liability that is connected to content that a business posts or hosts on the internet. This includes liability associated with accusations of defamation (e.g. libel and slander) or infringement of copyrights or trademarks. This type of insurance also protects a business from liability losses connected to internet-based operations and data storage. This includes liability related to third-party losses that arise from a hack or breach of company databases or a shutdown of a business's website or servers. Internet liability and network protection insurance is still considered to be a specialty form of liability coverage. However, as more companies come to rely on the internet, more companies will need to consider augmenting their liability coverage with this type of policy.

Specialty and Professional Liability Insurance Liquor Liability

Liquor liability insurance deals with business related liability that results from the manufacturing, selling, or serving of alcoholic beverages.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Loading or Unloading

Loading or unloading refers to the handling of property in the following situations... After it is moved from the location where it was prepared for transit into (or onto) an aircraft, watercraft, or auto. While it is in (or on) an aircraft, watercraft, or auto. While it is being moved from an aircraft, watercraft, or auto to the place where it is supposed to be delivered. Loading or unloading does not include moving property with a mechanical device (not a hand truck) that is not attached to the aircraft, watercraft, or auto.

Umbrella and Excess Liability Policies Personal Coverage Normal Exclusions

Losses That Result from Personal Liability, Auto Liability, or Watercraft Liability (if the insured failed to maintain the relevant base insurance) Intentional Injury Damage to Property (that is in the care, custody, or control of the insured) Aircraft Business Pursuits Professional Liability Directors and Officer's Liability Discrimination

Specialty and Professional Liability Insurance Medical Professional Liability

Medical professional liability insurance, malpractice insurance, physicians' insurance, surgeons' insurance, and dentists' professional liability insurance are all names for insurance that covers liability that is related to a medical professional's failure to exercise the necessary care or skill expected from that kind of professional. This category of insurance deals with professional acts, mental anguish, accidents, and some intentional acts. The type of exposure that is covered is bodily injury. However, this kind of policy does not cover an employee's injuries. A "consent to settle a loss" provision may be found in some medical professional liability policies. In the past, the insurer of a liability policy often had the absolute right to settle a case, even if the insured objected. This "consent to settle a loss" provision requires the insurer to have the written consent of the insured before settling a loss.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions Property Damage

Property damage refers to one of the following... Physical injury to tangible property, which includes any loss of use of that property (all loss of use is determined to have occurred at the same time as the physical injury that caused it) Loss of use of tangible property that is not physically injured (that kind of loss will be deemed to have happened at the same time as the occurrence that caused it)

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Receipts

Receipts are any receipts generated from any type land activity including... Farming Custom Farming Leasing of the Property Animal Boarding Animal Husbandry Special Events/Attractions Bike Trails Pumpkin Patches

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Required Underlying Insurance

Required underlying insurance is the insurance that has to be maintained on all scheduled vehicles, scheduled watercraft, and scheduled premises. The types of policies and minimum required liability limits are listed on the declarations page in the "requirements of underlying insurance" section.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Bankruptcy of an Underlying Insurer

Should an insurer that provides the required underlying insurance suffer bankruptcy, insolvency, or receivership, the insurance afforded by this policy will not replace the required underlying insurance. Instead, the umbrella coverage will function as if the required underlying insurance was valid and collectible. If the named insured learns of the bankruptcy, insolvency, or receivership of an insurer that provides the required underlying insurance, the named insured must notify the insurer of the umbrella or excess policy immediately.

National Flood Insurance Program NFIP Dwelling Form Insuring Agreement

The Federal Emergency Management Agency (FEMA) provides flood insurance under the terms of the National Flood Insurance Act. The insurer will pay the named insured for direct physical loss to the insured property if the loss was caused by a flood.

National Flood Insurance Program NFIP Dwelling Form Definitions Actual Cash Value

The actual cash value is the cost required to replace an insured item of property at the time of loss, after subtracting the value of depreciation.

National Flood Insurance Program: Property Covered Building Property

The insurer covers the following properties from direct physical loss by or from flood... The Dwelling at the Described Location (property at another location, which has been removed to safety, counts for a period of 45 days) Additions and Extensions That Have Been Attached to a Rigid Exterior Wall, a Stairway, an Elevated Walkway, or a Roof of a Dwelling (additions and extensions that are connected to any of these objects may be separately insured. Additions and extensions attached to a common interior wall, that is not a solid load-bearing wall, are always considered part of the dwelling and cannot be separately insured) A Detached Garage at the Described Location (coverage cannot be more than 10 percent of the limit of liability on the dwelling. Use of this insurance is the named insured's option, but it reduces the building's limit of liability. The insurer is not obligated to cover a detached garage that is used for residential, business, or farming purposes) Materials and Supplies Intended for the Construction, Alteration, or Repair of a Dwelling or a Detached Garage (this only counts while they are stored in a fully enclosed building at the described location or on an adjacent property) A building, at the Described Location, that is Being Constructed, Altered, or Repaired (if the structure does not have walls or a roof then coverage applies only while such work is in progress, for 90 days, if work is stopped) (coverage does not apply until the building is walled and roofed if the lowest floor, including the basement floor, of a non-elevated building (or the lowest elevated floor of an elevated building) is... below the base flood elevation in certain zones, below the base flood elevation adjusted to include the effect of wave action in specific zones or the lowest floor levels are based on the bottom of the lowest horizontal structural member of the floor in specific zones) A Manufactured Home or a Travel Trailer (if the manufactured home or travel trailer is in a special flood hazard area, it had to have been anchored in one the following ways at the time of the loss...by over-the-top or frame ties to ground anchors, in accordance with the manufacturer's specifications, in compliance with the community's floodplain management requirements) The following items of property... Awnings and Canopies Blinds Built-In Dishwashers Built-In Microwave Ovens Carpet Permanently Installed Over Unfinished Flooring Central Air Conditioners Elevator Equipment Fire Sprinkler Systems Walk-In Freezers Furnaces and Radiators Garbage Disposal Units Hot Water Heaters, Including Solar Water Heaters Light Fixtures Outdoor Antennas and Aerials Which are Fastened to a Building Permanently Installed Cupboards, Bookcases, Cabinets, Paneling, and Wallpaper Plumbing Fixtures Pumps and Machinery for Operating Pumps Ranges, Cooking Stoves, and Ovens Refrigerators Wall Mirrors that are Permanently Installed Items of property that are in building enclosures that are below the lowest elevated floor of elevated post-FIRM buildings located in specific zones, or in a basement, regardless of the zone (coverage is limited to clean-up, coverage is also limited to the following items, if they are installed in their functioning locations and (if necessary) connected to a power source... Central Air Conditioners Cisterns Drywall Electrical Junction and Circuit Breaker Boxes Electrical Outlets and Switches Elevators or Dumbwaiters(but not related equipment that was installed below the base flood elevation after September 30, 1987) Fuel Tanks and the Fuel in Them Furnaces and Hot Water Heaters Heat Pumps Non-Flammable Insulation in a Basement Pumps and Tanks used in Solar Energy Systems Stairways and Staircases (attached to the building, and not separated from it by elevated walkways) Sump Pumps Water Softeners, Water Filters, and Faucets (installed as an integral part of the plumbing system) Well Water Tanks and Pumps Required Utility Connections Footings, Foundations, Posts, Pilings, Piers, or Other Foundation Walls and Anchorage Systems Required to Support a Building)

Umbrella and Excess Liability Policies: Personal Coverage - Coverages and Limits of Liability Limits of Liability

The limit of liability is the maximum the insurer will pay for damages resulting from one occurrence regardless of the number of... Claims That Are Made Scheduled Vehicles Scheduled Watercraft Scheduled Premises Insured Persons Lawsuits That Are Brought Vehicles Involved In The Accident Premiums That Are Paid All damages that come out of the same accident (including continuous or repeated exposure to the same general conditions, or the same offense including a series of related offenses) shall be deemed to arise from one occurrence regardless of the frequency of repetition, the number or kind of media that is used, or the number of claimants.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions Products-Completed Operations Hazard

The products-completed operations hazard refers to the following... Bodily injury and property damage that is caused by the named insured's product or the named insured's work, if it takes place away from a premises that is owned or rented by the named insured (this does not include products that are still in the physical possession of the named insured, or work that has not yet been completed or abandoned) The named insured's work is considered to be completed at the earliest of the following times... When the work called for in the contract has been completed. When the work that is supposed to be done at the site has been completed (if the contract calls for work at more than one site) When that part of the work that is done at a job site has been put to its intended use by a party that is not another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair, or replacement, which is otherwise complete, is treated as completed. The products-completed operations hazard does not include bodily injury or property damage that is caused by the following... The transportation of property (this does not count if the injury or damage is related to a situation created by the loading or unloading of a vehicle) The existence of tools, uninstalled equipment, or abandoned or unused materials.

National Flood Insurance Program NFIP Dwelling Form Definitions Regular Program

The regular program is the final phase of a community's participation in the National Flood Insurance Program. During this phase, a "flood insurance rate map" is in effect and the full limits of coverage are available under the act.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Retained Limit

The retained limit is the greater of... The total limits of liability of all underlying insurance that provides coverage for the occurrence, the minimum liability limits for the underlying insurance, in the event of an occurrence involving a scheduled vehicle, scheduled watercraft, or scheduled premises or the amount that is shown on the declarations page as the self-insured retention.

