PROFESSIONAL LIABILITY INSURANCE OF
THE PROPERTY AND BUSINESS APPRAISERS
Regulations No 029
APPROVED BY Resolution No. 90 of 19 October 2010 of the Board of BTA Joint-Stock Insurance Company.
GENERAL TERMS AND CONDITIONS
1. Definitions as used in the insurance contract
1.1. The Insurer – Joint-Stock Insurance Company BTA, Lithuanian Branch Office, hereinafter referred to as BTA.
1.2. The Policyholder – a person who has applied to BTA to contract for insurance or to whom BTA has offered to enter into an insurance contract, or who has signed an insurance contract with BTA for own benefit or for benefit of other persons. 1.2.1. Persons associated with the Policyholder and/or Insured Person to whom Poli-cyholder’s obligations are also binding:
a) persons living together with the Policyholder or the Insured Person;
b) persons responsible for insurance object pursuant to an agreement with the Poli-cyholder or the Insured Person;
c) persons sharing insurance interests together with the Policyholder or the Insured Person, or other persons named in the insurance contract;
d) persons related to the Policyholder or the Insured Persons under employment, service delivery or other legal relationships and bound to act in conformity with the safety requirements.
1.3. The Insured Person – a person whose interests shall be covered:
a) In case of property insurance – the owner of property covered by the insurance contract or other person named in writing in the contract;
b) In case of third party liability insurance – a person whose property interests arising from third party liability are covered;
c) In case of person’s insurance – a natural person indicated in the insurance contract, whose health, life or physical condition is covered under the insurance contract. 1.4. The Beneficiary – a person named in the insurance contract or a person ap-pointed by the Policyholder or, in cases stipulated in the insurance contract, by the Insured Person and entitled to receive insurance benefits.
1.5. Third party – (refers to third party liability insurance) a person who suffers loss due to Insured Person’s acts or omissions, entitled to insurance benefits in accordance with the terms and conditions of the insurance contract.
1.6. The parties to the insurance contract – the Policyholder and BTA.
1.7. Insurance object – property interests relating to human life and/or health, property or third party liability.
1.8. Application to contract for insurance – a document in the form established by BTA for the Policyholder to provide with information required for the entering into the insurance contract. The application shall not be required, if the Policyholder pro-vides BTA with information which BTA considers sufficient to assess insurance risks. Acceptance of the application to contract for insurance does not obligate BTA to sign the insurance contract.
1.9. Insurance contract – an agreement between BTA and the Policyholder, where-under the Policyholder where-undertakes to pay insurance premiums specified in the insur -ance contract by the agreed time limits and to fulfill other obligations stipulated in the insurance contract, and BTA undertakes to pay down the benefit upon occurrence of the event insured (risk covered), as defined in the insurance contract.
1.10. Insurance policy – a document confirming the entering into insurance con -tract and covering the terms and conditions of the insurance con-tract agreed by BTA and the Policyholder.
1.11. Sum insured – a sum of money specified in the insurance contract or a sum of money calculated in the procedure described in the insurance contract which is the limit of indemnity (insurance benefit).
1.12. Underinsurance – cases when the established sum insured is less than the value of insurance. In such cases, upon occurrence of the event insured BTA shall indemnify a portion of the benefit in proportion to the ratio of the sum insured and the value of insurance.
1.13. Insurance exceeding the value of insurance – cases when the sum insured exceeds the value of insurance as of the date of contracting for insurance. In such cases, the benefit shall be paid down within the limits of the loss suffered.
1.14. Double insurance – cases when the Policyholder signs several insurance con-tracts with different insurance undertakings to cover the same risks. In such cases, the Policyholder should notify BTA in writing about other insurance contracts entered, sums insured and other contractual terms and conditions. Otherwise, the Insurer shall be entitled to recover insurance benefits being paid down. This provision shall not ap -ply when, in accordance with the insurance contract, BTA is obliged to pay insurance benefit not related to property damage (insurance of sums).
1.15. Additional insurance – cases when only a portion of the value of property or risk is insured. In such cases the Policyholder shall be entitled to enter into an additional insurance contract with the same or any other insurer. However, the total sum insured under all insurance agreements shall not exceed the value of insurance. 1.16. Deductible – a portion of insurance benefit stipulated in the insurance contract as not to be indemnified by BTA. The deductible shall be defined as a specific amount of money or a percentage unless the policy specifies otherwise. Where the insurance contract provides for several types of deductible in respect of the same risk, the de-ductible which is bigger shall always apply.
1.17. Insurance premium – an amount of money set in the insurance contract which is payable by the Policyholder to BTA under the terms and conditions of the insurance contract for the insurance cover.
1.18. Event insured (risk covered) – incidents stipulated in the insurance contract upon occurrence of which BTA is obliged to pay the insurance benefit.
1.19. Exclusions (risks uncovered) – occurrences when BTA is not obliged to pay
the benefit.
1.20. Insurance risk – a probability for the event insured to occur in future beyond control of the Policyholder and/or Insured Person.
1.21. Insurance benefit – an amount of money payable upon occurrence of the event insured or delivery of services if so is stipulated in the insurance contract. 1.22. A written document:
a) A document executed in writing and containing all necessary particulars, including signature affixed in accordance with valid legislation of the Republic of Lithuania; b) An electronic document containing a safe electronic signature.
2. Validity of insurance cover
2.1. A period of insurance means a period when insurance cover is in force. 2.2. The insurance cover shall come into force at 00:00 o’clock on the date indicated in the insurance contract, but not earlier than the premium or its first installment is paid down, if:
2.2.1. the date of paying the premium or its first installment is not indicated in the insurance contract;
2.2.2. the beginning of the insurance period coincides with the date of payment of the premium or its first installment;
2.2.3. the time limit for paying the premium or its first installment precedes the begin -ning of the insurance period.
