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Form Fp-16 - Alternative Procedures To Expedite Underwriting Of Dwelling And Certain Commercial Properties Page 2

Instructions

1. T

HESE ALTERNATIVE PROCEDURES TO EXPEDITE PROCESSING OF

PPLICATIONS ARE APPLICABLE TO ALL

ABITATIONAL

. T

ROPERTY AND TO ALL

OMMERCIAL PROPERTY

SSOCIATION RESERVES THE RIGHT TO MAKE ITS OWN INSPECTION OF

(

)

ANY PROPERTY

OTHER THAN

WELLING

BEFORE PROVIDING IMMEDIATE COVERAGE

2. This Supplemental Application-Producer’s Inspection Report must be submitted together with the Basic FAIR Plan

Application.

3. All applicable items in this Supplemental Application-Producer’s Inspection Report and in the Basic Application must be

completed. Incomplete Applications cannot be processed and will be returned to the Producer. A satisfactory photograph,

taken at a front angle, showing two full sides, must be attached. This photograph must be taken within the past three months

and may not be a clipping from a magazine or a rental brochure. (Photocopies are also not accepted as the clarity is not

sufficient for us to evaluate the property.) Please indicate on the back of the photograph the date taken and the property

location so that, if it becomes detached, we can match it with the proper file.

4. Actual Cash Value (ACV) is defined for insurance purposes as the replacement cost less appropriate allowance for

depreciation, if any. ACV is not necessarily the same as the “sale price” or the “fair market” value of improvements.

5. The underwriting standards of the Plan require that the amount of insurance requested, together with other insurance, must

be within reasonable relationship to the actual cash value of the property involved.

6. The net premium (gross premium less applicable Producer’s commission) may be remitted with this Supplemental

Application. See FAIR Plan Manual of Rules and Procedures, Payment of Premiums.

7. THIS IS NOT A BINDER. Coverage will not be automatically provided. If the risk is acceptable, the Producer will be so

notified. When the total required net premium, indicated in Item 6 above, has been received in the office of the Association

prior to the date the Association determines that the risk is acceptable, the insurance will become effective on the date of

acceptance. Otherwise, upon acceptance, the insurance will become effective in accordance with policy provisions on the

day following the date the Association receives the total premium.

8. OTHER STRUCTURES are any structures on the described location separate from the Dwelling by clear space or by an

uncovered walkway. As the policy does not cover some of these items for Windstorm and Hail damage, the proper premium

must be collected before coverage can be provided. Refer to the DP-0001, DP-0002 and DP-3232 for specific policy

provisions. Examples are: walkways, gazebos, any steps (other than Dwelling steps) and decks that are separate from the

main dwelling.

FP16 (10/03)

Form Fp-16 - Alternative Procedures To Expedite Underwriting Of Dwelling And Certain Commercial Properties Page 2