Umbrella and Excess Liability Policies Standardized Forms

This class based on standardized form language from the ISO and AAIS. Insurance companies are encouraged, and often do, follow these forms but they are not required to do so. It is important that you review the policies you are selling thoroughly to ensure that you understand what they do and do not cover.

National Flood Insurance Program Eligibility

To be eligible to participate in the National Flood Insurance Program (NFIP), an individual must live in a community that is participating in the Program. Participation in the NFIP is voluntary. To join, the community must... Complete an application (until the application is approved, members of the community can get NFIP insurance through the "Emergency Program"; once approved, the policies will be transferred and thereafter issued through the "Regular Program") Adopt a resolution of intent to participate and cooperate with FEMA. Adopt and submit a floodplain management ordinance that meets or exceeds the minimum NFIP criteria. The floodplain management ordinance must also adopt any Flood Insurance Rate Map (FIRM) or Flood Hazard Boundary Map (FHBM) for the community. In order to avoid policies purchased only when floods are imminent, the effective start date of coverage for NFIP plans is generally 30 calendar days after the application is completed and the premium is paid. That means coverage won't begin for 30 days after the purchase of a policy. Note that a community does NOT have to be in a floodplain to be eligible for the NFIP.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Underlying Insurance

Underlying insurance is the required underlying insurance and any other policies that provide the insured with liability coverage for an occurrence to which this policy applies.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Completion Bond

A completion bond requires that money that has been borrowed has to be put toward the completion of a project.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds

A contract bond is one classification of surety bonds which are (obviously) connected to contracts.

Surety Bonds and Surplus Lines Surety Bonds Judicial Bonds Fiduciary Bonds

A fiduciary judicial bond is often set up when someone is entrusted to handle the property of another by a court. An example of this would be a bond set up with the executor of an estate. These are generally filed in probate court rather than civil or criminal court.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Labor and Material Bond

A labor and material bond protects an owner contracting for work from liens from subcontractors or laborers who were not paid by the general contractor for services and materials.

Surety Bonds and Surplus Lines Surety Bonds License and Permit Bonds

A license or permit bond is a type of surety bond that is often required by public and municipal entities as a condition of granting a license or permit for a specific activity. The bond requires that principal party that is attempting to get the license or permit has to comply with relevant laws and regulations.

Surety Bonds and Surplus Lines Surety Bonds Judicial Bonds Litigation (Court) Bond

A litigation judicial bond is usually a requirement when a party that is bringing a suit seeks to freeze the assets of another party. This kind of bond can also be required when the suing party attempts to restrain another party from some action.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Payment Bond

A payment bond is established by a contractor to guarantee that subcontractors and material suppliers receive the compensation they owed under a contract. If the contractor is unable to provide the required compensation, the surety bond can become a pool of money that the subcontractors and material suppliers can lay claim to. The Miller Act requires contractors who have been awarded contracts for the construction, alteration, or repair of federal buildings that exceed $100,000 to furnish a payment bond. Another form of payment bond is a mechanic's lien surety bond. This type of payment bond also ensures that subcontractors who have filed a mechanic's lien will be paid if their claim proves successful. Enforced by state statutes, a mechanic's lien is made against the property on which the work was performed (on the principle that the subcontractor added value to the property with parts and labor and therefore the subcontractor has ownership of that added value until properly compensated). In other words, this bond is intended to pay subcontractors when they haven't been paid by the general contractor. The mechanic's lien surety payment bond removes the property owner from the claim process by putting the assurance from the property onto the surety; if the claim is paid by the surety, the principal will indemnify the surety as in all other surety bond contracts.

Other Policies Earthquake Insurance Deductible

Due to the fact that earthquake insurance covers catastrophic events, the deductible for an earthquake insurance policy will generally be higher than the deductible for other forms of property insurance. The deductible for this kind of insurance tends to range between 10% and 25% of the coverage amount.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Performance Bond

A performance bond is designed to protect the obligee, usually the owner of a plot of land, if the principal, commonly a contractor, fails to fulfill their contractual obligations, normally constructing a building. If the contractor fails to complete the construction project, the surety that issued the bond will have two choices on how to proceed. They can hire a new contractor to complete the contract or they can give the land owner an agreed upon amount of money that will cover the land owner's losses. The Miller Act (40 U.S.C. §§ 3131-3134) requires that contractors who are undertaking the construction, alteration, or repair of federal buildings under contracts of more than $100,000 must furnish a performance bond with a face amount that is considered adequate for the protection of the federal government. Many states, counties, and municipalities have their own versions of the Miller Act that obligate contractors working on public buildings to provide surety bonds that provide protection for the state, county, or municipal government.

Surety Bonds and Surplus Lines Surety Bonds Public Officials Bonds

A public officials bond is established and required by law in jurisdictions to guarantee that public officials will perform the duties of their job honestly and faithfully. This kind of bond is also set up to guarantee that public officials will properly handle taxpayer monies.

National Flood Insurance Program: Increased Cost of Compliance Eligibility

A structure covered by building property coverage that experiences a loss caused by a flood must a repetitive loss structure (a repetitive loss structure is a structure that conforms to the following conditions... the structure is covered by flood insurance that is issued by the NFIP, the structure has been damaged by a flood on at least two occasions during a 10- year period (which ends on the date of the second loss), the average cost to repair the flood damage was, at a minimum, 25 percent of the market value of the structure, in addition to the current claim, the NFIP paid the previous qualifying claim. In addition, the State or community must have a cumulative and substantial damage provision or repetitive loss provision in its floodplain management law or ordinance) and a structure that has had flood damage where the cost of repairs is, at minimum, 50 percent of the market value of the structure. The State or community must have a substantial damage provision in its floodplain management law or ordinance. This coverage pays money to the named insured to comply with State or local floodplain management laws or ordinances that meet the minimum standards of the National Flood Insurance Program. The insurer pays for compliance activities that exceed those standards under the following conditions... The structure is a repetitive loss structure, elevation or flood proofing is done in a risk zone (this is done to the preliminary or advisory base flood elevations that are provided by FEMA which the State or local government has adopted and is enforcing for flood-damaged structures in such areas, increased cost of compliance coverage does not apply to situations in some specific zones where the community has derived its own elevations and is enforcing elevation or flood-proofing requirements for flood damaged structures to elevations derived solely by the community), elevation or flood proofing is done above the base flood elevation to meet State or local freeboard requirements (that a structure must be elevated above the base flood elevation). Under the minimum NFIP criteria, States and communities must require the elevation or flood proofing of structures in certain unnumbered zones to the base flood elevation where elevation data is obtained from a Federal, State, or other source. Such compliance activities are also eligible for increased cost of compliance coverage. This coverage will also pay for the incremental cost (after demolition or relocation) of elevating or flood proofing a structure to meet State or local floodplain management laws or ordinances, during the rebuilding process. This coverage will also pay to bring a flood damaged structure into compliance with State or local floodplain management laws or ordinances. The coverage will pay even if the structure had received a variance before the present loss from the applicable floodplain management requirements.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Supply Bond

A supply bond involves a supplier, who is the principal, guaranteeing the delivery of goods or materials to a contractor, in accordance with a contract.

Surety Bonds and Surplus Lines Surplus Lines Definitions and Markets

A surplus line of insurance is defined by the fact that it is established with a nonadmitted insurer. Surplus lines of insurance often cover unusual risk situations that are not covered by standard lines of insurance. Surplus lines may also provide coverage if there is a small supply of a particular line of insurance in the standard insurance market.

Other Policies Ocean Marine Insurance Partial Losses

Although a total loss is handled by an Ocean Marine policy much the same was that a P&C policy does, partial losses are handled slightly differently under an Ocean Marine policy. Under the Sue and Labor clause, general average losses are losses that result from a captain and crew jettisoning cargo in order to save the ship or the remaining cargo. These kinds of losses ("General Average Losses") are shared proportionally by all the owners of the ship's cargo. "Particular Average Losses" arise from causes that are not connected to a jettison. Each property owner bears his or her loss individually.

Other Policies Ocean Marine Insurance Ocean Marine Perils Inchmaree Clause

An inchmaree clause, which is occasionally called an additional perils clause, covers damage that is the result of latent defects in the hull or machinery of a vessel. This kind of clause also covers damage arising from errors in navigation or management of a vessel by a captain or crew.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Insured Person

An insured person is one of the following... The named insured or a relative, a person using a scheduled vehicle or scheduled watercraft with the named insured's permission or the permission of a relative, a person that has custody of pets that are owned by the named insured or a relative, as long as that person does not have custody as part of a business, a party but only in regards to vicarious liability for the acts or omissions of a person as previously described.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions Occurrence

An occurrence can be any of the following... With regard to bodily injury or property damage, an occurrence is an accident. This includes the continuous or repeated exposure to the same harmful conditions. When dealing with personal injury, an occurrence is an offense that comes out of an insured's business. All damages that are a result of the same injurious material or acts are considered part of one occurrence. With regard to advertising injury, an occurrence is an offense that is committed when the named insured is advertising goods, products, and services. As with personal injury, all damages that come from the same material or acts are considered to be part of one occurrence.

National Flood Insurance Program NFIP Dwelling Form Definitions Act

Any reference to "act" is a reference to The National Flood Insurance Act of 1968, and any amendments.

