Agreement to Provide Insurance: Definition, Example
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What is an Agreement To Provide Insurance?
An agreement to provide insurance is a contract between a lender and a grantor that requires the grantor to obtain insurance as a condition of receiving a loan. The contract entails what minimum coverages the insurance must provide as well as what will happen if insurance is not obtained. Typically, the agreement to provide insurance also states that a grantor cannot be denied a loan on the basis that insurance is not obtained from the lender, but the loan offer can be rescinded if the grantor does not secure insurance from another agency.
The purpose of the agreement to provide insurance is to provide lenders with the security of ensuring their investment is protected.
Agreement To Provide Insurance Sample
AGREEMENT TO PROVIDE INSURANCE
| Grantor: | Computer Software Innovations, Inc. | Lender: | RBC CENTURA BANK | |||
| 1661 East Main Street | Lending Service Center, P.O. Box 1220 | |||||
| Easley, SC 29640 | Rocky Mount, NC 27802 |
INSURANCE REQUIREMENTS. Grantor, Computer Software Innovations, Inc. (“Grantor”), understands that insurance coverage is required in connection with the extending of a loan or the providing of other financial accommodations to Grantor by Lender. These requirements are set forth in the security documents for the loan. The following minimum insurance coverages must be provided on the following described collateral (the “Collateral”):
| Collateral: | All Inventory and Equipment. | |
| Type: All risks, including fire, theft and liability. | ||
| Amount: Loan Amount. | ||
| Basis: Replacement value. | ||
| Endorsements: Lender loss payable clause with stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days prior written notice to Lender. | ||
| Comments: Customer #2929503. | ||
| Latest Delivery Date: By the loan closing date. |
INSURANCE COMPANY. Grantor may obtain insurance from any insurance company Grantor may choose that is reasonably acceptable to Lender. Grantor understands that credit may not be denied solely because insurance was not purchased through Lender.
INSURANCE MAILING ADDRESS. All documents and other materials relating to insurance for this loan should be mailed, delivered or directed to the following address:
| RBC CENTURA BANK P.O. Box 1220 Rocky Mount, NC 27802 |
FAILURE TO PROVIDE INSURANCE. Grantor agrees to deliver to Lender, on the latest delivery date stated above, proof of the required insurance as provided above, with an effective date of February 10, 2006, or earlier. Grantor acknowledges and agrees that if Grantor fails to provide any required insurance or fails to continue such insurance in force, Lender may do so at Grantor’s expense as provided in the applicable security document. The cost of any such insurance, at the option of Lender, shall be added to the indebtedness as provided in the security document. GRANTOR ACKNOWLEDGES THAT IF LENDER SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO AN AMOUNT EQUAL TO THE LESSER OF (1) THE UNPAID BALANCE OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE CHARGES, OR (2) THE VALUE OF THE COLLATERAL; HOWEVER, GRANTOR’S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS.
AUTHORIZATION. For purposes of insurance coverage on the Collateral, Grantor authorizes Lender to provide to any person (including any insurance agent or company) all information Lender deems appropriate, whether regarding the Collateral, the loan or other financial accommodations, or both.
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED FEBRUARY 10, 2006.
GRANTOR:
| COMPUTER SOFTWARE INNOVATIONS, INC. | ||
| By: | /s/ Nancy K. Hedrick | |
| Nancy K. Hedrick, President/CEO of Computer Software Innovations, Inc. | ||
FOR LENDER USE ONLY
INSURANCE VERIFICATION
| DATE: _________________________ |
PHONE (864) 859-4091 | |
| AGENT’S NAME: Fireman Insurance Co |
||
| AGENCY: R. Carl Byars Agency, Inc. |
||
| ADDRESS: P.O. Box 465, Easley, SC 29641 |
||
| INSURANCE COMPANY: Computer Software Innovations |
||
| POLICY NUMBER: CPA 1014508-18 |
||
| EFFECTIVE DATES: ___________________________________________________________________________________________ | ||
| ___________________________________________________________________________________________________________ | ||
| COMMENTS: ________________________________________________________________________________________________ | ||
| ___________________________________________________________________________________________________________ | ||
LASER PRO Lending, Ver. 5.30.00.004 Copr. Harland Financial Solutions, Inc. 1997, 2006. All Rights Reserved. - SC N:\LASERPROP\CFI\LPL\D20.FC TR-44815 PR-5
Reference:
Security Exchange Commission - Edgar Database, EX-10.3 4 dex103.htm AGREEMENT TO PROVIDE INSURANCE, Viewed October 24, 2022, View Source on SEC.
Who Helps With Agreements To Provide Insurance?
Lawyers with backgrounds working on agreements to provide insurance work with clients to help. Do you need help with an agreement to provide insurance?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate agreements to provide insurance. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Agreement To Provide Insurance Lawyers
Roman V.
I'm an experienced trademark attorney and enjoy helping clients protect and grow their brand names through trademark registration and enforcement. I've worked with a wide variety of clients in different industries, including e-commerce, software as a service (SaaS), and consumer goods, to register trademarks for product names, logos, and slogans, both in the US and abroad.
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Justin A.
I am a lawyer who helps small businesses, nonprofits, and startups with a wide variety of agreements, corporate formation, and corporate governance. I earned my BA from Tulane University and my JD from the University of Chicago Law School. Before starting my own practice, I worked at an international law firm in New York City. Outside of work, I am on the board of the nonprofit Seattle REconomy (which runs the NE Seattle and Shoreline tool libraries) and I enjoy gardening, baking bread, and outdoor activities with my spouse and two dogs.
"Justin provided excellent, expedient service and made sure my needs were met satisfactorily."
Harry S.
Stirk Law is a law firm based in London that advises on dispute resolution, commercial and corporate arrangements, employment and private wealth. We are experts in our areas and experienced in advising on complex and high value matters in the UK and internationally.
Max M.
Business attorney with a focus on the health care sector, bringing Biglaw experience in multi-million dollar mergers and acquisitions, financings, and general corporate counsel work to the small firm space. I now help startups and growing companies access the same level of sophistication and strategic guidance typically reserved for large institutions.
"Overall, Max M. did a great job compiling the demand letter. He was very thorough in requesting documentation, responding to questions promptly, and producing the letter. He provided reasonable explanations for the tone that he used along with recommendations for when to send it and what to demand. Additionally, he was very responsive and updated the draft promptly after feedback was provided. There were some minor grammatical errors present, but as Max M. provided me with a word document, I was able to easily rectify those."
JOSEPH L.
Mr. LaRocco's focus is business law, corporate structuring, and contracts. He has a depth of experience working with entrepreneurs and startups, including some small public companies. As a result of his business background, he has not only acted as general counsel to companies, but has also been on the board of directors of several and been a business advisor and strategist. Some clients and projects I have recently done work for include hospitality consulting companies, web development/marketing agency, a governmental contractor, e-commerce consumer goods companies, an online apps, a music file-sharing company, a company that licenses its photos and graphic images, a video editing company, several SaaS companies, a merchant processing/services company, a financial services software company that earned a licensing and marketing contract with Thomson Reuters, manufacturing companies, and a real estate software company.
"Excellent work by Joseph! Efficient, Timely, and very responsive. I'm very happy with his work. Thank you!"
July 1, 2021
Daniel R.
Daniel is an experienced corporate attorney and works closely with corporations, privately held companies, high-net worth individuals, family offices, start-ups and entrepreneurs. Daniel graduated from the Gonzaga University School of Law and is licensed to practice law in Illinois.
Adam L.
12 Year PQE Lawyer with wide experience in sports, media and tech.
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