Program Participation Agreement

WHEREAS, CLIENT retains the insurance agency National Real Estate Insurance Group, LLC (referred to herein as “NREIG”) to secure and/or acquire insurance coverage on its behalf and for the use of NREIG’s contracted service providers Affinity Group Management, Inc. and/or Think Realty Insurance Program, LLC (collectively, “CONTRACTOR”), subject to the terms and conditions of this Program Participation Agreement (the “Agreement”), applicable law and the coverage(s) relative to the CLIENT’s monthly inventory report of investment properties (the “Monthly Inventory Report”). NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the parties hereby agree as follows:

  1. Duties and Obligations:
    1. NREIG
      1. On behalf of CLIENT, NREIG shall secure insurance, which may be acquired at the sole discretion of NREIG, on a master policy basis. Master policies are made available electronically online to the CLIENT
      2. NREIG shall ensure that coverage is provided by an AM Best ( “A”-rated insurer or better, either admitted or non-admitted to do business in CLIENT’s state(s).
      3. CONTRACTOR shall provide evidence of insurance to CLIENT and third parties as requested by CLIENT.
      4. NREIG is the sole agent for all insurance products for the benefit of the CLIENT.
    1. CLIENT:
      1. CLIENT shall provide all necessary information to NREIG/CONTRACTOR to facilitate the placement or renewal of insurance coverage.
      2. CLIENT shall adhere to CONTRACTOR’s monthly reporting schedule and procedures which are subject to change from time to time at CONTRACTOR’s sole discretion. CONTRACTOR will endeavor to notify CLIENT 30 days prior to any change of procedure.
      3. CLIENT shall pay CONTRACTOR all costs (to include, without limitation, premiums, expenses, applicable state taxes, and fees) relative to insurance coverages secured on behalf of CLIENT as indicated by CLIENT’s Monthly Inventory Report. Any costs not paid within 30 days of COMPANY’s billing date will result in cancellation of relative coverage(s).
  1. Client Consent to Receive Information Electronically:B By signing this participation agreement, CLIENT affirmatively consents to receive copies of all insurance documents in electronic format. Access to insurance documents shall be emailed to CLIENT and CLIENT confirms that by providing its email address to NREIG, that CLIENT is able to receive a copy of those documents via electronic means (see for .pdf software, if necessary). CLIENT may withdraw its consent to electronic records by mailing a signed written notification to CONTRACTOR whereupon copies of all insurance policies and documents thereafter shall be mailed in paper format to CLIENT, subject to the following:
    1. Printed copies of the master policies are available UPON REQUEST via your client service representative and electronic copies are hyperlinked on your monthly inventory report.
  2. Master Policy – Program Deductible Fund: CLIENT agrees and acknowledges that in the event insurance coverage is obtained by and through a master policy that such policy may have a deductible higher than the deductible chosen by the CLIENT. Accordingly, CLIENT agrees that a portion of any payments made hereunder for such master policy insurance coverage shall be contributed to a program deductible fund for the benefit of CLIENT and all other participants electing the same coverage for the purpose and use of, but not limited to, reducing insurance fixed cost amounts. In the event of a claim by CLIENT or any other participant, the program deductible fund shall be made available to pay the difference between CLIENT’s and/or the other participants deductible and the master policy deductible.  All claims shall be managed by NREIG, CONTRACTOR, or their representative(s) and administered by a national third party administrator, inclusive of any program deductible fund contributions.
  3. Acknowledgements:
    1. CLIENT agrees that NREIG or its representative, without CLIENT pre-approval, shall have the right and authority to change insurance carrier, coverage, and rates from time to time as necessary to maintain the stability of its insurance program for the benefit of CLIENT and the other participants. Notification of changes shall be made via email to CLIENT at least 30 days prior to the change date if a reduction of coverage or benefit shall affect CLIENT.
    2. CLIENT agrees that misreporting the occupancy status (vacant, occupied, under renovation or new construction) of any real estate property may result in a reduction of insurance coverage and/or a claim denial at the time of a loss.
    3. CLIENT agrees that basic form insurance coverage does not include insurance coverage for water damage or theft. Basic form insurance covers only these causes of loss: fire, lightning, explosion, windstorm and hail, smoke, aircraft and vehicles, riot or civil commotion, volcanic action, sprinkler leakage, vandalism and malicious mischief ($30,000 limit for vandalism and malicious mischief). Even if special form coverage is chosen, acknowledgement is required.