2.3. Where coming into force of the insurance cover is linked to the payment of the insurance premium or its first installment, the insurance cover shall come into force at 00:00 o’clock the next day after receipt of the payment.
2.4. Where the insurance premium is paid after the date indicated in the insurance contract and the event insured occurs prior to the date of payment, the insurance cover shall not come into force.
2.5. Where the insurance contract stipulates that the premium should be paid after the first day of the insurance period, the cover shall come into force at 00:00 on the first day of the insurance period.
2.6. The insurance contract expires at 24:00 o’clock on the last day of the insurance period specified in the insurance contract unless terminated earlier for other reasons.
3. Policyholder’s duty to disclose
3.1. Prior to signing the insurance contract, the Policyholder undertakes to provide BTA with true and complete information requested by BTA in relation to the insurance object and necessary for the assessment of insurance risks.
Where the Policyholder knowingly conceals information necessary for the assessment of the insurance risk or knowingly provides incorrect or incomplete information, BTA shall be entitled to claim nullification of the insurance contract and retain the paid down insurance premium.
3.2. The Policyholder is required to promptly notify of any changes occurring during validity of the insurance contract and likely to increase the insurance risk. The changes required to be disclosed include but are not limited to:
a) significant changes relating to the insurance object; b) changes in the manner/ways of using the insurance object; c) other circumstances specified in the Special Part of the Regulations.
3.3. Where information provided to BTA about the insurance object and risks covered changes and this results in insurance risk increase, as well as in case BTA is misled by minor misrepresentations of the Policyholder, BTA shall be entitled to offer the Policyholder, within a period of 1 month from the date of getting aware, to amend the terms and conditions of the insurance contract, including the amount of the insurance premium.
Where the Policyholder disagrees to the amendment of the terms and conditions of the insurance contract or fails to give any answer to BTA within 1 (one) month from the date of dispatch of the notice of the proposed amendments, BTA shall be entitled to terminate the insurance contract upon expiration of the time limit stipulated in this paragraph without any further notice.
Where BTA proves that, being aware of the risk increase, it would have not entered into the insurance contract, BTA shall be entitled to claim termination of the insurance contract within 2 (two) months from getting aware of the risk increase.
3.4. Violation of the Policyholder’s duty to disclose information shall also incur other legal consequences entrenched in the legislation of the Republic of Lithuania.
4. Insurance premium and payment procedure
4.1. The Policyholder must pay insurance premium to BTA in the amount and by the time limit set in the insurance contract.
4.2. The premium shall be deemed paid:
4.2.1. when paid in cash – at the moment of paying the premium to BTA’s officer or agent;
4.2.2. when paid by a bank transfer – at the moment the relevant amount of money is credited to BTA or its authorized insurance intermediary’s bank account.
4.3. In case of failure to pay the premium by the time limit set in the insurance contract, the Policyholder shall pay BTA a default interest in the amount of 0.02% for each day overdue. The above-indicated default interest shall not apply in the fol-lowing cases:
a) the premium is paid as a lump sum;
b) in respect of the first payment, if the premium is paid in installments.
4.4. Should the Policyholder fail to pay in the premium or any part thereof by the deadline fixed in the insurance contract (with the exception of case when coming into force of the insurance contract is linked to payment of the insurance premium or any
part thereof), BTA must inform the Policyholder to this effect in writing indicating that in case of latter’s failure to pay in the premium or any part thereof in 15 days after receipt of the notice, the insurance cover shall be suspended and renewed only after the payment of the premium or any part thereof by the Policyholder.
4.5. BTA shall not be obligated to pay down the insurance benefit, if the event insured occurs during suspension of the insurance cover. In case of third party liability insur-ance, if the insurance contract stipulates that the event insured is lodging of a claim for damages, commitment of the activity which causes the damage during the period of insurance cover suspension shall entitle BTA to disallow payment of insurance ben-efit irrespective of whether or not the claim for damages is lodged after expiration of the insurance cover suspension.
4.6. If suspension of the insurance cover on the ground of failure to pay down the premium lasts for a period exceeding 3 months, BTA shall be entitled to terminate the insurance contract unilaterally.
5. Contracting for insurance by means of telecommunication terminal equipment
5.1. Insurance contract between the Policyholder and BTA may be entered by means of telecommunication terminal equipment. When entered this way, insurance con -tracts shall be deemed concluded between the Policyholder and BTA by post, online, e-mail, telephone or other means of information exchange.
5.2. If an insurance contract is made by means of telecommunications terminal equipment: a) The insurance contract shall come into force the next day after full payment of insurance premium fixed by BTA;
b) By paying the premium, the Policyholder confirms that he is familiar and agrees with all the terms and conditions of the insurance contract;
c) The absence of a written policy does not affect validity of the insurance contract; d) If so requested by the Policyholder, BTA is obliged to issue a copy of the policy to the Policyholder within 5 (five) working days.
6. Expiration and amendment of the insurance contract
6.1. The insurance contract shall expire at 24:00 on the last day of the insurance period unless otherwise agreed by the Policyholder and BTA.
6.2. The Policyholder shall be entitled to terminate the insurance contract at any time giving a 15 days’ notice to BTA in writing. In this case, the insurance contract shall be deemed terminated as of the date indicated in the notice, but not earlier than on the 15th (fifteenth) day after receipt of the notice of termination.
