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Discover Premises Medical Payments

Premises Medical Payments  Discovered!

Premises Medical Payments Technical Terms

Premises Medical Payments : See Medical Payments for a definition of this term.For associations the relevant issues are the limit per individual and whether or not association residents and owners are covered by this coverage.

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Discover See Independent Agent Direct Writer Exclusive Agent

See Independent Agent Direct Writer Exclusive Agent  Discovered!

See Independent Agent Direct Writer Exclusive Agent Technical Terms

See Independent Agent Direct Writer Exclusive Agent : These terms refer to an insurance company whose agents are company employees. Such a company is in contrast to those who use "exclusive agents" or who work through "independent agents".

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Expose Building Ordinance Or Law

Building Ordinance Or Law  Exposed!

Building Ordinance Or Law Technical Terms

Building Ordinance Or Law : This coverage pays for additional construction costs incurred as the result of local building laws. It contains three coverages, which may be provided separately or together: 1) Demolition pays to demolish the parts of the building which were undamaged in the loss but which have to be torn down due to building codes. Similar coverage is provided as Debris Removal for those portions that are damaged by a Covered Cause of Loss. 2) Increased Cost of Construction pays to bring a building element up to current codes. For example, this could pay to replace aluminum wiring with copper, to add sprinklers, or to upgrade fire rated doors. 3) Loss of Value or Contingent Liability pays for the cost of replacing that part of the building which was not damaged by the loss but which must be torn down due to code requirements.

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Remember Principal

Principal  Remembered!

Principal Technical Terms

Principal : In a bond or surety, the principal is the one whose honesty, fidelity, or ability to perform is guaranteed.

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Remember National Flood Insurance Program/ Nfip

National Flood Insurance Program/ Nfip Remembered!

National Flood Insurance Program/ Nfip Technical Terms

National Flood Insurance Program/ Nfip: Flood insurance is provided for residential and non-residential buildings and their contents from FEMA/ FIA through insurance companies and agents. The coverage is available for condominium and cooperative associations, HOAs, and PUDs on their buildings on their buildings and commonly owned contents. Flood insurance is also available to unit owners for any portion of the building they own outright together with their contents. For more details, see your property insurance company or agent, call the NFIP @ 1-800-638-6620, or visit FEMA’s web site @ www.fema.cov.nfip.

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Remember Bond

Bond  Remembered!

Bond Technical Terms

Bond : See Crime and Blanket Bond for an explanation.

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Remember Wrongful Acts

Wrongful Acts  Remembered!

Wrongful Acts Technical Terms

Wrongful Acts : This is the basic covered injury or damage in a D&O policy. Such acts include unintentional negligent acts, omissions or breaches of duty, or errors relating to the operation of the community association. What is a wrongful act varies from policy to policy. Some D&O policies add advertising injury and personal injury to wrongful act coverage.

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Explain Worker’s Compensation

Worker’s Compensation  Explained!

Worker’s Compensation Technical Terms

Worker’s Compensation : This policy pays for the medical bills, lost wages, and certain other benefits for injured employees. State laws define when such coverage may be required and vary widely as to when an association will be deemed to be an employer. Many associations will carry such coverage even when they have no employees in order to avoid being held responsible for an incidental employee, a subcontractor who does not have his/her own coverage, or a volunteer acting as an employee. A portion of the policy provides employer’s liability coverage also.

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Remember Water Damages

Water Damages Remembered!

Water Damages Technical Terms

Water Damages: A term that refers to accidental damage caused by water. Among the perils that may be included are broken or frozen pipes, back up of sewers and drains, leakage and seepage, wind driven rain, surface water, and the overflow of a body of water. Coverage for water damage varies widely.

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Remember Water Damage Insurance

Water Damage Insurance Remembered!

Water Damage Insurance Technical Terms

Water Damage Insurance: Protection against property loss caused by water, with certain exceptions. See Water Damages definition below.

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Discover Waiver Of Subrogation

Waiver Of Subrogation  Discovered!

Waiver Of Subrogation Technical Terms

Waiver Of Subrogation : A common requirement of association insurance policies. See Subrogation above.

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Explain Unit Owner

Unit Owner  Explained!

