Oklahoma Adjusters License

No Benefit to Bailee

A Bailey holds property that others have interested to them They don't have rights to collect on another parties property

Moral hazard

A character defect that causes some people to exaggerate or fabricate losses in order to collect money from an insurance company. Examples of this are fraud, arson, exaggerating a property or injury claim

Proximate cause

A continuous chain of events that cause loss or damage that was reasonably foreseeable Example: fire damage to a home leads to smoke and water damage

Arbitration

A method of settling disputes in a liability loss Arbiter will review both parties evidence and make the decision

Reciprocal insurer

A non-Inc. Association of individuals or businesses, called subscribers that are engaged in Cooperative insurance programs. Each policyholder is insured by all other policy holders, and each insures the others. Coverage is exchanged on a reciprocal basis.

Fraternal insurer

A nonprofit organization that is operated solely for the benefit of its members. A fraternal insurer provides its members with social and insurance benefits.

Contributory negligence

A person is partially responsible for their own injuries. Can't recover their damages if they contributed to the loss.

Blanket coverage

A single amount of insurance for different property or different locations

Scheduled limit

A specific amount of insurance on a list of buildings or property Ex: watch, wedding ring, tennis bracelet

Accident

A sudden, accidental, unintended event causing loss or damage An accident must be identifiable as to time and place

Good faith

Abstain from carrying out fraudulent practices and unfair settlements If customer does not act on good faith, insurer may be released from contract. If insurer does not act on good faith, law may enforce serious penalties

Peril

Actual cause of loss Fire, lightning, wind, hail

Adjuster

An adjuster is a representative of the insurance company that determines the cause and the amount of the loss.

Representations

An applicants written or verbal statement that is true to the best of their knowledge. Statements on applications are generally considered representations.

Lloyds of London

An association that insures specialized risks

Combined single limit

Combines injury and property amounts per occurrence Expressed as 100,000 This would mean bodily injury and property damage would have $100,000 combined per occurrence.

Homeowners policy

Contains two sections: Section one property - deductible applies per occurrence Section to liability - no deductible applies

Characteristics of an insurance contract

Contract of adhesion Dash this is drafted solely by the insurer. Accept or reject it. Aleatory contract - based on exchange of unequal amounts or in certain events. Personal contract - identities of involved parties is important to the insurer Conditional contract- there are conditions and rules where both parties must comply

Replacement cost value RCV

Cost to repair or replace damaged property without deducting depreciation

Section 2 - liability

Coverage E - liability Coverage F - medical payments Additional coverages

Vacancy

Coverage denied or reduced if building is vacant (no residents or contents) for 60 days Not the same as property being an occupied

Contract of adhesion

Drafted solely by the insurer (accept or reject) Ambiguity (unclear) in policy language will end up working in the insureds favor. Insurance company will be liable to pay up.

Personal contract

Identities of involved parties is important to insurer

Appraisal

If insured and insurer don't agree on loss value: Either party may demand appraisal Each party chooses an appraiser and is responsible for their fees The appraiser select a third-party if they can't agree and the fee is split Decision between any two or three parties is binding

Pro Rata

If there is other insurance at time of loss, each policy pays their share of the loss.

Personal injury

Injury of character or emotional well-being resulting from: False arrest, detention, imprisonment or malicious prosecution Libel, slander, or defamation of character Invasion of privacy, wrongful entry, or addiction

4 steps in Negligence

Legal duty owed Breach of duty Actual damages Proximate cause

Indirect or consequential loss

Not a direct result of a covered payroll it is a consequence of or results indirectly from a direct loss. Examples include additional living expenses or loss of business income coverage.

Nonrenewal

Occurs when the insurer will not continue the policy be on the expiration date. The insurer must give 30 days written notice for all other reasons including non-renewal.

Conditions

Outlines what insured must do Describes some insurer responsibilities

Speculative risk

Possibility of either gain or loss. Traditional insurance cannot be used to cover this type of loss.