Such being the case:
6.2.1. Where there was no payment of insurance benefit effected and no claims were lodged within the period of validity of the insurance contract, the Policyholder shall be repaid, within 15 (fifteen) calendar days from the receipt of the Policyholder’s notice, the insurance premium, less costs of conclusion and performance of the insurance contract (30% of the sum to be repaid);
6.2.2. Where the benefit was paid down and/or pending or a claim was lodged during validity of the insurance contract, the Policyholder shall be repaid, within 15 (fifteen) calendar days from the receipt of the Policyholder’s notice, a part of the premium which is equal to the difference between the unused portion of the premium for the remaining period of the contract and paid down and/or pending benefit, reduced with the costs of conclusion and performance of the insurance contract (30% of the sum to be repaid).
6.3. The terms and conditions of the insurance contract may be modified or amended only upon a written agreement between BTA and the Policyholder.
6.4. The insurance contract may be terminated on other grounds stipulated in the insurance legislation of the Republic of Lithuania governing legal relationships in in-surance contracts.
7. General exclusion clause
7.1. Unless the insurance contract stipulates otherwise, BTA shall not pay insurance benefits for:
7.1.1. Terrorist acts (the acts involving the use of, or threatening to use, force or violence, committed by a group of persons acting independently or on behalf of any organization or government, committed for political, religious, ideological or ethnic ends for the purpose of putting in fear or exerting influence on the government, public or any section of the public); losses incurred in relation to the prevention of terrorist acts shall not be compensated either.
7.1.2. War, invasion, hostile acts of foreign countries or other operations attaining the same level, such as civil war (whether or not the war is declared), riots, strikes, rebels, commotions, revolution, military situations, marauding, vandalism, sabotage; strike, lockout, public disorder attaining the level of a coup or riot, seizure of property, nationalization, when this is caused or authorized, whether legally or not, by the pub-lic authorities; other political risks and any other losses or costs directly or indirectly sustained in relation to the prevention of such acts shall not be compensated either; 7.1.3. Direct or indirect nuclear explosion, nuclear power or impact of radioactive substances; direct or indirect radioactive contamination;
7.1.4. Other circumstances classified as force majeure pursuant to the legislation of the Republic of Lithuania;
7.1.5. Malicious acts by the Policyholder, Insured Person or Beneficiaries.
8. Policyholder’s obligations upon occurrence of an event which can be recognized as the risk covered
8.1. In order to qualify for insurance benefits in case of occurrence of the event in -sured, the Policyholder or the Insured Person is obliged:
8.1.1. To give a prompt notice within 3 working days (unless specified otherwise in the special terms and conditions of the Regulations) to BTA about occurrence of the event likely to be recognized as the risk covered in the procedure laid down in the special terms and conditions of the Regulations. Where the Policyholder or the Insured Per -son notifies BTA of the occurrence likely to be recognized as the event insured (risk covered) after expiration of the set time limit, the Policyholder or the Insured Person must prove that it was impossible to give notice on time;
8.1.2. To immediately report to competent authorities (e.g., medical establishments, the Fire and Rescue Department, the police, emergency services, etc.);
8.1.3. To follow all instructions given by BTA and to take all and any measures to mitigate the damage and prevent its occurrence or increase;
8.1.4. To make it available for BTA to inspect the scene of the event likely to be recog-nized as the risk covered, to investigate it and examine witnesses so that BTA would be able to identify the causes and size of damages;
8.1.5. To provide with any information and documents requested by BTA, including commercial secrets, if any, known to the Policyholder or the Insured Person so that BTA would be able to identify the causes and size of damage;
8.1.6. Unless instructed by BTA otherwise, to preserve, where possible, the scene unchanged while waiting for BTA’s representative. This paragraph shall not apply in as much as it is necessary to fulfill the requirements in paragraph 8.1.3 above. 8.2. Where the Policyholder or Beneficiary deliberately or by gross negligence fails to fulfill the obligations stipulated in the Regulations, BTA shall be entitled to reduce or disallow payment of the insurance benefit.
9. Insurance benefits
9.1. The insurance indemnity (benefit) must be paid down within 30 days after re -ceipt of all information required for the establishment of the fact, circumstances and consequences of the event insured as well as for the identification of the amount of insurance benefit.
9.2. If the event is the risk covered, but the Policyholder and BTA fail to agree as to the amount of benefit, on the Policyholder’s request BTA must pay down an amount equal to the benefit indisputable by the parties, if definite establishment of the amount of damage lasts for a period exceeding 3 months.
9.3. Where BTA delays payment of the benefit for its own fault, BTA shall pay a default interest in the amount of 0.02% of the outstanding benefit for each day overdue. 9.4. For the purpose of paying insurance benefits, all insurance premiums for a cur -rent insurance year, which are mature on the date of paying the benefit, shall be accounted. Pending premiums can be also accounted if so agreed by the Policyholder. If the insurance object is killed, destroyed or lost as a result of the event insured, all premiums pending in accordance with the insurance contract shall de deducted.
10. Dispute settlement procedure
10.1. Any disputes between the parties shall be settled by negations. In case of failure to agree, all disputes arising out of the insurance contract and relating to violation, termination or invalidity of the insurance contract shall be settled in compliance with the law of the Republic of Lithuania and in courts of the Republic of Lithuania accord-ing to the place of head office of BTA.
