Term
What two coverages are included under physical damage coverage on a PAP? |
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Definition
Collision (does not include collision with bird or animal) Other than collison (previously called comprehensive) |
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Term
When does theft coverage begin? |
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Definition
48 hours after the theft and coverage extends until car is returned to use. (coverage for other than theft waits only 24 hours) NOTE: $20/day up to $600. |
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Term
| Under Part D of the PAP, what is a non-owned auto? |
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Definition
| Private passenger auto, pickup, van or trailer (including a temporary substitue vehicle) that is not owned by or made available for the regular use of the named insured. |
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Term
What is diminution in value? |
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Definition
Actual or perceived loss in resale value directly resulting from a loss. |
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Term
How is appraisal used and why? |
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Definition
In cases when the insurer and insured disagree on the amount of the loss, each hires an appraiser and the two appraisers hire a competent judge. |
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Term
What are the 7 general duties of the insured under Part E of the PAP? PCS PEAP |
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Definition
1 Prompt notice 2 Cooperation with insurer. 3 Submission of legal papers to insurer. 4 Physical examination 5 Examination under oath 6 Authorization of medical records. 7 proof of loss. |
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Term
What is limited Mexico coverage? |
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Definition
PAP offers no coverage into Mexico, but an endorsement can be added for up to 25 miles. |
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Term
| On which PAP will the INS 22 exam be based? |
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Definition
| Most questions will be based on the 1998 PAP, but be aware of the changes in the 2005 PAP. |
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Term
| Insured's duties under Part C - Uninsured Motorist Claim are (2): |
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Definition
1. Notify the police if a hit-and-run driver is involved. 2. Submit a copy of the legal papers to the insurance company. |
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Term
| What are the insured's duties under PART D of the PAP (3): |
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Definition
1. Take reasonable steps after the loss to protect a covered auto or non owned auto and its equipment. 2. Notify the police promptly of a stolen vehicle. 3. Permit the insurer to inspect and appraise damage before repair or disposal. |
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Term
| What are the (6) general provisions under the PAP? |
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Definition
1. Insurer's right to subrogation. 2. PAP applies during policy perior and territory. 3.Cancellation; NORMAL, >60days&<60 days. 4. Nonrenewal. 5. Automatic termination (non payment or cancell) 6. Two policies with same insurer; only highest limits apply not the combined limits). |
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Term
During a policy period, 4 changes by an insured that will impact premium are: |
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Definition
1. Change number, type or use of vehicles. 2. Change operators. 3. Change principle garage location. 4. Change coverage, deductibles or limits. |
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Term
For insured to retain right to sue the insurer: In general, In case of liability. |
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Definition
In general, must comply with policy terms. In case of liability, insurer must acknowledge (in writing) that the insured is liable. |
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Term
| Examples of how endorsements can alter the coverages in the PAP: |
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Definition
Misc. vehicle; e.g. ATV Trailer/camper (plumbing) Customized equipments (customer cabinets in van) Snowmobile Named non-owner (friend drives covered vehicle) Limited Mexico. Underinsured motorist Towing and labor Excess sound producing |
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Term
| 4 exclusions to the snowmobile endorsement are: |
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Definition
1. Used for business. 2. Only named insured get coverage while using rental snowmobile. 3. Racing isn't covered (even ad hoc racing). 4. Liability to persons while occupying or being towed |
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