Claims Adjuster Academy Chapter 3 Demo

Functional Replacement Cost- Some policies pay losses on a functional replacement cost basis, where damaged property is repaired or replaced with less expensive, but functionally equivalent materials. This method is used most frequently for losses to antique, ornate or custom construction. Market Value- Occasionally, property is insured for market value , or what it could be sold for at the time of the loss. Market value is different from ACV or replacement cost. Valued Policy- For certain hard-to-value items, the insurance company will issue a valued or agreed amount contract. Declarations The declarations section of a policy includes the identity and address of the named insured, the policy term or period, the amount of insurance or limits of liability, the policy premium, and any applicable deductibles. The declarations will also include either a property description or a schedule of coverage parts, and a list of any endorsements. Definitions Definitions define important terms used in the policy language. Some policies list definitions in a distinct section having that title. Some policies include definitions in the “Conditions” section, while others spread definitions throughout policy sections. Insuring Agreement or Clause The insuring clause or agreement describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. Conditions Policy conditions set provisions, rules of conduct, duties, and obligations for the parties Exclusions Exclusions may describe property, perils, hazards, or losses arising from specific causes which are not covered by the policy. Endorsements Endorsements are used to add, delete, or change any of the policy parts. Endorsements may alter the content of the declarations and insuring agreement, and they may contain conditions, 3.3 POLICY STRUCTURE