Ch. 6 Personal Auto Policy

Financial Responsibility

When the policy is certified as future proof of financial responsibility, the policy shall comply with the law to the extent required.

Part F - General Provisions Automatic termination

if insured fails to accept or pay for renewal or continuation of policy -coverage auto terminates if named insured secures other auto insurance on an auto shown on declarations

Joint Ownership Coverage Endorsement (PP 03 34)

mends the definition of "you" and "your" to refer to 2 or more individuals, other than husband and wife, who reside in the same household, or to non-resident relatives who jointly own the insured vehicle.

Other Insurance

other auto liability insurance is in place at the time of the loss, the personal auto policy will only pay its share of the loss. That share is the proportion the policy's limit bears to all insurance in place. - For example, if the policy provides $100,000 of property damage liability insurance and another policy also provides $100,000 of property damage liability insurance, the insured's policy will only pay ½ of the liability loss. Because the total insurance in place is $200,000 and the limit of liability provided by the insured's policy is $100,000, the insured's policy pays ½ of the total insurance in place. -This policy pays liability losses on an excess basis for non-owned vehicles. For example, the covered loss involves a car the insured borrowed from his neighbor. The insurance in place on the neighbor's car must pay first (it's primary insurance) and then this policy will pay (it's excess insurance).

A ____________vehicle is a covered vehicle when Your Covered Auto is being repaired due to a covered loss.

temporary substitute -A temporary substitute is also covered if the vehicle is out of normal use due to breakdown, servicing, loss, or destruction.

Combined Single Limit

- The limit of the policy may be applied to bodily injury (BI) and/or property damage (PD). A combined single limit policy has a maximum aggregate per accident, regardless of the type of loss (BI or PD).

Part F - General Provisions Termination

-The policy may be terminated by either the named insured or the insurance company. -cancellation, non renewal, automatic termination, other termination provisions

Transfer of Your Interest in This Policy

-the named insured may not transfer or assign his/her interest in the policy without the insurer's written consent. However, if the named insured dies, the resident spouse will automatically become the named insured. -f the named insured dies, his/her legal representative will automatically become the named insured but only with respect to legal responsibility for maintenance or use of any Your Covered Auto. This automatic coverage is provided until the end of the policy period.

Family Member

A person related to the named insured by blood, marriage, or adoption who is a resident of the named insured's household. A family member includes a ward or foster child.

Trailer

A vehicle designed to be pulled by a private passenger auto or a pickup or van. Trailer also includes a farm wagon or farm implement while it's being towed by a private passenger auto pickup, or van.

Part F - General Provisions Bankruptcy

Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy. If the insured declares bankruptcy, the insurer must still comply with all obligations of the policy.

Which of the following uses of a vehicle is not excluded under the Medical Payments coverage

Insured uses a truck for incidental purposes -Bodily injury sustained by an insured isn't covered if the insured is using a vehicle while engaged in business. However, a coverage giveback applies to private passenger autos, pickups, vans, and owned trailers used with such vehicles. This exclusion applies to the business use of trucks and other commercial vehicles.

Occupying

Means in, upon, getting in, getting on, getting out, or getting off a vehicle

The following types of vehicles are NOT included in the definition of "uninsured motor vehicle":

-vehicle that's owned by the named insured or a family member OR a vehicle that's furnished or available for the regular use of the named insured or a family member, such as a company car. -vehicle that is owned or operated by someone who is self-insured, unless the owner or operator is or becomes insolvent. - vehicle owned by any government agency. -vehicle that operates on rails or crawler treads, such as a train or piece of mobile equipment like a bulldozer. -vehicle designed mainly for use off public roads, such as a snowmobile or ATV. - vehicle permanently located for use as a residence, such as a motor home or trailer in a campground.

Exclusions (vehicles)

-vehicles with less than 4 wheels -vehicles made mainly for use off public roads -vehicles owned or furnished or available for regular use of: you or any family member -vehicles in racing facility

Under Part D, Within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage?

14 -If a vehicle covered by Part D coverages is replaced by a new car with the same coverage, the policy will automatically extend coverage for 14 days.

If an insurer non-renews an insured's policy for underwriting reasons, what is the minimum number of days' notice to the insured?

20

An uninsured motor vehicle is any of the following, except:

A company car -Besides a company car, a vehicle owned by the insured or a family member or a vehicle furnished or available for the regular use of the named insured or a family member is not considered an uninsured vehicle.

Which of the following is covered under Part C - Uninsured Motorist Coverage?