Specialty and Professional Liability Insurance Employment Practices Liability

As mentioned above, companies who already have D&O insurance may have some coverage as well against claims of unfair labor practices. Claims over employment practices are now the most common lawsuits brought against a company's management. A 2008 survey found that 40 percent of all reported Directors & Officers insurance claims from public, private, and nonprofit entities involved employment practices. Even companies with D&O insurance may, however, decide that Employment Practices Liability insurance is also required; it can be added to a D&O contract as an endorsement, or be bought as seperate policy. Some insurers will also offer coverage for punitive damages. It should be noted that fines and criminal penalties are always excluded from coverage. Often, defense costs will be included as part of the coverage limits, rather than set above the limits on coverage. Employment Practices Liability insurance establishes coverage for liability that comes from claims of... Employment Discrimination Sexual Harassment Breach of Employment Contract Negligent Evaluation Failure to Employ or Promote Wrongful Discipline or Infliction of Emotional Distress Wrongful Termination

Other Policies Aviation Insurance

Aviation insurance is designed to cover risks associated with the ownership and operation of aircraft. Aviation insurance is very similar to ocean marine insurance. Those who operate aircraft are generally transporting goods not their own and therefore need coverage for the physical craft and liability coverage for the goods and personnel being transported. Aviation insurance is generally divided into commercial policies and private policies. Business policies are designed to cover aircraft that are used by a large number of pilots in a specific set of conditions. A business policy would be used for a company that uses aircraft to transport goods (such as a shipping company) and persons (such as an air ambulance company). A private policy is used for an aircraft that will be used by a small number of pilots (often one) in a wide variety of situations. Due to the high cost of aircraft accidents, the premiums on aviation insurance can be rather high and almost all aviation insurance policies will have incentives for safety training and procedures.

Surety Bonds and Surplus Lines Surety Bonds Cancellation

Cancellation of a surety bond and whether it can even be cancelled is dependent on the type of surety bond in place. Some surety bonds have terms to them and will expire after a certain amount of time. If the principal desires to maintain these types of bonds, they will need to go through a renewal process with the surety. Some bonds will continue to be in force until special conditions cancel the bond. This kind of surety bond may be cancelled upon the completion of the principal's obligations to the obligee. Alternatively, cancelling the bond may require that a statement or affidavit be sent to the surety releasing the surety's responsibility.

Specialty and Professional Liability Insurance Directors and Officers Liability

Directors and officers are sued for a variety of reasons connected with their company positions, including misuse of company funds, misrepresentation of company assets, fraud, failure to comply with workplace laws, and lack of corporate governance among other issues. Simply hiring employees potentially exposes directors or officers to employment practices litigation (EPL), which may be covered by some D&O policies. Bankruptcy or downsizing often leads to lawsuits. Directors and Officers (D&O) liability insurance provides liability coverage for the directors and officers of corporations. The coverage is most often for claims of financial loss caused by mismanagement. Company Indemnification Coverage will pay on behalf of the company insured, for a loss which results from a wrongful act which each director or officer must pay. D&O insurance is often written on a claims-made basis with exclusions for intentional acts, dishonest acts, bodily injury liability, and property damage liability. D&O liability insurance protects corporate directors and officers in the event they are personally sued -- often in addition to the company being sued -- by investors, employees, vendors, competitors, and customers, among other parties. The insurance protects directors and officers by covering legal fees, settlements, and other costs; in addition, the coverage sometimes can extend to protect the company if it is named in a suit, as well. It is a judicious purchase for even small or non-profit companies; some individuals are unwilling to serve on a non-profit or other Board of Directors if there is no insurance protecting them in the event they are personally named in a suit. Venture capitalists or other financiers may also require D&O policies before providing funding. Note that with these policies, the defense costs fall within the policy limits.

Surety Bonds and Surplus Lines Surety Bonds Fidelity Bonds

Fidelity bonds are a type of surety bond established with an insurance company. The purpose of a fidelity bond is to provide protection against employee theft. A fidelity bond, essentially, serves the same purpose as coverage form A of a commercial crime policy. The principal, or party who agrees to complete the obligation, of this kind of bond is an employee. The obligee, or party to whom the obligation is owed, is the employer. The surety, or party that provides the bond and steps in if the principal fails to fulfill the obligation, for a fidelity bond is an insurance company. By becoming a party to a fidelity bond, an employee agrees to not steal from the employer. If the employee robs his or her employer (thus failing to meet the obligation of the bond), the insurance company will reimburse the employer for the losses directly related to the loss.

National Flood Insurance Program: Property Not Covered, Exclusions, and Deductibles Exclusions

For a business these exclusions might include the following... Loss of Revenue or Profits Loss of Access (to the insured property or described location) Loss of Use (of the insured property or described location) Interruption of Business or Production Additional Living Expenses (that are shouldered while the insured building is being repaired) Additional Living Expenses (that are shouldered while the insured building is able to be occupied) The Cost of Complying with any Ordinance or Law (that requires or regulates the construction, demolition, remodeling, renovation, or repair of property) (this includes the removal of resulting debris. This exclusion does not apply to any activities that were described in the "increased cost of compliance" section)

Surety Bonds and Surplus Lines Surety Bonds How Surety Bonds Work

For example, a company is planning on constructing a new corporate headquarters. However, the company cannot afford to cover the entire cost of the building. Several investors in the company pledge money to cover the remaining cost. Since the company must have this money for the project to go through, they establish surety bonds with the investors in the amount that each one pledged to the project. If one of the investors does not manage to come up with the money they pledged, the surety company that provided the bond will step in and provide the missing funds. Afterwards, the surety company will approach the investor and demand reimbursement for the debt that they covered. Losses on the part of the obligee, the company, due to the failure of the principal, the investor who pledged money, were covered by the surety company. Unlike an insurance policy, the surety is not indemnifying the principal. Rather they are taking care of the principal's obligation. Any indemnity is owed by the principal to the surety company. In the above example, this happens when the surety company requires the principal to reimburse them for covering the debt. Surety bonds are grouped into four categories that we'll discuss: judicial bonds, contract bonds, license and permit bonds, and public officials bonds.

National Flood Insurance Program Becoming an NFIP Agent Flood Insurance Education - Purpose

For the first 40 years, there were no special education requirements for producers who wished to sell flood insurance. That changed when President George W. Bush signed the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004. Section 207 of this Act instructs the Director of the Federal Emergency Management Agency (FEMA), in cooperation with the insurance industry, state insurance regulators, and other interested parties to... (1) Establish minimum training and education requirements for all insurance agents who sell flood insurance policies. (2) Not later than 6 months after the date of enactment of this Act, publish these requirements in the Federal Register, and inform insurance companies and agents of the requirements. Although the standards were to be set by the federal government, FEMA decided to have all certification and verification of training done by each state. The September 2005 Federal Register therefore published the "Basic Flood Insurance Course Outline" for states to include when establishing or updating their flood insurance training requirements. This outline enables insurance agents to gain a basic understanding of the NFIP so that they can share the information with their customers. Washington along with every other state adopted the minimum standard set in the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004. The purpose of the three-hour training requirement was to ensure that customers would get appropriate guidance in purchasing flood insurance and so that the processing of applications would be consistent and improved. In addition to the required three hours of training, FEMA urges that insurance agents pursue additional training "on a regular basis to gain an understanding of more advanced flood insurance topics."

Umbrella and Excess Liability Policies: Personal Coverage - Coverages and Limits of Liability Coverages Defense Coverage

If a claim is made (or a suit is brought) against the insured for damages for bodily injury, personal injury, or property damage caused by an occurrence the insurer... May investigate and settle any claim (or suit) that they decide is appropriate, will provide a defense (at their expense), with council chosen by the insurer, unless the occurrence is covered by underlying insurance, may join with the insured person, or any underlying insurer, in the investigation, defense, or settlement of any claim or suit that the insurer believes may require payment under this policy (however, the insurer will not help with costs and expenses incurred by any underlying insurer. Neither will the insurer help pay costs and expenses an underlying insurer is obligated to provide), will pay expenses incurred for the defense of the insured in any country where the insurer is prevented from defending the insured person, as long as the insurer has given written consent for that defense.

National Flood Insurance Program: General Conditions Reduction and Reformation of Coverage

If the premium the insurer receives from the named insured was not enough to buy the kind and amount of coverage that was requested, the insurer will provide only the amount of coverage that can be purchased for the premium payment that was received. The policy can be reformed to increase the coverage to the amount that the named insured requested by the following means.

National Flood Insurance Program: General Conditions Other Insurance

If a loss covered by this policy is also covered by other flood coverage that was not issued under the act, the insurer will not reimburse the named insured for more than the amount of insurance that the named insured is entitled to for lost, damaged, or destroyed property. This is subject to the following... The insurer will only pay a proportion of the loss. This proportion is found by comparing the amount of insurance that applies under this policy to the total amount of insurance covering the loss. If another policy states that it is excess insurance, this policy will be primary. This policy will be primary (but subject to its own deductible) up to the deductible in the other flood policy (unless the other policy is excess). When the other deductible amount is reached, this policy will participate in the same proportion that was described above, for the remainder of the loss. *If there is other insurance in the name of the named insured's condominium association that covers the same property covered by this policy, then this policy will be in excess over the other insurance.

