FLOOD07997

• County: Statewide
• Basin: Statewide
• Title: Flood Insurance Manual
• Date: 10/1/1992
• Prepared For: US
• Prepared By: National Flood Insurance Program
• Floodplain - Doc Type: Project

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A unit owner's policy that provides building coverage only may be
cancelled under the duplicate policy provision (Reason #10, CN
Section) when a Condominium Master Policy is purchased.

To cancel building coverage while retaining contents coverage on a unit
owner's policy, submit a General Change Endorsement form.

In the event of a cancellation:

. The commission on a unit owner's policy will be retained, IN FULL,
by the producer,

I. The expense constant and Federal Policy Fee will be refunded on a
pro rata basis, and

. The premium refund will be calculated on a pro rata basis.

An existing unit owner's policy that provides both building and contents
coverage can be endorsed to reduce the building coverage. In the event
of an endorsement:

. The unearned commission will be deducted,
I . The expense constant and Federal Policy Fee is fully earned, and
. The premium refund will be calculated on a pro rata basis.

Condominium Master Policy assessment coverage applies only when
the building covered by the CMP is fully insured. The assessment
coverage then applies to the common elements of any other building of
the condominium association covered by flood insurance that is: (i) in
the name of the condominium association, (ii) provided under the Act,
and (Hi) in an amount at least equal to the actual cash value of the
building's common elements at the beginning of the current policy term
or the maximum building coverage limit available under the Act,
whichever is less.

I The commission, 15%, will be reduced to 5% only on that portion of
the premium that exceeds the figure resulting from multiplying the total
number of units times $2,000.

To write a Condominium Master Policy, the standard Flood Insurance
Application Form should be used. The producer should complete the
entire Application according to the directions in the APP Section of the
Flood Insurance Manual. However, Sections @ and (i3) require
specific directions when completing a Condominium MasterPolicy.

October 1992

Cancellation or
Endorsement of
Existing Unit
Owner's Policies

Assessment
Coverage

Commissions

Application
Form

CONDO 7