Accident was caused by a hit-and-run driver -A hit-and-run vehicle can't be identified and is therefore considered uninsured

The limit of liability is the most paid by the insurer regardless of all of the following, except:

Amount of surcharges to be applied to policy -The amount of surcharge to be applied to the policy is not linked to the limit of liability.

Newly Acquired Auto

Any vehicle acquired by the insured during the policy period. -private passenger auto -pickup or van (less than 10,000lbs & not used for delivery) -For all coverages EXCEPT Part D - Coverage for Damage to your Auto, coverage begins on the date the named insured becomes the owner. -If newly acquired auto is an additional vehicle, insured must report to insurer within 14 days. A replacement auto for another with all coverages except collision and comprehensive (other than collision) is covered for liability and medical payments for the remainder of the policy period, even if the insured does not report the replacement. Under Part D, Coverage for Damage to your Auto automatic coverage begins on the date the named insured becomes the legal owner of the vehicle.

Which of the following is not a duty of the insured if the insured's vehicle is damaged when it hit a tree?

Call the police -Calling the police is only a duty when seeking uninsured motorist coverage.

What is the purpose of the Extended Non-Owned Coverage for a Named Individual endorsement?

Covers non-owned vehicles furnished for the insured's regular use -This endorsement provides excess coverage over the primary coverage insuring the non-owned vehicle.

Your Covered Auto

If a vehicle meets any of the following four definitions, it is a "your covered auto.": -Any vehicle shown in the Declarations -A newly acquired auto -Any trailer that the insured owns -Any auto or "trailer" the named insured doesn't own while being used as a temporary substitute for any other vehicle described in this definition, which is out of the normal use because of: Breakdown Repair Servicing Loss Destruction -A temporary substitute is NOT a "your covered auto" under Part D - Coverage for Damage to your Auto.

Part F - General Provisions Right to Recover Payment

If the insurance company makes a claim payment, the person on behalf of whom payment was made must assign its rights to recover damages from another party to the insurance company. If a claimant recovers from another party after the insurer has made payment, that claimant must reimburse the insurance company.

Part C - Uninsured Motorists Coverage Arbitration

If the insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured, each party may select an arbitrator (at each party's expense) who then jointly select a third arbitrator (with the expense split equally by each party). A decision agreed upon by the arbitrators will be binding as to the insured's entitlement to, and the amount of, damages.

Part B - Medical Payments Coverage Other Insurance

If there is other applicable auto Medical Payments insurance, the insurer will pay only the proportion that its limit of liability bears to the total of all applicable limits. However, coverage for non-owned vehicles shall be excess over any other collectible auto insurance providing payment for medical or funeral expense.

Two or More Auto Policies

If two or more policies issued by the same insurer apply to the same accident, the maximum limit of liability that will be paid will not exceed the policy with the highest limit

Bodily Injury

Includes trade, profession, or occupation. The courts have determined that business activities have two components: they are continuous in nature and offer the opportunity for profit.

Business

Includes trade, profession, or occupation. The courts have determined that business activities have two components: they are continuous in nature and offer the opportunity for profit.

Part F - General Provisions Fraud

No coverage is provided for any insured who commits fraud, makes fraudulent statements, or engages in fraudulent activity with respect to a claim for any accident or loss.

PAP (Personal Auto Policy)

Part A: Liability Coverages Part B: Medical Payments Part C: Uninsured Motorist (UM) Part D: Coverage for Damage to Your Auto Part E: Duties After and Accident or Loss Part F: General Provisions plus selected endorsements

Each of the following is a Part A - Liability Coverage Supplementary payment, except:

Payment for all defense costs

Property Damage

Physical injury to, destruction of, or loss of use of tangible property

Private Passenger Auto -

Shall be deemed to be owned by a person if the auto is owned or leased under contract for a continuous period of at least 6 months.

After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except:

Submission of four or more claims during a single policy period -Claims history is generally a valid reason for non-renewing a policy, not cancelling the policy mid-policy term.

Part A - Liability Coverage (Insuring Agreement)

The Insurer will: -Pay damages for bodily injury or property damage for which any insured becomes legally responsible. -Settle or defend any claim or suit asking for such damages. -Pay all defense costs it incurs, in addition to the liability limits. The insurer's duty to settle or defend ends when the limit of liability is exhausted. The insurer will not defend or settle any suit or claim that is not covered under this policy. The policy defines insured in Part A as: The named insured or any family member for the ownership, maintenance, or use of any auto. Any person using the covered auto with permission. A person or organization, for "your covered auto," if legally responsible for an insured.

