Valuation Issues, Problems, and Solutions in HO Coverage
Total Credits: 1 including 1 CE Credit
- Average Rating:
- 1
- Categories:
- Big “I” Virtual University | Personal Lines | Personal Lines - Advanced
- Faculty:
- Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS
- Course Levels:
- All Levels
- Duration:
- 1 Hour
- License:
- Product Setting: Expires 30 day(s) after program date.
Description
Coinsurance provisions found in property policies exist primarily to assure that the insurance carrier receives adequate premium for the coverage provided. Without a coinsurance condition, and its applicable penalties, insureds might be willing to purchase an amount of coverage somewhat less than the value of the subject property because of the statistically low probability of a total loss.
In this session we dispel the myth that coinsurance is as easy as:
Did/Should x Loss – Deductible = Payment
In fact, it’s a little more complicated, but just as easy to explain.
What is the True Meaning of Actual Cash Value (ACV)
The true meaning of ACV isn’t what agents have been taught or believe it to be. The definition of ACV isn’t as simple as “Replacement cost at the time of the loss minus physical depreciation.” In fact, the meaning varies by state and even the loss situation.
ACV is not defined by the policy, but may be defined by statute or possibly common law. There are up to four different applications of ACV depending on the state.
Can Labor be Depreciated?
There is a not-so-simple, simple answer to this question – yes or no. The answer varies by state. Some states address the depreciation of labor by statute, some by legal precedence, and some not at all.
This part of this session looks at each possibility.
“Guaranteeing” Replacement Cost in the HO Policy
ISO makes two endorsements available to “guarantee” replacement cost protection. These are the:
- HO 04 11 – Additional Limits of Liability for Coverages A, B, C, and D
- HO 04 20 – Specified Additional Amount of Insurance for Coverage A Dwelling
Although both forms provide some “guarantee” towards full replacement cost protection, they differ in how they affect the policies to which they are attached. During this session we:
- Detail both endorsements;
- Describe how each affects coverage;
- Explain what the insured must do to qualify for coverage under both endorsements; and
- Explain how some agents are misusing these endorsements.
Basic Course Information
Learning Objectives- Explain Coinsurance – Down and Dirty
- Discuss What is the True Meaning of Actual Cash Value (ACV)
- Understand Can Labor be Depreciated
- Learn “Guaranteeing” Replacement Cost in the HO Policy
Course Materials
| IMPORTANT_CE Credit Instructions_Read Before Webcast_Updated (752.6 KB) | Available after Purchase | ||
| Valuation Issues, Problems, and Solutions in HO Coverage Outline (18.2 KB) | Available after Purchase | ||
| Valuation Issues, Problems, and Solutions in HO Coverage Handout 1 of 2 (1.3 MB) | Available after Purchase | ||
| Valuation Issues, Problems, and Solutions in HO Coverage Handout 2 of 2 (652.6 KB) | Available after Purchase | ||
Faculty
Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS Related Seminars and Products
Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, joined the insurance industry in 1990. He is the Executive Director of the Independent Insurance Agents and Brokers of America (Big "I") Virtual University. His current duties involve researching, writing, and teaching property and casualty insurance coverages and concepts to Big "I" members and others in the insurance industry.
During his career, Boggs has authored more than 300 insurance and risk management-related articles on a wide range of topics as diverse as Credit Default Swaps, the MCS-90, and enterprise risk management. In addition to this, Boggs has written 13 insurance and risk management books:
- "The Insurance Professional's Practical Guide to Workers' Compensation: From History through Audit," now in its second edition;
- "Business Income Insurance Demystified: The Simplified Guide to Time Element Coverages," now in its third edition;
- "Property and Casualty Insurance Concepts Simplified: The Ultimate 'How to' Insurance Guide for Agents, Brokers, Underwriters and Adjusters;"
- "Wow! I Never Knew That! 12 of the Most Misunderstood and Misused P&C Coverages, Concepts and Exclusions;"
- "Insurance, Risk & Risk Management! The Insurance Professional's Guide to Risk Management and Insurance;"
- "Workers' Compensation: How You Can Effectively Answer Your Clients 12 Most Commonly Asked Questions;"
- "Glossary of Insurance Terms;"
- "Choosing the Best Risk Financing Option;"
- "Writing Property and Liability Coverage for Condos;"
- "The Truth about Enterprise Risk Management;"
- "The Experience Mod Worksheet;"
- "What has ISO Done to us Now?" and
- "Cancellations, Non-Renewals & Conditional Renewals: THE Insurance Professional's Guide to Statutory Insurance Carrier Notification Requirements for All 50 States!"
Boggs is a regular speaker at industry events, speaking for groups such as the National Association of Mutual Insurance Companies (NAMIC), the National Society of Insurance Premium Auditors (NSIPA), the American Association of Managing General Agents (AAMGA), the Institute of Work Comp Professionals (IWCP), and the CPCU Society.
A graduate of Liberty University with a bachelor's degree in Journalism, Boggs' background includes work as a risk management consultant, loss control representative, producer, claims manager, and quality assurance specialist
Dates
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Tue, Dec 24, 2024 - 07:00am to 08:04am MST-Arizona
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