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PART 4.
GLOSSARY

Act Liability Risk Retention Act, 15 U.S.C. ' 3901 et. seq. (formerly the Product Liability Risk Retention Act).

Builder Default Coverage Coverage provided by HOWIC for a builder's failure to perform under its limited warranty, as determined by ODS or because of the builder's bankruptcy or insolvency.

Bureau The Bureau of Insurance, State Corporation Commission of the Commonwealth of Virginia.

Commission The State Corporation Commission of the Commonwealth of Virginia.

Commissioner Alfred W. Gross, Commissioner of Insurance for the Bureau of Insurance, State Corporation Commission of the Commonwealth of Virginia.

Companies HOW Insurance Company, A Risk Retention Group, Home Warranty Corporation, and Home Owners Warranty Corporation.

Deputy Receiver The Commissioner acting solely in his capacity as Deputy Receiver of the Companies.

Direct Claims Claims for the cost of repairing defects to a home which are covered by the HOWIC Warranty, less any applicable deductible.

DSP Dispute Settlement Procedure.

Home Owners Owners of homes which are covered by a certificate of insurance evidencing the coverages of the HOWIC Warranty.

HOW Home Owners Warranty Corporation.

HOW Program The business activities of the Companies.

HOWIC HOW Insurance Company, A Risk Retention Group.

HOWIC Warranty The HOWIC warranty/insurance document issued to Member Builders.

HWC Home Warranty Corporation.

Indirect Claims Claims under the HOWIC Warranty which include, but are not limited to, amounts for extra contractual obligations, non-economic damages, consequential damages, and litigation costs and attorneys' fees.

Major Structural Defect Actual physical damage to designated load-bearing portions of the home caused by a failure of such load-bearing portions which affect their load-bearing functions to the extent that the home becomes unsafe, unsanitary or otherwise unlivable.

Member Builders Builders who are members of HWC and policyholders of HOWIC.

NCD Notice of Claim Determination.

ODS Office of Dispute Settlement.

Permanent Injunction The injunction entered on October 17, 1994, by the United States District Court for the Eastern District of Virginia, Richmond Division, which prohibits interference with the receivership proceedings.

Petition A Petition for Review of Deputy Receiver's Determination of Appeal which is filed with the Commission by a claimant of the receivership.

Receivership Appeal Procedure The Receivership Appeal Procedure attached to the Report as Exhibit B.

Receivership Order The Final Order entered on October 14, 1994, in the Circuit Court for the City of Richmond, Virginia, which appointed the Commission as Receiver.

Report This Report to Home Owners, Member Builders, Creditors, and Other Interested Persons.

Rules The Rules of Practice and Procedure of the Commission which govern receivership appeal proceedings.

RWP Request for Warranty Performance.

Special Deputy Receiver Patrick H. Cantilo, acting solely in his capacity as Special Deputy Receiver of the Companies.

 
REPORT TO HOME OWNERS - Page 10

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