Review Sample Homeowners Ins Policy and Sample Auto Ins Policy. 2000 word count total

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Review the Sample Homeowners Insurance Policy and answer the following questions. Answer each question in 200- to 250-words:

Question

Answer

Will a detached garage be covered?

To what degree are credit and debit card losses covered?

A plumber working at your home is injured, is he covered?

You find mold, fungus, and wet rot in your attic, what are the policy provisions?

What are the policy limits on liability?

Review the Sample Auto Insurance Policy and answer the following questions. Answer each question in 200- to 250-words:

Question

Answer

When does the coverage begin on a newly acquired auto?

Explain the time limit on medical claims incurred by the insured?

You use your auto in a share-the-expense car pool. Are you covered by the uninsured motorist provision?

You have an auto accident on the way to work and you laptop computer is destroyed, is it covered?

Your driver’s license is suspended for one year, what is your status with the auto?

Identify and briefly describe the seven broad classes of property and liability insurance for business firms.

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Insurance Type

Insurance Type Description

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PERSONAL AUTO PP 00 01 01 05 PERSONAL AUTO POLICY AGREEMENT In return for payment of the premium and subject to all the terms of this policy, we agree with you as follows: DEFINITIONS A. Throughout this policy, "you" and "your" refer to: 1. The "named insured" shown in the Declarations; and 2. The spouse if a resident of the same household. If the spouse ceases to be a resident of the same household during the policy period or prior to the inception of this policy, the spouse will be considered "you" and "your" under this policy but only until the earlier of: 1. The end of 90 days following the spouse's change of residency; 2. The effective date of another policy listing the spouse as a named insured; or 3. The end of the policy period. B. "We", "us" and "our" refer to the Company providing this insurance. C. For purposes of this policy, a private passenger type auto, pickup or van shall be deemed to be owned by a person if leased: 1. Under a written agreement to that person; and 2. For a continuous period of at least 6 months. Other words and phrases are defined. They are in quotation marks when used. D. "Bodily injury" means bodily harm, sickness or disease, including death that results. 2. Pickup or van. It also means a farm wagon or farm implement while towed by a vehicle listed in 1. or 2. above. J. "Your covered auto" means: 1. Any vehicle shown in the Declarations. 2. A "newly acquired auto". 3. Any "trailer" you own. 4. Any auto or "trailer" you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its: a. Breakdown; b. Repair; c. Servicing; d. Loss; or e. Destruction. This Provision (J.4.) does not apply to Coverage For Damage To Your Auto. K. "Newly acquired auto": 1. "Newly acquired auto" means any of the following types of vehicles you become the owner of during the policy period: a. A private passenger auto; or b. A pickup or van, for which no other insurance policy provides coverage, that: E. "Business" includes trade, profession or occupation. (1) Has a Gross Vehicle Weight Rating of 10,000 lbs. or less; and F. "Family member" means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child. G. "Occupying" means: (2) Is not used for the delivery or transportation of goods and materials unless such use is: 1. In; 2. Upon; or 3. Getting in, on, out or off. H. "Property damage" means physical injury to, destruction of or loss of use of tangible property. I. "Trailer" means a vehicle designed to be pulled by a: 1. Private passenger auto; or PP 00 01 01 05 (a) Incidental to your "business" of installing, maintaining or repairing furnishings or equipment; or (b) For farming or ranching. 2. Coverage for a "newly acquired auto" is provided as described below. If you ask us to insure a "newly acquired auto" after a specified time period described below has elapsed, any coverage we provide for a "newly acquired auto" will begin at the time you request the coverage. Page 1 of 13 a. For any coverage provided in this policy except Coverage For Damage To Your Auto, a "newly acquired auto" will have the broadest coverage we now provide for any vehicle shown in the Declarations. Coverage begins on the date you become the owner. However, for this coverage to apply to a "newly acquired auto" which is in addition to any vehicle shown in the Declarations, you must ask us to insure it within 14 days after you become the owner. If a "newly acquired auto" replaces a vehicle shown in the Declarations, coverage is provided for this vehicle without your having to ask us to insure it. b. Collision Coverage for a "newly acquired auto" begins on the date you become the owner. However, for this coverage to apply, you must ask us to insure it within: (1) 14 days after you become the owner if the Declarations indicate that Collision Coverage applies to at least one auto. In this case, the "newly acquired auto" will have the broadest coverage we now provide for any auto shown in the Declarations. (2) Four days after you become the owner if the Declarations do not indicate that Collision Coverage applies to at least one auto. If you comply with the 4 day requirement and a loss occurred before you asked us to insure the "newly ac- quired auto", a Collision deductible of $500 will apply. c. Other Than Collision Coverage for a "newly acquired auto" begins on the date you become the owner. However, for this coverage to apply, you must ask us to insure it within: (1) 14 days after you become the owner if the Declarations indicate that Other Than Collision Coverage applies to at least one auto. In this case, the "newly acquired auto" will have the broadest coverage we now provide for any auto shown in the Declarations. (2) Four days after you become the owner if the Declarations do not indicate that Other Than Collision Coverage applies to at least one auto. If you comply with the 4 day requirement and a loss oc- curred before you asked us to insure the "newly acquired auto", an Other Than Collision deductible of $500 will apply. PART A - LIABILITY COVERAGE INSURING AGREEMENT A. We will pay damages for "bodily injury" or "property damage" for which any "insured" becomes legally responsible because of an auto accident. Damages include prejudgment interest awarded against the "insured". We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liabil- ity, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted by payment of judgments or settlements. We have no duty to defend any suit or settle any claim for "bodily injury" or "property damage" not covered under this policy. B. "Insured" as used in this Part means: 1. You or any "family member" for the ownership, maintenance or use of any auto or "trailer". 2. Any person using "your covered auto". 3. For "your covered auto", any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part. Page 2 of 13 4. For any auto or "trailer", other than "your cov- ered auto", any other person or organization but only with respect to legal responsibility for acts or omissions of you or any "family mem- ber" for whom coverage is afforded under this Part. This Provision (B.4.) applies only if the person or organization does not own or hire the auto or "trailer". SUPPLEMENTARY PAYMENTS We will pay on behalf of an "insured": 1. Up to $250 for the cost of bail bonds required because of an accident, including related traffic law violations. The accident must result in "bodily injury" or "property damage" covered under this policy. 2. Premiums on appeal bonds and bonds to release attachments in any suit we defend. 3. Interest accruing after a judgment is entered in any suit we defend. Our duty to pay interest ends when we offer to pay that part of the judgment which does not exceed our limit of liability for this coverage. PP 00 01 01 05 4. Up to $200 a day for loss of earnings, but not other income, because of attendance at hearings or trials at our request. 5. Other reasonable expenses incurred at our request. These payments will not reduce the limit of liability. EXCLUSIONS A. We do not provide Liability Coverage for any "insured": 1. Who intentionally causes "bodily injury" or "property damage". 2. For "property damage" to property owned or being transported by that "insured". 3. For "property damage" to property: a. Rented to; b. Used by; or c. In the care of; that "insured". This Exclusion (A.3.) does not apply to "property damage" to a residence or private garage. 4. For "bodily injury" to an employee of that "insured" during the course of employment. This Exclusion (A.4.) does not apply to "bodily injury" to a domestic employee unless workers' compensation benefits are required or available for that domestic employee. 5. For that "insured's" liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This Exclusion (A.5.) does not apply to a sharethe-expense car pool. 6. While employed or otherwise engaged in the "business" of: a. Selling; b. Repairing; c. Servicing; d. Storing; or e. Parking; vehicles designed for use mainly on public highways. This includes road testing and delivery. This Exclusion (A.6.) does not apply to the ownership, maintenance or use of "your covered auto" by: a. You; b. Any "family member"; or c. Any partner, agent or employee of you or any "family member". 7. Maintaining or using any vehicle while that "insured" is employed or otherwise engaged in any "business" (other than farming or ranching) not described in Exclusion A.6. This Exclusion (A.7.) does not apply to the maintenance or use of a: a. Private passenger auto; b. Pickup or van; or c. "Trailer" used with a vehicle described in a. or b. above. 8. Using a vehicle without a reasonable belief that that "insured" is entitled to do so. This Exclusion (A.8.) does not apply to a "family member" using "your covered auto" which is owned by you. 9. For "bodily injury" or "property damage" for which that "insured": a. Is an insured under a nuclear energy liability policy; or b. Would be an insured under a nuclear energy liability policy but for its termination upon exhaustion of its limit of liability. A nuclear energy liability policy is a policy issued by any of the following or their successors: a. Nuclear Energy Liability Insurance Association; b. Mutual Atomic Energy Liability Underwriters; or c. Nuclear Insurance Association of Canada. B. We do not provide Liability Coverage for the ownership, maintenance or use of: 1. Any vehicle which: a. Has fewer than four wheels; or b. Is designed mainly for use off public roads. This Exclusion (B.1.) does not apply: a. While such vehicle is being used by an "insured" in a medical emergency; b. To any "trailer"; or c. To any non-owned golf cart. 2. Any vehicle, other than "your covered auto", which is: a. Owned by you; or b. Furnished or available for your regular use. 3. Any vehicle, other than "your covered auto", which is: a. Owned by any "family member"; or b. Furnished or available for the regular use of any "family member". PP 00 01 01 05 Page 3 of 13 However, this Exclusion (B.3.) does not apply to you while you are maintaining or "occupying" any vehicle which is: a. Owned by a "family member"; or b. Furnished or available for the regular use of a "family member". 