3.1

How many types of auto policies are there?

Personal Auto Policy

Business Auto Policy

Garage Forms

Truckers Forms

3.1

Financial Responsibility Law

Operation of law is triggered by what?

What limits satisfy the law requirements?

Operation of the law is triggered by an accident which involved bodily injury or property damage when a vehicle is rendered inoperative; or certain serious traffic violations such as DUI or commiting a felony with a vehicle.

Must carry minimum 10/20/10 by either a policy, self insurer, or posting bond or cash that guarantees responsibility for these limits.

3.1

What things must happen if financial responsibility did not exist at the time of an accident?

What happens if these requirements are not satisfied?

1) legally valid claims of others must be satisfied up to 10/20/10 requirements (may be acquired by owner securing and filing a release from liability from all injured parties or by being adjudicated not liability by courts, or securing cash/securities sufficient to compensate all injured parties.)

2) Owner must provide certificate of financial responsibility for future accidents.

1)DL license and registrations of all vehicles of the owner are suspended.

3.1

What limits must a person found DUI carry

Limits of 100/300/50

or

Bond in the amount of $350,000

SR-22 certifying coverage is in effect for three years consecutively or license/registration is subject to suspension.

3.1

What form does an operator who does not own an auto but needs an SR-22 need?

Named Nonowner Policy-

When operating autos owned by others

3.1

Non Residents and FR Law

Non residents are subject to FR law.  Privileges being suspended in Florida if they do not comply.

When an uninsured Florida resident has an accidnet in another state which would have resulted in suspension in Florida, the resident is subject to the same enforcement as though the accident had occurred in Florida.

3.1

Who administers the Financial Responsibility Law?

3.1

Does the Personal Auto Policy afford limits that will meet the minimum requirements of law in other states?

3.2

What is the primary impetus for No-Fault laws?

3.2

What are the mail elements of Florida No-Fault Law

1) those who are subject to the law and comply are not subject to legal liability for causing BODILY INJURY to other regardless of fault.

2)  Because on can't seek legal liability damages against nother for BI, the law substitutes under one's own insurance a coverage called PIP

3) The law requires that owners of vehicles must carry PIP and imposes penalties for failing to due so.

3.2

What vehicles does the No-Fault Law apply to?

Which Vehicles are exempt?

Applies to Self Propelled motor vehicles with four or more wheels, trailers, and semi-trailers designed and required to be licensed for use on Florida Highways

Exempt: mobile homes, government owned vehicles for mass transit (more than five passengers), taxis, limos, public school buses

3.2

What does PIP benefits follow?

What does tort immunity follow?

What are the means of enforcement of compulsory no fault insurance requirement?

1) Insured

2) Motor Vehicle

3) Evidence of insurance must be provided at time of vehicle registration each year.

3.2 

No-Fault and non residents required to register vehicle in Florida

3.2

What are the penalties for not complying with no-fault compuslory coverage?

1) owner is denied the immunities from legal liabilities

2) owner personally liabile for payment of PIP benefits

3) DL and vehicle registration are subject to suspension.

1) Medical- 80%

2) Work Loss- 60% gross income, may be offered excluded for premium reductions

3)Replacement Services- 100% household Services

4) Death

Deductibles offered: $250, $500, $1000.  Deductibles are subtracted from the total medical expense before the percentage of payment is applied for a claim and DO NOT reduce the total 10k maximum benefit by the deductible amount,

3.2

Auto Insurance modifications

3.2

PIP- Primary?

3.2 - Who is Covered

Injuries to named insured

1) If accident occurs in Florida while occupying any vehicle

2) If struck by vehicle while not occupying a vehicle

3)If outside Florida in covered auto

4) If outside Florida while occupying resident relative vehicle.

3.2 - Who is Covered

Injuries to relatives of named insured who reside with named insured

3.2 - Who is Covered

Persons other than named insured and relatives

1) if occupying named insured's vehicle

2) If the person is a pedestrian and Florida resident they are covered if struck by the insure'ds motor vehicle.

3.2 

Who is not covered for PIP Benefits

1) Named insured and relatives occupying or struck by others vehicle out of state

2) Nonresident passengers out of state

3) nonresidents as pedestrians in Florida.

