Personal Auto Insurance 6.0

Chapter 10

1.) 4 wheel motor veh. owned or leased (must be atleast 6 months) by an individual or married couple & resident relatives.

2.) Veh. eligibile to be listed in Declarations include private passenger autos which are 4 wheel motor veh & pickup trucks & vans that are not over 10,000 GVW (gross veh. weight) and are not used for business purposes.

1.) Territory (country where veh. is garaged)

2.) Use of car (pleasure, driven to work etc.)

3.) Age/sex and marital status

4.) Driving record (accidents or traffic violations of those listed as a primary operator of the veh. covered)

1.) Make/model of automobile

2.) Age of veh

3.) Territory

-US, its territories and possessions

-Canada

-Puerto Rico

Parts of the Personal Auto Policy (PAP)

-"you" and "your" refer to

- the "name insured" shown in declartion

-spouse if resident of same household

-Insureds also include other members of the insureds household & anyone the insured gives permission to drive an insured veh.

Parts of the Personal Auto Policy (PAP) continued

-If spouse ceases to be a resident of the same household during the policy period, the spouse is considered under this policy until:

-the end of 90 days following the spouse's change of residency

-effective date of another policy listing the spouse as a named insured

-end of policy period

Parts of the Personal Auto Policy (PAP) continued

-"we", "us", and "our" refer to

Parts of the Personal Auto Policy (PAP) continued

-a private passenger type auto, pickup or van shall be deemed to be owned by a person if leased:

1.) under a written agreement to that person AND

2.) for a continous period of at least 6 months

Parts of the Personal Auto Policy (PAP) continued

 1.)Bodily injury

2.) Business

3.) Family member

1.) means bodily harm, sickness or disease, including death that results

2.) includes trades, professions, occupation

3.) means a person related to you by blood, marriage, adoption who is a resident of your househould. includes ward or foster children.

Parts of the Personal Auto Policy (PAP) continued

1.) occupying

2.) Property damage

3.)Trailer

1.) means in,upon, getting in, on,out, or off

2.) means physical injury to, destruction of or loss of use of tangible property

3.) mans a veh. designed to be pulled by a

-private passenger auto or

-pickup or van

**includes farm wagon or farm implement**

Parts of the Personal Auto Policy (PAP) continued

Your covered auto:

1.) Any veh. on declaration page

2.) Newly acquired veh.

3.) any trailer you own

4.) any auto or trailer you do not own whil used as a temporary substitue for any other veh. described which is out of normal use because of:

                            -breakdown, repair, servicing,loss, destruction

Parts of the Personal Auto Policy (PAP) continued

Newly acquired auto means:

1.) private passenger auto

2.) pickup or van for which no other insurance policy applies

3.) Has gross veh. weight less than 10,000 lbs

4.) Not used for delivery or transportation of goods unless its incidental to your business or for farming/ranching

Parts of the Personal Auto Policy (PAP) continued

Coverage for a newly acquired auto

1.) newly acquired auto will have broadest coverage. Coverage begins on date you become the owner. For coverage to apply must insure it within 14 days after you become the owner

**if a newly acquired auto replaces a veh. shown in the declarations, coverage is provided for new veh. without having to ask to insure it**

Parts of the Personal Auto Policy (PAP) continued

Collision coverage for a newly acquired auto

-coverage begins on the date you become the owner but must ask to insure it within:

a.) 14 days after you becom owner if dec. shows collision cov. applies to atleast 1 auto. in this case, veh. will have broadest coverage

b.) 4 days after you become owner if dec. doesn't show collision cov. for atleast 1 auto. if you comply with 4 day policy and loss occurs before you ask to insure, collision deductible of $500 will apply

Parts of the Personal Auto Policy (PAP) continued

Comprehensive Coverage for newly acquired veh.