Law of Large Numbers

Probability or likelihood of an event. The larger the number of similar risks, the more accurate and reliable a prediction of loss will be. Used to determine underwriting standards and appropriate ratings to ensure adequate premiums.

Assignment

Property and casualty contracts are personal. Insured can't assign or transfer to another without insurars written consent

Declarations page

Provides identifying or descriptive information and is specifically written for our insured. Personalizes an individualized the policy. Includes: Named insured and address The property insured Policy premium Policy term or. Amount of insurance or limits of liability Any applicable deductibles

Loss

Reduction In value, quality, or quantity measurable in financial terms.

HO 1 and HO8

Same basic named perils

HO - two, HO - four, HO - six

Same broad named perils

Direct loss

The direct actual physical loss, distraction or damage to the property insured. Most property policies provide coverage against direct losses to the insurance property.

Morale hazard

The disposition of some people to be careless or irresponsible because they have insurance. Examples of this are reckless driving, leaving a home or car unlocked.

Aggregate limits

The maximum amount policy pays in anyone policy period For all occurrences

Insurance

Transfer of risk from one individual to a large group with similar risk.

Risk

Uncertainty regarding financial loss

Exclusions

What policy won't do or situations with no coverage. Example: "wear and tear"

Insurable Interest

When the applicant for insurance stands to suffer a loss or an injury as a result of an event which is to be insured against

Actuary

a mathematician that establishes in determines the rates to be charged for insurance coverage

Coverage B Separate Structures

$10,000 Additional coverage for separate structure set apart from dwelling by clear space Coverage limit is 10% of coverage a Losses are settled at replacement cost Structures use for business purposes excluded

Coverage E - liability

$100,000 Pays for bodily injury and property damage to a third-party for negligent ask whether on or off insureds location The insurer pays all sums up to the limit of liability and the insured is legally liable to pay for bodily injury or property damage This coverage is only paid to a third-party not to the insured or insured family members

Coverage A Dwelling

$100,000 Provides coverage for the dwelling instructions attached to the dwelling including an attached garage as well as the materials and supplies used for construction or repair and not get attached Velocity settled at replacement costs when coin insurance requirement is met Land is excluded from coverage

Coverage F - Med Pay to Others

$1000 Pays reasonable and necessary medical expenses per person that are incurred within three years of the accident This coverage does not require negligence on the part of the insured This coverage is only paid to a third-party not to the insured or insured's family members

Coverage D Additional Living expense / Loss of use

$30,000 Provides necessary and reasonable increases in living expenses so the insured can maintain their normal standard of living following a covered loss No deductible applies Coverage limit is 30% of coverage a

Coverage C - Personal Property

$50,000 Provides coverage for personal property owned, worn or used by the insured and resident relatives Coverage limit is 50% of coverage and Losses are settled the actual cash value except HO-5 Coverage territory is worldwide

Part D damage to insurers auto

$500 deductible Insurer pays for direct and accidental loss to vehicle Comprehensive- other than collision Pays for more accidents Missiles, fire, theft, explosion, windstorm, flood, vandalism, riot, contact with animal Collision- vehicle upset and collision with another object Paid at ACV

Part C uninsured/underinsured motorists

25/50- bodily injury only Uninsured motor vehicles: Vehicle without liability Underinsured vehicle Hit and run or phantom vehicle A motorist with an insolvent insurer Motorist with an insurer that denies coverage Max limits can purchase are equal to Liability modify injury limits

Total loss

A "total loss" means that the vehicle repair cost plus the salvage value of the vehicle meets or exceeds the actual cash value of the motor vehicle prior to the loss, as provided in used dealer guidebooks

Proximate cause

A direct relationship between the breach of duty owed and the sustained damages Can't collect damages unless the negligent act is the proximate cause resulting in injury or damage Ex: Farmer Jones grain silo blows over in a windstorm. Five weeks later, he allows his cattle to feed on the water soaked grain that is lying on the ground. As a result, 17 cows Contract an intestinal ailment and die.

