In my experience, when I sought the waiver of the insurance coverage deductible requirements pertaining to Earthquake coverage, I realized that the sufficiency and the extent of compliance with the current coverage were utilized. Keep in mind that an earthquake coverage refers to an insurance policy that provides coverage for damages or losses caused due to seismic activity. On the other hand, the insurance deductible is a predefined amount that the policyholder has to pay before the insurance begins to cover the damages or losses. 

I realized that using the sufficiency and the extent of compliance with the current coverage is very important to further strengthen the waiver request. The details regarding the borrower’s and/or the guarantor’s financial position can also be utilized. Additionally, I found that the details pertaining to the unavailability or unaffordability of the current coverage are also essential to strengthen the waiver. 

An individual could create an insurance waiver for the following specifications based on the outline given below. 

Specifications: 

Template Outline: 

#1 - What information should be included in the introductory section?  

The introductory section of the waiver should clearly state the requestor’s identity and the purpose/type of waiver being requested. The examples provided below can be used for further assistance if needed.  

<Organization/Borrower name> is seeking a waiver for the coverage deductible requirements pertaining to Earthquake coverage. These requirements include <Requirement Details>.  

<Agent name> is requesting a waiver for Earthquake coverage deductible requirements on behalf of <Organization/borrower name>. These requirements include <Requirement details>.  

#2 - How to demonstrate the compliance extent of the current coverage?  

When writing the waiver, the organization/borrower should emphasize the compliance extent of their current coverage by providing relevant details. These details can include coverage name, limit, and compliance requirements. Below is an example that can be used for additional guidance if needed.  

<Organization/Borrower name> currently has <Insurance Coverage 1> and <Insurance Coverage 2> in place. Both these coverages have a limit of <dollar amount>. Despite the deductible of <Insurance Coverage 2> of <dollar amount> being non-compliant, the <complaint aspect of the coverage> is as required.  

#3 - How to provide details about the reasons for non-compliance?  

The organization/borrower should also provide details about why their current coverage has a non-compliant deductible. Such reasons may include the inability to acquire or afford coverage with a compliant deductible. Provided below is an example that can be used for further assistance if required.  

The current carrier of  <Organization/Borrower name>, <Insurance carrier name>, is not willing to offer a compliant deductible of <dollar amount>. In addition, the <Organization/Borrower> has talked to <Insurance carrier 1> and <Insurance carrier 2>  however, acquiring coverage with a complaint deductible from these carriers would increase the premium costs by <dollar amount>.  

#4 - How to demonstrate financial stability?  

Demonstrating financial stability can help determine that the organization/borrower has the monetary resources needed to account for their current deductible. Financial stability can be demonstrated by providing details about the organization/borrower or their guarantor’s net worth and liquidity. Below is an example that can be used for further assistance if needed.  

<Person 1> has been identified as the guarantor for <Organization/Borrower name>. As of <Date>, <Person 1> has a net worth of <dollar amount> and a liquidity value of <dollar amount>. Therefore, the <Organization/Borrower name> has the monetary resource required to account for the deductible.  

#5 - How to provide details about the replacement reserve? 

Disclaimer: This factor may not be applicable to each case, however, it has been added for the sake of comprehensiveness.  

In addition to providing details about their or their guarantor’s financial position, the organization/borrower can also provide details about the replacement reserve. This information can further demonstrate their financial stability. Provided below is an example that can be used for additional guidance if needed.  

<Organization/Borrower name> has a replacement reserve of <dollar amount>, therefore the <dollar amount> deductible of <Insurance coverage 2> should not be of financial strain to the <Organization/Borrower>.  

#6 - How to justify the waiver for approval?  

Prior to submitting the waiver, the organization/borrower should provide a justification for the waiver being requested. This justification can be made based on the compliance extent of their current coverage and the reasons for which they have a non-compliant deductible. In addition, the organization/borrower may also provide details about their and/or their guarantor’s financial position to demonstrate the ability to account for a non-compliant deductible. Furthermore, details about the unavailability or unaffordability of coverages with a compliant deductible can also be used to strengthen the waiver.