Section 3A Flashcards
(92 cards)
SFP never covers
Theft, Liability, or Money!
Real property
Building structure
Endorsement
A form added to the policy that changes the policy’s provisions for better or worse, usually for an extra premium
Declarations
States NAAPP: Named insured and ins. Co, Address of Property, Amount of Coverage, Premium, Policy Period
Insuring Agreement
Contains CECE PAID: Consideration Clause, Effective Time, Company Options, Effective Location, Perils Covered (or Excluded) ACV limitation, Insurable Interest,, Direct versus Indirect Losses
Conditions
Conditions apply to both insured and insurer.
(Duties)
Insured must notify the company immediately and protect the property from further damage
Exclusions
Specify losses not covered by the policy
SFP Declarations
First page of the policy
Company =first party named
Insured=second party named
Policy period= 1 year
SFP Insuring Agreement
Consideration clause (insured’s answers on app and premium and insurer’s agreement and pays covered claims.)
Removal=5 days
Consideration
Is required to make a valid contract
Effective time
Policy starts and ends at 12:01 a.m. on the inception and expiration dates shown in the dec.
Effective Location
Policy takes effect at 12:01 am at the location of the property insured
Policy Limit
The policy will never pay more than the policy limit that is indicated in the dec
ACV (Actual Cash Value)
In the event of a claim, the policy will pay the insured the policy limit or the ACV, whichever is less.
ACV is R/C minus depreciation or
Current Value minus depreciation
SFP
ACV
Company’s Options: The insurance co. always has the option of paying the claim or repairing the property with materials of like kind and quality,
Whichever is best for the company
The SFP only covers direct losses. Ex: fire
Indirect losses
Are not covered
Ex: loss of business income
Insurable interest must exist
At the time of the loss
Peril
Cause of Loss
Ex: fire,lightning, and removal
Named peril policy
If the peril is not listed in the insuring agreement, it’s not covered.
Peril of Removal
All-Risk
DP-1= 5 days
DP-2 and DP-3= 30 days
CPP=10 days???
For the peril of removal to apply to your policy, you must list
The contents coverage desired in the declarations and pay an extra premium to cover it
Conditions apply to
both the insured and the insurer
An ‘exclusion’ is
Something that is never covered.