Material facts

A fact that influences whether ensure accepts risk. These are obtained when questions are asked for the application.

Concealment

A failure to disclose material facts. It's similar to misrepresentation, except involves withholding information. Both can be grounds for denying coverage. Example: I might not volunteer them a street race but the application doesn't ask if I street race.

Misrepresentation

A false statement about a material fact. Example: my car has this special feature when it really doesn't.

Endorsements

A form attached to add, delete, or change insurance policy

Physical hazard

A hazard that exists due to the nature of the property itself such as those inherent in the construction, occupancy, and exposure. Examples of this are potholes, icy roads, slick floors, a dead tree in the backyard

Agent/producer

A licensed individual that proposes, quotes, and sells insurance coverage. They are the insurance company representative who sells coverage.

Earthquake endorsement

Add the peril of earthquake All losses within 72 hours are considered one occurrence

Endorsements available for liability

Additional insured- Provides liability coverage for additional insured's, often used for roommates Business pursuits- Extends coverage under section two to include business pursuits listed on the endorsement Personal injury- extends coverage for personal injury including libel, slander, etc Home daycare- provides coverage for a home-based daycare. Premiums are based on enrollment Watercraft- extends coverage for sailboats more than 26 ft I. Length and watercraft with outboard motors exceeding 25 ho

Comparative negligence

Allows for recovery when both parties contribute to the loss. Award based on the extent of each parties negligence.

Casualty insurance

Also known as liability Pays for third parties financial loss due to insured's negligence 25/50/25 First two sets is Bodily Injury Last number is for property damage

Occurrence

An accident, including continuous exposure to the same conditions, which results in injury or damage

Mutual companies

An incorporated insurer owned by insureds that elect the companies management.

Stock companies

An incorporated insurer owned by the stock owners/share owners that elect the management of the insurer.

Underwriter

An underwriter decides which applicants for insurance are accepted, and which are rejected in order to meet the companies that desired financial goals. They evaluate risk.

Not covered Coverage C

Article separately described and specifically insured through another policy Animals birds or fish Aircraft in parts Personal property rented or held for rental to others Personal property of roomers or tenants Paper records, accounts, passports, deeds, etc. Motor vehicles, except those used to assist the handicapped or not designed for public roads

Mobile home endorsement

Available on the HO Dash two or HO Dash three policy The mobile home must be: At least 10 foot wide and 40 foot long Designed for year-round living Occupied by the owner Used for residential purposes

Aleatory contract

Based on exchange of unequal amounts or uncertain events. Example: insured pays premium for payment on covered loss customer may never experience a loss or insurer may pay more than policy premiums collected.

Deductibles

Building and contents coverage are purchased separately. The minimum deductible for the standard policy is $1000 per occurrence. A separate deductible applies to the dwelling in the contents.

Part F general provisions

Cancellation Must give written notice in writing 10 days for nonpayment and 20 days for all other reasons including non-renewal. After 60 days, insurer can cancel only for non payment, drivers license suspension, or material misrep

Personal property replacement cost RCV endorsement

Change is the valuation method on personal property from actual cash value ACV to replacement cost value RCV

Open perils for personal property endorsement

Changes the coverage on the coverage C- personal property section from named perils coverage to open perils coverage Available on the HO - three form only

Additional coverages of liability

Claim expenses including defense cost First aid expenses Damage to property of others of $2000 per occurrence, even if the insured is not legally liable

Deductibles

Condition requiring the insured to retain a specific portion of the loss Only apply to direct property losses Applies per occurrence Insurers used to require the insured share in the losses Deductibles can also serve to lower premiums

Section 1 - property

Coverage a - dwelling Coverage B - other structures Coverage C - personal property Coverage D - additional living expenses/loss of use Additional coverages