4. Any vehicle, located inside a facility designed for racing, for the purpose of: a. Competing in; or b. Practicing or preparing for; any prearranged or organized racing or speed contest. LIMIT OF LIABILITY A. The limit of liability shown in the Declarations for each person for Bodily Injury Liability is our maximum limit of liability for all damages, including damages for care, loss of services or death, arising out of "bodily injury" sustained by any one person in any one auto accident. Subject to this limit for each person, the limit of liability shown in the Declarations for each accident for Bodily Injury Liability is our maximum limit of liability for all damages for "bodily injury" resulting from any one auto accident. The limit of liability shown in the Declarations for each accident for Property Damage Liability is our maximum limit of liability for all "property damage" resulting from any one auto accident. This is the most we will pay regardless of the number of: 1. "Insureds"; 2. Claims made; 2. Any Underinsured Motorists Coverage provided by this policy. OUT OF STATE COVERAGE If an auto accident to which this policy applies occurs in any state or province other than the one in which "your covered auto" is principally garaged, we will interpret your policy for that accident as follows: A. If the state or province has: 1. A financial responsibility or similar law specifying limits of liability for "bodily injury" or "property damage" higher than the limit shown in the Declarations, your policy will provide the higher specified limit. 2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage. B. No one will be entitled to duplicate payments for the same elements of loss. FINANCIAL RESPONSIBILITY When this policy is certified as future proof of financial responsibility, this policy shall comply with the law to the extent required. OTHER INSURANCE If there is other applicable liability insurance we will pay only our share of the loss. Our share is the pro- portion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide for a vehicle you do not own, including any vehicle while used as a temporary substitute for "your covered auto", shall be excess over any other collectible insur- ance. 3. Vehicles or premiums shown in the Declarations; or 4. Vehicles involved in the auto accident. B. No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and: 1. Part B or Part C of this policy; or PART B - MEDICAL PAYMENTS COVERAGE INSURING AGREEMENT A. We will pay reasonable expenses incurred for necessary medical and funeral services because of "bodily injury": 1. Caused by accident; and 2. Sustained by an "insured". We will pay only those expenses incurred for services rendered within 3 years from the date of the accident. Page 4 of 13 B. "Insured" as used in this Part means: 1. You or any "family member": a. While "occupying"; or b. As a pedestrian when struck by; a motor vehicle designed for use mainly on public roads or a trailer of any type. 2. Any other person while "occupying" "your covered auto". PP 00 01 01 05 EXCLUSIONS We do not provide Medical Payments Coverage for any "insured" for "bodily injury": 1. Sustained while "occupying" any motorized vehicle having fewer than four wheels. 2. Sustained while "occupying" "your covered auto" when it is being used as a public or livery conveyance. This Exclusion (2.) does not apply to a share-the-expense car pool. 3. Sustained while "occupying" any vehicle located for use as a residence or premises. 4. Occurring during the course of employment if workers' compensation benefits are required or available for the "bodily injury". 5. Sustained while "occupying", or when struck by, any vehicle (other than "your covered auto") which is: a. Owned by you; or b. Furnished or available for your regular use. 6. Sustained while "occupying", or when struck by, any vehicle (other than "your covered auto") which is: a. Owned by any "family member"; or b. Furnished or available for the regular use of any "family member". However, this Exclusion (6.) does not apply to you. 7. Sustained while "occupying" a vehicle without a reasonable belief that that "insured" is entitled to do so. This Exclusion (7.) does not apply to a "family member" using "your covered auto" which is owned by you. 8. Sustained while "occupying" a vehicle when it is being used in the "business" of an "insured". This Exclusion (8.) does not apply to "bodily injury" sustained while "occupying" a: a. Private passenger auto; b. Pickup or van; or c. "Trailer" used with a vehicle described in a. or b. above. 10. From or as a consequence of the following, whether controlled or uncontrolled or however caused: a. Nuclear reaction; b. Radiation; or c. Radioactive contamination. 11. Sustained while "occupying" any vehicle located inside a facility designed for racing, for the purpose of: a. Competing in; or b. Practicing or preparing for; any prearranged or organized racing or speed contest. LIMIT OF LIABILITY A. The limit of liability shown in the Declarations for this coverage is our maximum limit of liability for each person injured in any one accident. This is the most we will pay regardless of the number of: 1. "Insureds"; 2. Claims made; 3. Vehicles or premiums shown in the Declarations; or 4. Vehicles involved in the accident. B. No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and: 1. Part A or Part C of this policy; or 2. Any Underinsured Motorists Coverage provided by this policy. OTHER INSURANCE If there is other applicable auto medical payments insurance we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own, including any vehicle while used as a temporary substitute for "your covered auto", shall be excess over any other collectible auto insurance providing payments for medical or funeral expenses. 9. Caused by or as a consequence of: a. Discharge of a nuclear weapon (even if accidental); b. War (declared or undeclared); c. Civil war; d. Insurrection; or e. Rebellion or revolution. PP 00 01 01 05 Page 5 of 13 PART C - UNINSURED MOTORISTS COVERAGE INSURING AGREEMENT A. We will pay compensatory damages which an "insured" is legally entitled to recover from the owner or operator of an "uninsured motor vehicle" because of "bodily injury": 1. Sustained by an "insured"; and 2. Caused by an accident. 2. Owned or operated by a self-insurer under any applicable motor vehicle law, except a selfinsurer which is or becomes insolvent. 3. Owned by any governmental unit or agency. 4. Operated on rails or crawler treads. 5. Designed mainly for use off public roads while not on public roads. The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the "uninsured motor vehicle". 6. While located for use as a residence or premises. EXCLUSIONS Any judgment for damages arising out of a suit brought without our written consent is not binding on us. B. "Insured" as used in this Part means: A. We do not provide Uninsured Motorists Coverage for "bodily injury" sustained: 2. Any other person "occupying" "your covered auto". 1. By an "insured" while "occupying", or when struck by, any motor vehicle owned by that "insured" which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle. 3. Any person for damages that person is entitled to recover because of "bodily injury" to which this coverage applies sustained by a person described in 1. or 2. above. 2. By any "family member" while "occupying", or when struck by, any motor vehicle you own which is insured for this coverage on a primary basis under any other policy. C. "Uninsured motor vehicle" means a land motor vehicle or trailer of any type: B. We do not provide Uninsured Motorists Coverage for "bodily injury" sustained by any "insured": 1. To which no bodily injury liability bond or policy applies at the time of the accident. 1. If that "insured" or the legal representative settles the "bodily injury" claim and such settlement prejudices our right to recover payment. 1. You or any "family member". 2. To which a bodily injury liability bond or policy applies at the time of the accident. In this case its limit for bodily injury liability must be less than the minimum limit for bodily injury liability specified by the financial responsibility law of the state in which "your covered auto" is princi- pally garaged. 3. Which is a hit-and-run vehicle whose operator or owner cannot be identified and which hits: a. You or any "family member"; b. A vehicle which you or any "family member" are "occupying"; or c. "Your covered auto". 4. To which a bodily injury liability bond or policy applies at the time of the accident but the bonding or insuring company: a. Denies coverage; or 2. While "occupying" "your covered auto" when it is being used as a public or livery conveyance. This Exclusion (B.2.) does not apply to a sharethe-expense car pool. 3. Using a vehicle without a reasonable belief that that "insured" is entitled to do so. This Exclusion (B.3.) does not apply to a "family member" using "your covered auto" which is owned by you. C. This coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any of the following or similar law: 1. Workers' compensation law; or 2. Disability benefits law. D. We do not provide Uninsured Motorists Coverage for punitive or exemplary damages. b. Is or becomes insolvent. However, "uninsured motor vehicle" does not include any vehicle or equipment: 1. Owned by or furnished or available for the regular use of you or any "family member". Page 6 of 13 PP 00 01 01 05 LIMIT OF LIABILITY A. The limit of liability shown in the Declarations for each person for Uninsured Motorists Coverage is our maximum limit of liability for all damages, including damages for care, loss of services or death, arising out of "bodily injury" sustained by any one person in any one accident. Subject to this limit for each person, the limit of liability shown in the Declarations for each accident for Uninsured Motorists Coverage is our maximum limit of liability for all damages for "bodily injury" resulting from any one accident. This is the most we will pay regardless of the number of: 1. "Insureds"; 2. Claims made; 3. Vehicles or premiums shown in the Declarations; or 4. Vehicles involved in the accident. B. No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and: 1. Part A or Part B of this policy; or 2. Any Underinsured Motorists Coverage provided by this policy. C. We will not make a duplicate payment under this coverage for any element of loss for which payment has been made by or on behalf of persons or organizations who may be legally responsible. D. We will not pay for any element of loss if a person is entitled to receive payment for the same element of loss under any of the following or similar law: 1. Workers' compensation law; or 2. Disability benefits law. OTHER INSURANCE If there is other applicable insurance available under one or more policies or provisions of coverage that is similar to the insurance provided under this Part of the policy: 1. Any recovery for damages under all such policies or provisions of coverage may equal but not exceed the highest applicable limit for any one vehicle under any insurance providing coverage on either a primary or excess basis. 