Part B - Medical Payments Coverage Limit of Liability

The limit of liability shown in the Declarations is the maximum the insurer will pay for each person injured in any one accident. This is the most the policy will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the Declarations, or vehicles involved in the accident. If the loss is covered under more than one Part of the policy, payment will not be duplicated.

Limit of Liability

The maximum limit paid under Part A - Liability Coverage is shown on the policy's Declarations. That limit applies per accident for all bodily injury and property damage arising from that one accident, including damages for care, loss of services, and a death. The limit shown in the Declarations is the most the insurer will pay in any one accident, regardless of the number of: Insureds, Claims made, Vehicles or premiums shown in the Declarations, Vehicles involved in the accident If the loss is covered under more than one part of the policy, payment will not be duplicated. Personal auto policies may have liability limits written as: split limit & combined split limit

Out of State Coverage

When a "your covered auto" is being driven outside the state in which it is principally garaged (and also within the coverage territory), Part A - Liability Coverage extends to provide coverage as required by the financial responsibility or compulsory insurance laws of that state or Canadian province. For example, if the insured's policy doesn't provide Personal Injury Protection (PIP) coverage and the state in which the vehicle is being driven requires it, the insured's personal auto policy will provide PIP coverage at required limits while the insured is in that state.

Optional Limits Transportation Expenses Coverage

used when the insured wishes to increase the limits of liability for transportation expenses that are provided in the personal auto policy ($20 per day, $600 maximum). The vehicle is described on the schedule along with the increased daily limit and the increased maximum limit. The endorsement does NOT change or broaden the insurance that is provided for Transportation Expenses in Part D - Coverage for Damage to your Auto.

Part F - General Provisions Changes

No changes may be made unless they are contained in a written endorsement issued by the insurance company. The insurer may also adjust the policy premium if changes occur that affect information that determines premium rates, such as number or type of vehicles insured, drivers of insured vehicles, the overnight locations of vehicles, and insurance coverages, deductibles, and limits of liability If the insurer makes a change that broadens coverage under the current edition of the insured's policy, and the change doesn't generate a premium charge, the change automatically applies to the insured's policy.

Part F - General Provisions Legal Action Against the Insurer

No legal action may be taken against the insurance company by anyone unless he/she has complied fully with the policy. In addition, no one may sue the insurance company until it agrees in writing that the insured has a legal obligation to pay for damages.

Limited Mexico Coverage

provides coverage on an excess basis and only for losses and accidents that occur in Mexico and within 25 miles of the U.S. border. In addition, coverage only applies if the insured's visit to Mexico is of 10 or fewer days duration.

Named Non-owner Coverage for a Named Individual

provides liability, medical payments, and uninsured motorists coverage for individuals who do not own vehicles, but often borrow or rent autos. The endorsement is also designed for individuals who need to prove financial responsibility. -overs only the person named in the endorsement; a spouse and family members may be included if that option is selected on the endorsement. The endorsement provides only Liability, Medical Payments, and Uninsured Motorists Coverages.

Towing and Labor Costs Coverage Endorsement (PP 03 03)

provides payment, at the designated amount, for towing to a garage or for labor performed at the site of disablement. The coverage applies per occurrence and to either a Your Covered Auto or the insured's use of a non-owned auto.

Comprehensive covers all of the following losses, except:

rollover -Rollover and hitting another vehicle or object are covered by collision coverage.

Other Than Collision (OTC, Comprehensive)

-provides coverage on open perils basis, includes: missiles, falling objects, fire, theft/larceny, explosion/earthquake, windstorm, hail/water/flood, VMM, riot, contact with animal, breakage of glass

Part F - General Provisions Non-renewal

-the insurer must give the insured written notice before the end of the policy period. At least 20 days advance written notice must be provided (some states require 30, 45 or 60 days notice). In most cases, state law requires the insurer to list the reason for non-renewal on the notice. State law prevails.

A Medical Payments claim will be paid by the insurer within how many months from the date of the occurrence?

36 -A Medical Payments claim will be paid within 3 years for reasonable expenses for medical and funeral expenses regardless of fault.

A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration?

6 -A lease for less than 6 months is not considered a private passenger auto eligible for coverage under the Personal Auto Policy.

Part A - Liability Coverage Supplementary Payments

In addition to the limit of liability, the insurer also makes other payments: -If a bail bond is required because of an accident, the policy will pay up to $250 for the cost of the bail bond so long as the accident resulted in a covered bodily injury or property damage claim. -If defending a suit, the insurer will pay premiums on appeal bonds and bonds to release attachments. -Any interest that accumulates after a judgment has been entered will also be paid by the insurer if it defends a suit. -The policy pays up to $200 a day for loss of earnings because the insurer requests attendance at hearings or trials. This does not include loss of other earnings. -The policy will also pay for reasonable expenses incurred at the insurer's request. This does NOT include traffic fines.