-coverage begins on date you become owner but for coverage to apply need to insure it within:

a.)14 days after you become owner if dec. shows collision cov. applies to atleast 1 auto. in this case, veh. will have broadest coverage

b.) 4 days after you become owner if dec. doesn't show collision cov. for atleast 1 auto. if you comply with 4 day policy and loss occurs before you ask to insure, collision deductible of $500 will apply

Supplementary Payments for Liability Coverage

-additional coverages which, if used, are paid by the insurer in addition to the limits of liabiltiy

1.) defense & investigation costs

2.) up to $250 for bail bonds required b/c of accidents

3.) Premiums on appeal bonds & bonds to release attachments in any suit the company defends

4.) up to $200 a day for loss of earnings b/c of attendance at trials

5.) other reasonable expenses incurred at the company's request

1.) No cover for intentional loss

2.) No coverage for damage to property owned or being transported by that person

3.) No coverage for damage to property rented to or used by

4.) No coverage for BI to an employee

5.) No coverage while the veh. is being used to carry person or property for a fee This doesn't apply to car pooling

6.) No coverage while employed or engaged in business of selling, repairing, servicing, storing, or parking veh.

7.) No coverage for veh. used in auto related business & other business-use exclusions pertaining to borrowed or newly acquired veh.

8.) No coverage if a person doesn't have a resonable belief of being entitled to use a veh.

No coverage for any of the following:

a.) any motorized veh. having fewer than 4 wheels unless being used in a medical emergency, any owned or nonowned trailer, any non owned golf cart

b.) any veh. other than your covered auto which is owned by you or furnished or avaible for your regular use.

-sustained while occupying any motorized veh. having fewer than 4 wheels

-sustained while the veh. is being used to carry persons or property for a fee

-sustained while occupying any veh. used as a residence or premises

-to employees if workers comp. benefits are required

Coverage is $25,000

Pays insured & occupants of the insured veh. against BI claims which they are legally entitled to recover resulting from an auto accident with:

a.) other drives who have no auto liability insurance

b.) insureds carrying less than the financial responsibility amount of their home state

c.) hit & run drivers

-another driver whose insurer denise coverage or becomes insolvent

**insured also includes any person, such as a surviving spouse or parten of an individual killed or injured**

Part C- Uninsured motorist

-uninsured motorist doesn't including the following veh:

-owned by, furnished to, or available for the regular use of you or any family member

- owned or operated by a self-insured

-owned by any governmental unit or agency

-designed mainly for use off public roads while not on public roads

-while located for use as a residence or premises

This coverage is often referred to as a physical damage coverage for accidental direct damage to a covered auto and non-owned autos.

1.) Collision- upset of a covered auto or its impact with another veh. or subject

2.) Other than collision (Comprehensive)- provides coverage for the veh. from losses other than collision which includes

-theft, windstorm, hail,water,flood,breakage of glass, vandalism, contact with bird or animal, explosion or earthquake, fire, riot, civil commotion

Comprehensive & collision Exclusions

(Ch 10 pg 12-13 for full list)

-no coverage due to wear & tear

-freezing

-mechanical or electrical breakdown

-road damage to tires

-radioactive contamination

-discharge of nuclear weapon

-war

-no coverage for electronic equipment designed for the reproduction of sound

-loss to tapes, records, disk, or other media

tv antennas

Company's limit of liability for a loss is the lesser of:

1.) actual cash value of the stolen or damaged property

2.) Amount necessary to repair or replace the property with other property of like kind and quality.

**2005 changes- Part D limit physical damge coverage to non-owned trailers increased to $1,500**

**Must notify police of hit and run and theft of auto**

-Under the uninsured motorcist coverage, insured is required to notify police of hit and run.

-Under physical property damage, insured must take reasonable steps after a loss to protect a covered auto and its equipment from further damage.

-Police must be notified if car is stolen

-policy applies only to accidents & losses that occur during policy period

-insured can't take legal action against insurer until he/she has complied w/ all policy terms. Legal action can't be taken until insurer agrees in writing that an insured has an obligation to pay.

-Policy terms can't be changed or waived except by written endorsement.

-Insurer has subrogation rights

-Insured may cancel policy at any time by returning policy or providing advance written notice of desired cancellation date.

-insurer must provide advanced written notice of cancellation or nonrenewalbe. Atleast 10 days notice must be given if policy is being cancelled for nonpayment of premium or if cancellation occurs during the first 60 days of policy term.

-20 days notice must be given in all other cases

-Once a policy has been in effect for 60 days or more, insurer can only cancel policy for these reasons

a. nonpayment of premium

b. material misrepresentation in obtaining the policy

c. regular operator of the veh. had license suspended

1.) Towing & Labor: pays up to $25 or $50 for towing & labor costs when a private passenger veh. is disabled. Provides coverage at the place of disablement

2.) Misc. Vehicles- motor homes, motorcycles, mopeds. These are veh. some companies will add to the PAP

3.) Extended Non-Owned Liability- provides a little broader coverage for driving a non-owned automobile.

