Joint or Disputed Loss Agreement (CP 12 70): A Comprehensive Guide for Insurance Policyholders
When it comes to purchasing an insurance policy, whether it is for your home, car, or business, it`s essential to understand the document`s provisions, including the Joint or Disputed Loss Agreement (CP 12 70).
What is a Joint or Disputed Loss Agreement?
A Joint or Disputed Loss Agreement is a clause in an insurance policy that outlines the process for resolving disputes over the amount of loss incurred. It is typically included in policies for commercial and business insurance. It serves as an alternative to an appraisal process in cases where the insurers can`t agree on the amount of loss.
The agreement requires both parties (insurer and insured) to appoint an independent appraiser who will evaluate the loss and reach a decision. The appraisers will then attempt to agree on the amount of loss, and if they can`t agree, they will submit their findings to an umpire. The umpire is also an independent party who will evaluate the loss and make a binding decision on the amount.
What are the Benefits of a Joint or Disputed Loss Agreement?
The Joint or Disputed Loss Agreement benefits both parties because it expedites the resolution process and provides a fair process for determining the amount of loss. It saves both the insurer and the insured time and money by avoiding the need to file a lawsuit or undergo an appraisal process, which can be costly and time-consuming.
Additionally, it is beneficial because it provides some assurance and comfort to the insured that they will receive a fair settlement if there is a loss. It also gives the policyholder some control over the process, as they can select their own appraiser.
Who is Responsible for Appointing the Appraisers?
The policyholder and the insurer each appoint an independent appraiser who will evaluate the damage or loss. In case the appraisers can`t agree on the amount of loss, they can appoint an umpire who will make a final decision.
How does the Joint or Disputed Loss Agreement Affect the Policyholder`s Coverage?
The Joint or Disputed Loss Agreement does not affect the policyholder`s coverage or premiums. It is just a clause designed to resolve disputes over the amount of loss. It is always important to consult with your insurance agent or broker if you have any questions about your insurance coverage.
Conclusion
The Joint or Disputed Loss Agreement is a crucial clause in any insurance policy, particularly for commercial and business coverage. It provides a fair and efficient process for resolving disputes over the amount of loss incurred. It is beneficial for both the insurer and the insured, saving them time and money. Insurance policyholders should understand the agreement`s provisions and consult with their insurance agent or broker to ensure they have the coverage they need and deserve.