Results 2021 - 2030 of 3226
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Time frames for canceling under the 60-day “free look” | Ask PIA
If a company decides to cancel a brand-new policy during its 60-day “free look” period, when does the cancellation notice have to be mailed, and when does the cancellation take effect?
The company must mail the notice, at the latest, on the 60th day. An insurer would count the policy effective date as day one, and then add 59 days to that date to know the period of time a notice of cancellation may be issued—see this opinion for details:http://www.dfs.ny.gov/insurance/ogco2006/rg060711.htm.Here...
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Premium payments/nonsufficient funds | Ask PIA
I write commercial-lines policies and occasionally receive a premium payment check drawn on insufficient funds. My client’s action subjects me to a not sufficient funds (NSF) fee, or a returned check fee that I am then forced to pay. I’d like to be able to charge this back to the insured,...
Yes. Normally, seeking payment from the insured requires a written fee agreement conforming to the requirements of N.J.A.C. 11:17B-3.1(B). However, the Department of Banking and Insurance has indicated that requesting an insured make you whole after you are hit with a NSF or returned check fee flowing from their submission...
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DP-3—vacant property | Ask PIA
On a DP-3 form, are there any exclusions that apply to the liability coverage, with respect to a vacant property? We understand the property coverage is jeopardized if the dwelling is vacant. Does that follow for liability or a medical payments loss?
The DP-3 provides property coverage only, and does not provide any Section II liability coverage. However, there is an endorsement that you can add to the DP-3 policy to give liability coverage, DL 24 01—Personal Liability. Given that the property is vacant, the underwriter may decline the request. Another option...
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Certificates—midterm change in limits | Ask PIA
In these economic times, we have a number of clients looking to reduce their umbrella limit on a midterm basis. We have issued certificates reflecting the higher limit that was originally purchased. Would we have to re-issue all of the certificates that were previously issued or do we just issue...
There is no requirement for certificate holders to be notified of a change in the policy, just like there is no requirement for them to be notified of a cancellation (absent a policy provision obligating the insurer to do so). The certificate is merely a snapshot in time evidencing the...
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Privacy—auto claim involving Medicare insured | Ask PIA
Recently, one of our insureds was in an accident and, in the course of processing her claim, the insurance company required the insured’s Social Security number. The company claimed they needed the Social Security number because of a new federal law and that Medicare was involved. Is this so? What’s...
The insurance company is relying on the provisions of Public Law 110-173, the Medicare, Medicaid and SCHIP Extension Act of 2007, which amended the Medicare Secondary Payer Act of 1980. Generally, Medicare is the “primary payer”—that is, it pays health claims first, and if a beneficiary has other insurance, that...
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Insured location—home construction | Ask PIA
We have a client who is building a new homeon a vacant lot he owns. He currently is renting and has an HO-4 policy. We asked the carrier if this HO-4 extends liability to this currently vacant piece of property and will this liability coverage stay in place during construction....
Presumably, the general contractor will have liability coverage. In addition to liability, a builders’ risk policy (or it could be a dwelling or homeowners policy) will be needed for the property exposure. However, the ISO HO 00 04 policy automatically provides premises liability according to the definition of an "insured...
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Severability of interest | Ask PIA
I have a bank requesting a “severability of interest endorsement” on a general liability policy for a co-op building. We are seeing this request more often from banks, but are not sure what it accomplishes.
The ISO Commercial General Liability Coverage Form does not need a "severability of interest endorsement." It has a built-in Separation Of Insureds provision applicable to each insured coverage by the policy, which reads as follows: 7. Separation Of InsuredsExcept with respect to the Limits of...
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Witnessing of signatures | Ask PIA
Was there a change to the law relating to witnessing the signature of an insured in New Jersey?
N.J.A.C. 11:17A-4.2 rescinded the countersignature requirement for policies in New Jersey except for situations where the “application is signed by the applicant after having been completed in a face-to-face meeting between the producer and the prospective insured.“ Under the regulation, the insurer may waive the requirement “upon prior written authorization.”...
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Acceptance of credit cards | Ask PIA
A number of my clients pay me with credit cards and the merchant fees can get pretty expensive. Can I just go ahead and pass these fees on to the client?
Yes. While normally producers have to follow certain rules regarding the charging of service fees on either commercial lines or personal lines, credit card fees would fall outside of those rules.The rules regarding charging a service fee to a client relate to fees that are charged for services rendered as...
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Commercial-lines cancellation—short rate | Ask PIA
My client got a commercial policy from a carrier but then we found a better rate for the same coverage elsewhere. He didn’t pay the first month’s premium on time, but plans to pay it. My client received a policy cancellation from the carrier canceling on a short-rate basis. Is...
In short, no. In New Jersey, short-rate cancellation is allowed according to statute but only if the insured cancels the policy. Since the insurer canceled the policy for nonpayment of premium, short-rate would not apply and the carrier would need to cancel pro-rata. New Jersey General and Permanent Statutes 17B:26-24....