G 7401.5

TABLE OF CONTENTS

Section Page

CHAPTER 1 \-- GENERAL INSURANCE REQUIREMENTS

1-1. Introduction 1-1

1-2. Insurance Required for HAs 1-1

1-3. Authorized Insurance Companies 1-2

1-4. Cancellation and Rewriting of In-force Insurance

Policies 1-3

1-5. Master Insurance Policies/Group Insurance 1-3

1-6. Adequate Coverage 1-3

1-7. Bid Protest 1-4

1-8. Resident Management Corporations (RMC) 1-4

1-9. Multi-Peril Policies 1-4

CHAPTER 2 \-- PROPERTY INSURANCE

EXPLANATION AND REQUIREMENTS

2-1. Property Coverage 2-1

2-2. Amount of Coverage Required 2-2

2-3. Alternative Methods to Determine Current

Insurable Value 2-2

2-4. Contents Coverage 2-3

2-5. Specific Scheduled Limits Vs. Blanket Policy 2-3

2-6. Agreed Value Clause 2-3

2-7. Deductibles 2-3

2-8. Ordinance or Law Coverage 2-4

2-9. Notice of Cancellation Endorsement 2-5

2-10. Removal of Vacancy Endorsement 2-5

2-11. Davis-Bacon Act Wage Rates 2-5

2-12. Business Income 2-5

2-13. Builders Risk 2-5

2-14. Parties Insured 2-5

CHAPTER 3 \-- PUBLIC LIABILITY INSURANCE

EXPLANATION AND REQUIREMENTS

3-1. Public Liability Insurance 3-1

3-2. Occurrence Policy Form Vs. The Claims-Made Form 3-1

3-3. Limit of Liability 3-3

3-4. Annual Aggregate 3-3

3-5. Deductibles 3-4

3-6. Personal Injury Liability Insurance 3-4

3-7. Medical Payments 3-4

3-8. Environmental Liability 3-5

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CHAPTER 4 \-- WORKERS\' COMPENSATION INSURANCE

EXPLANATION AND REQUIREMENTS

4-1. Workers\' Compensation Insurance and Employers\'

Liability Coverage 4-1

4-2. Divisions of Coverage 4-1

4-3. Workers\' Compensation Insurance Rating 4-2

4-4. Experience Rating 4-2

4-5. Premium Payment 4-3

4-6. Monopolistic State Funds 4-3

4-7. Voluntary Compensation Endorsement 4-3

4-8. Parties Insured 4-4

4-9. Full and Open Competition 4-4

CHAPTER 5 \-- AUTOMOBILE LIABILITY INSURANCE

EXPLANATION AND REQUIREMENTS

5-1. Automobile Liability Coverage (Owned and Nonowned) 5-1

5-2. Medical Payments 5-2

5-3. Automobile Physical Damage 5-2

5-4. Parties Insured 5-2

CHAPTER 6 \-- THEFT, DISAPPEARANCE AND DESTRUCTION INSURANCE

EXPLANATION AND REQUIREMENTS

6-1. Applicability \[Waiver\] of ACC Requirement for

Burglary and Robbery Insurance 6-1

6-2. Recommended Types of Coverage 6-1

6-3. Overnight Protection Funds 6-2

CHAPTER 7 \-- BOILER INSURANCE EXPLANATION AND REQUIREMENTS

7-1. Boiler and Machinery Coverage 7-1

7-2. Policy Form 7-1

7-3. Inspections 7-1

7-4. ACC Requirements 7-2

7-5. Joint Loss Agreement 7-2

7-6. Parties Insured 7-3

CHAPTER 8 \-- EMPLOYEE DISHONESTY INSURANCE

EXPLANATION AND REQUIREMENTS

8-1. Employee Dishonesty 8-1

8-2. Surety Bonds 8-1

8-3. Basic Coverage for Employee Dishonesty 8-2

8-4. Definition of Employee 8-2

8-5. Commercial Blanket Bonds 8-2

8-6. Blanket Position Bond 8-2

8-7. Individual and Schedule 8-3

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8-8. Advantages of Blanket Over Schedule 8-3

