Acts of God in the Insurance Industry
TABLE OF CONTENTS
| INTRODUCTION | 1 | 
| SECTION 1: UNCONTROLLABLE PERILS AND OTHER NATURAL DISASTERS | 6 | 
| AN ACT OF GOD IN INSURANCE: WHAT IT IS | 7 | 
| “DAMAGES THAT COULD NOT REALISTICALLY HAVE BEEN PREVENTED” | 10 | 
| AN ACT OF GOD IN INSURANCE: WHAT IT IS NOT | 11 | 
| THE COVID-19 GLOBAL PANDEMIC: AN ACT OF GOD, A FORCE MAJEURE EVENT, OR NEITHER? | 12 | 
| THE COVID-19 GLOBAL PANDEMIC: TO RECEIVE COVERAGE OR NOT TO RECEIVE COVERAGE, THAT IS THE QUESTION | 14 | 
| DECISIONS, DECISIONS | 17 | 
| SUMMARY | 18 | 
| SECTION 2: ACTS OF GOD IN HOMEOWNERS AND AUTO INSURANCE | 19 | 
| ACTS OF GOD IN HOMEOWNERS INSURANCE | 20 | 
| HO-1: BASIC FORM | 22 | 
| HO-2: BROAD FORM | 26 | 
| HO-3: SPECIAL FORM | 32 | 
| ACTS OF GOD IN AUTO INSURANCE | 42 | 
| COLLISION AUTO INSURANCE | 43 | 
| COMPREHENSIVE AUTO INSURANCE | 45 | 
| DECISIONS, DECISIONS | 48 | 
| SUMMARY | 49 | 
| SECTION 3: PRACTICAL STEPS FOR INSURERS, POLICYHOLDERS, AND INSURANCE AGENTS | 50 | 
| ACTS OF GOD: PRACTICAL STEPS FOR EARTHQUAKES | 52 | 
| PRACTICAL STEPS FOR INSURERS: OBTAIN PARAMETRIC INSURANCE | 52 | 
| PRACTICAL STEPS FOR POLICYHOLDERS: PREPARE FOR AN EARTHQUAKE | 53 | 
| PRACTICAL STEPS FOR INSURANCE AGENTS: CLEARLY EXPLAIN COVERAGE OPTIONS | 54 | 
| ACTS OF GOD: PRACTICAL STEPS FOR WILDFIRES | 55 | 
| PRACTICAL STEPS FOR INSURERS: UNDERSTAND REINSURANCE OPTIONS | 55 | 
| PRACTICAL STEPS FOR POLICYHOLDERS: PREPARE FOR A WILDFIRE | 56 | 
| PRACTICAL STEPS FOR INSURANCE AGENTS: CLEARLY EXPLAIN COVERAGE OPTIONS | 59 | 
| ACTS OF GOD: PRACTICAL STEPS FOR HURRICANES AND FLOODS | 59 | 
| PRACTICAL STEPS FOR INSURERS: UTILIZING REINSURANCE SOLUTIONS | 60 | 
| PRACTICAL STEPS FOR POLICYHOLDERS: PREPARE FOR A HURRICANES AND FLOODS | 61 | 
| PRACTICAL STEPS FOR INSURANCE AGENTS: CLEARLY EXPLAIN COVERAGE OPTIONS | 63 | 
| DOCUMENTATION | 64 | 
| COMMON MISTAKE THAT COULD BE AVOIDED WITH PROPER DOCUMENTATION | 66 | 
| 1. The Failure to Maintain Appropriate Coverage | 66 | 
| 2. The Failure to Correctly Explain Coverage | 68 | 
| 3. Administrative Errors | 68 | 
| 4. The Failure to Identify Exposures | 68 | 
| 5. The Failure to Share or Make Policy Changes | 69 | 
| 6. The Failure to Send Accurate Client Information | 70 | 
| DECISIONS, DECISIONS | 70 | 
| SUMMARY | 71 | 
| COURSE REVIEW | 72 | 
| SECTION 1: UNCONTROLLABLE PERILS AND OTHER NATURAL DISASTERS | 72 | 
| SECTION 2: ACTS OF GOD IN HOMEOWNERS AND AUTO INSURANCE | 74 | 
| SECTION 3: PRACTICAL STEPS FOR INSURERS, POLICYHOLDERS AND INSURANCE AGENTS | 75 | 
| REFERENCES | 76 |