2. Any insurance we provide with respect to a vehicle you do not own, including any vehicle while used as a temporary substitute for "your covered auto", shall be excess over any collectible insurance providing such coverage on a primary basis. PP 00 01 01 05 3. If the coverage under this policy is provided: a. On a primary basis, we will pay only our share of the loss that must be paid under insurance providing coverage on a primary basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on a primary basis. b. On an excess basis, we will pay only our share of the loss that must be paid under insurance providing coverage on an excess basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on an excess basis. ARBITRATION A. If we and an "insured" do not agree: 1. Whether that "insured" is legally entitled to recover damages; or 2. As to the amount of damages which are recoverable by that "insured"; from the owner or operator of an "uninsured motor vehicle", then the matter may be arbitrated. However, disputes concerning coverage under this Part may not be arbitrated. Both parties must agree to arbitration. If so agreed, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. B. Each party will: 1. Pay the expenses it incurs; and 2. Bear the expenses of the third equally. arbitrator C. Unless both parties agree otherwise, arbitration will take place in the county in which the "insured" lives. Local rules of law as to procedure and evi- dence will apply. A decision agreed to by at least two of the arbitrators will be binding as to: 1. Whether the "insured" is legally entitled to recover damages; and 2. The amount of damages. This applies only if the amount does not exceed the minimum limit for bodily injury liability specified by the financial responsibility law of the state in which "your covered auto" is principally garaged. If the amount exceeds that limit, either party may demand the right to a trial. This demand must be made within 60 days of the arbitrators' decision. If this demand is not made, the amount of damages agreed to by the arbitrators will be binding. Page 7 of 13 PART D - COVERAGE FOR DAMAGE TO YOUR AUTO INSURING AGREEMENT d. Loss; or A. We will pay for direct and accidental loss to "your covered auto" or any "non-owned auto", including their equipment, minus any applicable deductible shown in the Declarations. If loss to more than one "your covered auto" or "non-owned auto" re- sults from the same "collision", only the highest applicable deductible will apply. We will pay for loss to "your covered auto" caused by: e. Destruction. 1. Other than "collision" only if the Declarations indicate that Other Than Collision Coverage is provided for that auto. 2. "Collision" only if the Declarations indicate that Collision Coverage is provided for that auto. If there is a loss to a "non-owned auto", we will provide the broadest coverage applicable to any "your covered auto" shown in the Declarations. B. "Collision" means the upset of "your covered auto" or a "non-owned auto" or their impact with another vehicle or object. Loss caused by the following is considered other than "collision": 1. Missiles or falling objects; 2. Fire; 3. Theft or larceny; 4. Explosion or earthquake; 5. Windstorm; 6. Hail, water or flood; 7. Malicious mischief or vandalism; 8. Riot or civil commotion; 9. Contact with bird or animal; or 10. Breakage of glass. If breakage of glass is caused by a "collision", you may elect to have it considered a loss caused by "collision". C. "Non-owned auto" means: 1. Any private passenger auto, pickup, van or "trailer" not owned by or furnished or available for the regular use of you or any "family member" while in the custody of or being operated by you or any "family member"; or 2. Any auto or "trailer" you do not own while used as a temporary substitute for "your cov- ered auto" which is out of normal use because of its: a. Breakdown; TRANSPORTATION EXPENSES A. In addition, we will pay, without application of a deductible, up to a maximum of $600 for: 1. Temporary transportation expenses not exceeding $20 per day incurred by you in the event of a loss to "your covered auto". We will pay for such expenses if the loss is caused by: a. Other than "collision" only if the Declarations indicate that Other Than Collision Coverage is provided for that auto. b. "Collision" only if the Declarations indicate that Collision Coverage is provided for that auto. 2. Expenses for which you become legally responsible in the event of loss to a "non-owned auto". We will pay for such expenses if the loss is caused by: a. Other than "collision" only if the Declarations indicate that Other Than Collision Coverage is provided for any "your covered auto". b. "Collision" only if the Declarations indicate that Collision Coverage is provided for any "your covered auto". However, the most we will pay for any expenses for loss of use is $20 per day. B. Subject to the provisions of Paragraph A., if the loss is caused by: 1. A total theft of "your covered auto" or a "nonowned auto", we will pay only expenses incurred during the period: a. Beginning 48 hours after the theft; and b. Ending when "your covered auto" or the "non-owned auto" is returned to use or we pay for its loss. 2. Other than theft of a "your covered auto" or a "non-owned auto", we will pay only expenses beginning when the auto is withdrawn from use for more than 24 hours. Our payment will be limited to that period of time reasonably required to repair or replace the "your covered auto" or the "non-owned auto". b. Repair; c. Servicing; Page 8 of 13 PP 00 01 01 05 EXCLUSIONS We will not pay for: 1. Loss to "your covered auto" or any "nonowned auto" which occurs while it is being used as a public or livery conveyance. This Exclusion (1.) does not apply to a share-theexpense car pool. 2. Damage due and confined to: a. Wear and tear; b. Freezing; c. Mechanical or electrical breakdown or failure; or d. Road damage to tires. This Exclusion (2.) does not apply if the damage results from the total theft of "your covered auto" or any "non-owned auto". 3. Loss due to or as a consequence of: a. Radioactive contamination; b. Discharge of any nuclear weapon (even if accidental); c. War (declared or undeclared); d. Civil war; e. Insurrection; or f. Rebellion or revolution. 4. Loss to any electronic equipment that reproduces, receives or transmits audio, visual or data signals. This includes but is not limited to: a. Radios and stereos; b. Tape decks; c. Compact disk systems; d. Navigation systems; e. Internet access systems; f. Personal computers; g. Video entertainment systems; h. Telephones; 6. A total loss to "your covered auto" or any "nonowned auto" due to destruction or confiscation by governmental or civil authorities. This Exclusion (6.) does not apply to the interests of Loss Payees in "your covered auto". 7. Loss to: a. A "trailer", camper body, or motor home, which is not shown in the Declarations; or b. Facilities or equipment used with such "trailer", camper body or motor home. Facilities or equipment include but are not limited to: (1) Cooking, dining, plumbing or refrigeration facilities; (2) Awnings or cabanas; or (3) Any other facilities or equipment used with a "trailer", camper body, or motor home. This Exclusion (7.) does not apply to a: a. "Trailer", and its facilities or equipment, which you do not own; or b. "Trailer", camper body, or the facilities or equipment in or attached to the "trailer" or camper body, which you: (1) Acquire during the policy period; and (2) Ask us to insure within 14 days after you become the owner. 8. Loss to any "non-owned auto" when used by you or any "family member" without a reasonable belief that you or that "family member" are entitled to do so. 9. Loss to equipment designed or used for the detection or location of radar or laser. 10. Loss to any custom furnishings or equipment in or upon any pickup or van. Custom furnishings or equipment include but are not limited to: a. Special carpeting or insulation; i. Televisions; b. Furniture or bars; j. Two-way mobile radios; c. Height-extending roofs; or k. Scanners; or d. Custom murals, paintings or other decals or graphics. I. Citizens band radios. This Exclusion (4.) does not apply to electronic equipment that is permanently installed in "your covered auto" or any "non-owned auto". 5. Loss to tapes, records, disks or other media used with equipment described in Exclusion 4. This Exclusion (10.) does not apply to a cap, cover or bedliner in or upon any "your covered auto" which is a pickup. 11. Loss to any "non-owned auto" being maintained or used by any person while employed or otherwise engaged in the "business" of: a. Selling; b. Repairing; PP 00 01 01 05 Page 9 of 13 c. Servicing; d. Storing; or e. Parking; vehicles designed for use on public highways. This includes road testing and delivery. 12. Loss to "your covered auto" or any "nonowned auto", located inside a facility designed for racing, for the purpose of: a. Competing in; or b. Practicing or preparing for; any prearranged or organized racing or speed contest. 13. Loss to, or loss of use of, a "non-owned auto" rented by: a. You; or b. Any "family member"; if a rental vehicle company is precluded from recovering such loss or loss of use, from you or that "family member", pursuant to the provisions of any applicable rental agreement or state law. LIMIT OF LIABILITY A. Our limit of liability for loss will be the lesser of the: 1. Actual cash value of the stolen or damaged property; or 2. Amount necessary to repair or replace the property with other property of like kind and quality. However, the most we will pay for loss to: 1. Any "non-owned auto" which is a trailer is $1500. 2. Electronic equipment that reproduces, receives or transmits audio, visual or data signals, which is permanently installed in the auto in locations not used by the auto manufacturer for installation of such equipment, is $1,000. B. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total loss. C. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. Page 10 of 13 PAYMENT OF LOSS We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to: 1. You; or 2. The address shown in this policy. If we return stolen property we will pay for any damage resulting from the theft. We may keep all or part of the property at an agreed or appraised value. If we pay for loss in money, our payment will include the applicable sales tax for the damaged or stolen property. NO BENEFIT TO BAILEE This insurance shall not directly or indirectly benefit any carrier or other bailee for hire. OTHER SOURCES OF RECOVERY If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a "non-owned auto" shall be excess over any other collectible source of recovery including, but not limited to: 1. Any coverage provided by the owner of the "non-owned auto"; 2. Any other applicable physical damage insurance; 3. Any other source of recovery applicable to the loss. APPRAISAL A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differ- ences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. Bear the expenses of the appraisal and umpire equally. B. We do not waive any of our rights under this policy by agreeing to an appraisal. PP 00 01 01 05 PART E - DUTIES AFTER AN ACCIDENT OR LOSS We have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us: A. We must be notified promptly of how, when and where the accident or loss happened. Notice should also include the names and addresses of any injured persons and of any witnesses. B. A person seeking any coverage must: 1. Cooperate with us in the investigation, settlement or defense of any claim or suit. 2. Promptly send us copies of any notices or legal papers received in connection with the accident or loss. 3. Submit, as often as we reasonably require: a. To physical exams by physicians we select. We will pay for these exams. b. To examination under oath and subscribe the same. 4. Authorize us to obtain: b. Other pertinent records. 5. Submit a proof of loss when required by us. C. A person seeking Uninsured Motorists Coverage must also: 1. Promptly notify the police if a hit-and-run driver is involved. 2. Promptly send us copies of the legal papers if a suit is brought. D. A person seeking Coverage For Damage To Your Auto must also: 1. Take reasonable steps after loss to protect "your covered auto" or any "non-owned auto" and their equipment from further loss. We will pay reasonable expenses incurred to do this. 2. Promptly notify the police if "your covered auto" or any "non-owned auto" is stolen. 3. Permit us to inspect and appraise the damaged property before its repair or disposal. a. Medical reports; and PART F - GENERAL PROVISIONS BANKRUPTCY Bankruptcy or insolvency of the "insured" shall not relieve us of any obligations under this policy. CHANGES A. This policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us. B. If there is a change to the information used to develop the policy premium, we may adjust your premium. Changes during the policy term that may result in a premium increase or decrease include, but are not limited to, changes in: 1. The number, type or use classification of insured vehicles; 2. Operators using insured vehicles; 3. The place of principal garaging of insured vehicles; 4. Coverage, deductible or limits. If a change resulting from A. or B. requires a premium adjustment, we will make the premium adjustment in accordance with our manual rules. C. If we make a change which broadens coverage under this edition of your policy without additional premium charge, that change will automatically apply to your policy as of the date we implement the change in your state. This Paragraph (C.) does not apply to changes implemented with a general program revision that includes both broadenings and restrictions in coverage, whether that general program revision is implemented through introduction of: 1. A subsequent edition of your policy; or 2. An Amendatory Endorsement. FRAUD We do not provide coverage for any "insured" who has made fraudulent statements or engaged in fraudulent conduct in connection with any accident or loss for which coverage is sought under this policy. LEGAL ACTION AGAINST US A. No legal action may be brought against us until there has been full compliance with all the terms of this policy. In addition, under Part A, no legal action may be brought against us until: 1. We agree in writing that the "insured" has an obligation to pay; or 2. The amount of that obligation has been finally determined by judgment after trial. PP 00 01 01 05 Page 11 of 13 B. No person or organization has any right under this policy to bring us into any action to determine the liability of an "insured". OUR RIGHT TO RECOVER PAYMENT (2) If notice is mailed during the first 60 days this policy is in effect and this is not a renewal or continuation policy; or b. At least 20 days notice in all other cases. A. If we make a payment under this policy and the person to or for whom payment was made has a right to recover damages from another we shall be subrogated to that right. That person shall do: 3. After this policy is in effect for 60 days, or if this is a renewal or continuation policy, we will cancel only: a. For nonpayment of premium; or b. If your driver's license or that of: 1. Whatever is necessary to enable us to exercise our rights; and 2. Nothing after loss to prejudice them. However, our rights in this Paragraph (A.) do not apply under Part D, against any person using "your covered auto" with a reasonable belief that that person is entitled to do so. B. If we make a payment under this policy and the person to or for whom payment is made recovers damages from another, that person shall: 1. Hold in trust for us the proceeds of the recovery; and 2. Reimburse us to the extent of our payment. POLICY PERIOD AND TERRITORY A. This policy applies only to accidents and losses which occur: 1. During the policy period as shown in the Declarations; and 2. Within the policy territory. B. The policy territory is: 1. The United States of America, its territories or possessions; 2. Puerto Rico; or 3. Canada. This policy also applies to loss to, or accidents involving, "your covered auto" while being transported between their ports. TERMINATION A. CanceIIation This policy may be cancelled during the policy period as follows: 1. The named insured shown in the Declarations may cancel by: a. Returning this policy to us; or b. Giving us advance written notice of the date cancellation is to take effect. 2. We may cancel by mailing to the named insured shown in the Declarations at the address shown in this policy: a. At least 10 days notice: (1) Any driver who lives with you; or (2) Any driver who customarily uses "your covered auto"; has been suspended or revoked. This must have occurred: (1) During the policy period; or (2) Since the last anniversary of the original effective date if the policy period is other than 1 year; or c. If the policy was obtained through material misrepresentation. B. NonrenewaI If we decide not to renew or continue this policy, we will mail notice to the named insured shown in the Declarations at the address shown in this pol- icy. Notice will be mailed at least 20 days before the end of the policy period. Subject to this notice requirement, if the policy period is: 1. Less than 6 months, we will have the right not to renew or continue this policy every 6 months, beginning 6 months after its original effective date. 2. 6 months or longer, but less than one year, we will have the right not to renew or continue this policy at the end of the policy period. 3. 1 year or longer, we will have the right not to renew or continue this policy at each anniversary of its original effective date. C. Automatic Termination If we offer to renew or continue and you or your representative do not accept, this policy will automatically terminate at the end of the current policy period. Failure to pay the required renewal or continuation premium when due shall mean that you have not accepted our offer. If you obtain other insurance on "your covered auto", any similar insurance provided by this policy will terminate as to that auto on the effective date of the other insurance. (1) If cancellation is for nonpayment of premium; or Page 12 of 13 PP 00 01 01 05 D. Other Termination Provisions 1. We may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of notice. 2. If this policy is cancelled, you may be entitled to a premium refund. If so, we will send you the refund. The premium refund, if any, will be computed according to our manuals. However, making or offering to make the refund is not a condition of cancellation. 3. The effective date of cancellation stated in the notice shall become the end of the policy period. TRANSFER OF YOUR INTEREST IN THIS POLICY 2. The legal representative of the deceased person as if a named insured shown in the Declarations. This applies only with respect to the representative's legal responsibility to maintain or use "your covered auto". B. Coverage will only be provided until the end of the policy period. TWO OR MORE AUTO POLICIES If this policy and any other auto insurance policy issued to you by us apply to the same accident, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy. A. Your rights and duties under this policy may not be assigned without our written consent. However, if a named insured shown in the Declarations dies, coverage will be provided for: 1. The surviving spouse if resident in the same household at the time of death. Coverage applies to the spouse as if a named insured shown in the Declarations; and PP 00 01 01 05 Page 13 of 13 Review the Sample Homeowners Insurance Policy and answer the following questions. Answer each question in 200- to 250-words: Question Answer Will a detached garage be covered? To what degree are credit and debit card losses covered? A plumber working at your home is injured, is he covered? You find mold, fungus, and wet rot in your attic, what are the policy provisions? What are the policy limits on liability? Review the Sample Auto Insurance Policy and answer the following questions. Answer each question in 200- to 250-words: Question Answer When does the coverage begin on a newly acquired auto? Explain the time limit on medical claims incurred by the insured? You use your auto in a sharethe-expense car pool. Are you covered by the uninsured motorist provision? You have an auto accident on the way to work and you laptop computer is destroyed, is it covered? Your driver’s license is suspended for one year, what is your status with the auto? Identify and briefly describe the seven broad classes of property and liability insurance for business firms. # Insurance Type Insurance Type Description HOMEOWNERS POLICY Homeowners Policy Declarations POLICYHOLDER (Named Insured Mark L. and Dianna Jones 2900 Palisade Drive Anytown, Anystate 12000 POLICY PERIOD Inception Expiration POLICY NUMBER April 1, 2005 April 1, 2006 00123 456 Policy period begins at 12:01 A.M. standard time at the residence premises FIRST MORGAGEE AND MAILING ADDRESS Bob’s Bank N 4552 Main Street Anytown, Anystate 12000 We will provide the described in this policy in return for the premium and compliance with the applicable policy provisions. SECTION I COVERAGES LIMIT $200,000 20,000 100,000 40,000 A—Dwelling B—Other Structures C—Personal Property D—Loss of Use SECTION II COVERAGES E—Personal Liability F—Medical Payments to Others CONSTRUCTION: Frame YEAR BUILT 1990 SECTION I DEDUCTIBLE $ 250 (In case of loss under Section I, we cover only that part of the loss over the deductible shown above. 