When I sought the waiver of the insurance coverage requirements pertaining to Umbrella coverage, a certain extent of compliance with the coverage requirements were determined. For your information, umbrella insurance refers to a type of policy that provides coverage in excess of the limitation of a traditional liability policy. In order for me to demonstrate sufficiency to FM, using the details about the current coverage are extremely useful. 

Thus, as we can see, this information is also helpful in making FM determine a certain extent of compliance with the coverage requirements. Some other important aspects that I used in the previous cases were carrier unwillingness and financial stability. By providing this information, we can provide a justification for why the policyholder has non-compliant coverage. It can also help me demonstrate that the non-compliant coverage is not of financial strain. 

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

Specifications: 

Template Outline: 

#1 - What details should be included in the introductory section of the waiver?  

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

<Organization/Borrower name> is currently seeking a waiver of coverage requirements pertaining to Umbrella coverage. These requirements include <Requirement details>.  

<Agent name> is seeking a waiver for certain Umbrella insurance coverage requirements on behalf of <Organization/Borrower name>. These requirements include <Requirement details>.  

#2 - How to emphasize the sufficiency/compliance extent of the current coverage?  

When applying for a waiver, the organization/borrower can provide details about the current coverage. These details can include coverage name, policy type, and limits. Providing this information can help determine if the current coverage is enough for the organization/borrower. In addition, it can also demonstrate a certain extent of compliance with the coverage 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>. <Insurance coverage 2> is a <Policy type> and has <Coverage limit type> of <dollar amount> and a <Coverage limit type> of <dollar amount>. In addition, <Insurance Coverage 2> is a <Policy type> and has a coverage limit of <dollar amount>. Although the <Non-compliant aspect of the coverage> is not in compliance, the limits of both policies are in compliance with coverage requirements.  

#3 - How should details about the carrier’s rating be provided?  

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

The organization/borrower can also provide details about the carrier’s rating. Providing this information can help determine if the organization/borrower is able to obtain the coverage they have been offered when it’s needed. The example provided below can be used for further assistance if needed.  

<Organization/Borrower name> currently has coverage from <Insurance carrier name>. <Insurance carrier name> currently has a rating for <Carrier rating> for <Rating category 1> and a rating of <Carrier rating> for <Rating category 2>. Therefore the <Insurance carrier name> will be able to provide the required coverage to the <Organization/Borrower name> when needed.  

#4 - How to provide a reason for having non-compliant coverage?  

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

The organization/borrower can provide details for having non-compliant coverage because it could help increase the chance of the waiver being approved. Below is an example that can be used for additional guidance if needed.  

<Organization/Borrower name> has talked to their current carrier, <Insurance carrier name>, about acquiring the compliant coverage. However, the current carrier is unwilling to provide coverage that adheres to the requirements due to <Details about reasons for unwillingness>.  

#5 - How can the organization/borrower demonstrate financial stability?  

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

To demonstrate financial stability when applying for a waiver, the organization/borrower can provide all relevant details about their or their sponsor’s financial position. Providing this information can help illustrate that the non-compliant coverage is not, or will not be, of financial strain to the organization/borrower.  

<Person 1> and <Person 2> have been identified as the sponsors for the <Organization/borrower name> As of <Date>, <Person 1> has a net worth of <dollar amount> and liquidity value of <dollar amount>. In addition, <Person 2> has a net worth of <dollar amount> and a liquidity value of <dollar amount>. Therefore, the non-compliant coverage is not of financial strain to the organization/borrower.   

#6 - How to provide a justification for the waiver being requested?  

Before submitting the waiver, the organization/borrower can provide a justification as to why their request should be approved. When providing the justification, the organization/borrower should add details about their current coverage as it can demonstrate a certain extent of compliance and sufficiency. In addition, they can use other factors, such as reasons for non-compliance and financial stability, to further strengthen the waiver.