Other Policies Yacht Policy

If a private boat is too large to qualify for coverage under a boatowners policy, it is possible to insure it under a yacht policy. A Yacht policy is a multi-line contract which can cover vessels with enclosed cockpits, sleeping quarters, and galleys. Coverage for a yacht policy can be written on a full marine, or open peril, basis or a limited hull, or named peril, basis. These policies may require certain safety equipment, such as lifeboats, flares, or fire extinguishers. Total losses are typically settled at an agreed value. Replacement cost is commonly used as the basis of repayment of partial losses. Warranties may be used in these policies to establish geographical cruising limits, and in identifying a premium discount when the vessel is safely in storage (layup coverage)

Surety Bonds and Surplus Lines Surety Bonds Binders

If a surety bond is approved but the bond itself cannot be immediately issued, a temporary version of the bond, called a binder, may be given out. This is done to ensure that there is some proof of the bond even if the actual bond has not been issued. The binder ceases to be valid once the actual surety bond is issued.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Terms of Policy Conformed to Statutes

If any provision of the policy does not conform to the statutes of the state listed as the residence of the named insured on the umbrella insurance application, the provision is deemed to be amended to conform to those statutes. Any disputes over the coverages provided or the provisions of the policy are governed by the laws of the state listed as the named insured's residence.

National Flood Insurance Program: Other Coverages Condominium Loss Assessments

If the flood policy insures a unit in a condominium, the insurer will cover the named insured's share of loss assessments that are charged against the named insured by the condominium association, up to the building limit of liability. The insurer will not pay for loss assessments charged against the named insured and the condominium association by any governmental body. Additionally, the insurer will not pay for assessments charged against the named insured if they are the result of a deductible under the insurance purchased by the condominium association insuring common elements, a loss to personal property, including the contents of a condominium building, a loss sustained by the condominium association that was not reimbursed under a flood insurance policy written under the Act because the building was not insured for an amount equal to the lesser of 80 percent or more of its full replacement cost or the maximum amount of insurance permitted under the Act. The insurer will not pay for assessments charged against the named insured if a payment for a condominium building loss, combined with payments made under other NFIP policies for the same building loss, exceeds the maximum amount of insurance permitted under the Act for that kind of building. The insurer will not pay for assessments charged against the named insured if a payment for a condominium building loss, in combination with recovery that is available to the named insured (as a tenant in common) under NFIP condominium association policies for the same building loss, exceeds the amount of insurance permitted under the Act for a single-family dwelling. Loss assessment coverage does not increase the building limit of liability.

National Flood Insurance Program: General Conditions Reduction and Reformation of Coverage Discovery Of Insufficient Premium Or Incomplete Rating Information After A Loss

If the insurer discovers (after there is a flood loss) that the premium payment was not enough to buy the requested amount of coverage, the insurer will send the named insured, and any mortgagee or trustee, a bill for the required additional premium for the current and past policy terms. If the named insured or the mortgagee or trustee pays the additional premium within 30 days of the bill, the insurer will reform the policy to increase the amount of coverage to the originally requested amount. This is effective to the beginning of the past policy term. If the insurer determines (after there is a flood loss) that the rating information they have is incomplete the insurer will ask the named insured to send the required information. The named insured has to submit the information before the claim is paid. If the insurer does not receive the additional premium by the date it is due, the claim will be settled at the reduced amount of coverage. Further, the amount of the coverage can only be increased by an endorsement.

National Flood Insurance Program: General Conditions Reduction and Reformation of Coverage Discovery Of Insufficient Premium Or Incomplete Rating Information Before A Loss

If the insurer discovers (before there is a flood loss) that the premium payment was not enough to buy the requested amount of coverage, the insurer will send the named insured, and any mortgagee or trustee, a bill for the required additional premium for the current policy term. If the named insured or the mortgagee or trustee pays the additional premium within 30 days of the bill, the insurer will reform the policy to increase the amount of coverage to the originally requested amount. This is effective to the beginning of the current policy term. If the insurer determines (before there is a flood loss) that the rating information they have is incomplete, and that prevents them from calculating the additional premium, the insurer will ask the named insured to send the required information. The named insured has to submit the information within 60 days of the request. When the insurer determines the amount of additional premium for the current policy term, they will follow the procedure outlined earlier. If the insurer does not receive the additional premium (or additional information) by the date it is due, the amount of the coverage can only be increased by an endorsement.

National Flood Insurance Program: General Conditions Pairs and Sets

If there is a loss that occurs to an article that is part of a pair or set, the insurer has the following options... Paying the named insured an amount that is equal to the cost of replacing the lost, damaged, or destroyed article, after accounting for depreciation. Paying the named insured the amount that represents a fair proportion of the total value of the pair or set.

Umbrella and Excess Liability Policies: Commercial Umbrella - Definitions Impaired Property

Impaired property is a tangible property (but not the named insured's product or the named insured's work) that cannot be used or is less useful because of the following... The property incorporates a product or work that is defective, deficient, inadequate, or dangerous. The named insured failed to complete the terms of a contract. The property has to be able to be restored by the following... Repair, replacement, adjustment, or removal of the named insured's product or the named insured's work. The fulfillment of the terms of the contract or agreement.

National Flood Insurance Program NFIP Dwelling Form Definitions Improvements

Improvements are fixtures, alterations, installations, or additions that are a part of an insured dwelling or the apartment in which the named insured lives.

Umbrella and Excess Liability Policies: Personal Coverage - Coverages and Limits of Liability Coverages Additional Payments

In addition to the limit of liability, when it is applicable, the insurer will pay for the following... All expenses that the insured incurs in the settlement of a claim or the defense of a lawsuit, interest that accrues after entry of a judgment, until the insurer has paid, offered to pay, or deposited in court, the amount of the judgment that the insurer is responsible for (this does not come into play if the insurer has not been given notice of a suit or the opportunity to defend the insured person), the premium on any appeal bond or attachment bond required in any lawsuit the insurer defends, up to $250 for a bail bond that is required because of an accident that results in bodily injury, personal injury, or property damage, reasonable expenses, including loss of earnings up to $200 per day, incurred at the insurer's request. No one is entitled to receive duplicate payments for the same elements of additional payments under this policy and an underlying policy.

Other Policies Boatowners

Insurance Services Office, Inc. (ISO) insurance policies do not usually cover boats unless they are under 26 feet and not used for commercial purposes. While a homeowner's policy may provide some coverage for a boat which fits these conditions, it will not provide more that $1,500 for a boat loss. A boatowners policy is built in a similar way to a homeowners policy but provides coverage that is similar to what is found in a personal auto policy. In fact, a boatowner's policy has been called a "nautical version of the Personal Auto policy". It is a multi-line contract which is prepackaged to provide property and casualty coverage to a boat owner. The first section of this kind of policy (Coverage A) establishes open peril coverage for a boat's hull, motor, trailer, equipment, and accessories that are built for use on the water. Losses are usually settled on an Actual Cash Value or Replacement Cost basis. The second section (Coverage B) deals with bodily injury and property damage liability for occurrences that come out of the use or maintenance of covered property or non-owned boats. The liability coverage includes payments for claims and defense costs. Personal property is not covered under boatowners insurance, though it is usually covered under a homeowners policy. These policies also don't cover watercraft which is rented, chartered, or otherwise hired for a fee. Racing activities may also be excluded from a boat policy. Medical payments are paid for expenses that are reported within 3 years of an accident. This is generally found under Coverage C. Uninsured boaters may be covered by Coverage D.

Surety Bonds and Surplus Lines Surety Bonds Judicial Bonds

Judicial bonds, also known as court bonds, are a classification of surety bond utilized by courts of law. The most common, of course, is a bail bond. In most states, bail bonds are offered through specialized private enterprises who often also employ "bounty hunters" when someone violates a bail bond. Some jurisdictions (Massachusetts, Maine, Oregon, Illinois, Kentucky, Nebraska, Wisconsin, and Washington, D.C.) have outlawed private bail bonds and provide alternative public systems for obtaining a bond in lieu of paying the full bail amount. There are numerous other bonds associated with legal actions. In some cases, they provide assurance that a settlement will be paid, pending an appeal, that an action has standing (to be surrendered if a suit is deemed frivolous, for example), to back a demand that property be seized by an authority (such as having the Sheriff's Department seize a property that is allegedly in arrears), or for numerous other judicial procedures which courts or other parties require having an assurance of financial responsibility bonded.

Umbrella and Excess Liability Policies: Personal Coverage - Coverage Form Definitions Land Use

Land use is the use of any real property that is owned, leased, or occupied by the named insured or a relative. This only counts if the land either generates receipts or is used for recreational purposes.

Umbrella and Excess Liability Policies: Commercial Umbrella - Coverage Form Limits of Liability

Limits of insurance are the most the insurer will pay regardless of the number of insureds, the number of claims that are made, the number of suits that are brought, or parties that make claims or bring suits. The general aggregate limit is the maximum the insurer will pay for all damages covered under the Insuring Agreement with the exception of damages included in the "products-completed operations hazard" or coverage which doesn't have an underlying aggregate limit. The general aggregate limit is also the most the insurer will pay for damages that come out of bodily injury, property damage, personal injury, or advertising injury liability that is affected by an aggregate limit in the underlying insurance. The products-completed operations aggregate limit is the maximum the insurer will pay for any damages included in the products-completed operations hazard. The each occurrence limit is the most the insurer will reimburse the insured for bodily injury, property damage, personal injury, or advertising injury liability that results from an occurrence.

Other Policies Mobile Home Insurance

Mobile home insurance is a specialty line of coverage that provides the owners of mobile homes and manufactured homes with insurance that is comparable to what is provided by a standard homeowners policy. A mobile home insurance policy will commonly provide coverage for the physical structure of the mobile home or manufactured home, the owner's personal property, and liability. This type of insurance is distinct from the HO-7 homeowners insurance policy form.