3.2

What are the exlucsions under which PIP benefits are denied?

1) One cannot own two autos, insure only one for PIP, and receive benefits when injured in the other one

2)Operating vehicle without insureds consent

3)Persons who intentionally inflisct self-injury or who are injured during the commission of a felony.

3.2 Tort Exemption

What is the purpose?

How do you get Tort Exemption?

For families which own motor vehicles to fund for their own injuries and for those who don't own motor vehicles through PIP Coverage.

Those who comply with the law are granted a limited immunity from suits of others.

3.2

Definition of Tort Exemption

3.2

What is the exception for Tort Exemption

Piercing the Threshold-

an action for pain, suffering, mental anguish, and inconvenience may be brough if the injury results in

1) significant and permanent loss of a bodily function

2) Permanent injury other than scarring and disfigurement

3) Significant and permanent scarring or disficurement

4) Death.

3.2

What is tort exemption tied to?

To what extent is the exemption?

The exemption is tied to the vehicle rather than the person.  Thus, one who owns an uninsured vehicle, in violation of the law, is give the exemption as to operation of an insured vehicle.

The exemption is the extent PIP was paid or payable.  The inured party has a right to legal action against another to the degree that economic loss exceeds these amounts.

3.2

Example

Jill is injured by martha who was at fault.  Jill had $4,000 in medical bills and had purchased PIP with $1k ded.  How much does Jill recover?

$2,400. from her own PIP

 (4,000-1,000 * 80%)= $2400

Jill has tort right against Martha for $1,600 which is the full amount of the economic loss

3.3

Who is eligible for the Personal Auto Policy?

What types of vehicles are eligible?

1) Individual, or related persons, or unrelated persons who reside together

Eligible types are a private passenger auto and a picup or van that has a GVW of less than 10k lbs and is not sued to deliver or transport materials exept if incidental to insureds furniture or equipment installation/service/repair business or for farming/ranching

3.3

What are the sections of a personal Auto Policy

Declarations

Agreement of Definitions

Part A Liability Coverage

Part B Medical Payments Coverage

Part C Uninsured Motorists Coverage

Part D Coverage for Damage to your Auto

Part E Duties after an Accident or Loss

Part F General Provisions

3.3

Where is PIP coverage found on a Personal Auto Policy

3.3

PAP Declarations components

1) Named insured and mailing address

2) Policy Period

3) List of coverages and limits and premiums

4) Identify loss payees.

3.3

Definition of Loss Payee

3.5 

What does "Your Covered Auto" mean?

1) Any vehicle showin in Declarations

2) A Newly Acquired vehicle

3) Any trailer you own

4) any auto or trailer you do not own while used as a temporary substitute for any other vehicle which is out of normal use because of breakdown, repair, servicing, loss, or destruction

3.5

What does "Newly Acquired Auto" mean?

Any of the following types of vehicles you become the owner of during the policy period

1)Private passenter auto; or

2) pickup or van less than 10k GVW and that is not used for transportation of goods unless for installation, maintining, repairing of furnishings/equipment or farm/ranching

3.5

Coverage for a "Newly Acquired Auto"

When is coverage in effect and request requirements

What about Collision?

If time period has elapsed coverage starts the moment it is requested

1) For any coverage provided in this policy except Coverage for Damage to your Auto, a newly acquired auto will have the broadest coverage for any vehicle on dec.  Coverage beginss moment you become owner.  Must be requested within 14 days

2) Collision Coverage begins date you become owner.  Must request within 14 days if collision applies to at least one car on dec.  If not you must request 4 days after you become owner.  If loss occurs within these 4 days a $500 deductible applies.

3.6

What is Liability Coverage?

How is payment triggered?

Special note on defense

-Pays on behalf of insured damages for which they have become legally liabile to others for bodily injury or property damage.  Also includes defense against claims or suits for such liabilities.

-To trigger payment the legal liability must be for Bodily Injury or Property damage.  Bodily injury includes sickness and death

-insurer becomes insured's defense lawyer.  Insurer also has right to settle claims.  They cannot take a hands off approach

3.6 Liability Coverage

What else does liability coverage contain

-It contains supplementary payments- associated costs in providing defense against claims such as interest accruing after judgements, premiums ofr appeal bonds, and bonds to release attachments. 