11. Management of personal data
11.1. By entering into the insurance contract, the Policyholder and/or the Insured Person expresses his consent that BTA would manage, as a data controller, personal data of the Policyholder (except for special categories of personal data) in accordance with the provisions of the Law on Legal Protection of Personal Data to an extent it is necessary for the assessment of risks, solvency and debt management as well as for the purpose of direct marketing and statistics. The Policyholder and/or the Insured Person further agrees that BTA would disclose data on debtors, including personal identification numbers, to other data controllers who process consolidated debtor files. In addition, the Policyholder agrees that BTA would receive information from data controllers processing personal data, when such information is necessary for BTA for the aforementioned purposes and requirements of legal acts of the Republic of Lithuania are not violated. BTA must process personal data accurately, fairly and lawfully as well as take measures to ensure protection of personal data. BTA shall be liable for violations of the Law on Legal Protection of Personal Data in compliance with legislation of the Republic of Lithuania.
12. Subrogation
12.1. The Insurer shall acquire the right of subrogation against the persons at fault after payment of insurance benefit to indemnify for this loss (subrogation). The Poli -cyholder (Beneficiary) must provide BTA with all and any information required for the Insurer to properly implement this right of recourse.
13. Confidentiality
13.1. The parties are obligated not to disclose any confidential information received on the basis of contractual or pre-contractual legal relations to any third persons, as well as not to use it against the interests of the other party. BTA shall be entitled to provide all relevant information, as received on the basis of the contractual or pre-contractual legal relations, to independent experts and reinsurers, as well as to store such information in BTA’s databases. This duty shall not apply when the parties are obligated to disclose information to the authorized public authorities in as much as it is necessary to observe the requirements of the legal acts of the Republic of Lithuania.
14. Procedure of ceding the Insurer’s rights and obligations under the insurance contract to other insurers
14.1. BTA is entitled to cede its rights and obligations to other insurance undertakings in the statutory procedure.
14.2. If the Policyholder disagrees with the Insurer’s intention to transfer its rights and obligations under the insurance contract, the Policyholder is entitled to terminate the insurance contract within one month from the cession of the rights and obligations. In this case the Policyholder shall be refunded the paid in premiums for the remaining period of the insurance contract validity.
15. Notice giving procedure
15.1. Any notice to be communicated by the Policyholder or BTA to each other shall be delivered by the time limits set in the Regulations in one of the manners below:
15.1.1. by handing a notice to the parties at the address indicated in the policy or other documents;
15.1.2. by certified mail; 15.1.3. by a facsimile transmission.
16. Miscellaneous
16.1. Unless specified by the Policyholder otherwise upon signing the insurance con -tract, the Policyholder agrees that BTA would send him insurance offers concerning: a) extension of existing insurance contracts;
b) entering into new insurance contracts in whatsoever class of insurance.
16.2. Contractual insurance relations shall be governed by the law of the Republic of Lithuania.
16.3. The insurance contract shall be signed on the basis of the general and special terms and conditions. In case of any differences between the special and/or individual insurance terms and conditions, as stipulated in the insurance contract (policy), and the general terms and conditions herein, the special and/or individual insurance terms and conditions shall take precedence.
16.4. The Policyholder, Insured Person, Beneficiary and other persons acquiring any rights on the basis of the insurance contract are required to fulfill the obligations stipulated in the Regulations.
16.5. The Regulations are effective from the date of being approved by the BTA board unless it provides for another date for the Regulations to come into effect. 16.6. In case of any differences or discrepancies between the languages, the wording in the Lithuanian language shall override.
16.7. The Regulations are available on BTA’s web site at http://www.bta.lt. SPECIAL TERMS AND CONDITIONS
1. General part
1.1. In observance of these Regulations the Joint-stock Insurance Company “BTA Draudimas” (hereinafter the Insurer) shall conclude with the Policyholders the prop-erty and business appraisers professional liability insurance contracts propprop-erty. 1.2. For the purposes of these Regulations:
1.2.1. Policyholders – natural and legal persons holding the property and (or) business appraiser’s qualification certificate issued by the Auditing, Accounting and Property Appraisal of the Republic of Lithuania and engaged in property and (or) business appraisal business.
1.2.2. Claim – written request of third parties submitted to the Policyholder for the in-demnification of damage specified in item 2.1 of these Regulations and action brought against the Policyholder for the indemnification of such damage.
1.2.3. Retroactive period – period defined in the insurance contract until the date of enforcement of the contract for which the insurance cover is provided.
1.2.4. Retrospective period - period defined in the insurance contract after expiration of or termination of the insurance contract during which the claim may be submitted to the Policyholder subject to the insurance cover provided by the Insurer.
1.2.5. Composition – written agreement on indemnification of losses concluded be -tween the Policyholder, Insurer and third parties.
1.2.6. Insurance contract – bilateral agreement between the Insurer and the Policy-holder officially certified by the insurance policy.
2. Insurance object
2.1. The insurance object shall be the Policyholder’s civil liability to third parties for material damage caused during the insurance contract validity period due and result-ing from the performance or inadequate performance of the Policyholder’s profes-sional activity of the property and business appraiser.
2.2. For the purpose of these Regulations the professional activity of the property and business appraiser shall be the activity provided for in the Law of the Republic of Lithuania on Property and Business Appraisal Fundamentals and in other norma-tive acts of the Republic of Lithuania regulating the property and business appraisal activities.
3. Events insured
3.1. The event insured shall be third parties’ claims which were recognised as justi-fied by the enforced court decision, written consent of the Insurer, peace agreement approved by court ruling or by composition about which the Policyholder was for the first time notified in written during the insurance contract validity period or within a longer pre-agreed claim submission period (retrospective term) after expiration of the insurance contract specified in the insurance policy or after the insurance contract termination date and which were submitted concerning the indemnification of damage resulting from the Policyholder’s activity (act or omission) in relation to the profes-sional activity during the insurance contract validity period or during the retrospective, if such period was provided for in the insurance contract.