300,000 1,000 NO. OF FAMILIES PROTECTION CLASS One TYPE ROOF: Approved FIRE DISTRICT Johnson Township NOT MORE THAN 1000 FEET FROM HYDRANT NOT MORE THAN 5 MILES FROM FIRE DEPT. FORMS AND ENDORSEMENTS IN POLIICY POLICY PREMIUM COUNTERSIGNATURE DATE $ 455 March 15, 2002 HO 00 03, HO 04 54, HO 04 61, HO 24 82 AGENT: Tom Jefferson HOMEOWNERS HO 00 03 10 00 HOMEOWNERS 3 SPECIAL FORM AGREEMENT 2. We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. “Bodily injury” means bodily harm, sickness or disease, including required care, loss of services and death that results. 3. “Business” means: a. A trade, profession or occupation engaged in on a full-time, part-time or occasional basis; or b. Any other activity engaged in for money or other compensation, except the following: DEFINITIONS A. In this policy, “you” and “your” refer to the “named insured” shown in the Declarations and the spouse if a resident of the same household. “We”, “us” and “our” refer to the Company providing this insurance. SAMPLE (1) One or more activities, not described in (2) through (4) below, for which no “insured” receives more than $2,000 in total compensation for the of 12the months before the beginning B. In addition, certain words and phrases are defined as follows: 1. “Aircraft Liability”, “Hovercraft Liability”, “Motor Vehicle Liability” and “Watercraft Liability”, subject to the provisions in b. below, mean the following: a. policy period; (2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity; Liability for “bodily injury” or “property damage” arising out of the: (1) Ownership of such vehicle or craft by an “insured”; (3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or (2) Maintenance, occupancy, operation, use, loading or unloading of such vehicle or craft by any person; (3) Entrustment of such vehicle or craft by an “insured” to any person; (4) The rendering of home day care services to a relative of an “insured”. 4. “Employee” means an employee of an “insured”, or an employee leased to an “insured” by a labor leasing firm under an agreement between an “insured” and the labor leasing firm, whose duties are other than those performed by a “residence employee”. 5. “Insured” means: (4) Failure to supervise or negligent supervision of any person involving such vehicle or craft by an “insured”; or (5) Vicarious liability, whether or not imposed by law, for the actions of a child or minor involving such vehicle or craft. b. a. For the purpose of this definition: (1) Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo; (2) Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; (3) Watercraft means a craft principally designed to be propelled on or in water by wind, engine power or electric motor; and You and residents of your household who are: (1) Your relatives; or (2) Other persons under the age of 21 and in the care of any person named above; b. A student enrolled in school full time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of: (1) 24 and your relative; or (2) 21 and in your care or the care of a person described in a.(1) above; or (4) Motor vehicle means a “motor vehicle” as defined in 7. below. HO 00 03 10 00 Page 1 of 22 c. h. Any part of a premises occasionally rented to an “insured” for other than “business” use. Under Section II: (1) With respect to animals or watercraft to which this policy applies, any person or organization legally responsible for these animals or watercraft which are owned by you or any person included in a. or b. above. “Insured” does not mean a person or organization using or having custody of these animals or watercraft in the course of any “business” or without consent of the owner; or (2) With respect to a “motor vehicle” to which this policy applies: (a) Persons while engaged in your employ or that of any person included in a. or b. above; or (b) Other persons using the vehicle on an “insured location” with your consent. Under both Sections I and II, when the word an immediately precedes themean wordone “insured”, words an “insured” together or more the “insureds”. 6. 7. “Motor vehicle” means: a. A self-propelled land or amphibious vehicle; or b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above. 8. “Occurrence” means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period, in: a. “Bodily injury”; or b. “Property damage”. 9. “Property damage” means physical injury to, destruction of, or loss of use of tangible property. 10. “Residence employee” means: a. An employee of an “insured”, SAMPLE a. The “residence premises”; b. The part of other premises, other structures and grounds used by you as a residence; and (1) Which is shown in the Declarations; or (2) Which is acquired by you during the policy period for your use as a residence; c. Any premises used by you in connection with a premises described in a. and b. above; d. Any part of a premises: (1) Not owned by an “insured”; and g. leasing firm, under an agreement between an “insured” and the labor leasing firm, whose duties are related to the maintenance or use of the “residence premises”, including household or domestic services; or b. One who performs similar duties elsewhere not related to the “business” of an “insured”. A “residence employee” does not include a temporary employee who is furnished to an “insured” to substitute for a permanent “residence employee” on leave or to meet seasonal or short term workload conditions. 11. “Residence premises” means: a. The one family dwelling where you reside; b. Vacant land, other than farm land, owned by or rented to an “insured”; The two, three or four family dwelling where you reside in at least one of the family units; or c. Land owned by or rented to an “insured” on which a one, two, three or four family dwelling is being built as a residence for an “insured”; That part of any other building where you reside; and which is shown as the “residence premises” in the Declarations. Individual or family cemetery plots or burial vaults of an “insured”; or “Residence premises” also includes structures and grounds at that location. (2) Where an residing; f. an employe e leased to an “insured” by a labor “Insured location” means: e. or Page 2 of 22 “insured” is temporarily other HO 00 03 10 00 C. Coverage C — Personal Property DEDUCTIBLE 1. Unless otherwise noted in this policy, the following deductible provision applies: Covered Property We cover personal property owned or used by an “insured” while it is anywhere in the world. After a loss and at your request, we will cover personal property owned by: Subject to the policy limits that apply, we will pay only that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the Declarations. a. Others while the property is on the part of the “residence premises” occupied by an “insured”; or b. A guest or a “residence employee”, while the property is in any residence occupied by an “insured”. SECTION I - PROPERTY COVERAGES A. Coverage A — Dwelling 1. We cover: a. b. 2. The dwelling on the “residence premises” shown in the Declarations, including structures attached to the dwelling; and 2. Limit For Property At Other Residences Our limit of liability for personal property usually located at an “insured’s” residence, other than the “residence premises”, is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater. However, this limitation does not apply to personal property: a. Moved from the “residence premises” SAMPLE Materials and supplies located on or next to the “residence premises” used to construct, alter or repair the dwelling or other structures on the “residence premises”. We do not cover land, including land on which the dwelling is located. because it is being repaired, renovated or rebuilt and is not fit to live in or store property in; or B. Coverage B — Other Structures 1. 2. We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. We do not cover: a. Land, including land on which the other structures are located; b. Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage; c. Other structures from which any “business” is conducted; or d. Other structures used to store “business” property. However, we do cover a structure that contains “business” property solely owned by an “insured” or a tenant of the dwelling provided that “business” property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure. 3. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability. HO 00 03 10 00 b. 3. In a newly acquired principal residence for 30 days from the time you begin to move the property there. Special Limits Of Liability The special limit for each category shown below is the total limit for each loss for all property in that category. These special limits do not increase the Coverage C limit of liability. a. $200 on money, bank notes, bullion, gold other than goldware, silver other silverware, platinum other platinumware, coins, medals, scrip, stored value cards and smart cards. b. $1,500 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. This limit includes the cost to research, replace or restore the information from the lost or damaged material. Page 3 of 22 c. $1,500 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. d. $1,500 on trailers or semitrailers not used with watercraft of all types. e. $1,500 for loss by theft of jewelry, watches, furs, precious and semiprecious stones. f. $2,500 for loss by theft of firearms and related equipment. g. $2,500 for loss by theft of silverware, silverplated ware, goldware, gold-plated ware platinumware, platinum-plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. Animals, birds or fish; c. “Motor vehicles”. (1) This includes: (a) Their accessories, equipment and parts; or (b) Electronic apparatus and accessories designed to be operated solely by power from the electrical system of the “motor vehicle”. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described above. The exclusion of property described in (a) and (b) above applies only while such property is in or upon the “motor vehicle”. h. $2,500 on property, on the premises”, used primarily for purposes. “residence “business” (2) We do cover “motor vehicles” not required to be registered for use on public roads or property which are: i. $500 on property, away from the “residence premises”, used primarily for “business” (a) Used solely to service an “insured’s” residence; or purposes. However, this limit does not apply to loss to electronic apparatus and other property described in Categories j. and k. below. j. k. (b) Designed to as sist the handicapped; SAMPLE $1,500 on electronic apparatus and accessories, while in or upon a “motor vehicle”, but only if the apparatus is equipped to be operated by power from the “motor vehicle’s” electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this Category j. $1,500 on electronic apparatus and accessories used primarily for “business” while away from the “residence premises” and not in or upon a “motor vehicle”. The apparatus must be equipped to be operated by power from the “motor vehicle’s” electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this Category k. 4. b. d. Aircraft meaning any contrivance used or designed for flight including any parts whether or not attached to the aircraft. We do cover model or hobby aircraft not used or designed to carry people or cargo; e. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; f. Property of roomers, boarders and other tenants, except property of roomers and boarders related to an “insured”; g. Property in an apartment regularly rented or held for rental to others by an “insured”, except as provided in E.10. Landlord’s Furnishings under Section I — Property Coverages; h. Property rented or held for rental to others off the “residence premises”; i. “Business” data, including such data stored in: Property Not Covered (1) Books of account, drawings or other paper records; or We do not cover: (2) Computers and related equipment. a. We do cover the cost of blank recording or storage media, and of prerecorded computer programs available on the retail market; Articles separately described and specifically insured, regardless of the limit for which they are insured, in this or other insurance; Page 4 of 22 HO 00 03 10 00 j. k. Credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or transfer of funds except as provided in E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I — Property Coverages; or E. Additional Coverages 1. Debris Removal a. (1) Debris of cove red property if a Peril Insured Against that applies to the damaged property causes the loss; or Water or steam. D. Coverage D – Loss of Use (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. The limit of liability for Coverage D is the total limit for the coverages in 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use below. 1. We will pay your reasonable expense for the removal of: Additional Living Expense This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit is available for such expense. We will also pay your reasonable SAMPLE If a loss covered under Section I makes that part of the “residence premises” where you reside not fit to live in, we cover any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. 2. b. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. expense, up to $1,000, for the removal from the “residence premises” of: Fair Rental Value (2) A neighbor’s tree(s) felled by a Peril Insured Against under Coverage C; (1) Your tree(s) felled by the peril of Windstorm or Hail or Weight of Snow or Sleet; or If a loss covered under Section I makes that part of the “residence premises” rented to others or held for rental by you not fit to live in, we cover the fair rental value of such premises less any expenses that do not continue while it is not fit to live in. provided the tree(s): (3) Damage(s) a covered structure; or (4) Does not damage a covered structure, but: Payment will be for the shortest time required to repair or replace such premises. 3. (a) Block(s) a driveway on the “residence premises” which prevent(s) a “motor vehicle”, that is registered for use on public roads or property, from entering or leaving the “residence premises”; or Civil Authority Prohibits Use If a civil authority prohibits you from use of the “residence premises” as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1. Additional Living Expense and 2. Fair Rental Value above for no more than two weeks. 4. (b) Block(s) a ramp or other fixture designed to assist a handicapped person to enter or leave the dwelling building. Loss Or Expense Not Covered The $1,000 limit is the most we will pay in any one loss regardless of the number of fallen trees. No more than $500 of this limit will be paid for the removal of any one tree. We do not cover loss or expense due to cancellation of a lease or agreement. The periods of time under 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use above are not limited by expiration of this policy. HO 00 03 10 00 Ice, This coverage is additional insurance. 2. Reasonable Repairs a. We will pay the reasonable cost incurred by you for the necessary measures taken solely to protect covered property that is damaged by a Peril Insured Against from further damage. Page 5 of 22 b. If the measures taken involve repair to other damaged property, we will only pay if that property is covered under this policy and the damage is caused by a Peril Insured Against. This coverage does not: 6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money a. (1) The legal obligation of an “insured” to pay because of the theft or unauthorized use of credit cards issued to or registered in an “insured’s” name; (1) Increase the limit of liability that applies to the covered property; or (2) Relieve you of your duties, in case of a loss to covered property, described in B.4. under Section I — Conditions. 3. (2) Loss resulting from theft or unauthorized use of an electronic fund transfer card or access device used for deposit, withdrawal or transfer of funds, issued to or registered in an “insured’s” name; Trees, Shrubs And Other Plants We cover trees, shrubs, plants or lawns, on the “residence premises”, for loss caused by the following Perils Insured Against: (3) Loss to an “insured” caused by forgery or alteration of any check or negotiable instrument; and SAMPLE a. Fire or Lightning; b. Explosion; c. Riot or Civil Commotion; d. Aircraft; e. Vehicles not owned or operated by a resident of the “residence premises”; f. Vandalism or Malicious Mischief; or g. Theft. (4) Loss to an “insured” through acceptance in good faith of counterfeit United States or Canadian paper currency. All loss resulting from a series of acts We will pay up to 5% of the limit of liability that applies to the dwelling for all trees, shrubs, plants or lawns. No more than $500 of this limit will be paid for any one tree, shrub or plant. We do not cover property grown for “business” purposes. committed by any one person or in which any one person is concerned or implicated is considered to be one loss. This coverage is additional insurance. No deductible applies to this coverage. b. (a) By a resident of your household; (b) By a person who has been entrusted with either type of card or access device; or Fire Department Service Charge We will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. deductible applies to this coverage. 5. We do not cover: (1) Use of a credit card, electronic fund transfer card or access device: This coverage is additional insurance. 4. We will pay up to $500 for: No Property Removed We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed. (c) If an “insured” has not complied with all terms and conditions under which the cards are issued or the devices accessed; or (2) Loss arising out of “business” use or dishonesty of an “insured”. c. If the coverage in a. above applies, the following defense provisions also apply: (1) We may investigate and settle any claim or suit that we decide is appropriate. Our duty to defend a claim or suit ends when the amount we pay for the loss equals our limit of liability. (2) If a suit is brought against an “insured” for liability under a.(1) or (2) above, we will provide a defense at our expense by counsel of our choice. (3) We have the option to defend at our expense an “insured” or an “insured’s” bank against any suit for the enforcement of payment under a.(3) above. Page 6 of 22 HO 00 03 10 00 7. b. Loss Assessment a. We will pay up to $1,000 for your share of loss assessment charged during the policy period against you, as owner or tenant of the “residence premises”, by a corporation or association of property owners. The assessment must be made as a result of direct loss to property, owned by all members collectively, of the type that would be covered by this policy if owned by you, caused by a Peril Insured Against under Coverage A, other than: (1) The Perils Insured Against named under Coverage C; (2) Decay that is hidden from view, unless the presence of such decay is known to an “insured” prior to collapse; (3) Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an “insured” prior to collapse; (1) Earthquake; or (2) Land shock waves or tremors before, during or after a volcanic eruption. (4) Weight of contents, equipment, animals or people; SAMPLE The limit of $1,000 is the most we will pay with respect to any one loss, regardless of the number of assessments. We will only apply one deductible, per unit, to the total amount of any one loss to the property described above, regardless of the number of assessments. b. c. (5) Weight of rain which collects on a roof; or (6) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. c. Loss to an awning, fence, patio, deck, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included under b.(2) through (6) above, unless the loss is a direct result of the collapse of a building or any part of a building. d. This coverage does not increase the limit of liability that applies to the damaged covered property. Paragraph P. Policy Period under Section I — Conditions does not apply to this coverage. This coverage is additional insurance. 8. Collapse a. We insure for direct physical loss to covered property involving collapse of a building or any part of a building if the collapse was caused by one or more of the following: With respect to this Additional Coverage: (1) Collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its current intended purpose. (2) A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse. (3) A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building. (4) A building or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. HO 00 03 10 00 9. Glass Or Safety Glazing Material a. We cover: (1) The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window; (2) The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window when caused directly by earth movement; and (3) The direct physical loss to covered property caused solely by the pieces, fragments or splinters of broken glass or safety glazing material which is part of a building, storm door or storm window. Page 7 of 22 b. This coverage does not include loss: b. You may use all or part of this ordinance or law coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renovation, repair or replacement of property as stated in a. above. c. We do not cover: (1) To covered property which results because the glass or safety glazing material has been broken, except as provided in a.