NJ PROPERTY PRODUCER LATEST UPDATE GRADED A+

NJ PROPERTY PRODUCER LATEST UPDATE GRADED A+ Declarations Section of an insurance policy containing the basic underwriting information such as the insured's name, address, amount of coverage and premiums, and a description of insured's location. Where is Declarations page found? Usually first page. Insuring Agreement Section of an insurance policy containing the insurer's promise to pay. What does the insuring agreement list? Insuring agreement lists the parties to the contract, effective and renewal dates, the description of coverage provided, and perils. Conditions Indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy. Examples of Conditions 1. Inspection 2. Changes to policy 3. Liberalization clause 4. Return of premium Inspection (Condition) As needed by insurer. Insurance company reserves the right to inspect or examine the insured's location or books to determine the exact exposure for underwriting and rating purposes. Changes to policy (Condition) Must be made by insurer and MUST be in writing. Liberalization Clause (Condition) Ensures if insurer introduces an improved "free coverage", the insured will get the benefit of the new coverage immediately and will not have to wait for policy renewal. (Similar to adjustment policies) Return of premium (Condition) Dictates the method that will be used to calculate the return premium when the policy is cancelled before the expiration date. Exclusions Section of insurance policy that details what perils are NOT insured against and what persons are NOT insured. Exclusion Examples from Property Policy Earth movement and water damage. Insured Person or persons named in an insurance policy that is protected under the contract, to whom the insurer reimburses losses, pays benefits or provides services. Duties of the Insured 1. Protect the damaged property from further loss. 2. Prepare an inventory of damaged property. 3. Cooperate with the insurer in settling loss. 4. Notify policy in case of theft loss. 5. Submit signed proof of loss within allotted time. Obligations of the Insurance Company In return for premium, must be fair in underwriting and must pay covered losses. Mortgage Clause Attached to a policy to protect the interest of the mortgagee in the mortgaged property. The loss reimbursement will be paid to the mortgagee as interest appears. Mortgagee's rights of recovery will not be defeated