-Company must pay for cost of bail bonds up to $250 and up to $200 per day for the insurd's loss of earning because of attendance at trials or hearings at the insurer's request.

3.6 Auto Liability Coverage

Who is Insured?

1) Named insured and family members driving any auto or trailer regardless if owned by others, and whether or not eligible for PAP coverage

2) Any person using your covered auto

3) Anyone legally responsible for your covered auto but only for acts of omissions of one who is otherwise insured

3) Any auto or trailer other than your covered auto,  anyone else who does not own or hire the vehicle, if liability is from an act or omission of the named insured or family member.

3.6 Auto Liability Coverage

What are the exclusions

1) intentionally causes injury or damage

2) damage to property owned or being transported by insd

3)For damage to property rented to, used by, or in the care of that insd unless it is a residence or private garage.

4)Injury to employee

5)liability arising from use of vehicle as public/livery conveyance

6)Any auto business or valet except for named insd, a family member, or a partner, or employee for use of a your covered auto

7) For use of any business other than farm/ranching

8)BI or PD for which insured is an insured under a nuclear energy liability policy to the named insured or a family member

3.6 Auto Liability Coverage

What are the exclusions for vehicles?

1) any vehicle with less than four wheels or designed for use off publice unless it is a trailer or being used in a medical emergency

2) A vehicle regularly used of named insured other than your covered auto

3) Same as 2 for family member but does not apply while the named insured or resident spouse is mainting or occupying such a vehicle.

4) Anything for racing.

3.6 Auto Liability Coverage

Limits

Single Limit- one limit will apply to all claims for BI and PD from a single accident

Split Limit- 10/20/10

Costs of defending the insured against claips and all supplementary payments are payable in addition to the policy limits.  Coverage for defending against claims exists so long as coverage exists and limits ahve not been exhausted

No aggregate limit of protection.  Limits are available for each separate accident.

3.6  Med Payments

What is it?

Who is covered?

Payments for expenses incurred for medical and funeral services without regard to fault or legal liabilities.

This pays for expenses incurred for services rendered within three years from date of accident to insureds who are defined as:

1) Named insured and family members, while occupying, or as a pedestrian if struck by, any motor vehicle designed for use mainly on public roads or any trailer equipment.

2)Other person occupying your "Your covered auto"

3.7 Med Payments

Exclusions

1) if in vehicle with less than four wheels

2) if your covered auto used as livery

3) if WC benefits are payable

4) While in auto other than your covered auto which is used regularly (except named insured or spouse if in such an auto of a family member)

5)For business purposes

6) Any vehicle used as residence or causes related to war or nuclear reaction.

3.7 Medical Payments

How are losses paid?

Any amount payable for Medical Payments coverage is reduced by any amounts payable for the same expense under liability, PIP, or Uninsured motorists coverage.

Med payments coverage is primary  with respect to other medical payments vocerage when occupying owned auto and excess when occupying nononwed autos. Medical payments limits apply per person.  Common limits are $500, 1k, 2k, 5k

Whil liability insurance protects an insured against claims of others, UM Coverage is form of a coverage to pay compensatory damages for BODILY INJURIES under One's Own Policy, for amounts which would otherwise have been recovered from the liability insurance of another- either an uninsured motorist or one who carries liability limits that are lower than the insure's damages.

UM recover is based on one's tort rights.

UM coverage does not apply to punitice or exemplary damages... only BI.

3.8 Uninsured Motorists Coverage

Who is covered?

Limits?

1) named insured, amily members in their own vehicles, in any other vehicle, and as pedestrians, and other persons whil occupying the named insured's vehicle.

Must be cause by a vehicle that does not have liability insuracne or liability insurance with a limit that is lower thatn the insd's damages. Also applies if other persons insurer goes insolvent or for a hit and run.

Limits offered single (min 20k per accident) or split (10/20)  Higher limits available.

