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  |