Automatic Insurance Coverage. Unless otherwise instructed in writing by the Seller, after the Seller has executed the Contract of Auction by Consignment with the Company, and delivered an Auction Property to the Company and the same has been inspected and deemed satisfactory by the Company, the Auction Property shall automatically be covered by the insurance taken out by the Company. The insured amount shall be equivalent to the Reserve determined by the Company and the Seller in the Contract of Auction by Consignment (should there be no Reserve, it shall be the insured amount agreed upon for the Auction Property; if the Reserve is adjusted, it shall be the equivalent of the adjusted Reserve for the Auction Property). The insured amount shall apply only to the taking out of insurance with an insurance company and when a claim is filed with the insurance company after the occurrence of an insured event. The insured amount is not a guarantee or warranty of the value of the Auction Property given by the Company, and does not imply that if the Auction Property is auctioned off by the Company, it can be sold for an amount equivalent to the insured amount.
