Chapter 7

Collision

Hitting an object other than a living animal and/or Roll Over (upset). Collision will also cover hit-and-run when insured is not carrying Part C

Cancellation/Non-Renewal

Named Insured can cancel at any time. Insurer must adhere to specific laws and the lienholder is required to receive the same notice. If insurer fails to mail cancellation to either party, that party is still covered

Types of Auto Policy

Owned Auto/Covered Auto, Non-Owned Auto, Newly Acquired

Part B: Limits

Pays regardless of fault/negligence, Within 3 years from date of the accident, and pays per person

Family Member

Person related to the named insured by blood marriage or adoption that lives in the same household including foster children, wards, and foreign exchange students under the age of 21.

Named Non Owner

Provides liability when you do not have a vehicle provided for regular use

Temporary Substitute

A vehicle that you are driving while your insured vehicle is being repaired or out of service

Loss Valuation

Actual Cash Value at the time of loss

Newly Acquired Auto

Adding a car to your existing policy with 14 days of broadest coverage listed on declarations page. If nothing listed 4 days of coverage with a $500 deductible

Proof of Financial Responsibility is Required...

After accident w/ BI. After accident w/ PD over $250. After an MVR conviction for DUI, DWI, or reckless driving

Liberalization Clause

Any chance/benefit in a policy that will benefit new policyholders at no extra cost, will automatically be applied to all current policyholders for no cost

Financial Responsibility Requirements

Insurance Min: 25/50/25

Right of Salvage

Insurer pays for the total loss and then retains possession of the property

Recovered Property

Named insured has received payment for the loss and the property is recovered: the named insured must notify the insurer that the property is recovered. The named insured has a choice to either return the payment or the recovered property to the company

Newly Acquired (2 types)

Newly Acquired Auto & Newly Acquired Replacement

Combined Single Limit

One set dollar amount that will pay out for both the property that you damage and bodily injuries caused to a 3rd party. The minimum limit is $75,000

Transportation Expense

Physical damage extension that is included at no extra charge when the insured has Collision and Other than Collision and suffers a Total Theft of car (have to wait for 48 hrs). Given for: Rental car, taxi, bus far. Limit: $20 per day/ $600 per occurrence.

Georgia Automobile Insurance Plan (AIP)

Plan provided liability insurance to those who are unable to get it through authorized insurance after insured has tried to get a policy with 2 insurers. All authorized insurers are required to participate and there is an equitable distribution assigned based on the proportion of market share. Not every state has one.

Out of State Coverage

Policy automatically provides coverage for states with higher or mandatory coverages when driving in that state

What Can Be Insured:

Private passenger vehicles (SUV's, Vans, Trucks/Farm Trucks, Small Motorhome). No more or less than 4 wheels. Must be under 10,000 pounds. The primary use for personal use.

Part D: Physical Damage

Provides 1st party Coverage for a vehicle minus a deductible. Two Types: Collision and Comprehensive (OSCAR). Issued w/o limit and usually comes with a deductible.

Rental Reimbursement Endorsement

Rental car up to the limits of coverage when a covered loss occurs. $30 per day/ $900 maximum

Part A Exclusions

You/Yours, Intentional Damages, Your employees injured on job, garage/valet, and vehicle used for livery

Defensive Driving Discount

for any age 10% discount if no traffic offenses or at-fault claims in the past 3 yrs AND 25 years or older and have completed an approved defensive drivers course OR younger than 25 and have completed an approved preparatory course

Part A: Liability

BI and PD where the insurer will pay on the insured's behalf when the insured is legally liable. (Minimum for BI= 25/50) (Minimum for PD= 25)

Abandonment

Named Insured has no right to abandon his property to the company

Good Student Discount

Under 25 with 10% premium discount. Person= unmarried, full-time student, B average grades

What Are Excluded from Insured?

Vehicles used for delivery/livery, Motorcycles, Golf Carts, Dump Trucks

Part D: Exclusions

Wear and tear, Company cars/Garage Keepers/ Livery, Electronic Equipment, personal Items

Occupying an Auto

Your Auto or someone else's where you're on top of the car, getting in or out of the car, getting on or off an auto

Newly Acquired Replacement

Replacing a car on the policy (trade in) with coverage until the end of the policy period or 14 days of broadest coverage or without policy for 4 days with a $500 deductible

Arbitration

A disputed claim is decided by a neutral third party chosen by disputing parties. Arbitrator makes the decision after a hearing where both parties provide evidence.

Uninsured Motorists Coverage Limits

BI Limit: 25/50. PD Limit: /25 with a minimum $250 deductible

Cancellation/Non-Renewal Law Time Frames (Insurer)

Cancellation of non-payment of premium with 10 days notice. Been w/ insurer for less than 60 days cancelled with a 10 days notice. 60 days or longer/non-renewal with a 30 day notice.

Part B: Medical Payments

Covers insured (you and yours), family members, insured pedestrian when struck by a car, and passengers while occupying your car. An optional Coverage

Converting Spilt Limits into Combined Single Limit

From "25/50/25", take "50/25" and add them together equaling 75

Compulsory Auto Insurance Law

GA requires car insurance and does not require an insurance card as proof of your insurance

Non-Owned Auto

private passenger vehicle not owned by you or a family member and not available for regular use but you are using with permission of the owner

Owned Auto/Covered Auto

private passenger vehicle owned/leased by individual, spouse, or co-signer (trailer is included in this)

GA Minimum Policy Period

6 Months

Part C: Uninsured Motorists Coverage

(UHID) Pays 1st party coverage when the 3rd party is at fault and (a.) has no insurance; (b.) Hit-and-run with a policy report; (c.) Insurer Insolvent; (d.) Insurer denies coverage.

Supplemental Payments

(insuring agreement) they pay above and beyond the liability limits like for court costs, bail bonds up to $250, loss of earnings for Named Insured with $200 per day

Part C: Underinsured Motorist Coverage

(part of underinsured) covers 1st party (you and yours) injuries and damages when the 3rd party is at fault but doesn't have enough coverage. 2 options: Add-On Option or Need a higher limit to benefit.

Unacceptable Reasons for Non-Renewal

(w/in two yrs or fewer than 36 months) 1. uninsured/underinsured claims. 2. towing/emergency road service claims. 3. Not at fault accidents/comprehensive claims.

Vehicle Situations

1. A mechanically defective vehicle. 2. Used in carrying passengers for hire or compensation (livery)

Driver Situations

1. Policy obtained through material misrepresentation. 2. Convicted or forfeited bail for any felony, DUI, DWI, reckless driving, vehicular homicide or three or more speeding violations w/in the last 36 Months (3 yrs)

Acceptable Reasons for Cancellation/Non-Renewal (2 ways)

Through driver situations and/or due to vehicle situations

You and Yours

names insured listed on declarations and/or name on the title of car