3.2. The moment of performance of the activity (act or omission) shall be the day on which the act was or had to be performed. If it is impossible to determine the moment of performance of the act it shall be considered performed on the day on which the Policyholder was paid or had to be paid for services related with such act.
3.3. The following shall be considered as a single event insured: 3.3.1. several acts causing the same damage;
3.3.2. several claims submitted for the same act;
3.3.3. all submitted claims concerning typical recurrent property and business apprais-al mistakes. Mistakes of property and business appraisapprais-al - violations of the property appraisal principles, property appraisal techniques, property appraisal performance procedure established by the Law of the Republic of Lithuania on Property and Busi-ness Appraisal Fundamentals and of the property appraisal procedure established in the property appraisal methodology approved by the Government of the Republic of Lithuania.
4. Exclusions
4.1. Any act or omission related with the provided services or activities exceeding the
limits of professional services rendered by the Policyholder by virtue of the Law of the Republic of Lithuania on Property and Business Appraisal Fundamentals and other normative acts or resolutions.
4.2. The Insurer shall not indemnify the damage inflicted by the Policyholder when the claim arises as a consequence of:
4.2.1. losses sustained by natural or legal persons with whom the Policyholder is related by property interests (shareholders, borrowers or creditors, persons engaged in joint activity with the Policyholder);
4.2.2. losses sustained by Policyholder’s employees, their family members or persons connected with them by common household;
4.2.3. personal injury, diseases, health disorders or death;
4.2.4. loss or on non-repayment of money received by or lent to the Policyholder; 4.2.5. compensation of non-property damage unless the insurance contract provides otherwise;
4.2.6. any property losses directly or indirectly related with the pollution of atmos-phere, water or soil;
4.2.7. such typical (identical) mistakes of the Policyholder which occur more than once during the insurance contract validity period;
4.2.8. any case of insolvency, bankruptcy or liquidation of the Policyholder; 4.2.9. missing, destroyed or lost documents recorded in magnetic data carriers or computer memory and material valuables entrusted to the Policyholder for keeping or control, unless agreed otherwise by the Policyholder and the Insurer and specified in the insurance contract;
4.2.10. any instruction or recommendation - irrespective of whether or not subject to liability – on financial or other commercial matters;
4.2.11. activities of the Policyholder as of the manager, member or official of the man -aging or supervisory body (council, board, department, etc.) of private companies, clubs associations;
4.2.12. exceeding the estimate of works or embezzlement of credits;
4.2.13. any activities (advice, recommendations, etc.) in relation to software or hard-ware consulting or services;
4.2.14. any error or default on the obligations related with accounting or financial as -signments or misappropriation of funds of the Policyholder’s employees;
4.2.15. activities of the Policyholder as of the of the managing or supervisory body of enterprises, institutions or organisations, member or official thereof;
4.2.16. violation of the use of the patent holder’s rights and copyrights, business name or industrial design or trademarks or other intellectual property rights; 4.2.17. contractual or statutory penalties.
4.3. the insurance cover shall not apply to perils related with:
4.3.1. actions of the Policyholder or representative thereof directed towards unauthor-ised acquisition of the insurance benefit;
4.3.2. status of war, riots, local commotions, strikes, Acts of God; 4.3.3. radiation or other nuclear energy exposure;
4.3.4. acts incurring administrative or criminal liability;
4.3.5. additional liabilities (including social guarantees) assumed by the Policyholder under the contract, other than those provided by legal acts of the Republic of Lithua-nia, excluding the cases of liability arising without having concluded such contact; 4.3.6. loss of right to engage in the property and business appraisal activity. 4.4. The insurance cover shall not apply to losses or damage directly or indirectly caused by failures of the software and all types of microprocessors and systems equipped with such microprocessors, computers included.
5. Sum insured and insurance premium
5.1. The sum insured shall be established by agreement of the Policyholder and the Insurer for one event insured and (or) for the entire period of validity of the insur-ance contract.
5.2. The Insurance benefit for one event insured may not exceed the sum insured provided for one event insured.
5.3. The sum insured applicable after occurrence of each event insured shall be equal to the difference between the total sum insured provided for in the insurance contract and the insurance benefits.
5.4. The insurance premium shall be the amount established in the insurance contract due from the Policyholder to the Insurer for the insurance cover assumed thereby. 5.5. The insurance premium shall depend upon the selected sum insured and degree of the insurance risk. The minimum insurance premium is indicated in Annex 1. 5.6. The insurance premium may be paid as a lump sum, for the entire period of valid-ity of the insurance contract or in instalments – established time limits.
5.7. When the insurance premium is paid in instalments, the initial insurance premium may not be smaller than 30% of the total insurance premium unless established oth-erwise in the insurance contract. In addition, upon payment of insurance premiums in instalments the Insurer shall have the right to increase the insurance premium: by 3 % for semi-annual payments and by 5 % for quarterly payments.
5.8. The insurance premium may be paid both in cash and by payment order to the bank account of the Insurer.
5.9. If the event insured occurs after signing the insurance contract, but before pay-ment of the premium the Insurer shall not disburse the insurance benefit.
5.10. If the Policyholder defaults on timely payment of the insurance premium instal-ment (save as for the first instalinstal-ment of the insurance premium) the outstanding balance shall be charged a penalty of 0.2% per each delayed day.
6. Entry into and validity of the insurance contract
6.1. The insurance contract shall be concluded in written form. The conclusion of the insurance contract shall be confirmed by the Insurance policy in respect of profes -sional liability of property and business appraisers.
6.2. For the purpose of concluding the insurance contract the Policyholder shall file with the Insurer an application co contract for insurance of the established form (An-nex 2). Responsibility for the accuracy of details provided for in the application shall rest upon the Policyholder.