4.) Name Non-Owner: used for persons who don't own an auto but wish to have their own protection while driving a non-owned veh.

5.) No fault insurance- insureds company pays for him for certain expenses up to a specific limit.

6.) Joint ownership Endorsement- the policy can be issued to 2 or more people who live in the same household .

7.) Customizing Equipment Endorsement- coverage is provided for these veh. such as pickup trucks or vans that have been customized or have a had a special eqiupment added.

4 types of commercial auto forms designed to cover the insured's business exposures.

1.) Business auto Coverage form

2.) Garage Coverage form

3.) Truckers Coverage form

4.) Motor Carrier Form

Business Auto Coverage (BAP)

Section 1: Coverage Auto Symbols

Covered auto designated by symbol.

Symbol 1: any auto

Symbol 2: owned autos only

Symbol 3: owned private passenger auto

Symbol 4: owned auto other than private passenger

Symbol 5: autos subjected to no-fault benefits

Symbol 6: autos subjected to compulsary uninsured motorist

Symbol 7: Specifically described autos

Symbol 8: Hired autos only

Symbol 9: Non-owned autos only

Symbol 19: Mobile equipment

Business Auto Coverage (BAP)

Section 1: Coverage Auto Symbols continued

Symbol 1: broadest coverage

Symbol 7: more narrow coverage. Insured has only 30 days to report newly acquired veh to maintain coverage

Symbol 8: designates liability and/or physical damage coverage only. only used for autos insured has leased, hired, rented, or borrowed. Doesn't include autos rented or borrowed from emloyees or members of household.

Symbol 9: non-owned autos can provide coverage as a result of an employee using their personal veh. on company business.

Business Auto Coverage (BAP)

Section 2: Liability Coverage

Business Auto Coverage (BAP)

Section 2: Liability Coverage

The following are considered "insureds" under BAP:

-named insured while owning or operating a coverd auto

-others, including employees, while using a covered auto w/ permission

-others who become liable for the conduct of an insured

-employees while moving property to or from a covered auto

Business Auto Coverage (BAP)

Section 2: Liability Coverage

The following are not covered under BAP:

-person working in an auto-type business

-persons other than an employee or lessee while moving property to or from a covered auto

-owner of a hired or borrowed auto

Business Auto Liability Exclusions

Ch 15 pg 4 full list  

-liability assumed under any contract or agreement

-employee injuries, liability, and responsibility under workers compensation

-damage to property owned or transported by or in the care, custody, or control of the insured

-liability resulting from the handling of property, before it is moved from the place where it is accepted

-liability from the movement of property by a mechanical device

BAP

Section III: Physical Damage

1.) Collision- overturn of coverd veh. or collision w/ another object

2.) Comprehensive- any loss, other than collision or overturn that is not otherwise excluded

3.) Specified cause of loss- similar to comprehensive but more limited. Includes fire, lightning, explosion, theft, windstrom, hail, earthquke, flood, vandalism, sinking, burning, collision, derailment

1.) Transportation Expenses- insurer will pay up to $20 per day and $600 max for temporary transportation. Insured must carry comprehnsive or specific cause of loss coverage. Must wait 48 hrs after a theft to recieve transportation

2.) Loss of use- for hired auto, insurer will pay expenses for which insured is legally responsible to pay for loss of use of veh.

1.) caused by or resulting from nuclear hazards, war, or military

2.) any covered auto used or being prepared for racing

3.) caused by or resulting in wear and tear, freezing, mechanical, electrical breakdowns etc.

4.) to tapes, records, disk, or other similar devices designed for use w/ audi, visual, or data eletronic equipment

5.) equpiment used for radar or laser detection

BAP

Section 4- Conditions

BAP

Section 5: Definitions

1.) Auto- land motor veh, trailer or semi-trailer designed for travel on public roads.

2.) Bodily injury- bodily injury , sickness, disease, including death.

