The FloodFlash sensor

Premium payment and waiting period

Making a claim

If someone else is to blame for your claim

If you need to cancel

What isn't covered under this policy

Service of suit clause

Law and jurisdiction

Making a complaint

For ease of use our analysis will be broken into multiple sections; each section will link to the other sections. This article will discuss the next three sections of the policy – What isn't covered, service of suit, law and jurisdiction, and making a complaint. There are certain sections set aside in a blue box in the text providing additional information. We will indicate those sections with blue text and discuss as needed.

The following clauses are standard terms that come with most commercial insurance policies.

8. What isn't covered under this policy War and terrorism exclusion NMA 2918

8.1. Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss:

(a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or

(b) any act of terrorism.

8.2. For the purpose of this endorsement an act of terrorism means an act, including but not limited to:

(a) the use of force or violence and/or,

(b) the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or,

(c) to put the public, or any section of the public, in fear.

8.3. This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to 8.1 (a) and/or (b) above.

8.4. If the insurer(s) allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Assured.

8.5. In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.

Biological or chemical materials exclusion NMA 2962

8.6. It is agreed that this policy excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with the actual or threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or event contributing concurrently or in any other sequence thereto.

Radioactive Contamination and Explosive Nuclear Assemblies Exclusion NMA 1622

8.7. This policy does not cover:

(a) loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss,

(b) any legal liability of whatsoever nature,

(c) directly or indirectly caused by or contributed to by or arising from,

(d) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel,

(e) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

Sanctions exclusion clause

8.8. We shall not be deemed to provide coverage and we shall not be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such coverage, payment of such claim or provision of such benefit would expose us to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.

Analysis

The policy is a named perils policy with flood being the only covered peril. Even so, exclusions are included to make it clear that certain things are not covered. Certain exclusions in this policy have numbers such as NMA 2918; which indicates that the exclusion is a standard Lloyd's exclusion that has been built into the policy form. The first is the exclusion for war and terrorism, and the policy has familiar anticoncurrent causation language. Regardless of any other cause of loss that could occur in concurrence with an act of war, warlike actions, civil war, revolution, rebellion, insurrection, or similar actions or terrorism, such acts are always excluded.

Terrorism is defined within the exclusion as an act, including but not limited to the use of force or violence or the threat thereof, of any person whether or not acting alone or on behalf of an organization or government with the intent to put the public, or any section of the public, in fear.

Also excluded is loss caused by steps taken to control, prevent, or suppress any act of war or terrorism. If the insurer claims that damage is not covered due to such acts of war or terrorism, it is the insured's burden to prove that the insurer's position is incorrect. If any part of the exclusion is unenforceable, the remainder of the policy is not affected.

Likewise, damage caused by the actual or threatened malicious use of pathogenic or poisonous biological or chemical agents, regardless of any other cause happening in sequence, is excluded. The damage may be direct or indirectly caused by the biological or chemical agents, but the exclusion applies regardless.

Any damage, destruction, or liability for any contamination from radioactive fuels or wastes, or the radioactive, toxic, explosive nature of any explosive nuclear assembly or component is excluded. Similar to the war, terrorism and biological and chemical exclusions, such damage is uninsurable and outside of the control of an insured.

The last exclusion is for sanctions imposed under United Nations resolutions or any trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States. Again, no insurer is able to provide coverage for such an exposure.

9. Service of suit clause 9.1. This clause will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in any arbitration provision within this policy. This clause is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to such arbitration provision for resolving disputes arising out of this contract of insurance.

9.2. It is agreed that in the event of our failure to pay any amount claimed to be due hereunder, we, at your request, will submit to the jurisdiction of a court of competent jurisdiction with the United States. Nothing in this clause constitutes or should be understood to constitute a waiver of our rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States.