Part A - Liability Coverage Part A Exclusions

Liability coverage is not provided for any insured who: -Intentionally causes bodily injury or property damage. -property damage to property he or she owns or is transporting. -responsible for causing bodily injury to an employee (of that insured) during the course of employment by that insured. -causes property damage to property rented to, used by, or in the care of that insured. An exception exists for damage to a residence or private garage -Owns or is operating a vehicle while it's being used as public or livery conveyance (meaning it has been hired out to the general public). A vehicle used in a share-the-expense car pool is not considered a public or livery conveyance. -Is employed or engaged in the business of selling, repairing, servicing, storing, road testing or parking motor vehicles. An exception exists if the vehicle is being used by an insured, a family member, or a partner or employee of these. For example, Mary's son is a mechanic. If he's test-driving Mary's car and crashes it, the exception to the exclusion applies - meaning he has coverage. However, if his co-worker crashes Mary's car, the exception doesn't apply because the co-worker is not related to Mary, nor is he her partner or employee. Is using a vehicle while employed or engaging in business. However, a coverage giveback applies to private passenger autos, pickups, vans, and owned trailers used with such vehicles. Is using a vehicle without the reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a "your covered auto" under this coverage.

Part A - Liability Coverage Part A Exclusions (continued)

Liability coverage is not provided for the ownership, maintenance, or use of: Vehicles that have fewer than four wheels, such as motorcycles Vehicles designed mainly for use off public roads, such as snowmobiles or ATVs. An exception applies for off-road vehicles used by an insured in a medical emergency, "trailers," or non-owned golf carts Vehicles owned by the insured that are not insured on this policy OR not owned by the insured but are furnished to the insured or available for the insured's regular use, such as a company car Vehicles owned by a family member that aren't insured by this policy OR not owned but are furnished to a family member or available for the family member's regular use, such as a company car Vehicles located inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest

The insurer's limit of liability for a vehicle damaged by a loss under Part D is which of the following?

The lesser of actual cash value and replacement value -The insurer's limit of liability for loss is the lesser of the actual cash value (ACV) of the vehicle and the amount necessary to repair or replace the vehicle with another of like kind and quality.

You and Your

The named insured listed in the declarations, and the spouse if a resident of the same household. The named insured should always be the person or persons to whom the vehicle is titled and registered, unless it's a leased vehicle.

Part B - Exclusions

bodily injury sustained by an insured is NOT covered under the following circumstances when an insured: Is occupying a vehicle with fewer than 4 wheels. Is occupying a vehicle being used as a public or livery conveyance. A share-the-expense car pool is NOT public or livery conveyance. Is occupying any vehicle that is located for use as a residence or premises - for example living in one's car or a permanently located motor home or trailer used as a residence. Sustains bodily injury in the course of employment and workers' compensation benefits are either required or available. Is occupying or struck by a vehicle owned by the insured that is not a "your covered auto" and is either owned by the insured OR furnished to the insured or available for the insured's regular use, such as a company car. Is occupying or struck by a vehicle owned by a family member that is not a "your covered auto" and is either owned by a family member OR furnished to a family member or available for the family member's regular use, such as a company car. Is using a vehicle without having a reasonable belief that he/she is entitled to drive the car. Is using a vehicle while engaged in business; however, a coverage giveback applies to private passenger autos, pickups, vans, and owned trailers used with such vehicles. This exclusion applies to the business use of trucks and other commercial vehicles. Injuries sustained because of, or as a result of, any type of war or nuclear hazard or action. Injuries sustained when occupying a vehicle located inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest.

Miscellaneous Type Vehicle Endorsement (PP 03 23)

changes the policy by adding a definition for "miscellaneous type vehicle," which means a motor home, motorcycle, or other similar type vehicle, ATV, dune buggy, or golf cart. In addition, to the definitions section of the policy, the endorsement amends "your covered auto" and "newly acquired auto" to include any "miscellaneous type vehicle" shown on the endorsement. The definition does not include snowmobiles. - Various exclusions under Parts A, B, and D are also amended to remove exclusions for damage to, and injuries arising out of, vehicles having fewer than 4 wheels and vehicles designed mainly for off-road use. The endorsement excludes coverage for any non-owned vehicles, other than a temporary substitute vehicle.

