SECTION 260:70-11-2. Basic coverage

(a)   Property covered. Property losses covered will be specified in an annual statement of coverage issued by the Risk Management Administrator and subject to commercial policy terms and conditions.

(b)   Property excluded. Property losses excluded from coverage will be specified in an annual statement of coverage issued by the Risk Management Administrator.

(c)   Perils covered. Perils covered will be specified in an annual statement of coverage issued by the Risk Management Administrator and subject to commercial policy terms and conditions.

(d)   Perils not covered. Perils not covered will be specified in an annual statement of coverage issued by the Risk Management Administrator and subject to commercial policy terms and conditions.

(e)   Amount payable for losses.

(1)   The amount payable for covered losses will be specified in an annual statement of coverage issued by the Risk Management Administrator and subject to commercial policy terms and conditions.

(2)   The amount payable for any loss to property shall not exceed the lesser of the actual replacement cost or the reported value of the property.

(3)   The amount payable for any loss shall be reduced by the amount of any delinquent premiums or fees for coverage under the Risk Management Program.

(f)   Conditions under which coverage is provided.

(1)   The building and/or contents must have been reported to Risk Management in writing prior to the date the loss occurs.

(2)   For boiler explosion losses to be covered, boilers must have been reported to Risk Management and all inspections required by the Oklahoma Department of Labor must have been completed.

(3)   The loss must be reported to Risk Management immediately upon learning of the occurrence of a loss. Failure to report a loss in a timely manner may negatively impact your recovery or result in denial of coverage.

(A)   The Agency Risk Management Coordinator shall give telephone notice of any property loss incident to the Risk Management Department immediately upon learning of the occurrence of such incident.

(B)   The Agency Risk Management Coordinator shall fill out and send to the Risk Management Department a "Standard Property Loss Report" form. This report shall be submitted within three working days from the date of first awareness of a loss and shall include but not limited to the following information:

(i)   The time, date, and location of the loss

(ii)   The department involved.

(iii)   A description of the property damage.

(iv)   A brief description of the incident.

(v)   An estimate of the amount of loss

(C)   The Agency Risk Management Coordinator shall complete all preliminary investigations following a property loss incident and send a completed "Standard Party Loss Report" and any other pertinent information that is the result of a thorough investigation to the Risk Management Division. All investigative information and loss data shall be submitted within ten working days from the date of first awareness of a loss, unless an extension of date is approved by the Administrator.

(4)   Losses occurring due to the negligence of the insured or insureds contractor may result in no coverage being provided under the Risk Management property insurance program. In such case, Risk Management reserves the right to make a determination as to liability, extent of loss and amount which Risk Management may reimburse insured for the loss. It is the responsibility of the insured to determine whether contractors are adequately insured prior to any remodel, renovation or new construction.

(5)   Other conditions under which coverage is provided will be specified in an annual statement of coverage issued by the Risk Management Administrator and subject to commercial policy terms and conditions. Failure to comply with terms and conditions in 260:70-11-2(f) or in the annual statement of coverage may result in denial of coverage.

(g)   Questions and loss reporting. If there are any questions or to report a loss, contact the Risk Management Division.

(h)   Time Limit to File a Claim. A final claim along with the requested supporting documentation must be submitted to Risk Management within 2 years of the date of the incident or the claim will be considered invalid.

[Source: Added at 31 Ok Reg 1467, eff 9-12-14]