Property And Casualty Insurance Provisions
Specifications dealing with exclusions, policy requirements, cancellations and related matters.
- Perils Most policies exclude enemy attack, invasions, insurrection, rebellion, revolution, civil war, usurped power, neglect of an insured to reasonably preserve damaged property from further loss, and explosion or riot unless caused by fire. Other exclusions may be specified in a policy. Among them are concealment and fraud by the insured; increased hazard by an insured's actions; and vacancy in an insured building for at least 60 consecutive days.
- Requirements In the event of a loss the insured must give immediate written notice to the insurance company; protect the insured property from further damage; separate damaged from undamaged property; give the company a complete inventory of the damaged or destroyed property, with signed proof of loss within 60 days; and submit to the company's examination of damaged or destroyed property.
- OTHER INSURANCE If two or more separate policies over the same loss, each will pay no more than its pro rata share of the loss.
- SUBROGATION After the company pays the insured for a loss incurred as the result of actions of a third party, the company reserves the right to seek recovery for damages against that third party. (The insured has passed the right of suit against the third party to the insurance company.)
- Cancellation The insured and the insurance company can terminate the policy under specified circumstances. The insured can terminate the policy at any time, and will receive a return of part of the premium, less an amount for administrative expenses. The insurance company can cancel a property policy by sending the insured written notice at least 5 days before the intended date of cancellation. For a liability policy, after the policy has been renewed the first time, or has been in force for at least 60 days, the insurance company can cancel only for causes such as failure of an insured to pay a premium when due, if an insured is involved in illegal activities,drives while intoxicated, or is under the influence of drugs.
Popular Insurance Terms
Indemnifies an insured whose property is stolen, damaged, or destroyed by a covered peril. The term property insurance encompasses numerous lines of available insurance. ...
Association formed to address the requirements of government risk pools. ...
Coverage in which an insurance company's portfolio is ceded to a re insurer who re insures a given percentage of a particular line of business. ...
Same as term Calendar Year Experience: paid loss experience for the period of time from January 1 to December 31 of a specified year (not necessarily the current year). ...
Coverage in the event an insured's automobile is damaged, destroyed, or lost through fire, theft, vandalism, malicious mischief, collision, or windstorm. There are two kinds of property ...
Payment for coverage that remains throughout the same premium-paying period. ...
Means of projecting the costs of pension plans on a level basis over a specified future period of time. The actuarial value of each employee's future benefits to be paid at retirement is ...
Contracts of reinsurance in which expected income from investments is a major component of the UNDERWRITING process. Also, the ultimate liability of the reinsurer is limited. The reinsurer ...
Ending a pension plan at the election of an employer or sponsor. The employer has the unilateral right to change or terminate a pension plan at any time. However, the termination must meet ...
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