3.8 Uninsured Motorists Coverage

Other Requirements

UM law requires that every policy that provides primary liability coverage for a specific motor vehicle must include stacked UM at the same limits as apply for Liability coverage unless the insured in writing rejects UM or elects UM coverage at limits lower than those that apply for liab, or elects non-stacked UM coverage.

Also requires insurers send annually, "notice of premium": notification to insureds of all options available to them under the law for stacked and non stacked coverage.

3.8 Uninsured Motorists Coverage

Stacked Vs Non Stacked UM Coverage

Stacked means coverage limits provided for two or more vehicles are added together

Non Stacked differs in the following ways:

1)coverage available to a person injured in a car is only the limit applicable to that car.

2) Injured person is entitled to Highest limits of UM coverage that apply to any vehicle for which he or she is named insured or family member, or injured while occupying car that is in no way related to them.

3)does not apply to insured if injured in vehicle that doesn't have UM

4) A fmily member is not insured for Um if in car owned by insured which is inured on a primary basis under another policy

5) Must be offered by reduced rates.

3.8 Uninsured Motorists Coverage

Determination of Damages

1) through agreement between insd and UM insurer or

2) Arbitration proceedings

3) if insurer refuses to arbitrate, by suit jointly against the other party  and the UM insurer

Excess policies are not required to automatically include UM coverage but the insurrer is required to make UM coverage available under such a policy, up to 1 million limits per written request.

3.9 Damage to your Auto

Coverage Definition

Company agrees to pay for direct and accidental loss to a your covered auto or any nonowned auto including their equipment aka Physical Damage Coverage

Coverage applies to nonowned auto and is the broadest coverage applicable to any your covered auto in the dec and is excess over any other collectible insurance.

3.9 Damage to your Auto

Coverage Definition

Collision- Upset or Impact with another object

Other than Collision- missiles, falling objects, fire, theft, carceny, explosion, earthquake, windstorm, hail, water, flood, vandalism, riot, contact with animal, glass breakage

Other than collision coverage may be issued without collision coverage but collision coverage is not issued alone.

3.9 Damage to your auto

Other included coverage

Also includes transporation expenses and only applies if collision and/or other than collision is provided by applicable auto

up to $20 a day max $600 for loss of use expense incurred to loss and loss of use expense for nonowned auto.

Deductible does not apply.  benefit begins 24 hours after loss or 48 if involved in loss that is total theft.

3.9 Damage to your auto

Exclusions

1) Electronic equipment  if not permanantly installed.  limit of 1k applies for permanently installed equipment located in a spot not designed by the manufacturer for such equipment.

2) Tapes , records, discs

3) any auto destroyed or confiscated by governement or civil authorities.

4) Camper boyd or trailer now show in dec if not reported within 14 days.

5) awning used to create additional living space

6) radar guns

7) custom furnishings like carpentry, cooking, heigh extending roofs etc.

Cause of loss exclusions: wear and tear, freezing, breakdown, failure or road damage to tire unless from theft, war, nuclear causes.

3.9 Damage to your Auto

How are losses paid?

Contains  contract conditions about policy changes, coverage denial for fraud, how the company may be sued, company subrogation rights and transfers of interest

Policy Period and Teritory- for US and territories + Canada+ Puerto Rico.  Coverage provided between these ports

Policy Termination and Nonrenewal Provisions

3.11 Endorsements

List common auto endorsements

1) Extended Nonowned Coverage- modifies some PAP exclusions as to how they apply to the insd or family members.  Liability and Med Pay is added for a nonowned auto which is furnished for regular use of the person.  A separate endorsement is avaiable to cover indidvidual using nonowned car as public or livery conveyance.

2) Towing and Labor- flabor performed at the place of disablement.  Limits avaiable: 25,50,75,100

3) Coverage for Excluded Equipment (Several)- No deductible if permanantly installed.  Tapes covered up to $200.  Customizing equip for vans or pickups can be covered for a specific amount.  "Covered Property" is for specificed amouint coverage for additional living equipment.

3.11 Endorsements

List common auto endorsements

Continued...

4) named Nonowner Coverage- Provides Liab, Med Pay, and UM for a named individual who does not own an auto, to cover for operation of autos owned by others

5) Micellaneous Type vehicle- Covers motor homes, motorcycles, golf carts, and all terrain.