Other Policies Earthquake Insurance

Most property insurance policies do not offer coverage for losses that result from an earthquake. The reason for this is the same reason why insurance coverage is not commonly provided most types of natural disasters. A natural disaster rarely damages or destroys one property. An insurer who is providing earthquake coverage for multiple properties in the same area could end up completely drained of funds after only one major earthquake. However, the need for this kind of insurance still exists. One solution is a specialty line of insurance that is separate from other forms of property insurance. Earthquake insurance normally provides coverage for damage that is direct result of an earthquake. This kind of insurance does not normally cover other forms of damage that might be connected to an earthquake such as fires, tsunamis, floods, or landslides.

Other Policies Ocean Marine Insurance Warranties

Ocean Marine policies fall under the Doctrine of Warranties, which means that statements on the application must be absolutely true for the contract to be valid. A warranty under an Ocean Marine policy is different than the warranties we've studied which apply to other contracts, because ocean marine policies can be rendered void if one of the following four implied warranties are violated... the ship is seaworthy, the purpose of the voyage is legal, the ship will follow the planned route and schedule, the cargo is in good condition and properly packed.

Other Policies Ocean Marine Insurance

Ocean marine insurance does not just cover ships and cargo while they are traveling over water. The modern form of marine insurance offers what is referred to as "warehouse to warehouse" coverage. In other words, cargo is protected under this kind of insurance throughout its transit, whether over land or over water. Hull insurance is used to cover physical damage done to a watercraft while it is in transit on a lake, river, or ocean. A "Running Down" clause adds protection for damage done to another vessel caused by negligent use of the covered watercraft. Cargo insurance offers protection for property that is being transported. Settlement of losses covered by this kind of insurance is commonly done on an agreed value basis. Cargo insurance is usually purchased on a per trip or per voyage basis. This kind of insurance is held by the owner of the shipment. Freight insurance covers income losses that come from cargo being damaged, destroyed or lost during transit. This kind of insurance is, effectively, business income insurance for shipments that cross bodies of water, and usually is bought in conjunction with Hull coverage. Protection and indemnity insurance covers liabilities arising from the operation of a sea vessel. Boat operators have a number of liabilities including, but not limited to, oil spills, cargo loss, and workers compensation style claims. This also covers defense costs. As with other forms of marine insurance, the divisions are not set in stone. Multi-line insurance, and the fact that the Nationwide Marine Insurance definition does not have the force of law, means that certain policies may offer coverage which is not identical to the divisions laid out here.

Other Policies Ocean Marine Insurance Ocean Marine Perils Perils of the Seas

Perils of the seas are the unique ocean marine perils that are associated with insured property being located on the ocean. The following are considered to be perils of the seas... Heavy Weather Collision Stranding Barratry (is the willful and illegal sinking of a ship or its cargo, or misconduct by the crew which damages the vessel or cargo) Piracy Jettison (jettison is the dumping of cargo to save a ship or its cargo)

Other Policies Ocean Marine Insurance Ocean Marine Perils Perils on the Seas

Perils on the seas are unique ocean marine perils that could occur on the sea or on land. This means that these perils can apply to the overland portion of the transit. The following are considered to be perils on the seas... Fire Lightning Explosion Wind and Hail Volcanic Action Smoke Falling Objects Earthquake

National Flood Insurance Program: Property Not Covered, Exclusions, and Deductibles Property Not Covered

Personal Property (that is not inside a fully enclosed building) A building (and the personal property in it that is located entirely in water, on water, over water, or on the seaward side of mean high tide if it was constructed or substantially improved after September 30, 1982) Open Structures (including a building used as a boathouse, and personal property located in, on, or over water) Recreational Vehicles (other than travel trailers whether affixed to a permanent foundation or on wheels; and travel trailers only when affixed to the property) Self-Propelled Vehicles or Machines (this includes their parts and equipment. The insurer does not cover self-propelled vehicles or machines that are not licensed for use on public roads if they are... used to service the described location and designed and used to assist handicapped persons, while the vehicles or machines are inside a building at the described location) Land, Land Values, Lawns, Trees, Shrubs, Plants, Crops, or Animals Accounts, Bills, Coins, Currency, Deeds, Evidences of Debt, Medals, Money, Scrip, Stored Value Cards, Postage Stamps, Securities, Bullion, Manuscripts, or other Valuable Papers Underground Structures and Equipment (including wells, septic tanks, and septic systems) Walks, Walkways, Decks, Driveways, Patios (other surfaces located outside the perimeter walls of the insured building or the building in which the insured unit is located) Containers, including related equipment, such as tanks containing gases or liquids Buildings or Units (if more than 49 percent of the actual cash value of the building or unit is below ground This does not count if the lowest level is not below the base flood elevation, but is below ground because the earth was used as insulation material in conjunction with energy efficient building techniques) Fences, Retaining Walls, Seawalls, Bulkheads, Wharves, Piers, Bridges, and Docks Aircraft or Watercraft (or their furnishings and equipment) Hot Tubs and Spas (that are not bathroom fixtures, and swimming pools, and their equipment, such as heaters, filters, pumps, and pipes) Property that is not Eligible for Flood Insurance Because of the Provisions of the Coastal Barrier Resources Act and the Coastal Barrier Improvement Act Personal property the named insured owns in common with other unit owners who make up the membership of a condominium association

Other Policies Personal Article Floaters

Personal article floaters are a form of inland marine insurance that is used for personal articles that receive limited coverage under standard homeowners insurance. These articles can be covered as scheduled personal property under the homeowners insurance. There are certain advantages to having a separate coverage for the valuables. Personal article floaters have a number of advantages over a scheduled item endorsement. This article provides worldwide coverage, has greater amounts of coverage, provides open peril coverage, and doesn't contain a deductible.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions Personal Injury

Personal injury is injury that is a result of any of the following offenses... False Arrest, Detention, or Imprisonment Malicious Prosecution The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises (a person has to occupy the location by the permission, or on behalf of, the location's owner, landlord or lessor) The oral, written, televised, videotaped, or electronic publication of material that slanders or libels a party or disparages a party's goods, products or services. The oral, written, televised, videotaped, or electronic publication of material that violates a person's right of privacy. Mental injury, mental anguish, humiliation, or shock that is directly caused by the previously mentioned offenses. *Personal injury is not the same thing as bodily injury or advertising injury.

Umbrella and Excess Liability Policies Personal Coverage

Personal umbrella liability insurance is usually added to a scheduled personal liability policy, such as a homeowners, personal auto, or watercraft policy. While policies like a homeowner's policy have minor coverage for items like watercraft, it's not much coverage, and it excludes events like theft unless an endorsement is used. Coverage under this kind of policy is typically written in increments of one million with a single per occurrence limit for bodily injury, property damage, and personal injury liability. If the coverage provided by the umbrella policy is broader than the coverage offered in the base policy, the umbrella policy will "drop down" to cover the loss (after taking out a self-insured retention). Liability umbrella policies typically do not "kick in" until the retention limit is reached. Most umbrella policies will have a requirement of having 100,000 - $300,000 underlying limit. This is why the cost of umbrella policies are relatively inexpensive (for example: $2,000,000 policy may have premiums as low as $300 per year). This kind of policy is most often worldwide in its coverage, but it does not commonly pay directly to the insured.

Other Policies Personal Watercraft Insurance

Personal watercraft insurance is designed for smaller, lighter water vehicles, such as a jet ski. This policy has a higher level of coverage for medical payments due to the higher chance of physical injury, and covers things like replacement to personal effects (cameras, clothing) damaged while using the vehicle.

National Flood Insurance Program NFIP Dwelling Form Definitions Expense Constant

The expense constant refers to a flat charge the named insured has to pay on each policy to defray the Federal Government's flood insurance expenses.

National Flood Insurance Program NFIP Dwelling Form Definitions Federal Policy Fee

The federal policy fee is a flat charge the named insured is required to pay on each policy. This fee covers expenses that are not covered by the expense constant.

National Flood Insurance Program: General Conditions Other conditions

The following are other common conditions... Policy Renewal Requirements in Case of Loss No Benefit to Bailee Loss Payment Abandonment Salvage Appraisal Mortgage Clause Suit Against the Insurer Subrogation Loss Settlement

Surety Bonds and Surplus Lines Surety Bonds Fidelity Bonds Fidelity Bonds Vs. Crime Policies

Recall that many policies, such as Commercial Property policies, exclude theft from coverage. A fidelity bond offers coverage very similar to Insuring Agreement #1 of a Commercial Crime policy. Because Commercial policy coverages are a la carte, it's possible to get a monoline Commercial Crime policy to perform the same essential function as a fidelity bond. Remember, though, the differences between how a bond functions, and how insurance functions, even through the same actions are covered. An insurance policy can be endorsed to cover indirect losses, a deductible will apply, and the insured is not responsible to repay the loss.