(3) above; or (2) On the “residence premises” if the dwelling has been vacant for more than 60 consecutive days immediately before the loss, except when the breakage results directly from earth movement as provided in a.(2) above. A dwelling being constructed is not considered vacant. c. (1) The loss in value to any covered building or other structure due to the requirements of any ordinance or law; or (2) The costs to comply with any ordinance or law which requires any “insured” or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants in or on any covered building or other structure. This coverage does not increase the limit of liability that applies to the damaged property. 10. Landlord’s Furnishings SAMPLE We will pay up to $2,500 for your appliances, carpeting and other household furnishings, in each apartment on the “residence premises” regularly rented or held for rental to others by an “insured”, for loss caused by a Peril Insured Against in Coverage C, other than Theft. This limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss. This coverage does not increase the limit of liability applying to the damaged property. 11. Ordinance Or Law a. You may use up to 10% of the limit of liability that applies to Coverage A for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: (1) The construction, demolition, remodeling, renovation or repair of that part of a covered building or other structure damaged by a Peril Insured Against; (2) The demolition and reconstruction of the undamaged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a Peril Insured Against to another part of that covered building or other structure; or (3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure damaged by a Peril Insured Against. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, and waste.alkalis, Wastechemicals includes materials to be recycled, reconditioned or reclaimed. This coverage is additional insurance. 12. Grave Markers We will pay up to $5,000 for grave markers, including mausoleums, on or away from the “residence premises” for loss caused by a Peril Insured Against under Coverage C. This coverage does not increase the limits of liability that apply to the damaged covered property. SECTION I — PERILS INSURED AGAINST A. Coverage A — Dwelling And Coverage B — Other Structures 1. We insure against risk of direct physical loss to property described in Coverages A and B. 2. We do not insure, however, for loss: a. Excluded under Section I — Exclusions; b. Involving collapse, except as provided in E.8. Collapse under Section I — Property Coverages; or c. Caused by: (1) Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (a) Maintain heat in the building; or Page 8 of 22 HO 00 03 10 00 (b) Shut off the water supply and drain all systems and appliances of water. (b) A storm drain, or water, steam or sewer pipes, off the “residence premises”. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment; or For purposes of this provision a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment; (2) Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (6) Any of the following: (a) Wear and tear, marring, deterioration; (b) Mechanical breakdown, latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself; (c) Smog, rust or other corrosion, or dry rot; SAMPLE (a) Fence, pavement, patio or swimming pool; (b) Footing, foundation, bulkhead, wall, or any other structure or device that supports all or part of a building, or other structure; (c) Retaining wall or bulkhead that does not support all or part of a building or other structure; or (d) Pier, wharf or dock; (3) Theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied; (4) Vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant; (5) Mold, fungus or wet rot. However, we do insure for loss caused by mold, fungus or wet rot that is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure if such loss results from the accidental discharge or overflow of water or steam from within: (a) A plumbing, heating, air conditioning or automatic fire protective sprinkler system, or a household appliance, on the “residence premises”; or HO 00 03 10 00 (d) Smoke from agricultural smudging or industrial operations; (e) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against named under Coverage C. Pollutants means any solid, liquid, gaseous or thermal irritant to contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. (f) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; (g) Birds, vermin, rodents, or insects; or (h) Animals owned or kept by an “insured”. Exception To c.(6) Unless the loss is otherwise excluded, we cover loss to property covered under Coverage A or B resulting from an accidental discharge or overflow of water or steam from within a: (i) Storm drain, or water, steam or sewer pipe, off the “residence premises”; or Page 9 of 22 (ii) Plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the “residence premises”. This includes the cost to tear out and replace any part of a building, or other structure, on the “residence premises”, but only when necessary to repair the system or appliance. However, such tear out and replacement coverage only applies to other structures if the water or steam causes actual damage to a building on the “residence premises”. 6. Vehicles 7. Smoke 8. Vandalism Or Malicious Mischief We do not cover loss to the system or appliance from which this water or steam escaped. 9. Theft For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, down spout or similar fixtures or equipment. This peril means sudden and accidental damage from smoke, including the emission or puffback of smoke, soot, fumes or vapors from a boiler, furnace or related equipment. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. a. This peril includes attempted theft and loss of property from a known place when it is likely that the property has been stolen. SAMPLE Section I — Exclusion A.3. Water Damage, Paragraphs a. and c. that apply to surface b. This peril does not include loss caused by theft: (1) Committed by an “insured”; (2) In or to a dwelling under construction, water and water below the surface of the ground do not apply to loss by water covered under c.(5) and (6) above. or of materials and supplies for use in the construction until the dwelling is finished and occupied; Under 2.b. and c. above, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered. (3) From that part of a “residence premises” rented by an “insured” to someone other than another “insured”; or B. Coverage C — Personal Property (4) That occurs premises” of: off the “residence We insure for direct physical loss to the property described in Coverage C caused by any of the following perils unless the loss is excluded in Section I — Exclusions. (a) Trailers, semitrailers and campers; 1. Fire Or Lightning 2. Windstorm Or Hail (c) Property while at any other residence owned by, rented to, or occupied by an “insured”, except while an “insured” is temporarily living there. Property of an “insured” who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the 60 days immediately before the loss. This peril includes loss to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. 3. Explosion 4. Riot Or Civil Commotion 5. Aircraft This peril includes self-propelled missiles and spacecraft. Page 10 of 22 (b) Watercraft of all types, and their furnishings, equipment and outboard engines or motors; or 10. Falling Objects This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. 11. Weight Of Ice, Snow Or Sleet This peril means weight of ice, snow or sleet which causes damage to property contained in a building. HO 00 03 10 00 b. 12. Accidental Discharge Or Overflow Of Water Or Steam a. b. This peril means accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance. 15. Sudden And Accidental Damage From Artificially Generated Electrical Current This peril does not include loss to tubes, transistors, electronic components or circuitry that are a part of appliances, fixtures, computers, home entertainment units or other types of electronic apparatus. This peril does not include loss: (1) To the system or appliance from which the water or steam escaped; (2) Caused by or resulting from freezing except as provided in Peril Insured Against 14. Freezing; (3) On the “residence premises” caused by accidental discharge or overflow which occurs off the “residence premises”; or above the ceilings of a structure. d. 16. Volcanic Eruption This peril does not include loss caused by earthquake, land shock waves or tremors. SAMPLE (4) Caused by mold, fungus or wet rot unless hidden within the walls or ceilings or beneath the floors or c. In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. SECTION I — EXCLUSIONS A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area. 1. Ordinance Or Law Ordinance Or Law means any ordinance or law: Section I — Exclusion A.3. Water Damage, Paragraphs a. and c. that apply to surface water and water below the surface of the ground do not apply to loss by water covered under this peril. a. Requiring or regulating the construction, demolition, remodeling, renovation or repair of property, including removal of any resulting debris. This Exclusion A.1.a. does not apply to the amount of coverage that may be provided for in E.11. Ordinance Or Law under Section I — Property Coverages; b. The requirements of which result in a loss in value to property; or c. Requiring any “insured” or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants. 13. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging This peril means sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. 14. Freezing a. In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. This peril means freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance but only if you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. HO 00 03 10 00 This Exclusion A.1. applies whether or not the property has been physically damaged. 2. Earth Movement Earth Movement means: a. Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; Page 11 of 22 Discharge of a nuclear weapon will be deemed a warlike act even if accidental. b. Landslide, mudslide or mudflow; c. Subsidence or sinkhole; or d. Any other earth movement including earth sinking, rising or shifting; 7. caused by or resulting from human or animal forces or any act of nature unless direct loss by fire or explosion ensues and then we will pay only for the ensuing loss. This Exclusion A.7. pertains to Nuclear Hazard to the extent set forth in M. Nuclear Hazard Clause under Section I — Conditions. 