    4. CLIENT agrees the insurance secured on behalf of CLIENT does not include coverage for any intentional damage caused by tenants to CLIENT’s real property(s), including, without limitation, malicious destruction before and during occupancy, or within 10 days of eviction or vacancy.
    5. CLIENT agrees all properties insured at less than $50.00 per square foot are subject to the co-insurance provision within the policy. For full policy language regarding co-insurance please refer to the respective master policy.
    6. CLIENT agrees the insurance secured on behalf of CLIENT does not include coverage for flood unless such coverage is purchased separately.
    7. CLIENT agrees the insurance secured on behalf of CLIENT does not include coverage for sinkhole and earthquake/earth movement unless such coverage is purchased separately.
    8. CLIENT agrees the insurance secured on behalf of CLIENT includes coverage for named windstorm unless such coverage is specifically declined by CLIENT. A Named Storm or Named Windstorm is a storm, cyclone, typhoon, atmospheric disturbance, depression or other weather phenomena designated by the US National Weather Service and/or the US National Hurricane Center and where a number or name has been applied.
    9. CLIENT agrees all properties placed within NREIG’s programs are residential and that any structure that is not residential may not be added without prior written consent from NREIG. The term “residential” means 1-20 unit locations that do not contain commercial occupants.
    10. CLIENT agrees aluminum wiring (even if remediated) at any property has been disclosed to NREIG.
    11. CLIENT agrees detached or secondary structures are excluded from coverage unless a separate limit of insurance is requested and reported on said structures. If such structure is occupied or intended to be occupied by a tenant, it must be insured as a separate location.
    12. CLIENT agrees the insurance limit for theft, vandalism and malicious mischief is $30,000, subject to any applicable deductible.
    13. CLIENT agrees the purpose of insurance is to indemnify, not to profit.
    14. CLIENT agrees NREIG’s programs utilize monthly reporting forms and as such, locations reported to NREIG/CONTRACTOR and paid for by CLIENT are fully earned upon receipt unless changes are received by the third day of the month following the reporting period. Fully earned means no premium credit or refund would be applicable.
    15. CLIENT agrees each vacant, renovation, or occupied unit shall have operable smoke detectors present, and CLIENT further agrees coverage will be void in the event a loss occurs due to or arising out of a fire and it is determined that smoke detectors in working order were not present.
    16. CLIENT agrees any pool located at an insured location must satisfy all governing laws (federal, state, local, municipal, etc.) concerning the ownership and maintenance of pools, and CLIENT further agrees coverage will be void in the event a loss occurs involving a pool which fails to satisfy such governing laws.
    17. CLIENT agrees that if a roof is more than fifteen (15) years old, the roof and any roof coverings will be valued at Actual Cash Value.
    18. CLIENT agrees the insurance secured on behalf of CLIENT includes coverage for terrorism at a rate of $1.00 per location per month unless specifically declined by CLIENT or excluded based on geographic location. See policy for coverage details. A list of excluded geographies can be found here.
    19. CLIENT agrees the insurance secured on behalf of CLIENT does not include coverage for cyber liability unless such coverage is purchased separately.
    20. CLIENT acknowledges that Professional Liability coverage is not included in the Premises Liability coverage purchased through the NREIG Program. This coverage can be purchased separately.
    21. CLIENT acknowledges that NREIG may charge fees related to the administration of the Program and the management of the CLIENT account. Such fees may include: 1. Account Set-up (up to $50); 2. Location administration (up to $5 per month per location); 3. Monthly Installment (up to $7 per month per account); 4. Account re-instatement (up to $25 per account); 5. Marketing (up to $10 per location per month). CLIENT is under no obligation to purchase any insurance product through NREIG.
  4. Appointment of NREIG and CONTRACTOR as Limited Attorney in Fact. CLIENT hereby appoints NREIG and/or CONTRACTOR, or their successors and assigns, as its attorney-in-fact for the sole purpose of acquiring and administering insurance coverage on behalf of CLIENT. These limited powers shall pertain only to this Agreement.
  5. Compliance with Laws. The parties hereto shall observe and comply with all insurance laws, rules, regulations, departmental bulletins and government orders applicable to the activities being conducted by each performing obligations under this agreement.
  6. Right of Recovery (Subrogation): In the event CLIENT has a right of recovery against any third party, CLIENT agrees and acknowledges that in the event NREIG or its representative makes any payment on behalf of CLIENT from any insurance plan or program, including, but not limited to, payments from the program deductible fund, then CLIENT shall transfer and/or assign to the NREIG or its representative any right of recovery to the extent of the amount paid such party. CLIENT covenants that it will do nothing to impair or limit the ability to recover any amounts paid.