Dwelling policy

Covers risks that may not be covered by HO Policy Insured owns residence but rents it to someone else Dwelling not acceptable under homeowners program due to age or value Seasonal dwellings owned or rented Properties eligible include homes not farms that are designed for no more than four families or occupied by no more than five roomers or boarders

Different Dwelling policies

DP-1 Basic form is for named perils DP - 2 broad form is for named perils DP-3 special form is for dwelling open perils and personal property named perils

Property damage

Damage, destruction, or loss of use of tangible property

Actual damage

Damages must be incurred

D.I.C.E

Declarations Insuring agreement Conditions Exclusions

Pair and set clause

Determines valuation method when one item of a pair or set is lost by either: Repair or replace lost part Pay the difference in value before and after loss

Flood policy forms and provisions

Dwelling form- covers residential structures General property form- covers nonresidential and commercial structures These losses are settled at ACV not Replacement Cost Coverage which is usually reserved for single-family dwellings

Definition

Explain important terms used throughout the policy

Negligence

Failure to act as a reasonable and prudent person would under similar circumstances

Effective date

Flood insurance may be purchased either in one year or three-year prepaid policies. The standard waiting period for flood policies is 30 days from the date the application and premium are submitted

Proof of loss

Formal statement made by insured regarding loss Contains time and cause of loss, insurable interest, liens, other insurance, and inventory of property Must forward to insurer within 60 days Insurer has 60 days upon receipt to offer settlement or deny loss

Warranty

Guarantee made by the insured breach may void policy. Example: I only drive in the metro area. If I break that promise, that will breach the policy that was sold.

HO - four and HO - six

HO - four has coverage sea only new paragraph HO - six has both coverage a and C

HO - three and HO - five

HO-3 Coverage a&b - open perils Coverage C - broad perils HO-5 Open peril's for coverage a, B and C

Fire department service charge

He's up to $500 when the fire department is called to save or protect covered property from an endangering fire. This additional coverage applies to all homeowners forms unless noted and no deductible applies

Accident prevention course (defensive driver course)

If a driver in Oklahoma voluntarily attends an accident prevention course, the law in Oklahoma requires the insurer to allow a premium discount. A new course is required every three years to keep the discount.

Named nonowner coverage endorsement

If an auto operator does not own a vehicle, they can purchase the named non-owner coverage endorsement. Example: a company car is provided for the insured's regular use and they do not own another car for personal use. In this case, the insured wouldn't have a covered auto to insure, but would still need coverage when driving a borrowed or rented auto.

Loss settlement

If auto liability is reasonably clear, the insurer shall not recommend that third-party claimants make claims pursuant to the third-party claimants own policy solely to avoid paying claims. Insurers shall not require a claimant to travel and reasonably to inspect, obtain an estimate or have the vehicle repaired. Insurers shall, upon the request of the claimant, include the deductible of a first party claimant in any separgation demands. An insurer or a representative of the insurer shall not require a claimant to obtain vehicle repairs at a specific repair facility, including glass repair or replacement. An insurer shall not use a basis for cash settlement with a first party claimant an amount that is less than the amount that an insurer would pay if repairs were made.

Coverage for borrowed vehicles

If the insured borrows a vehicle from a private party, the coverage under the vehicle owners policy would be considered primary. The insurance policy would be considered secondary or excess for coverage

Property removed

If the insured removes the property from an endangering peril, the property is protected for up to 30 days This additional coverage applies to all homeowners forms unless noted and no deductible applies.