3.) Covered pollution cost or expense- costs arising out of any order by a gov't authority demanding that insured test for, monitor, clean up, remove, contain, treat, detoxify, neutralize

1.) Diminution of value-actual or perceived loss in market or resale value that results from a direct, accidental loss

2.) Insured contract- contract indemnifies a railroad for BI or PD arising out of construction or demolition within 50 ft of railroad

3.) temporary worker- substitue for a permanent employee who is on leave or to meet seasonal or short term workloads

1.) Uninsured motorists- pays insured + occupants of insured veh against BI and PD in which they are legally entitled to recover resulting from an auto accident with:

-an uninsuerd motorist

-insureds carrying less than a financially responsible amount of coverage

-hit and run drivers

-insureds who's insuring company denies coverage

3.) Medical Payments and or PIP- payment for reasonable + necessary expenses for medical, chiropractic, hospital, dental, surgical, ambulance, prosthetic, and rehabilitation services, funerals.

**accident must have incurred within 3 yrs**

4.) Drive other car coverage- extends commerical auto coverage to insure the non-business exposures of a named individual who may not own an automobile and may not carry personal auto insurance.

5.) Individual named insured- used to add individual + family members to BAP.

6.) Employees as additional insureds- states any employee is insured while using an auto the business doesn't own, hire or borrow when the autos are used in the business or personal affairds of the insured.

7.) Additional insured-lessor endorsement- leased veh. can be considered owned veh. for coverage purposes.

8.) Specified Hired Auto- add coveraged for specific hired autos as if they were covered autos owned by the named insured.

9.) Mobile Equipment endorsement- mobile equpiment is considered a cover auto

Automobile type business including car dealerships, service stations, parking garages. these types of businesses have the property of customers in their care, custody, control, which is an exclusion under the business auto policy.

Separate garage keepers coverage must be added to cover damage to customers' veh.

Garage Policy

Section 1: Covered Autos

Symbol 21: any auto

Symbol 22: owned autos only

Symbol 23: owned private passenger auto

Symbol 24: owned auto other than private passenger

Symbol 25: autos subjected to no-fault benefits

Symbol 26: autos subjected to compulsary uninsured motorist

Symbol 27: Specifically described autos

Symbol 28: Hired autos only

Symbol 29: Non-owned autos only

Symbol 30: Autos left w/ the insured for service, repair, storage, & safekeeping

Symbol 31: dealer's autos & autos held for sale by nondealers or trailer dealers

Symbol 39: Mobile equipment

Garage Policy

Section 2: Liablity

garage liability is broader then BAP liability coverage b/c it includes premises/operations hazard and the products/completed operations hazard

Exclusions:

1.) any watercraft or aircraft, except watercraft while on the premises

2.) injuries that fall under workers' comp

3.) liabitlies for damage caused by pollution

4.) loss of use of property if it was caused by a delay or failure of the insured to fulfill the terms of a contract or agreement

5.) claims for product or work recall

6.) claims for product or work recall

7.) liability for real or personal property in the insured's care

Garage Policy

Section 3: Garage Keepers Legal Liability

Garage Policy

Section 3: Garage Keepers Legal Liability

Losses NOT covered

-theft by an insider (by the name insured, employees, or shareholders, employee dishonesty)

-contractual liablity

-products or work loss

-sound reproducing or receiving equpiment

-other losses such as war, rebellion, racing

Garage Policy

Section 4: Physical Damage

1.) PIP, medical payments- not standard in garage policy but can be added

2.) Driver other car coverage- cover the liability of an owner of the business and the family members when driving a non-owned veh.

3.) False pretense coverage- optional coverage, covers theft of a veh. when dealership voluntarily parts with the property b/c of a trick.

-liability coverage is same as BAP except there is an additiona to who is considered an insured.

-symbols 41-49, plus unique symbol applying to trailers

-trailer interchange coverage is legal liablity coverage for damage to trailers owned by others & the damage is caused by a covered peril under coll., comp, specificed cause of loss coverage.

-form offered by iso as alternative to truckers coverage form

-motor carrier: anyone who transports property by auto in a commerical enterprise

-symbols 61-71

-must file proof of pollution liabitliy insurance

-Financial responsibility:

Type 1- for hire transportation of nonhazardouse property in interstate or foreign commerece (must carry at least $750,000)

Type 2- for hire or private transportation of hazardous subtances (minimum of $5million)

Type 3- for hire and private transportation of oil listed as a hazardous substance or any hazardous waste or subtance not included in type 2 with a minimum limit of $1million