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Define property insurance and give examples of what it might cover. Include the difference between Named Peril and All Risk Perils policies.
- Protection for properties.
- Named Peril - covers all risks specified in policy (include fire or theft policies - any peril not named in policy excluded)
- All Risk Peril - covers anything not specifically excluded
What special provisions do condos have for property insurance?
Explain the possible effect of not having building code compliance riders.
You would have to have special assessment to bring building up to code.
What is flood insurance and who provides it?
Federally backed insurance used as protection from floods provided by National Flood Insurance Program
What is windstorm insurance and who generally provides it?
Protection against hurricanes. Citizens
What does an individual homeowners policy cover?
Protects personal property of member and provides liability coverage if someone is injured because of member's negligence or presumed negligence.
Describe the required steps in condominium reconstruction.
What are a member's responsibilities in maintaining his property in a condo?
What is General Liability Insurance and what does it cover?
Pays for legal defense and damages resulting from a legal claim or judicial obligation because of legal violation community association is alleged to have committed.
What is the difference between occurrence and claims made policies?
- Occurrence - Policy effective January 1, 2010-December 31, 2010. Incident must have happened between 1/1/2010-12/31/2010. Incident may be reported at any time.
- Claims Made - Incident may have occurred at any time and reported at a different time.
Who is covered by Workers' Compensation Insurance? Who is excluded?
- All non-construction employers who employ 4 or more employees.
- Construction contractors must carry.
- non-construction employers with less than 4 employees.
- sole proprietors without other employees.
- Up to 3 partners, without other employees.
- 3 Corporate officers, without other employees.
Explain what Unemployment Compensation Insurance is.
Provides temporary and partial wage replacement benefits to qualified individuals who are out of work through no fault of their own.
Name types of liability coverage excluded in General Liability policies.
Name specialty riders included in General Liability policies.
What is D & O insurance and who does it cover? What limitations are there on the coverage?
- Insurance for Directors & Officers (and employees)
- Intentional wrongdoing
- Failure to obtain and maintain adequate insurance.
- Personal injury actions.
- Libel and Slander
- Fraudulent acts.
- Civil rights violations.
What are fidelity bonds? What do they cover? Who should be covered by the fidelity bond in condos and coops? What amount of coverage should an association purchase?
- Is a form of insurance protection that covers an association for losses that it incurs as a result of fraudulent acts by specified individuals. It usually insures an association for losses caused by the dishonest acts of its employees.
- Each person who controls and disburses funds of association bonded.
- Must cover maximum funds that will be in custody of association or its management agent at any one point in time.
What is a performance bond?
Is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.
What is a payment on labor and materials bond?
A bond given by a contractor to guarantee payment for the labor and material used in the work which is obligated to perform under contract.
What is FIGA?
is part of a non-profit, state-based, statutorily-created system that pays certain outstanding claims of insolvent insurance companies. (Guarantee companies) State law requires.