8-9. HAPP - Section 8 8-4

8-10. Additional Indemnity Rider 8-4

8-11. Parties Insured 8-5

8-12. Directors and Officers Insurance 8-5

8-13. Required Minimum Limit 8-5

Bond Limit Worksheet 8-6

CHAPTER 9 \-- FLOOD INSURANCE EXPLANATION

AND REQUIREMENTS

9-1. Flood Insurance 9-1

CHAPTER 10 \-- REPORTING LOSSES AND ACCIDENTS TO INSURERS

10-1. Property and Flood Insurance Loss Reports 10-1

10-2. Adjusting Procedures 10-1

10-3. Proof of Loss 10-2

10-4. Disputes 10-2

10-5. Reconstruction and Restoration 10-2

10-6. Public Liability Insurance Loss Reports 10-2

10-7. Workers\' Compensation Insurance Loss Reports 10-3

10-8. Burglary, Robbery, or Theft Reports 10-3

10-9. Boiler Explosion Reports 10-3

10-10. Employee Dishonesty Loss Reports 10-4

10-11. Approval of Disposition of Insurance Claims 10-5

CHAPTER 11 \-- FIELD OFFICE INSURANCE FUNCTIONS

11-1. The ACC Requirements 11-1

11-2. Field Office Review Requirements 11-1

11-3. Timetables for Insurance Procurement and Review 11-1

11-4. Use of Binders in Place of Policies 11-2

11-5. HUD Forms Used to Monitor the Insurance Program 11-2

11-6. Documents Maintained in Field Office Files 11-3

CHAPTER 12 \-- COMPETITIVE BIDDING REQUIREMENTS

12-1. General 12-1

12-2. Waiver of Competition Requirements 12-2

12-3. Competitive Bidding Procedures 12-2

12-4. Indian Preference in the Award of Contracts 12-3

12-5. HA Timetable for Insurance Procurement 12-3

12-6. Additional IFB Data 12-4

12-7. Optional Terms 12-4

12-8. HA Evaluation of the IFB and Award 12-5

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CHAPTER 13 \-- SUGGESTED FORMAT FOR THE PREPARATION

OF THE INVITATION FOR BIDS

13-1. Introduction 13-1

Part I - IFB Cover Letter 13-2

Part II - Background on Public and Indian

Housing 13-3

Part III - Instructions to Bidders 13-7

Part IV - Specifications 13-15

a\. Real and Personal Property 13-15

b\. Comprehensive/Commercial/General

Liability 13-21

c\. Workers\' Compensation 13-29

d\. Owned and Non-owned Automobile 13-34

e\. Employee Dishonesty 13-39

f\. Boiler and Machinery Coverage 13-48

CHAPTER 14 \-- STATE SPONSORED INSURANCE PROGRAMS

14-1. FAIR Plans 14-1

14-2. Assigned Risk Plans 14-1

14-3. Beach Plans 14-1

CHAPTER 15 \-- PAYMENT OF INSURANCE PREMIUMS

15-1. Coverage Written Through Agents/Brokers 15-1

15-2. Coverage Written Through FAIR Plans or Assigned Risk

Plans 15-1

15-3. Flood Insurance 15-1

15-4. Countersignature Fees and Surplus Lines Taxes 15-2

CHAPTER 16 \-- HOUSING ASSISTANCE PAYMENT PROGRAM - SECTION 8

16-1. General 16-1

16-2. Coverage Requirements 16-1

CHAPTER 17 \-- HA-OWNED INSURANCE COMPANIES AND POOLS

17-1. Standards for Approval 17-1

17-2. Exemption from Competition 17-1

CHAPTER 18 \-- INSURANCE GLOSSARY

18-1 Glossary of Common Insurance Terms 18-1

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EXHIBITS

I. [HUD-5460\--Insurance
Information](http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/5460.pdf)

II\. [HUD-5463\--Insurance Value
Worksheet](http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/5463.pdf)
-

Fire and Extended Coverage

III\. HUD-5245\--Insurance Record

IV\. HUD-5974\--Insurance Approval

Appendix One - Section 13 of the ACC

Appendix Two - ATTACHMENT VII of the ACC

Appendix Three - IFB Advertisement

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