National Flood Insurance Program: General Conditions Continuous Lake Flooding

Say that an insured building has been continuously flooded by rising lake waters for more than 90 days. And, let's suppose it is fairly certain that this flooding will result in a covered loss to the insured building that is greater than the building policy limits plus the deductible, or greater than the maximum amount payable for any one building loss. In this situation, the insurer will pay the lesser of these two amounts without waiting for further damage to occur, but only if the named insured signs a release agreeing to the following... to make no further claim under this policy, not to seek renewal of this policy, not to apply for any flood insurance under the act for property at the described location, not to seek a premium refund for current or prior terms. If the policy term ends before the insured building has been flooded continuously for 90 days, the provisions of this paragraph apply when the insured building suffers a covered loss before the end of the policy term. If an insured building is subject to continuous lake flooding from a closed basin lake, the named insured may elect to file a claim under any part of this section. According to this particular part, the insurer will pay a claim as if the building is a total loss, even though it has not been continuously inundated for 90 days. This is subject to the following conditions... Lake flood waters must damage or imminently threaten to damage the building. Before a claim is approved, the named insured has to do the following... Agree to a claim payment that reflects the named insured buying back the salvage on a negotiated basis, grant the conservation easement described in FEMA's "Policy Guidance for Closed Basin Lakes," which will be recorded in the office of the local recorder of deeds, make no further claim under this policy, not to seek renewal of this policy, not to apply for any flood insurance under the act for property at the described location, not to seek a premium refund for current or prior term. Within 90 days of approval of a claim, the named insured has to move the building to a new location outside the areas of special consideration. FEMA will give the named insured an additional 30 days to move if there is a good reason to extend the time. Before the final payment of the claim, the named insured has to acquire an elevation certificate and a floodplain development permit from the local floodplain administrator for the new location of the building. Before the approval of the claim, the community is required to do the following... adopt a permanent land use ordinance (or a temporary moratorium that does not last more than 6 months and will be followed immediately by a permanent land use ordinance) that is consistent with the provisions specified in the conservation easement, agree to declare and report any violations of this ordinance to FEMA so that flood insurance to the building can be denied, agree to maintain a deed restriction on any affected property the community acquires an interest in. Before the approval of the claim, the affected State must take all actions that are outlined in FEMA's "Policy Guidance for Closed Basin Lakes." The named insured has to have NFIP flood insurance coverage that is continuously in effect from a date that is established by FEMA until the named insured files a claim. If a later owner buys NFIP insurance that goes into effect within 60 days of the date of the transfer of the title, any gap in coverage during that 60-day period will not be a violation of this continuous coverage requirement. For the purpose of honoring a claim under this paragraph, the insurer won't consider any increased coverage that became effective after the date established by FEMA to actually be in effect. The exception to this is any increased coverage which acts as an inflation adjustment. This paragraph takes effect for a community when the FEMA Regional Director for the affected region provides to the community, in writing, the following... Confirmation that the community and the State are in compliance with the conditions described earlier and the date the named insured has to have flood insurance by.

National Flood Insurance Program: Property Not Covered, Exclusions, and Deductibles Deductibles

Separate deductibles apply to the building and personal property insured by this policy, for each loss from flood. The deductible does not apply to the following sections... Loss Avoidance Measures Condominium Loss Assessments Increased Cost of Compliance

Specialty and Professional Liability Insurance Errors and Omissions

Since insurance agents and brokers are charged with the duty of protecting the interests of their clients and the insurance company they belong to, insurance policies exist to provide them with some liability coverage. Errors and omissions insurance specifically reimburses the insured insurance agent or broker for damages that are a result of negligent actions carried out by the agent or broker in the course of performing duties for another party. This can include offering improper coverage, failing to renew a policy, or failing to name a mortgagee on a policy. This kind of coverage does not deal with bodily injury or property damage. Neither does it cover fraudulent, dishonest, or criminal acts if they are committed by an insured. And, instead of the "reasonable person" standard we've come to know and love, these policies up the ante, using the standard of a "reasonable professional". As a result of the variety of professions which use this insurance, there are no standard forms. Generally speaking, professional liability insurance can be divided into Malpractice policies, and Errors and Omissions contracts. These policies typically operate on a "Claims-Made" basis. This kind of insurance is not limited to insurance agents. The following professionals can also benefit from errors and omissions liability insurance... Realtors Architects Engineers Attorneys Accountants Advertisers Broadcasters Publishers Stockbrokers

National Flood Insurance Program Write Your Own Program

The "write your own" (WYO) program involves cooperation between FEMA and private insurers to allow property and casualty insurers to write, issue, and service their own flood insurance policies, without any risk. All of the terms, rates, conditions, and exceptions are determined by FEMA and are identical regardless of which private WYO insurer is issuing the policy. A large majority (over 90%) of current flood insurance policies are set up through the WYO program, although it is still possible to purchase plans directly from the NFIP. An insurance producer can place their business with private WYO insurers, can set up the insurance directly with the NFIP, or set up their insurance with both the NFIP and WYO companies. The federal government is the reinsurer of this kind of insurance. Participating private insurers in the WYO program receive an expense allowance for policies that are issued and claims that are filed. The Federal Insurance Administration (FIA) sets the rates, eligibility requirements, and coverage limits. If the insurer's losses exceed the premiums paid, FIA pays the difference. If the premiums exceed losses, the excess funds may be returned to the federal government. These participating private insurers may also set up their flood insurance within existing personal lines of business, as long as they also set up the insurance within guidelines and regulations established by the NFIP.

National Flood Insurance Program: Personal Property

The NFIP sells insurance for the structure and contents separately. They operate independently, with different limits and separate deductibles. If the named insured purchases personal property coverage, the insurer will protect personal property inside a building at the described location against direct physical loss by or from flood to, in the following situations... The property is owned by the named insured or household family members. The property is owned by guests or servants, if the named insured chooses to include it. Personal property at another location is also covered for a period of 45 days if it was removed to keep it safe. Personal property in a building that is not fully enclosed has to be secured to keep it from floating out of the building. Coverage for personal property includes the following property... Air Conditioning Units Carpets (that are not permanently installed over unfinished flooring) Carpets Over Finished Flooring Clothes Washers and Dryers "Cook-Out" Grills Food Freezers (other than walk-in, and food in any freezer) Portable Microwave Ovens and Portable Dishwashers Coverage for items of property in building enclosures that are below the lowest elevated floor of elevated post-FIRM buildings located in specific zones, and in basements, regardless of the zone, is limited to the following items, if they are installed in their functioning locations and (if necessary) connected to a power source... Air Conditioning Units Clothes Washers and Dryers Food Freezers (other than walk-in, and food in a freezer) If the named insured is a tenant and has insured personal property, the insurer will cover that property, including a cooking stove or range and refrigerator. The policy will also cover improvements that were made (at the named insured's expense) in the dwelling or apartment in which the named insured lives. The coverage for improvements will not exceed 10 percent of the limit of liability for personal property. Use of this insurance is the named insured's option, but it does reduce the personal property limit of liability. If the named insured is the owner of a unit and has insured personal property, the insurer will also cover interior walls, floor, and ceiling for a maximum of10 percent of the limit of liability shown for personal property. The insurer will not pay more than $2,500 for any one loss to the following kinds of personal property... Artwork Photographs Collectibles Memorabilia Porcelain Sports Cards Rare Books or Autographed Items Jewelry, Watches, Precious Stones Articles of Gold, Silver, or Platinum Furs Personal Property Used in a Business *The insurer will only pay for the functional value of an antique.

National Flood Insurance Program

The National Flood Insurance Program was created in 1968 as a solution to the lack of private insurers who were willing to offer flood insurance. The reason for this reluctance is simple: floods are catastrophic and so are the losses they cause. Insurance companies can't make money on a product with such massive losses to pay out. Adverse selection is also a problem when it comes to flood insurance - with the high cost of flood insurance, the only people buying it are the ones who really need it, and who are most likely to file a claim. Because the NFIP is a government program, it consists of two main objectives giving communities an incentive to reduce flood losses through preventative measures and providing a system of flood insurance to personal and business properties at reasonable rates. The National Flood Act of 1968 enabled the American government to create the NFIP to meet these goals. The program is managed by the Federal Insurance Administration (FIA), which is a branch of FEMA. Incentive was added for communities to enroll by later declaring that communities who did not would be ineligible for federal disaster relief.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Other General Provisions

The following are other general provisions... Policy Period and Territory Other Insurance Payment of Premium and Fees Automatic Termination Bankruptcy of an Insured Person Legal Action Against the Insurer The Insurer's Rights to Recover Payment Severability of Insurance Joint and Individual Interests

Umbrella and Excess Liability Policies: Commercial Umbrella - Conditions

The following are the conditions that are found in this commercial umbrella liability policy... Appeals Audit Bankruptcy or Insolvency Cancellation Changes Duties in the Event of an Occurrence, Claim, or Suit Inspection Legal Action Against the Insurer Maintenance of Underlying Insurance Other Insurance Premium Separation of Insured Transfer of Rights of Recovery Against Others to Us Terms Conformed to Statute Transfer of the Named Insured's Rights and Duties When Loss is Payable

National Flood Insurance Program NFIP Dwelling Form

The following is a summary of the NFIP's standard flood insurance policy dwelling form. This insurance only covers non-condominium residential buildings that are designed to be dwellings for one to four families and single family units in condominium buildings.

National Flood Insurance Program: Increased Cost of Compliance Other Provisions

The increased cost of compliance coverage is not included in the calculation to determine whether coverage meets the 80 percent insurance-to-value requirement for replacement cost coverage.

Umbrella and Excess Liability Policies: Commercial Umbrella - Coverage Form Coverage

The insurer agrees to pay damages that are in excess of the retained limit, for bodily injury or property damage that the insured is legally liable for as a result of an occurrence or personal injury that the insured person becomes legally liable for as a result of an occurrence.

Umbrella and Excess Liability Policies: Personal Coverage - Coverages and Limits of Liability Coverages

The insurer agrees to pay damages that result from an occurrence that are in excess of the retained limit for the following... bodily injury or property damage that the insured is legally liable for as a result of an occurrence, personal injury that the insured person becomes legally liable for as a result of an occurrence, damages also include prejudgment interests that are awarded against the insured.