6) joint Ownership- Required when a PAP is issued to cover two or more relatives whther or not residing together, or individuals residing together.

7)Increased Limits Transportation expense.

8) Extended PIP- increases PIP liab from 80% to 100% and work loss from 60 to 80.  Max limit remains 10k

9) Additional PIP protection-  for named insured and family members only increases benefits by 10 k, 25k, 40k and 90k

3.12 Rating

What is rating based off

Vehicle- territory where garaged, how it's used,  for physical damage value of car is used.

Driver- Age, sex, marital status, prior driving record.

Safe Driver Insurance Plan- lowest rates apply if all family operators have had no accidents or serious traffic violations during a prior three year period.

For Physical damage coverage on private passengers cars each make and model is assigned a symbol which recognizes both value of the car and its damageability in accidents.  For pickups and vans on original cost new; rates declining with age.

3.12 Ratings

Reductions in ratings

1) if family owns two or more vehicles

2) if youths have good grades or pass approved driver training course

3) Seniors who complete defensive driving course

4) discounts for PIP and Med pay if there is a passive restraint devise

5) discounts apply for other than collision for anti theft.

Final premium based on limits and deductibles chosen.

1) During first 60 days of policy an insurer may cancel for any reason except discrimintation or residence

2)For policies that require mandatory PIP and PD cancellation is prohibited by the insurer for non  payement unless made by dishonored check or the insured failed to respond to a valid notice of additional premium or for total destruction of vehicle, transffer of ownership, or after purchasing mandagtory coverages for same behicle from another insuruer, or military and deployed

3) After 60 days- may cancel for nonpayment, misrepresentation, fraud, or suspension of license.  45 days notice required except 10 days for nonpayment. 

4) Non renewal prohibited except with 45 days prior notice or if premium not paid.

3.13 Micellaneous Florida Auto Laws

What must a cancellation notice contaain?

1)State reason

2) Notify the insured of a right to an insurance department hearing to contest cancellation

3) Must advise of eligibility for coverage with FJUA

If the insured cancels a policy the insurer must return the unearned portion of any premium paid within 30 days of recepits of notice of cancellation.

3.13 Micellaneous Florida Auto Laws

Unfair Trade Practices

Information Disclosure to Claimants

Prohibits certain refusals to insure or renew and premium surcharges for certain factors such as deictrimination on race, color, marital status, handicap, an no-fault accidents.

requires insurer to disclose full policy information to a claimant upont written request.  If to an agent, agent must disclose name and coverage of insurers and forward request to insurers.

3.13 Micellaneous Florida Auto Laws

Glass Breakage

3.14 Mechanical Breakdown Insurance

Describe

Provides coverage against the failure of an original or replacement part when property cleaned or services to perform any function for which is was designed. 

usually covered: Engine, transmission, drive axel, steering assembly, AC, front suspension

Payment is for the usual and fair charge for parts and labor to repair or replace a covered part with like kin and quality.  Specific dollar limit may be specified but nor more than ACV of vehicle.

Some policies have rental reimbursement provision paying up to $15 a day with a max of $75 for a substitute car.

3.14 Mechanical Breakdown Insurance

Exclusions

1) Breakdown cause by lack of maintenance

2) breakdown cause my collision, fire, theft, vandalism, riot, explosion, lightning, earthquake, wind storm, flood

3) Tampered odometer or any other covered part

4)Towing, road serviec, or starage charges

5)Seals, gaskets, oil, grease, or refrigerant unless required in connection with repair of covered part

6)Motor tune-ups

7)Breakdown cause by twoing a triler or another vehicle unless the covered vehicle is euqipped for this as recommended by manufacturer

8)if used for conveyance or racing.

3.14 Mechanical Breakdown Insurance

Policy Term

36 months after delivery of 36k miles for new cars

12 months or 12k miles for used

3.14 Mechanical Breakdown Insurance

What else does this policy contain?

A subrogation clause assigning to the insurer any rights of the insured against others to the extent of loss payments.

Arbitration clause will apply to resolve disagreements between insurer and insured as to the amoun payable for a claim

45 days cancellation except 10 for non payment.