Property removed

In the event that property must be relocated because it has threatened by flood, it is covered up to 45 days

Flood exclusions

Indirect losses Contents, finished walls, floors, etc in a basement Fences, retaining walls, swimming pools Underground structures like sewer and septic systems Structures built on or above the water Animals and livestock Crops Trees, plants, or shrubs Money or securities

Bodily injury

Injury, sickness, or disease Includes required care, loss of services, loss of wages, and death

Abandonment

Insured can't give property to insurer and demand a total loss payment

Section II- Liability Definitions

Insured location: The residence and grounds listed A secondary premises identified on the deck page A non-owned premises were the insured temporarily resides Owned vacant property Owned cemetery plots Persons insured: Named insured Resident relatives Residence under age 21 in the care of the insured or a family member

Liberalization

Insurer can make changes applying to all existing policies without an endorsement on each Only applies when coverage is broadened or improved and no extra premium charged

Salvage

Insurer has right to any salvage after paying total loss Insurer sells or dispose of property to reduce claim cost

Duties to defend

Insurer owes defense when a potential covered judgment exists Some policies obligate insurer to pay all costs including: Premium for required bonds Reasonable customer expenses Any interest on a judgment prior to issuing payment for judgment

Part B Medical Payments

Insurer pays reasonable medical/surgical expenses incurred within 3 years from accident without regard to fault

Punitive damages

Intended to punish the wrong do or making an example of them, to discourage others from behaving similarly

Not covered in dwelling

Items insured by other insurance animals and pets Land Business structures Structures held for rental to others Aircraft Watercraft Motor vehicles Money and securities Paper records, passports, car titles, tax records, etc.

Theft under coverage c

Jewelry, furs $1500 Firearms $2500 silverware $2500

What makes a contract legally enforceable?

Legal purpose, competent parties, agreement (both offer and acceptance), and consideration (The insured promises to pay premiums; The insurer promises to pay covered losses)

Contractual liability

Liability assumed under contract Ex: construction agreements, property leases, equipment leases, etc.

Vicarious liability

Liability by association Liability imposed upon one party as a result of another's actions. Referred to as liability by association. Example: employee/employer, parent/child

Absolute/strict liability

Liability without negligence because the activity is inherently dangerous. Example: zoo or wild animals, handling hazardous materials, etc.

Assigned risk plan

Makes auto insurance available for uninsurable drivers unable to purchase insurance through the traditional market due to a poor driving record. All auto insurers are required to insure a percentage of these high risk drivers based on that company's auto insurance volume. The person making application with the plan for auto insurance will not know which insurer they are assigned until the policies received. The cost of this insurance is much higher than other auto insurance and would generally be considered a "last resort."

Coverage C Special Limits

Money $200 Securities $1500 Watercraft $1500 Trailers $1500 Business property on premises $2500 Business property off premises $500 Electrical appliances in the vehicle $1000

Liability exclusions

Motor vehicles except those used to assist the handicapped or designed for use on public roads Aircraft Watercraft- sailboats less than 26 ft in length or watercraft with outboard motor of 25 hp or less Professional liability Business activities Communicable diseases Sexual molestation Illegal drugs Intentional acts

Part E duties after an accident or loss

Must notify insurer Cooperate with insurer Authorize insurer to obtain Med reports or other pertinent records Submit to a sworn proof of loss or examination under oath **If uninsured motorist claim, must notify the police if a hit and run driver is involved Under damage to insureds covered auto, insured must: Protect property from further damage Notify police if stolen Permit insurer to inspect damaged property

Part A Auto liability exclusions 25/50/25

No permission (stolen) Livery Intentional injury or damage Employees while on the job Permissive users in the auto business Insurer does not provide coverage for ownership, maintenance or use of vehicles with less than four wheels, or vehicles other than the covered auto owned by or furnished or available for regular use by the named insured Organized racing Damage to property of owned by the insured

Insurer can only cancel after 45 days for:

Nonpayment of premium Material misrepresentation or discovery of fraud Insurance commissioner determines the policy continuation places the insurer in violation of state insurance laws Increasing the chance of loss by willful a reckless acts or omissions from the insured, a change in the risk, violation of local fire, health, safety, building or construction regulations, or ordinances Insureds criminal actions such as illegal drug activity

Cancellation/termination

Occurs when insurer or insured terminate contract before it's normal expiration Insurer must give 10 days written notice for nonpayment If insurance company initiates, the premium refund is calculated on a prorated basis. The insured only pays premium for the period of time they had coverage. If insured initiates, the insured make it a refund using a short rate calculation. This is a smaller refund as it includes a penalty percentage

Part D Transportation coverage

Other than collision coverage and if vehicle is stolen, insurer pays transportation expenses in addition to auto coverage $20 per day until car is returned or insurer pays for its loss Max payment of $600. Begins 48 hours after theft.