Umbrella and Excess Liability Policies: Commercial Umbrella - Coverage Form Defense

The insurer has the right and duty to investigate any claim and defend any suit that seeks damages that are covered by the terms and conditions of this kind of policy under the following conditions... The limits of Insurance of the underlying policies and the limits of insurance of any other insurance providing coverage to the insured have been exhausted by the actual payment of claims for an occurrence. Damages are sought for an occurrence which is covered by the umbrella policy but not by underlying policies (or any other insurance providing coverage to the insured). If the insurer assumes the defense of any claim or suit... The insurer will investigate any claim and defend any suit against the insured that seeks damages on account of an occurrence covered by the policy (the insurer has the right to investigate, defend, and settle the claim or suit) Any expenses incurred by the insurer in the investigation of any claim or defense of a suit are in addition to the limits of insurance. The insurer will pay for the following as expenses, if they are not included in the coverage provided by the underlying policies... Premiums on bonds to release attachments Bond amounts will not exceed the limits of insurance, and the insurer is not obligated to apply for or furnish those bonds. Premiums on appeal bonds required by law to appeal a claim or suit the insurer defended Bond amounts will not exceed the limits of insurance, and the insurer is not obligated to apply for or furnish those bonds. Costs that are taxed against the insured in a claim or suit the insurer defends. Pre-judgment interests awarded against the insured on the portion of the judgment paid by the insurer that is within the limits of insurance (if the insurer offers to pay the relevant limits of insurance, they won't pay any pre-judgment interest that is based on a period of time after the offer) Interest that accrues after the entry of judgment and before the insurer has paid (offered to pay or deposited in court) the part of the judgment that is within the applicable limit of insurance. Actual and reasonable expenses shouldered by the insured at the request of the insurer. The insurer won't investigate a claim or defend a suit after the relevant limits of insurance have been used up.

National Flood Insurance Program: General Conditions Conditions Suspending or Restricting Insurance

The insurer is not liable for losses that occur while there is a hazard that is increased by any means that are in the named insured's control or knowledge.

Umbrella and Excess Liability Policies: Commercial Umbrella - Coverage Form Limits of Liability Retained Limit

The insurer is only obligated to pay for that portion of any damages that exceed the retained limit, which is the greater of the total of the limits of the underlying policies and the limits of any other insurance providing coverage to the insured during the policy period or the self-insured retention amount that is a result of an occurrence not covered by the underling policies or by any other insurance providing coverage to the insured during the Policy Period.

National Flood Insurance Program: Property Not Covered, Exclusions, and Deductibles Exclusions

The insurer only provides coverage for direct physical loss by or from flood. This means that the insurer does not reimburse the named insured for certain losses. For an individual, this may exclude from coverage... Cash and Valuables Emblements (and growing crops, trees, shrubs) Livestock Aircraft and Motor Vehicles Fences, Retaining Walls, Swimming Pools, Bridges, Docks Underground Structures (wells, septic tanks, etc.) Structures That Are Containers (silos excepted) Finished Structural Elements

National Flood Insurance Program: General Conditions Duplicate Policies Not Allowed

The insurer will not insure a property under more than one NFIP policy.

National Flood Insurance Program: Increased Cost of Compliance Limit of Liability

The insurer will pay the named insured up to $30,000 under the coverage for increased costs of compliance. However, it only applies to policies with building coverage. The payment of claims under this coverage is in addition to the amount of coverage which was selected by the named insured. The maximum amount the insurer can collect under this policy for both building property coverage and increased cost of compliance coverage cannot go over the maximum amount allowed under the act. The insurer does not charge a separate deductible for a claim under increased cost of compliance coverage.

National Flood Insurance Program: General Conditions Non-renewal of the Policy by the Insurer

The policy will not be renewed for the following reasons... The community where the named insured's property is located stops participating in the NFIP. A building has been declared ineligible under Section 1316 of the act.

National Flood Insurance Program: Other Coverages Sandbags, Supplies, and Labor

The insurer will pay up to $1,000 for the following costs, if they are shouldered by the named insurer to protect the insured building from a flood or the imminent danger of flood... Reasonable Expenses To Buy Sandbags, Pumps, Plastic Sheeting, Lumber, Fill For temporary Levees. The Value Of Work (that the named insured or member of household performs) This particular coverage only applies if damage to insured property from a flood is imminent, and the threat of flood damage is apparent. One of the following events must also occur. Flooding in the area near the described location, even if the flood does not reach the insured building A legally authorized official has to issue an evacuation for the community in which the insured building is located. This coverage does not increase the limits of liability.

National Flood Insurance Program: Other Coverages Property Removed to Safety

The insurer will pay up to $1,000 for the reasonable expenses the named insured incurs to move insured property to a place that contains the property in order to protect it from flood. Reasonable expenses include the value of work (at the Federal minimum wage) that the named insured or a member of the named insured's household performs. If the named insured moves insured property to a different location in order to protect it from flood, the insurer will cover that property while it is at that location for 45 days, starting on the date the named insured begins moving it there. The relocated personal property must be placed in a fully enclosed building or somehow reasonably protected from the elements. Any property that is removed, including a moveable home, must be placed above ground level or outside of the special flood hazard area. This coverage does not increase the limits of liability.

National Flood Insurance Program NFIP Dwelling Form Limits of Coverage

The minimum deductible for properties insured at $100,000 or less is generally $1,000. These deductibles are applied separately, so a policy which insured a structure as well as it's contents would essentially have a $2,000 deductible. Properties insured for more than $100,000 generally have a deductible of $1,250. For businesses with flood insurance, the coverage that can be purchased is capped at $500,000. Building losses are paid on a replacement cost basis as long as the amount of coverage equals or exceeds 80% of the replacement value, or the maximum allowed. Losses of insured contents are paid as ACV. 1-4 Family Structure $250,000 1-4 Family Home Contents $100,000 Other Residential Structures $500,000 Other Residential Contents $100,000 Business Structure $500,000 Business Contents $500,000 Renter Contents $100,000

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Maintenance of Underlying Insurance

The named insured has to ensure that the required underlying insurance is maintained, with regard to all the scheduled vehicles, scheduled watercraft, and scheduled premises, while this policy is in force. If the required underlying insurance is cancelled (or not renewed), and not replaced without a lapse in coverage, the named insured must notify the insurer immediately. If there is a failure to maintain the required underlying insurance, the insurer is not obligated to reimburse the insured for more than they would have been obligated to pay for if the previous underlying insurance was still in effect.

National Flood Insurance Program: General Conditions Cancellation of Policy by the Named Insured

The named insured may cancel this policy in accordance with the appropriate rules and regulations of the NFIP. If the named insured cancels the policy, the named insured may be entitled to a full or partial refund of premium also under the appropriate rules and regulations of the NFIP.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Duty to Report Changes

The named insured must immediately notify the insurer when the following occurs... The named insured's mailing or home address changes, the residents of the named insured's household change, the people who regularly operate a vehicle change, the marital status of an operator changes, the named insured or a relative obtains a driver's license or operator's permit, the named insured gets an additional or replacement vehicle (or watercraft) and there is an intention to make it a scheduled vehicle (or scheduled watercraft), the named insured gets an additional or replacement residential or rental property and there is an intention to make it a scheduled premises, the limits of liability of the required underlying insurance change, the land use (or land use status) of any real property that is owned, leased, or occupied by the named insured or a relative changes, any business conducted from the named insured's residence changes. Failing to report any of these changes can result in a denial of coverage and/or a cancellation of the policy.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions The Named Insured's Product

The named insured's product is any goods or products (other than real property) that are manufactured, sold, handled, distributed, or disposed of by the following parties... Named Insured Others Who Trade Under the Named Insured's Name A Party Whose Business or Assets Have Been Acquired by the Named Insured *The named insured's product does not refer to vending machines or other property rented to, or located for, the use of others, but not sold. *The named insured's product can also be containers (other than vehicles), materials, parts, or equipment that are produced in connection with goods or products.

Umbrella and Excess Liability Policies: Commercial Umbrella - Additional Definitions The Named Insured's Work

The named insured's work includes the following... Work or operations that are performed by the named insured, or on behalf of the named insured. Materials, parts, or pieces of equipment that are provided in connection with this kind of work or this kind of operations. Warranties or representations that describe the fitness, quality, durability, performance, or use of the named insured's work. The presence, or lack of, warnings or instructions.

National Flood Insurance Program NFIP Dwelling Form Definitions Probation Premium

The probation premium is a flat charge the named insured has to pay on each policy that covers property in a community that the NFIP has placed on probation under the provisions of 44 CFR 59.24.

Surety Bonds and Surplus Lines Surety Bonds Principal, Obligee, and Surety Suretyship; Personal and Corporate

The term for guaranteeing the performance of another party is suretyship. There are two kinds of suretyship: personal and corporate. Personal suretyship occurs when an individual takes the role of surety and ensures that the principal performs their obligations. When this is done by an organization or corporation (such as an insurance company), it is known as corporate suretyship. Corporate sureties commonly provide surety bonds through independent producers. These producers are agents of the corporate surety empowered by a power of attorney. The power of attorney gives the agent the ability to negotiate the elements of the bond and sign the final version of the surety bond.