  7. Representations and Warranties NREIG and CLIENT each hereby warrant that such party shall possess and maintain all licenses, permits, and qualifications necessary for each party’s performance of its obligations under this Agreement.
  8. Membership in Connected Investors: CLIENT agrees its participation in NREIG’s pooled risk insurance benefit program provided hereunder is contingent on CLIENT’s membership in the Connected Investors program providing certain non-insurance benefits to its members. CLIENT and NREIG agree and acknowledge that as of the Effective Date of this Agreement and until terminated in accordance herewith, CLIENT shall become a member of the Connected Investors program at no additional cost to CLIENT and that as a member of the program, CLIENT is eligible for certain value-added, non-insurance, group benefits and services being offered. CLIENT further agrees it shall be bound by the terms and conditions of the Connected Investors program and any and all terms and conditions set forth from time to time in any applicable third party policy, plan or program as secured by the Connected Investors program on behalf of the CLIENT or its members (including, without limitation, the execution and/or delivery of all necessary information, applications, documents and other materials as may be requested from time to time by the Connected Investors program to facilitate the placement, maintenance, reporting, renewal, or termination of any benefits, services, plans, or programs on behalf of CLIENT or its members).
  9. Indemnity. To the fullest extent permitted by law, CLIENT shall indemnify, defend and hold harmless NREIG, CONTRACTOR, and any of their respective owners, officers, directors, employees, and agents from all loss, liability, actions, claims, suits, demands, and incidental and consequential damages (including legal fees and costs) arising out of or connected with: (i) CLIENT’s business or any real or personal property owned by CLIENT; (ii) any default by CLIENT of its obligation(s) under this Agreement and not cured within any applicable cure period; or (iii) any services, act or omission by NREIG, CONTRACTOR, or their employees, agents or representatives pursuant to this Agreement, provided, however, CLIENT shall not indemnify said parties for any act or omission due to the gross negligence of the same.
  10. Confidentiality. During the term of this Agreement, the parties hereto may provide each other access to “Confidential Information” in the course of performing its obligations under this Agreement. As a result, the applicable parties hereto, including without limitation, any employee, agent or representative of the same, shall:
    1. Take all actions necessary to prevent the duplication or unauthorized disclosure of confidential information to any other person, firm or company.
    2. Immediately return all confidential information held by it, its agents or employees, upon request. No copies of Confidential Information shall be made or retained by any party.
    3. Comply with all privacy laws, including, without limitation, the Gramm-Leach-Bliley Act.Unless specified in writing, CLIENT agrees and acknowledges that NREIG and CONTRACTOR may share CLIENT’s name as a participant in any such insurance program, as NREIG or CONTRACTOR deems reasonably necessary in order to advance and secure additional benefits on behalf of CLIENT or any other participants.  “Confidential Information” shall include, but not be limited to: records, data, documents, files, underwriting guidelines, procedures, rates, policy forms, sales and marketing materials, computer software and systems and processing protocols.  All parties hereto agree and acknowledge that the terms of this confidentiality provision shall survive termination of this Agreement for any reason whatsoever.
  11. Term and Termination. This Agreement shall commence on the Effective Date hereof and remain in full force until canceled for any reason by NREIG or CLIENT with not less than 30 days written notice.
  12. Modification. No agent, employee, or representative of NREIG or CLIENT shall alter any of the terms and conditions of this Agreement unless done in writing and accepted by CLIENT and NREIG.
  13. Severability. In the event that any word, phrase or provision of this Agreement is declared invalid, unenforceable or inoperative, such invalidity or unenforceability shall not affect the other provisions of the Agreement, and the remainder of the Agreement shall remain in full force and effect.
  14. Assignment. This Agreement shall be binding upon the CLIENT and NREIG, their successors and assigns, and may not be assigned by either party without the prior written consent of the other party.
  15. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
  16. Governing Law & Jurisdiction. The provisions of this Agreement, and all rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the laws of the state of Missouri without reference to conflict of law principles.
  17. No Waiver. Unless this Agreement expressly provides otherwise, no delay or omission by any party herein to exercise any right or power occurring upon any noncompliance or default by the other party(s) with respect to any provision of this Agreement shall impair any such right or power or be construed to be a waiver thereof.
  18. Counterparts. This Agreement may be executed in several counterparts and by facsimile or electronic signature, all or which when taken together shall constitute one single agreement between the applicable parties.