Standardized property exclusions

POWERINN Power failure off premises Ordinance or law Four Earthquake Rising water or flood Intentional acts Nuclear hazard Neglect

Dwelling extensions

Personal property away from premises up to 10% Emergency removal of property for up to 30 days Debris removal Reasonable repairs Fire department service charge up to $500 no deductible Lawns, trees and shrubs up to $500 each Collapse of buildings

Endorsements available for section 1 - property

Personal property replacement cost RCV endorsement Open perils for personal property endorsement Scheduled personal property endorsement Earthquake endorsement Mobile home endorsement

Loss assessment

Piece of to $1000 for a covered loss assessed against the insured by a corporation or association of property owners

Pure risk

Possibility of loss but gain is not possible. Only pure risks are insurable.

Scheduled personal property endorsement

Provide specialty coverage for valuable property items including jewelry, furs, fire arms, fine art, musical instruments, sporting equipment, and coin/stamp collections Coverage is provided with minimal exclusions including war, nuclear hazard, intentional acts, wear and tear, and inherent VICE Coverage territory is worldwide with the exception of fine arts. Fine arts coverage is limited to the United States, its territories and possessions, and Canada

Building alterations and improvements

Provides 10% of coverage sea for tenant improvements on an HO - four

Compensatory damage

Reimburse the claimant only for losses that are sustained The two types of compensatory damages are special in general Special damages include all direct and specific expenses involved including medical bills, lost wages, repair expenses, rental/towing bills, etc. General damages Compensate for items such as pain and suffering, and disfigurement.

Credit card, fund transfer card, forgery and counterfeit money

Reimburses up to $500 for the insurance legal obligation to pay losses resulting from the unauthorized use of their cards

Actual cash value ACV

Replacement cost minus Depreciation equals ACV Example: replacement cost of a television is $1000. It depreciates 10% per year and the insured has owned it for five years. The ACV is $500.

Coinsurance

Requires policyholder to carry adequate insurance on property or suffer penalty Percentage can vary by contract but is usually 80% Only applies to a partial loss. Policy limits paid on total loss DID divided by SHOULD multiplied by LOSS equals SETTLEMENT Example: the insured purchases a home for $120,000 and insures it for $120,000. On the day of the $10,000 fire, the house had a replacement value of $200,000. If the policy has an 80% coinsurance requirement, how much, if any, would the insured be paid? 200,000 / 80% = 160,000 (should) 120,000 / 160,000 x 10,000 = $7,500

Auto Med pay exclusions

Same exclusions as auto liability

Breach of legal duty

Sometimes, the legal duty owed by one party is not involved in the loss resulting in no negligence Ex: Tom warns his friend Bob not to use the fireplace in Tom's den because the chimney is blocked off. During Tom's absence, Bob built a fire anyway. Later, Bob charges Tom for his medical expenses from smoke inhalation. Tom is not negligent in this loss. He has a legal duty to warn guests in his home of any known potential hazards, which he did. There was no breach of legal duty to Bob.

Split limits

Splits the bodily injury and property damage amounts per occurrence. Expressed as 25/50/25 Bodily injury would include 25,000 per person 50,000 per occurrence Property damage would include 25,000 per occurrence

Insuring agreement

States with the insurer promises to do One agreement for the whole policy Each coverage has its own separate agreement

Example of insurable interest

The insured had a lien with first state bank on their vehicle when the auto policy was originally purchased. The insured paid the loan off early but failed to remove the bank as a lender on the policy. Even though the lien was valid at inception and had not been removed, if the insured's vehicle was damaged, the lien holders name would not be included on the claim payment.