6.3. When concluding the insurance contract the Policyholder must provide the infor -mation available thereto and relevant for assessing the insurance risk and for con-cluding the insurance contract which is specified in a written request of the Insurer
or which is additionally inquired thereby in written and on the request of the Insurer produce the available documents significant for the assessment of insurance risk and conclusion of the insurance contract.
6.4. The insurance contract shall be concluded for one year, unless it establishes otherwise.
6.5. Unless agreed otherwise, the insurance contract shall come into force from the date established in the insurance policy – 00.00 hr at the local time of the Policy-holder, but no earlier than payment of a one-time (the first) insurance premium by the Policyholder.
6.6. The insurance premium payment date shall be:
6.6.1. for cash payments – when funds reach the cashier’s office of the Insurer; 6.6.2. for payment orders – when funds are credited to the Insurer’s bank account. 6.7. On agreement of the Policyholder and the Insurer the individual insurance con-tract may be concluded with extension clauses to these Regulations.
7. Insurance contract amendment, termination and expiration procedure 7.1. All amendments to the insurance contract shall be made documented issuing endorsements to the contract. The amendments shall come into force from the date specified in the endorsement to the insurance contract.
7.2. All notifications and explanations intended for the Insurer shall be drafted in written and addressed to the head office of the Insurer or sent to the address speci -fied in the insurance policy. The intermediaries shall not be entitled to receive such notifications or explanations.
7.3. The insurance contract may be terminated before the expiration date established therein if after the enforcement of the insurance contract the possibilities of occur-rence of the event insured have ceased. If the insurance contract is terminated on such grounds the Insurer shall be entitled to the part of the insurance premium pro rata to the insurance contract validity period.
7.4. Upon termination of the insurance contract on the Policyholder’s initiative, the insurance premium paid to the Insurer shall not be refunded to the Policyholder unless the insurance contract establishes otherwise.
7.5. The insurance contract shall expire upon:
7.5.1. expiration of the period of validity established in the insurance contract; 7.5.2. payment by the Insurer of all insurance benefits provided for in the insurance contract or the number of events insured which have occurred reaches the respective number provided for in the insurance contract;
7.5.3. liquidation of the Policyholder (with the status of a legal person) when there is no successor of the rights and obligations thereof;
7.5.4. existence of other grounds for cessation of the obligations established by the Civil Code of the Republic of Lithuania.
8. Increase of risk
8.1. If during the insurance contract validity period the circumstances provided for in the insurance contract or in the application to contract for insurance change resulting in the actual or potential increase of the insurance risk the Policyholder must notify to the effect the Insurer as soon as such changes become known, but no later than within 3 business days.
8.2. The Insurer who was notified about the increase of the insurance risk shall have the right to demand the amendment of the terms and conditions of the insurance contract or the increase of the insurance premium. If in such case the Policyholder does not agree to amend the terms and conditions of the insurance contract or to pay a larger insurance premium, the Insurer shall be entitled to apply with court for the termination of the insurance contract or for amendment thereof upon essential change of circumstances.
8.3. If the Policyholder defaults on the obligation established in point 8.1 above, the Insurer shall have the right to demand the termination of the contract and the indem-nification of losses to the extent not covered by the received insurance premiums. However, the Insurer shall have no right to demand the termination of the insurance contract if the circumstances that might have caused the increase of the insurance risk cease.
8.4. If during the period of validity of the insurance contract the circumstances estab-lished in the insurance contract essentially change and reduce or might reduce the insurance risk the Policyholder shall have the right as a result of reduction of insurance risk to demand the amendment to the terms and conditions o0f the insurance con-tract or reduction of the insurance premium. If the Insurer in such case disagrees to amend the terms and conditions of the insurance contract or to reduce the insurance premium, Policyholder shall be entitled to apply with court for the termination of the insurance contract or for amendment thereof upon essential change of circumstances.
9. Rights and obligations of the Policyholder 9.1. Obligations of the Policyholder:
9.1.1. to pay insurance premiums in timely manner;
9.1.2. upon entry into the insurance contract and during its validity period to provide the Insurer with the information requested thereby in relation to the insurance con-tract;
9.1.3. to notify immediately orally (within 24 hours) and in written no later than within 3 business days of the receipt of the writ of summons or claim to notify the Insurer about each action or claim submitted against the Policyholder for the indemnification of damage in relation to the performance of professional activity of the Policyholder; 9.1.4. to observe laws, legal acts, of the Republic of Lithuania, resolutions or method-ologies agreed upon with the Insurer and specified in the insurance contract; 9.1.5. to notify about all insurance contracts in respect of the property and business appraisers’ professional liability concluded in the interests of the Policyholder in other insurance companies the period of validity of which fully or partially corresponds to the period of validity of the insurance contract concluded between the Insurer and the Policyholder, specifying other insurers and sums insured;
9.1.6. to notify the Insurer immediately orally (within 24 hours) and in written no later than within 3 business days about the changes of details specified in the ap -plication during the insurance period irrespective of whether or not the insurance risk increases.
9.2. Obligations of the Policyholder upon occurrence of the event insured:
9.2.1. immediately, but no later than within 24 hours to notify the Insurer to the effect orally and later in addition – in written providing detailed information within 3 busi-ness days and supply all required details supporting the event insured;
9.2.2. to furnish the Insurer with all information pertaining to the event insured with-out considering it as personal or commercial secret;
9.2.3. to allow the Insurer to investigate the causes and amount of damage. 9.3. The Policyholder must render all possible assistance in finding out the circum -stances of the event. The Policyholder must help the Insurer upon rejection of unau-thorised claim to provide detailed and correct information and all facts pertaining to the event as well as all documents which in the opinion of the Insurer are relevant for the assessment of the event.