Unit Owner Technical Terms

Unit Owner : In a condominium, the owner of one of the units, who also has an undivided share in the common areas.

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Expose Umbrella/ Umbrella Liability

Umbrella/ Umbrella Liability  Exposed!

Umbrella/ Umbrella Liability Technical Terms

Umbrella/ Umbrella Liability : A separate liability policy, which provides excess coverage after the Association’s CGL or other liability policies (e.g. D&O, owned vehicle, or workers’ compensation) are used up by paying claims. The underlying policies and limits will be stated in the umbrella policy. The policy may also "drop down" for certain liability coverages not excluded when there is no underlying coverage, and may be subject to a self-insured retention (SIR). Such coverage should be contrasted with Excess Liability. Umbrellas are usually written for million dollar increments of coverage.

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Explain Tort

Tort  Explained!

Tort Technical Terms

Tort : A private wrong, not related to a contact and committed against an individual, which gives rise to a legal liability and is adjudicated in a civil court. A tort can be either intentional or unintentional. Liability insurance is purchased largely for unintentional torts.

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Expose Surety

Surety  Exposed!

Surety Technical Terms

Surety : One who guarantees the performance or faithfulness of another, often through a bond.

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Expose Subrogation

Subrogation  Exposed!

Subrogation Technical Terms

Subrogation : An insurance company’s contractual right to recover amounts it has paid to its policyholder from those responsible for the loss. Within an association, this may include the right to act against a tenant who causes a fire or to seek compensation from a contractor who damages the building while doing repairs on it. In most associations, a waiver of subrogation in favor of unit owners is required.

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Discover Stop Gap

Stop Gap  Discovered!

Stop Gap Technical Terms

Stop Gap : Term for Employers Liability coverage when provided in a State Fund Workers Compensation state.

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Discover Sprinkler Leakage Insurance

Sprinkler Leakage Insurance Discovered!

Sprinkler Leakage Insurance Technical Terms

Sprinkler Leakage Insurance: Protection against loss caused by accidental discharge of water from an automatic fire prevention sprinkler system.

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Expose Special Multi-Peril/ Smp

Special Multi-Peril/ Smp  Exposed!

Special Multi-Peril/ Smp Technical Terms

Special Multi-Peril/ Smp : A business or commercial policy which combines into one contract a number of template forms and endorsements to provide coverages required by the insured. For associations, such a policy form may include property, liability, directors and officer’s liability, crime, hired and nonowned auto, and boiler and machinery. This form has been replaced by most insurers with the commercial package policy.

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Explain Severability

Severability  Explained!

Severability Technical Terms

Severability : A condition of a policy, which allows one party covered by the policy to be separated from another without damage to the defense and rights of the other. The carrier must provide separate defense and indemnity to each of numerous insureds. This may also be referred to as SEVERABILITY OF INTEREST.

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Discover Self-Insured Retention

Self-Insured Retention  Discovered!

Self-Insured Retention Technical Terms

Self-Insured Retention : In general that portion of a loss that is assumed by the Named Insured. Specifically it is used in connection with Umbrella policies to describe what must be paid by the insured in the event that there is no underlying coverage for a particular loss.

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Explain Section II

Section II  Explained!

Section II Technical Terms

Section II : This is the portion of the multiperil policy that covers liability.

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Remember Section I

Section I  Remembered!

Section I Technical Terms

Section I : This is the portion of the multiperil policy that covers property.

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Discover Scheduled

Scheduled  Discovered!

Scheduled Technical Terms

Scheduled : A listing, within an insurance policy, of covered entities. The schedule may be of buildings insured on a property policy or of individuals insured on a bond or of articles of jewelry covered by a floater. Generally a schedule is more limiting in coverage than is a blanket policy. [See Blanket.]

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Explain Retroactive Date

Retroactive Date  Explained!

Retroactive Date Technical Terms

Retroactive Date : Events that happened before the retroactive date are not covered by the policy. This most commonly occurs on D&O policies that are written on a claims made form.

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Remember Retention

Retention  Remembered!

Retention Technical Terms

Retention : The proportion of the risk which the direct or primary insurer retains on its own account or which is left for the insured party to pay.