ACORD 28 – The breakthrough evidence of Commercial Property Insurance developed by ACORD that was introduced effective 1/1/04. This new evidence of coverage provides pertinent information about borrower coverages that are represented to actually be in place. Wow, what a concept! Agents seemingly rebel, however, because they have to grudgingly attest to what is covered. ACORD appears to wake up and realize where their bread is buttered and introduced “revised” ACORD 28 on July 29, 2006, that states lenders can’t rely on it and that they must look to the actual policy to determine what coverage is in place.
“All Risk” Property Insurance Policy – The insurance market’s most ludicrous oxymoron.
Commercial General Liability Insurance Policy – Formerly called “Comprehensive” General Liability Insurance Policy, but this description violated truth-in-advertising regulations and was ditched by insurance industry.
Coinsurance – The spelling says it all: COIN – SURANCE. Ergo, the insurance of coins.
Deductible – The amount insurers continually strive to increase to policy limits.
Exclusion – The list of perils contained in an insurance policy that are most likely to cause a loss.
Forced Place Insurance – Imagine for a moment the torturous method that produces the epicurean delicacy called Foie Gras. Now imagine that your borrower is a duck or goose. You now have an accurate picture of what forced placed insurance is all about.
Insurance – A mysterious process meant to confuse and frustrate real estate clients and provide full employment for insurance consultants.
Law and Ordnance – The enforcement personnel and munitions necessary to quell any disturbance.
Insurance Consultant – A charismatically challenged individual who always dreamed of being an accountant, but just didn’t have the personality.
Reinsurance – The process by which money passes from hand to hand to hand until it finally disappears.
Terrorism Risk Insurance Act – Legislation that provides no cost US Government reinsurance protection to the world’s largest and most financially secure insurance companies. Is America great or what?
Windstorm – What usually occurs when an insurance agent is asked if the insurance policy he has sold to a real estate owner actually provides coverage for a particular type of loss such as Terrorism or Mold.
Workers’ Compensation – What we workers don’t get enough of.