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
Treaty adopted by most major countries to determine adjustment for general average in ocean marine insurance. ...
Percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant. If the variable annuity's underlying ...
Negligent acts and/or omissions by the individual (s) and the organization (s) resulting in damage to the environment. For example, pollution of the environment suits against manufacturers ...
Stated fixed payment for maternity costs regardless of the actual costs. ...
Right of an insured to make additional purchases of life insurance without having to take a physical examination or show other evidence of insurability. Additions can be bought at stated ...
Property, liability, or health coverage that takes precedence when more than one policy covers the same loss. In order to avoid OVER INSURANCE, or paying an insured more than the actual ...
Statement issued by the insurance company denying a claim under the insurance policy on the grounds that a condition or policy provision has been breached. ...
Named peril policy is how it’s called in the Real Estate Industry the insurance policies that specify the perils it covers. Under a named peril policy, if anything that isn’t ...
Agency that sells insurance policies from both a stock insurance company and a mutual insurance company. ...
Have a question or comment?
We're here to help.