IftheFAIRPlanhasbeen unabletocompleteaninspectionof aproperty,notificationwillbe mailedtotheapplicantandproducer.
Ifthereisnocoverageinforce,notificationisbyletter,thatstatesthattheAssociationwilltake nofurtheractionontheApplicationuntilarrangementshave beenmadewiththeAssociationfor makingtheinspection. Ifnoresponseisreceivedwithinareasonableperiodof time,thefilewill beclosed.
IfthereisapolicyinforceandtheAssociationdoesnothaveapriorinspectionreport,athirty (30)day“Noticeof Cancellation”willbemailed. ThisNoticeofCancellationmayberescindedif properarrangementsforaninspectionaremadetothesatisfactionof theAssociation.
IfthereisapolicyinforceandtheAssociationhasapriorinspectionreport,anotificationwillbe mailedtotheapplicantandproducer. Ifproper arrangementsforaninspectionarenotmade withinareasonabletime,thepolicywillbecancelled.
WhenapolicyhasbeencancelledasaresultofthePlan’sinabilitytocompleteaninspection, thecancellationwillnotberescinded. Anewapplicationmustbesubmittedandcoveragewill notbeavailableuntilaninspectionhasbeencompleted,eligibilityandinsurabilitydeterminedby thePlan,andan“ApprovalNotice”issued.
AstheAssociationmustpayforinspectionswhethersuccessfulornot,whentheAssociation paysforaninspectionattemptthatisunsuccessfulthroughnofaultof eithertheAssociationor theinspector,nofurtherinspectionwillbemadeuntiltheapplicantorinsuredhasreimbursed theAssociationforthecostoftheunsuccessfulattempt. Ifthenextinspectionattemptisalso unsuccessfulthroughnofaultof eithertheAssociationortheinspector,theapplicantwillbe notified,butnofurtheractionwillbetakenbytheAssociationuntiltheapplicantpersonally contactstheAssociationtoarrangeforanotherinspectionandpaysthecostoftheprevious unsuccessfullyattempt. Insurancecoveragewillnotbeprovideduntilthepropertyhasbeen properlyinspected.
PROCEDURESAFTER
INSPECTION
TheAssociationshall,withinten(10)businessdaysafterreceiptoftheinspectionreportand application,advisetheapplicantortheapplicant’sproducer,that:
1. theriskisacceptable,andifanyconditionchargeshavebeenapplied,the
improvementsnecessarytoremoveconditioncharges,andwillcausetobeissueda policyuponreceiptbytheAssociationofthepremium,or;
2. theriskisnotacceptedbutwillbeacceptableifimprovementsnotedintheactionreport orinspectionreportaremadebytheapplicantandconfirmedbyre-inspection;or 3. theriskisnotacceptableforthereasonsstatedintheactionreportorinspectionreport. Iftheinspectionof thepropertyrevealsthatthereisoneormoresubstandardconditions, chargeswillbeimposedinconformitywithanysubstandardratingplanapprovedbythe Commissioner.
Intheeventariskisdeclinedbecause itfailstomeetreasonableunderwriting standards,the Associationshallsonotifytheapplicantandhis/herproducer.
Intheeventtherisk isconditionallydeclinedbecausethepropertydoesnotmeetreasonable underwritingstandardsbutcanbeimprovedtomeetsuchstandards,theAssociationshall promptlyadvisetheapplicantwhat improvementsnotedintheactionreportorinspectionreport shouldbemadetotheproperty.Uponcompletionoftheimprovementsbytheapplicantor propertyowner,theAssociation,whensonotified,willhavethepropertypromptlyre-inspected. Ifariskisdeclined,oriftheapplicantisnotifiedthatcoveragewillbewrittenifstated
improvementsaremade,theAssociationshallwithinten(10)days,sendcopiesofthe
inspectionoractionreportstotheproperownerandshalladvise thepropertyowneroftheright toappealandtheproceduretherefore.
Afterreviewingtheinspectionreportandphotographs,theAssociationwill,fromtimetotime, requestverificationof buildingand/orpersonalpropertyvalues. Whenbuildingvaluesappear toohigh,theAssociationwillrequestanappraisalorcostestimation. Whentheamountof personalpropertycoveragerequestedis50%ormorethebuildingcoverage,theAssociation willcontacttheinspectorandproducer(orapplicant)foradditionalinformation. Followingthis, theAssociationmayrequestaninventoryofthepersonalproperty.
BecauseoftheISO,coinsurancerulesforcommercialproperties,theAssociationwillpay particularattentiontovaluesforthoseproperties. To besurethatwehavedocumentationof thevalueofpersonalproperty,asananti-arsonaction, werequestinventoriesonallinsured propertieswithpersonalpropertyexceeding$50,000. Wellmanagedbusinessesshouldnot haveaproblemwiththisrequest. Anauditedfinancialstatementshowingtheamountofthe inventorywouldbeanalternativetoaphysicalinventory.
WhenprovidingcoverageforCondominiumsandTownhouseAssociations,wearerequesting copiesof theArticlesofIncorporation,DeclarationsandBylawstoverifyifweareproperly namingtheinsuredandtohaveforreviewintheeventof aloss. Thisisimportantinformation tohaveafteralossandinwriting coverageunderCommercialPropertyforms. Ourintentin requestingtheinformationistosmooththeclaimsprocessintheeventofaloss. Properly namingtheinsuredwillclearlystatetheinsurableinterest. Finalclaimssettlementrequiresthat thesedocumentsarereviewedtoclarifyAssociationandUnitOwnerinterests. Wedonot
requestthemtosettheamountofinsurance,asitistheresponsibilityoftheApplicanttodothis.