Surety Bonds and Surplus Lines Surety Bonds Principal, Obligee, and Surety

There are three parties that are involved in a surety bond. The principal, also known as the obligor, is the party that agrees to fulfill some obligation. The principal has a contractual obligation to the obligee to perform their obligation under the contract. The principal has a contractual obligation to the surety to cooperate with any investigation of default and to reimburse the surety if the surety steps in to complete the principal's obligation. The obligee is the party that the obligation is owed to. Another way to see this is that the obligee is the party for whose benefit the surety bond is written. The obligee has a contractual obligation to the principal to complete their responsibilities under the contract including paying the principal for completion of their obligation. The obligee has a similar obligation to the surety. If the surety fulfills the principal's obligation, the obligee will still need to complete their portion of the contract. In this case any compensation owed by the obligee will go to the surety. The surety, also known as the guarantor, is the party that provides the surety bond. The surety is, more importantly, the party that fulfills obligations if the principal fails to carry them out. In addition, the surety has a contractual duty to determine if the surety has actually defaulted on their obligation to the obligee. The surety is also contractually obligated to abide by any indemnity agreement that is a part of the bond.

Other Policies Ocean Marine Insurance Ocean Marine Perils

There are two categories of Ocean Marine Perils, Perils of the Seas and Perils on the Seas.

Surety Bonds and Surplus Lines Surety Bonds Contract Bonds Bid Bond

This bond is filed by a contractor, and it requires that a contractor, whose bid is accepted, will sign a contract and set up a performance bond.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Transfer

This kind of policy cannot be transferred to another person without the written consent of the insurer. If a named insured dies, this policy will provide coverage for the legal representative of the named insured until the end of the policy period. The coverage is also provided for people who were covered under the policy as of the date of the named insured's death.

National Flood Insurance Program: General Conditions Amendments, Waivers, Assignment

This policy cannot be changed nor can any of its provisions be waived without the express written consent of the Federal Insurance Administrator. No action that the insurer takes under the terms of this policy constitutes a waiver of any of the insurer's rights. The named insured may assign this policy in writing when they transfer the title of a property to someone else, except under the following conditions... This policy covers only personal property. This policy covers a structure during the course of construction.

Umbrella and Excess Liability Policies: Personal Coverage - General Provisions Changes

This policy contract, the umbrella insurance application, the declarations page, and all endorsements to this policy issued by the insurer contain all the agreements between the insurer and the named insured. The terms of this policy may not be changed or waived except by an endorsement issued by the insurer. If the insurer broadens any coverage afforded under the current edition of the policy, during the policy period, without additional premium charge, that change will automatically apply to the policy as on the date the coverage change is implemented in the state where the named insured lives. If the named insured asks the insurer to delete a scheduled vehicle, scheduled watercraft, or scheduled premises from a policy, the scheduled vehicle, scheduled watercraft, or scheduled premises will not be covered as of the date of the deletion.

Other Policies Recreational Vehicle Coverage

This policy gives protection for recreational vehicles and motor homes and covers some of the costs that are more commonly associated with them. This coverage is useful when the lower limits of traditional automobile insurance will not cover the actual liability incurred with a recreational vehicle. The policy can be designed to cover losses which occur in foreign countries, such as Mexico and Canada, and it can cover expenses which will occur while traveling, such as hotel costs while the vehicle is being repaired. Finally, if a policy holder is interested in using their recreational vehicle as a full-time residence, this policy will replace their homeowners policy and will cover many of the same risks that homeowners policies cover (such as injury on the property).

National Flood Insurance Program: Increased Cost of Compliance

This policy pays the named insured to comply with a State or local floodplain management law or ordinance that affects repairs or reconstruction of a structure suffering flood damage. Eligible compliance activities include things like elevation, flood proofing, relocation, or demolition of a structure. Eligible flood proofing activities are limited to nonresidential structures and residential structures with basements that satisfy FEMA's standards.

National Flood Insurance Program: General Conditions Concealment or Fraud and Policy Voidance

This policy, is void, has no legal force or effect, cannot be renewed, and cannot be replaced by a new NFIP policy if the named insured or any other insured have done the following in regard to any NFIP insurance... intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct or made false statements. This policy will be void on the date the wrongful acts were committed. Fines, civil penalties, and imprisonment under applicable Federal laws may also apply to acts of fraud or concealment. This policy can also be voided for reasons other than fraud, misrepresentation, or wrongful acts. This policy is void from its inception (and has no legal force) under the following conditions: The property is located in a community that was not participating in the NFIP at the beginning of the policy's and not join or reenter the program during the policy term. The property listed on the application is not eligible for coverage under the NFIP.

Umbrella and Excess Liability Policies: Commercial Umbrella Automatic Replacement Coverage

This type of coverage replaces coverage that comes from the underlying insurance when the aggregate limits have been impaired or exhausted.

Umbrella and Excess Liability Policies

Umbrella and Excess Liability Policies are very similar types of insurance. The difference is, Excess liability is extra - it will only pay if there is another policy covering the occurrence. Excess liability policies are designed to increase the amount of protection. This kind of policy does not usually broaden the scope of coverage but rather raises the limit on the coverage. Excess liability coverage functions when it is attached to another policy. Umbrella liability policies are very similar, but an Umbrella policy will pay regardless of whether there is other coverage.They are designed to add protection against catastrophic liability losses. Umbrella liability policies are usually added to the insurance provided by another policy, but again - it is possible to have an umbrella policy with no underlying policy. The main purpose of an umbrella liability policy is to provide extra coverage when the limits of liability coverage on the base policy are exhausted. Umbrella liability policies can also provide broader coverage against things that are not covered in the base policy. Umbrella policies come in two types: personal and commercial.

National Flood Insurance Program: Increased Cost of Compliance Exclusions

Under the increased cost of compliance coverage, the insurer will not pay for the following... The cost to comply with a floodplain management law or ordinance in communities that are participating in an emergency program. The cost associated with enforcement of an ordinance or law that requires an insured to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to, or assess the effects of pollutants. The loss in value to an insured building or other structure because of the requirements of an ordinance or law. The loss of residual value of an undamaged portion of a building which is demolished as a consequence of the enforcement of a State or local floodplain management law or ordinance. Any Increased Cost of Compliance under this coverage... until the building is elevated, flood proofed, demolished, or relocated, unless the building is elevated, flood proofed, demolished, or relocated as soon as possible after the loss occurs (this cannot exceed 2 years) Code upgrade requirements that are not specifically related to a State or local floodplain management law or ordinance. Compliance activities that are needed to bring additions or improvements (that are made after the loss) into compliance with State or local floodplain management laws or ordinances. Loss caused by an ordinance or law that the named insured was required to comply with before the current loss. Rebuilding efforts that do not meet the NFIP's minimum standards requirements (this includes situations where the named insured has received a variance to rebuild the property to an elevation below the base flood elevation from the State or community) The increased cost of compliance for a garage or carport. A structure that is insured under an NFIP Group Flood Insurance Policy. Assessments made by a condominium association on condominium unit owners in order to pay the increased costs of repairing a commonly owned building (after a flood) so it is in compliance with State or local floodplain management ordinances or laws.

National Flood Insurance Program: Increased Cost of Compliance Conditions

When a structure indemnified under building property coverage sustains a loss that is caused by a flood, the insurer's payment for the loss will be for the increased costs of elevating, flood proofing, relocating, or demolishing the structures which are caused by the enforcement of current State or local floodplain management ordinances or laws. The payment for eligible demolition activities will be for the cost to demolish and clear the site of the building debris which is also the result of the enforcement of current State or local floodplain management ordinances or laws. Activities that are eligible for the cost of clearing the site include those that are necessary in order to stop utility service to the site and ensure abandonment of on-site utilities. When the building is repaired or rebuilt, it must be intended for the same occupancy as the present building unless otherwise affected by a requirement of a current floodplain management ordinances or laws.

Surety Bonds and Surplus Lines Surety Bonds Surety Bond Three-Party Contracts vs Insurance Policies

While similar to insurance in some ways, a surety bond is not the same as an insurance policy. An insurance policy is a two-party contract between an insured and an insurer. Loss is expected and the risk of loss is transferred to the insurer. If a loss does occur, the insurer will protect the insured by paying out benefits to cover the loss. A surety bond is a three-party contract between the principal, obligee, and surety. The surety bond acts as a protection should the principal party fail to fulfil the obligation guaranteed by the bond. This means that loss is not expected and there is no transfer of risk. Furthermore, the bond does not protect the principal party but, instead, protects the obligee who is relying on the principal to complete their obligations. In the event that the principal does fail, the surety will step in to complete the obligation. Once the obligation has been fulfilled, the surety will demand reimbursement from the principal. In other words, a surety bond is followed by subrogation as the surety attempts to recover the loss they paid out. This arrangement may be contractually spelled out as an indemnity agreement, a separate agreement that the surety requires the principal to sign prior to issuing the bond that guarantees the principal is responsible for repaying any money paid by the surety in the process of settling a claim. The bond guarantees to the obligee that money will be made available by the surety but the principal is then required to indemnify (pay back) the surety. The purposes of these two products are distinctly different. An insurance policy is purchased to provide financial protection to the insured that will come into effect if the insured suffers losses. A surety bond is a guarantee that someone will cover an obligation a party owes to another party. A surety bond is acquired by a principal from the surety and then agreed to by the obligee. Through the surety bond, the principal is guaranteeing that they can be trusted to complete obligations for the obligee. The surety is only party to the bond in order to ensure that the obligee is not harmed if the principal does not uphold their end of the agreement.