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Outline Ho3 Parts of the Policy Declarations Page Insuring Agreement Exclusions Conditions Other Parts of the Policy Determination of Payment Overview of HO Policy Overview of Auto Policy Declarations Page What is its purpose Insuring Agreement What is its purpose you What information is provided Name peril policy Exclusions What is its purpose Information that is specific to the insurance policy Includes banks information customer information etc What information is provided To identify the covered perils The purpose of the agreement is to tell what the insurance company is promising to To tell you what is not covered You can have excluded perils excluded items conditional coverage or setting limitations on coverage What types of things are typically excluded Catastrophes intentional damage to property etc Exclusions can be very lengthy Why are there exclusions limitations To tell us what we cannot do and what is not covered in our insurance property You might have exclusions if the risk you are trying to get covered is not a common risk Very specific situations and property need certain exclusions so that you can buy additional coverage Conditions What is its purpose The requirements you must meet in order for you to meet the insurance companies standard These can vary from policy to policy Ex you are required to protect property after a loss must promptly notify insurance company must report theft within 24 hours etc What your responsibilities are Your policy will not be honored unless you follow these conditions What types of things are typically required Requiring police report after a theft This is to prevent and lower the amount of faked thefts Other Parts of the Policy Definitions Common words can hold entirely different meaning in an insurance policy An insurance policy comes with a definition section and whichever phrases are defined hold special meaning to the policy Additions to the Policy Endorsements Policy is standardized and tries to appeal the most homeowners Endorsements are special Fill in from book For everything you add to your policy you pay extra for it Determination of Payment Actual Cash Value vs Replacement Cost The policy will tell you which type or repayment applies to you Replacement cost what it would take to replace the item today with a replacement of like kind and quality o ex buying a flat screen tv 3 years ago and it gets stolen what you paid for the tv is not what it is going to cost to replace the value What would be the cost to replace the tv today Actual cash value replacement cost less depreciation o What you receive back from stolen goods is the replacement cost minus the depreciation that has occurred since you purchased item What it would cost to replace the item today minus depreciation Deductibles Every time that you have a loss the deductible will apply If deductible is 1000 every time you get in a car accident you pay 1000 of damage on your own But if your deductible is too high and you cant pay it your property may not get repaid Straight deductible applies to every loss that occurs you pay 1000 every time you get in an accident Aggregate deductible 50 000 aggregate deductible for 6months You must pay losses up to 50 000 within 6 months and if you go over that then insurance will cover you It means you pay until you reach your deductible in the policy period and then the insurance company will pay the rest of the losses Underinsured Clause Apples in homeowners policy mathematically Bodily injury Ex you have a home worth 200 000 your max possible loss is the entire 200 000 But it is highly unlikely that the entire loss would happen So I would buy an insurance policy that only covers up to 100 000 of damages bc that is all that is LIKELY to occur Time Limitations There are time limitations on both sides You must report a loss to insurance as soon as possible but insurance company also has time limitations Insurance company has a certain amount of time to review the damage and agree to pay the claim Insurance company cant take 8 months to issue money bc then you would have nothing for 8 months Must report new car within 14 days if Other Insurance Provisions Where does other insurance apply Warranty s If two policy s apply the easiest approach is the equal share approach pays half of the damages Pro rata basis you divide it by portions Primary policy vs excess policy o If your loss is 100 000 and you are covered by two policys each company o Ex coverage on the car pays first in auto insurance If you let your friend take your car and she gets involved in an action her insurance policy and your policy apply Your policy on the car is primary and will take action first and her policy excess policy wont be triggered until there is EXCESS damage that cannot be covered by your policy o Purpose of insurance is to restore you to your pre loss condition No policy is going to pay more than the limits of what you have purchased Outline Homeowners Policy ISO Homeowners Program Package Policy General Information Analysis of HO 3 ISO Homeowners Program Forms Used Single family home multi family home etc HO 2 broad form Covers dwelling other structures on a named perils policy Also covers personal property against loss from certain listed perils Also covers additional living expenses or fair rental value in the event of a covered loss that makes the dwelling uninhabitable HO 3 Special Form o Dwelling other structures protects against all direct physical loss to the property All physical losses to the dwelling and other structures are listed unless stated in the exclusions Paid on the basis of full replacement cost with no deduction for depreciation if certain conditions are met o Personal property named peril basis you are only covered for the specific loss listed on the policy HO 4 Designed for tenants who rent no coverage for the structure Covers the tenants personal property and also provides personal liability insurance Personal property found in the HO 2 10 of the insurance on covered by the same named peril basis personal property can be applied to cover any additions or alterations to the building made by the insured HO 5 Comprehensive form Insures the dwelling other structures and personal property against direct physical loss to the property Everything is covered on an all risk basis property is covered on all risk unless it is specifically not covered in the exclusions Even personal HO 6 condo policy coverage for the walls in covers


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FSU RMI 3011 - Parts of the Policy

Documents in this Course
Risk

Risk

26 pages

Exam #2

Exam #2

7 pages

Exam #2

Exam #2

7 pages

Exam #3

Exam #3

9 pages

Exam #3

Exam #3

9 pages

Exam 1

Exam 1

12 pages

EXAM 1

EXAM 1

13 pages

Exam 1

Exam 1

12 pages

Test 2

Test 2

13 pages

Test 1

Test 1

6 pages

Chapter 1

Chapter 1

56 pages

Test 2

Test 2

22 pages

Test 1

Test 1

5 pages

TEST 2

TEST 2

16 pages

Chapter 1

Chapter 1

56 pages

Notes

Notes

18 pages

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