8. In the event of such loss, no “insured” is entitled to coverage, even “insureds” who did not commit or conspire to commit the act causing the loss. Water Damage Water Damage means: a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; SAMPLE b. Water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or c. Water or water-borne material below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure; caused by or resulting from human or animal forces or any act of nature. Direct loss by fire, explosion or theft resulting from water damage is covered. 4. Neglect Governmental Action Governmental Action means the destruction, confiscation or seizure of property described in Coverage A, B or C by order of any governmental or public authority. This exclusion does not apply to such acts ordered by any governmental or public authority that are taken at the time of a fire to prevent its spread, if the loss caused by fire would be covered under this policy. B. We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered. 1. Weather conditions. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in A. above to produce the loss. 2. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. 3. Faulty, inadequate or defective: a. Planning, zoning, surveying, siting; b. Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; any c. Materials used in repair, construction, renovation or remodeling; or a. Undeclared war, civil war, insurrection, rebellion or revolution; d. Maintenance; b. Warlike act by a military force or military personnel; or c. Destruction, seizure, or use for a military purpose. Neglect means neglect of an “insured” to use all reasonable means to save and preserve property at and after the time of a loss. 6. 9. Power Failure Power Failure means the failure of power or other utility service if the failure takes place off the “residence premises”. But if the failure results in a loss, from a Peril Insured Against on the “residence premises”, we will pay for the loss caused by that peril. 5. Intentional Loss Intentional Loss means any loss arising out of any act an “insured” commits or conspires to commit with the intent to cause a loss. This Exclusion A.2. does not apply to loss by theft. 3. Nuclear Hazard War War includes the following and consequence of any of the following: Page12 of 22 development, of part or all of any property whether on or off the “residence premises”. HO 00 03 10 00 SECTION I — CONDITIONS A. Insurable Interest And Limit Of Liability Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss: 1. To an “insured” for more than the amount of such “insured’s” interest at the time of loss; or 2. For more than the applicable limit of liability. B. Duties After Loss In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us. These duties must be performed either by you, an “insured” seeking coverage, or a representative of either: Give prompt notice to us or our agent; 2. Notify the police in case of loss by theft; 3. Notify the credit card or electronic fund transfer card or access device company in case of loss Specifications of damaged buildings and detailed repair estimates; f. The inventory of damaged property described in 6. above; g. Receipts for additional living expenses incurred and records that support the fair rental value loss; and h. Evidence or affidavit that supports a claim under E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I — Property Coverages, stating the amount and cause of loss. personal C. Loss Settlement In this Condition C., the terms “cost to repair or replace” and “replacement cost” do not include the increased costs incurred to comply with the enforcement of any ordinance or law, except to the extent that coverage for these increased costs is provided in E.11. Ordinance Or Law under Section I - Property Coverages. Covered property losses are settled as follows: Protect the property from further damage. If repairs to the property are required, you must: 1. a. Make reasonable and necessary repairs to protect the property; and b. Keep an accurate expenses; record of 6. Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory; As often as we reasonably require: a. Show the damaged property; b. Provide us with records and documents we request and permit us to make copies; and c. Submit to examination under oath, while not in the presence of another “insured”, and sign the same; Send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief: a. The time and cause of loss; b. The interests of all “insureds” and all others in the property involved and all liens on the property; c. Other insurance which may cover the loss; HO 00 03 10 00 Property of the following types: a. Personal property; b. Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; c. Structures that are not buildings; and d. Grave markers, including mausoleums; repair Cooperate with us in the investigation of a claim 8. e. as provided for in E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I — Property Coverages; 5. 7. Changes in title or occupancy of the property during the term of the policy; SAMPLE 1. 4. d. at actual cash value at the time of loss but not more than the amount required to repair or replace. 2. Buildings covered under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: a. If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of any deductible and without deduction for depreciation, but not more than the least of the following amounts: (1) The limit of liability under this policy that applies to the building; (2) The replacement cost of that part of the building damaged with material of like kind and quality and for like use; or (3) The necessary amount actually spent to repair or replace the damaged building. Page 13 of 22 e. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability according to the provisions of this Condition C. Loss Settlement, provided you notify us of your intent to do so within 180 days after the date of loss. If the building is rebuilt at a new premises, the cost described in (2) above is limited to the cost which would have been incurred if the building had been built at the original premises. b. If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, but not more than the limit of liability under this policy that applies to the building: D. Loss To A Pair Or Set In case of loss to a pair or set we may elect to: (1) The actual cash value of that part of the building damaged; or (2) That proportion of the cost to repair or replace, after application of any deductible and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy the damaged building bears to 80%onof the 2. Pay the difference between actual cash value of the property before and after the loss. SAMPLE If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial withinfrom 20 the days after receiving aappraiser written request other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the “residence premises” is located. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agree- ment to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. To determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not include the value of: (1) Excavations, footings, foundations, piers, or any other structures or devices that support all or part of the building, which are below the undersurface of the lowest basement floor; Each party will: (2) Those supports described in (1) above which are below the surface of the ground inside the foundation walls, if there is no basement; and (3) Underground flues, pipes, wiring and drains. d. Repair or replace any part to restore the pair or set to its value before the loss; or E. Appraisal replacement cost of the building. c. 1. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above. However, if the cost to repair or replace the damage is both: (1) Less than 5% of the amount of insurance in this policy on the building; and (2) Less than $2,500; we will settle the loss as noted in 2.a. and b. above whether or not actual repair or replacement is complete. Page14 of 22 F. 1. Pay its own appraiser; and 2. Bear the other expenses of the appraisal and umpire equally. Other Insurance And Service Agreement If a loss covered by this policy is also covered by: 1. Other insurance, we will pay only the proportion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss; or 2. A service agreement, this insurance is excess over any amounts payable under any such agreement. Service agreement means a service plan, property restoration plan, home warranty or other similar service warranty agreement, even if it is characterized as insurance. G. Suit Against Us No action can be brought against us unless there has been full compliance with all of the terms under Section I of this policy and the action is started within two years after the date of loss. HO 00 03 10 00 b. At our option, we may pay to the mortgagee the whole principal on the mortgage plus any accrued interest. In this event, we will receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt. H. Our Option If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the damaged property with material or property of like kind and quality. I. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after ...
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Sample Auto Insurance Policy
Institutional affiliation
Date
When does the coverage begin on a newly acquired auto?
Mainly, a newly acquired auto is based on different types of vehicles, in which a person becomes
the owner in time of the policy period. The different types of vehicles include a private passenger
auto, or a pick up or van, in which there is no any other insurance is providing coverage, and the
vehicle has a Gross Vehicle Weight Rating of 10000 lbs, or if it is not used in delivering or
transporting goods and materials, unless such services are meant for a personal business, farming
as well as ranching.. Usually, the coverage for a newly acquired auto begins when a person has
requested for the coverage. This can, however, be based on some considerations. In most cases,
after fours of being the owner and the Declaration neither show the Collision, the coverage
usually applies to one auto. On the other hand, if a person complies with the 4-day requirement
and there is a loss that had occurred before insurance of the newly acquired auto, a collision
deductible of $500 is applicable. However, for the coverage to be valid the newly acquired auto
should be insured 14 days after been the owner and the Declarations show that the coverage is
applicable to at least one auto. Also, if Declarations show that the coverage is applicable to at
least one auto after four days.
Explain the time limit on medical claims incurred by the insured?
Based to this agreement, the policy for the insured states that only reasonable expenses that are
incurred during the needed medical and funeral services will be ...


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