9.3. Service of process in such suit may be made upon: Lloyd's America, Inc. Attention: Legal department 280 Park Avenue, East Tower, 25th Floor New York, NY 10017

9.4. It is further agreed that in any suit instituted against anyone of them upon this policy, we will abide by the final decision of such court or of any appellate court in the event of an appeal. The above-named are authorised and directed to accept service of process on our behalf in any such suit and/or upon your request to give a written undertaking to you that they will enter a general appearance upon our behalf in the event such a suit shall be instituted.

9.5. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, we hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on your behalf of or any beneficiary hereunder arising out of this contract of insurance, and hereby designate the above-mentioned as the person to whom the said officer is authorised to mail such process or a true copy thereof.

Analysis

The next section is the service of suit clause, which outlines procedures if the insurer and insured fail to agree on the amount of a claim. The clause is designed to encourage, and not override, any arbitration procedures, and is not to substitute for such arbitration.

If the insurer fails to pay any amount an insured claims he should receive, it will at the insured's request submit to the judgment of a competent jurisdiction of the United States. This does not waive the insurers' right to file suit in a competent United States court or to transfer a case to another court as permitted by United States laws.

If a suit is filed against the company the address is provided as to where such service should be made. The insurer will abide by the final decision of the court or the court of appeals if the insurer files an appeal against an initial decision. The commissioner of insurance or other officer described in the state statute is designated as the party to receive suit papers as filed by the insured.

10. Law and jurisdiction

10.1.The proper and exclusive law of this insurance shall be England and Wales law.

Amendment

10.2. No amendment of this policy (including this clause) shall be valid unless agreed in writing between us and you.

Severability

10.3. In the event any provision of this policy is declared invalid, illegal, invalid or unenforceable by any regulatory body or court having jurisdiction over this policy, such provisions will be considered void in such jurisdiction but this will not affect the validity or enforceability of any other provision of this policy in that jurisdiction or the validity or enforceability of the entire agreement in other jurisdictions.

Entire Agreement

10.4. This policy shall form the entire agreement between us and you and there are no understandings or agreements between us and you other than those expressed in this policy.

Non-Assignment

10.5. No rights, duties or obligations of you or us under this policy shall be assigned by you or us without the prior written consent of the other party. Any purported assignment in absence of such consent shall be void and ineffective.

11. Making a complaint

If you would like to make a complaint, contact us by calling +1 888-207-1026, emailing [email protected], or writing to:

Complaints FloodFlash Limited 18 East Tenter Street London E1 8DN United Kingdom

FloodFlash will refer your complaint to the underwriters of this policy, Munich Re Syndicate 457 at Lloyd's.

You may also contact Munich Re Syndicate 457 directly, by calling +44 (0)20 7886 3900, emailing [email protected], or writing to:

The MRSL Complaints Team Munich Re Syndicate Limited St Helen's 1 Undershaft London EC3A 8EE United Kingdom

If you remain dissatisfied, it may be possible in certain circumstances for you to refer the matter to the Complaints team at Lloyd's.

The address of the Complaints team at Lloyd's is: Complaints Lloyd's One Lime Street London EC3M 7HA United Kingdom

Telephone: +44 (0)20 7327 5693 Fax: +44 (0)20 7327 5225 E-mail: [email protected] Website: www.lloyds.com/complaints

Details of Lloyd's complaints procedures are set out in a leaflet 'Your Complaint – How We Can Help' available at www.lloyds.com/complaints and are also available from the above address.

Analysis

The next sections deal with the jurisdiction of the policy, severability, changes, and complaints. These are standard policy provisions. The applicable law of the policy is listed as England and Wales since the policy was written by Lloyds.

Changes to the policy must be made in writing and agreed to by both the insurer and insured. There is no other agreement between the parties other than the policy itself, and if any part of the policy is declared to be illegal or invalid, the rest of the policy is considered to be intact and enforceable.

The policy may not be assigned to another party without written consent between the insurer and insured. If the insured sells the property and wants to transfer the flood policy along with ownership of the building, the insured would have to get permission in writing from the insurer before doing so.

The insured has the right to file a complaint if he feels he has not been compensated properly for a loss. Contact information is provided as to who to contact in such case.