9.4. The Policyholder must take all available measures to prevent damage or its in-crease and to assist in ascertaining the causes and circumstances of the event insured provide detailed and correct information about damage and supply all documents and data which in the opinion of the Insurer are relevant for the assessment of the event insured.
9.5. In the event of pending legal proceedings following the civil liability claim, on request of the Insurer the Policyholder must authorise to participate in court the lawyer specified by the Insurer and provide the latter with the required explanations and documents.
9.6. The Policyholder shall have no right without advance written consent of the Insurer to recognise and satisfy in part of in full or by way of compromise the civil liability action or claim and conclude a peaceful settlement agreement.
9.7. Upon entry into a civil liability agreement the Policyholder and the Insurer may also agree on additional mutual obligations affecting the scope of the insurance cover and the amount of the insurance premium which must be observed by the Policy-holder and the Insurer.
9.8. Upon violation by the Policyholder of any of the requirements established in these Regulations the Insurer shall have the right to reduce or refuse the insurance benefit in the manner established by legal acts of the Republic of Lithuania.
10. Rights and obligations of the Insurer 10.1. Obligations of the Insurer:
10.1.1. to familiarise the Policyholder with the regulations of this type of insurance; 10.1.2. upon request or payment by the Policyholder to issue the insurance policy duplicate or other documents supporting the entry into the insurance contract; 10.1.3. to refrain from publicising the information about the Policyholder or other per-sons, their property status obtained when performing the insurance contracts, save as in cases established by laws.
10.2. Obligations of the Insurer upon occurrence of the event insured:
10.2.1. within the time limits established in these Regulations, after having received all required documents confirming and supporting the event insured, to make a deci -sion on payment of the insurance benefit;
10.2.2. within the time limits established in these Regulations, after adoption of the decision on payment of the insurance benefit to pay the insurance benefit in the man -ner established in these Regulations.
10.3. Rights of the Insurer:
10.3.1. to get familiarised with the Policyholder’s documents related with the con-cluded insurance contract;
10.3.2. to obtain from the Policyholder the information and documents pertaining to the event insured;
10.3.3. to give instructions to the Policyholder on reduction or avoidance of damage; 10.3.4. to perform independent investigation of the circumstances of the event in-sured;
10.3.5. to reject invalid claims in reasoned manner;
10.3.6. to examine the fulfilment of the Policyholder’s obligations provided for in the insurance contract;
10.3.7. to hire on his own account the external experts for the investigation of circum-stances of the event insured;
10.3.8. if a civil case is pending following the civil liability claim to participate in the legal dispute in the Policyholder’s name and on the Insurer’s account;
10.3.9. if a criminal case is pending with regard to the event insured to suspend the payment of the insurance benefit until closure of the case.
11. Deductible (franchise)
11.1. The insurance contract may provide for an unconditional deductible (franchise) within the limits of which the claim upon occurrence of the event insured shall be indemnified by the Policyholder.
11.2. The deductible shall apply to each event insured and shall cover both the indem-nification of damage and legal costs.
11.3. The deductible may be expressed as a fixed amount or as percentage share from the sum insured or future losses.
12. Determination of damage 12.1. Damage shall be:
12.1.1. the amount of third persons’ claims satisfied by peaceful settlement agree -ment or composition approved by the enforced court decision, ruling or judge-ment; 12.1.2. trilateral agreement between the Policyholder, Third party and Insurer on the indemnification of damage;
12.1.3. legal costs awarded from the Policyholder.
12.2. The amount of damage shall be determined by the Insurer on the basis of the peaceful settlement agreement or composition, and investigation material of the event.
12.3. Expenses for assistance of a lawyer, assistant lawyer or other representative may not exceed 5% of the sum insured for one event insured, unless the insurance contract establishes otherwise.
12.4. Third party costs not awarded or not approved by court shall not be indemnified, unless the parties have agreed otherwise.
12.5. If the Policyholder rejects the claim settlement method offered by the Insurer the latter’s liability under the insurance contract shall not exceed the amount of costs
which would have been incurred upon settlement of the claim in the manner proposed by the Insurer.
12.6. If the Policyholder’s professional liability insured under these Regulations is concurrently insured with another insurance company the damage shall be indemni-fied by the Insurer proportionately within the limits of the total amount of damage.
13. Insurance benefit payment procedure and time limits
13.1. The insurance benefit means payment due from the insurance company to the Policyholder or (third) person provided for in the insurance contract upon occurrence of the event insured on the basis of the official documents supporting the event. 13.2. The insurance benefit shall be calculated on the basis of documents collected during the event insured, expert findings, certificates of the official bodies, enforced court decision or ruling, documents supporting legal costs, laws and secondary leg-islation of the Republic of Lithuania. In separate instances when the amount of dam-age is clear the Insurer shall be entitled to pay the insurance benefit without court decision.
13.3. Insurance benefits paid by the insurance company under one insurance contract may not exceed the sum insured specified in the insurance contract.
13.4. The calculated insurance benefit shall be reduced by the amount of deductible. 13.5. If the event insured occurs before payment of full insurance premium the In-surer shall include the outstanding balance in the insurance benefit.
13.6. The insurance benefit shall also include the losses resulting from the Policy -holder’s attempts to reduce or avoid the damage. Such expenses shall be compen-sated pro rata to the ratio of the sum insured and the value of insurance even if such expenses together with the amount of damage exceed the sum insured.
