Provisions Governing Fire Insurance Contracts: Reprint

Front 1

Provision governing fire insurance contracts

Back 1

Stat Conditions
Protection for Loss Payees
Included Perils
Rateable Contribution
Removal of Insured's Property
Application in Writing
Limitation of Liability

Front 2

Statutory Conditions

Back 2

Savage
Who may give Proof / Notice
When a Loss is Payable
Appraisal
Termination
Change of Interest
Other's Property
Misrepresentation
Material Change
After a Loss Requirements
Notice
Fraud
Entry, Control, and Abondonment
Action
Replacement Cost

Front 3

Protection For Loss Payees

Back 3

Where loss has, with the Insurer's Permission, been made payable to someone other than the Insured:
-Notice to all persons payable is required where the cancel or alteration may prejudice that person
-Obligation to payees, not only to insured for indemnity
-Notice of termination per Stat Condition to all payees on policy

Front 4

Included Perils

Back 4

Fire
Lightening
Explosion
Contamination: Only if specified

Front 5

Rateable Contribution

Back 5

When more than one policy covers the same interest, each insurer is liable for the rateable proportion...
-unless agreed otherwise in writing
-hold even if policy contains "Other Insurance" clause
-does not overrule limits or Limitation of Liability provision
-highest deductible if two is devided
-specific coverage on property must respond first

Front 6

Removal of the Insured's Property

Back 6

-Distribution Provision applies
-Extension of 7 days or to policy expiry
-Amount of insurance is unchanged
-Damage prevented / loss mitigated
-Salvage stat condition applies

DEADS

Front 7

Application in Writing

Back 7

-Changes or difference between the application and policy must be provided in writing: 2 Weeks to Reject
-Onus is on the Insurer to check the application
-Makes applicants wishes clear
-Avoids misunderstanding

Front 8

Limitation of Liability Clause

Back 8

-Any clause limiting liability (Limits recovery by the Insured) must be marked as such
-Requirements are set out by the Insurance Acts
-Examples: Deductible clause, Coinsurance Clause

Front 9

The Distribution Provision

Back 9

Is based on 2 conditions:
1) The contract must be one of which the insurer agrees to pay a claim in certain described circumstances and the amount of insurance is reduced accordingly. This the amount is the difference of the amount of insurance and the amount of the original loss
2) If the amount is equal to or greater than the amount of insurance for the insured property, the full amount of insurance is payable

Distribution: The splitting of an amount of insurance to apply to property in more than one location

Front 10

Fire

Back 10

Is not defined but genarally regarded as required actual ignition - visable flames

Excludes:
-Undergoing Application of Heat
-Riot, Civil Comotion, War etc...

Front 11

Lightening

Back 11

Excludes:
-Destruction of, or Loss to electrical devices or appliances caused by lightening or other electrical currents unless fire originates outside of the article itself - and then only for loss or damage that occurs from the fire

Front 12

Explosion

Back 12

Of Natural or Manufactured Gas, or Coal in a building NOT forming part of a gas works

Excludes:
-Undergoing the Application of Heat
-Riot, War, Invasion, Act of Foriegn Enemy etc...

Front 13

Rateable Contribution Examples

Back 13

Two Policie, No Deductible
Policy A insured property for 10K
Policy B insures property for 15K
Total Insurance is 25K
Loss of 20K is suffered

A = 10K / 25K (% of RC) x 20K (Amt of Loss) = Rate Cont.
B = 15K / 25K (% of RC) x 20K (Amt of Loss) = Rate Cont.