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Requirements

• The applicant and the applicant's licensed insurance producer must fully complete the application form.  The application must be submitted by the applicant’s licensed insurance producer.
• No coverage shall apply and no policy will be issued under the Plan until the premium quoted by the Program is received at the office of the Program.  However, if the premium submitted with a completed application is less than the premium indicated by the Program, a policy may be issued with a billing for the additional premium.  If the additional premium is not paid within the time designated in the billing, the policy will be cancelled.
• A minimum of eighty percent (80%) coinsurance is required on all properties except dwellings.  (Refer exceptions to the Underwriting Committee.)
• No replacement cost insurance will be provided.
• Standard (buy-back) deductibles will not be waived.
• When an applicant has a history of frequent claims, higher deductibles may be applied upon approval by the Underwriting Committee.
• If the initial inspection reveals hazardous conditions, and the property owner is notified of these hazardous conditions, then the property owner shall correct these hazardous conditions prior to the issuance of a policy.
• No property shall be insured for more than its actual cash value.
• Insurance in existence and insurance written in the Plan must be concurrent. (Form, coinsurance and perils.)  (Refer exceptions to the Underwriting Committee.)
• Applicant may be eligible for premium discounts, as approved by the Superintendent, for mitigation completed in accordance with the standards of the Insurance Institute for Business & Home Safety.

Amount Of Insurance Limitations

The maximum limit of liability per fire division which may be insured under the Plan shall be:

If an Executive Emergency Order declaring a Catastrophe is issued by the Governor, the maximum limit of liability by zip code which may be insured under the Plan shall be:

If coverage is provided under the Plan pursuant to an Executive Emergency Order, the coverage shall be limited to five years from the date of the first declared Executive Emergency Order.

If the risk is equipped with an approved automatic sprinkler system above limits may be adjusted by the Underwriting Committee.

Definition of Location

1. (a) Mercantile risks, (b) warehouse risks, (c) risks occupied by federal, state, county, or municipal governments or divisions thereof, and (d) education or religious institutions and hospitals, the area within the premises bounded by thoroughfares or open waterways.
2. Lumberyards, the area within the premises of any one yard site including the area outside of the site within one hundred (100) feet thereof.
3. (a) Manufacturing, (b) processing and (c) finishing plants; except distilleries, the area within one plant site and the area in the open outside of the plant within one hundred (100) feet thereof.
4. Distilleries, all eligible property on the premises whether in the distillery, warehouses, blending or bottling plants, or elsewhere on the premises.
5. Grain storage risks, the area within one storage site and the area in the open outside of the site when within one hundred (100) feet thereof.
6. Yards or property in the open not on a manufacturing plant site premises, the area within the premises of any one yard site and outside the yard site in the open, when within one hundred (100) feet thereof.