13.7. Documents necessary for payment of the insurance benefit (provided by the Policyholder):
13.7.1. insurance policy; 13.7.2. insurance contract;
13.7.3. certificate on the event insured, its causes and circumstances issued by a competent authority;
13.7.4. claim of the offended party including the report on the assessment of losses and specified amount thereof;
13.7.5. enforced court decision, peaceful settlement agreement or immediately en-forceable court decision on the claim lodged against the Policyholder to indemnify damage inflicted to third party;
13.7.6. other documents requested by the Insurer necessary for the investigation. 13.8. The amount of insurance benefit being paid shall be equal to the awarded claim amount, provided that the amount of sums insured paid earlier under this insurance contract and other benefits does not exceed the total sum insured indicated in the insurance policy.
13.9. The insurance benefit to a natural person shall be disbursed no later than within 7 days and to a legal person – no later than within 15 days of the day on which all documents relevant for determining the fact of the event insured, circumstances and consequences thereof and the amount of the insurance benefit are received. If the insurance contract establishes the payment of periodic insurance benefits the provi -sion in the first sentence of this paragraph shall apply to the first periodic insurance benefit.
13.10. If upon occurrence of the event insured the Policyholder and the Insurer do not agree on the amount of the insurance benefit the Policyholder on request of the In -surer must pay the amount equal to the insurance benefit not disputed by the parties when the determination of the precise amount of damage lasts more than 3 months. 13.11. The Insurer defaulting on timely payment of the amounts established in these Regulations and (or) the insurance policy shall be changed a penalty of 0.01% for each business day delayed through his fault, unless agreed otherwise in the insurance contract.
14. Refusal to pay the insurance benefit
14.1. In observance of the procedure established by legal acts of the Republic of Lithuania the Insurer shall be entitled to refuse or reduce the insurance benefit when: 14.1.1. the Policyholder defaults on at least one of the requirements specified in these Regulations;
14.1.2. the Policyholder conceals or forges actual circumstances of the event insured or did not take available measures to reduce or avoid damage;
14.1.3. the Policyholder has failed to notify the Insurer about parallel insurance con-tracted from another insurance company;
14.2. Decision on refusal or reduction of the insurance benefit shall be made by the Insurer providing a motivated explanation of the reasons and notifying to the effect the persons eligible to receive the insurance benefit. The Policyholder who disagrees with the decision of the Insurer shall be entitled to appeal against the decision before court.
14.3. The payment of the insurance compensation shall be deferred:
14.3.1. upon initiation of legal proceedings or investigation concerning the event – until it is established that the circumstances of the given event do not qualify as circumstances referred to in Section 4 of these Regulations;
14.3.2. in the event of disputes arising between the Policyholder or employees thereof – until final decision of the court.
15. Double insurance
15.1. Upon occurrence of the event insured and having established that the Policy-holder has concluded insurance contracts for the same risk with more than one insur-ance company, the insurinsur-ance benefit shall be paid by each insurinsur-ance company pro rata to the sum insured specified in the insurance contract, however insurance ben -efits paid by the Insurer or other insurance companies may not exceed the amount of damage.
16. Ceding the rights and obligations of the Insurer under the insurance contract
16.1. In the manner established by laws the Insurer’s rights and obligations under the insurance contract may be ceded to other insurer or insurers.
16.2. If the Policyholder disagrees with the Insurer’s intention to cede the rights and obligations under the insurance contract may be ceded to other insurer(s) the insur-ance contract shall be terminated on arrangement of the parties to the insurinsur-ance contract. In such case the Policyholder shall be refunded the insurance premium for unused period of validity of the insurance contract.
17. Force majeure
17.1. Neither of the parties shall not be held liable for full or partial default on its obligations if such default is caused by such circumstances as tide, fire, earthquake or consequences of other natural calamities, also by strikes, acts of governments, war, military acts, acts of terrorism occurring after conclusion of the insurance contract and any other circumstances recognised and declared as force majeure circumstances by the competent arbitration court.
17.2. If any of such circumstances had direct implications for the fulfilment of ob -ligations during the time limit established in the insurance contract such time limit shall be commensurately extended for the period for which respective force majeure circumstances persisted.
17.3. The party that is prevented from fulfilling its obligations must notify the other party in written within 72 hours about the expected time of persistence and cessation of the aforementioned circumstances. The facts stated in such notification must be formally or by a normative act confirmed by a public authority or body authorised to register force majeure circumstances. The party exposed to such situation caused by force majeure circumstances and failing to notify about such circumstances or notify-ing about them with delay shall be deprived of the right to use such circumstances as the grounds for being exempted from liability for the non-fulfilment of obligations. 17.4. If there is no possibility to fulfil all or part of the obligations for more than 3 months the party not exposed to such force majeure circumstances shall have the right to fully or partially terminate the insurance contract without compensation of losses, including the counterparty’s expenses.
18. Dispute settlement procedure
18.1. Claims arising from the insurance contract shall be subject to the claim limitation periods established by the Civil Code of the Republic of Lithuania.
18.2. Disputes arising between the Policyholder/Insured Person, Insurer and Third Party shall be adjudicated by courts of the Republic of Lithuania according to the ap-plicable laws of the Republic of Lithuania.
18.3. Legal disputes shall be adjudicated before court according to the head office address of UAB “BTA Draudimas”.
19. Territory of validity of insurance cover
19.1. Unless the insurance contract provides otherwise the civil liability of the Poli-cyholder engaged in the processional activity of the auditor shall be insured in the territory of the Republic of Lithuania.
20. Final provisions
20.1. Oral arrangements between the parties shall be invalid. All arrangements, state-ments, notifications, requests, etc. shall be documented only in written form.