No penalty

The insurer cannot cancel, non-renew, charge higher premium, or assigned driving points for any collision claim where the insured: was involved in an accident where they were not at fault, had a dismissed traffic violation, or had lower liability limits with a previous insurer. This section does not apply to an insured who has been convicted of homicide or assault operating motor vehicle or being impaired by or under the influence of alcohol, intoxicating liquor or any controlled dangerous substance.

Auto Settlement

The insurer may elect to offer a replacement vehicle which is a specific comparable vehicle to the insured with all taxes, license fees, and other fees to transfer title. The insured may elect a cash settlement based on the actual cost, less the deductible provided in the policy, to purchase a comparable vehicle with taxes, fees, etc. In the event of payment of a total loss to a third-party claimant, the insurer shall include any registered lien holders as co-payee to the extent of the lien holders interest

Debris removal

The insurer pays for debris removal if the damage is caused by a covered loss Removes a fallen tree if the damage is caused by a covered loss and the tree damaged covered property. This additional coverage applies to all homeowners forms unless noted and no deductible applies

Trees, shrubs, plants and lawns

The insurer pays for losses caused by a limited list of perils for damages caused to trees, shrubs, plants, and lawns up to $500 per item This additional coverage applies to all homeowners forms unless noted and no deductible applies

Reasonable repairs

The insurer pays reasonable costs the insured incurs to protect their property from further damage. Example: we will pay for a tarp to cover a hole in the roof to keep further damage from happening. This additional coverage applies to all homeowners forms unless noted and no deductible applies

Limit of liability

The maximum insurance pays a third-party due to the insured's fault. Payments made to a third-party, not the insured. Coverage includes a duty to defend above and beyond policy limits.

Available on the HO Dash two or HO Dash three policy

The mobile home must be: At least 10 foot wide and 40 foot long Designed for year-round living Occupied by the owner Used for residential purposes

Indemnity

The process of restoring a customer to their condition prior to the loss. Restore only up to their amount of insurable interest. An insured is not meant to profit.

Subrogation

The pursuit of a responsible party for payment of damages Insurer must pay on cases where the insured isn't at fault Insurer has same rights as insured in pursuing payment

Mortgage clause

The rights of the mortgagee: Payments made to both insured and mortgagee (insurance risk) Receives advanced notice of upcoming cancellation or non-renewal Can file a claim on insured's behalf if loss happens and insured doesn't file May still collect even if insured doesn't comply with terms and claim denied

Specified limit

The specific limit of insurance applied to a building or structure

Agreed value

The value of the property agreed-upon by both the insured and insured at the time of the application. Typically, for items that are difficult to replace like artwork, antiques, memorabilia, etc.

Legal duty

There's a legal duty to take reasonable care to protect rights and property of others Homeowners must keep property in good condition to prevent injury to others If no legal duty owed, negligence isn't substantiated

Conditional contract

These are conditions and rules where both parties must comply

Additional coverages that apply to section one property

These coverage is apply to all homeowners forms unless noted and no deductible applies: Debris removal Reasonable repairs Trees, shrubs, plants and lawns Property removed Fire department service charge

Government insurers

These insurers meet the insurance needs of individuals and businesses from the private insurance marketplace leaves insurance needs unmet.

Binder

This is immediate temporary coverage until policy is issued. Can be a verbal or written. Cannot exceed 90 days.

Part D Exclusions

Wear and tear Freezing Mechanical breakdown Equipment for reproducing sound unless permanently installed Custom furnishings or equipment Radar detection equipment

Flood insurance

Written directly through NFIP or write your own through private insurers which is fully backed by government. FEMA sets flood policy standards and monitors it. Federal insurance administration establishes coverage, rates, and eligibility.

Dwelling policies

You can pick and choose which coverages you want. Do not automatically provide coverage for liability or theft but you can add it as an endorsement