Collision

the upset of the covered vehicle or non-owned auto, or its impact with another vehicle or object, such as a tree. -Collision is the single named peril in the policy

Excess Electronic Equipment Coverage

- provides coverage for electronic equipment that is permanently installed in the vehicle in a location not used by the auto manufacturer - Coverage increases the policy limit from $1,000 to the amount shown on the endorsement. It Includes $200 of coverage for tapes, records, discs, and other media used with covered excess electronic equipment.

The policy defines non-owned auto as:

-Any private passenger auto, pickup, van, or trailer not owned by, furnished, or available for the regular use of the named insured or a family member, while being used by the named insured or a family member. -Any auto or trailer being used as a temporary substitute for the covered auto, while the covered auto is out of normal use due to: breakdown, repair, servicing, loss, destruction

Part D - Coverage for Damage to Your Auto No Benefit to Bailee

-If a bailment relationship exists with respect to the covered vehicle, the policy will not make payment for the benefit of anyone who had care, custody, or control of the covered auto. -For example, if the insured's vehicle was in the repair shop for servicing and the mechanic damaged the vehicle, this policy wouldn't make payment; the repair shop's insurance would have to pay because of its legal liability as a bailee.

Part C - Uninsured Motorists Coverage Other Insurance

-If more than one policy is in place and provides UM, the total amount the insured may collect cannot exceed the highest limit applying to any one vehicle. For example, if the insured's limits are 100/300 and the limits on the other policy are 50/100, the most the insured may collect is 100/300. -If the loss occurs while the insured is occupying a non-owned vehicle, the policy covering the non-owned vehicle is primary, and the insured's coverage is excess -If more than one policy applies, the insurer pays only its share of the loss, which is the proportion that its limit of liability bears to the total amount of all applicable coverage.

Part D - Coverage for Damage to Your Auto Other Sources of Recovery

-If other insurance is in place, or if another party is available to make payment for a covered loss, this policy only pays its proportionate share of the loss (as we've seen in the other coverage parts). -If a loss occurs and the covered auto is a non-owned auto, this policy will pay on an excess basis. Primary coverage is considered insurance provided by the vehicle's owner, any other property coverage that may be in place, and any other source of recovery, such as the insurance purchased by the driver of the vehicle.

Part D - Coverage for Damage to Your Auto Appraisal

-If the insured and the insurance company are unable to agree about the amount of a loss, either party may demand an appraisal. Each party selects, and pays for, its own appraiser. -he appraisers prepare separate appraisals of the actual cash value and amount of loss. If they fail to agree, they select an umpire to whom they submit their differences. -If any two of the three parties agree, that decision is binding. The insured and insurer share the expenses of the umpire and appraisal.

Part D - Coverage for Damage to Your Auto Limit of Liability

-The insurer's limit of liability for loss is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality. -In the event of a total loss, adjustments will be made for depreciation and physical condition when determining the ACV. -If a repair or replacement results in better than like kind or quality, the insurer will not pay for the amount of the betterment. -There is a maximum limit of $1,500 for a non-owned trailer and $1,000 for certain electronic equipment.

Part D - Coverage for Damage to Your Auto Payment of Loss

-When paying for losses covered under Part D, the insurer may make payment in cash or by repairing or replacing the stolen or damaged property - If making payment in the form of cash, the insurer will include any sales tax that applies to the stolen or damaged property. -f stolen property is recovered, the insurer has the option of keeping the stolen property (at agreed or appraised value) or returning it to the named insured. If the insurer returns the stolen property, it must pay for any damage that resulted from the theft.

Split Limit

-he amounts of coverage for bodily injury and property damage are separate. Split limits are expressed using 3 separate limits: a bodily injury (BI) limit per person, a bodily injury (BI) limit per accident, and a separate limit for property damage (PD) per accident. -If Part A of a policy is written with limits of 100/300/50, the policy will provide coverage of $100,000 per person for BI with a maximum BI aggregate limit of $300,000 per accident. Additionally the policy will provide a $50,000 limit for PD per accident. Ex: An insured causes a car accident that leaves the driver of the other car and 2 passengers suffering injuries of $30,000 each and $15,000 in damage to the other vehicle. The insured's policy has limits of 25/50/10. Based on the limits of liability, the policy will pay $25,000 BI per person (maximum $50,000 per accident) and will only pay $10,000 in PD.

Part C Exclusions Coverage is NOT provided when any insured sustains bodily injury under the following circumstances:

-insured or family member is injured when occupying, or struck by, a vehicle owned by the named insured or a family member and the vehicle is not insured by this policy. An insured or a legal representative settles an Uninsured Motorists Bodily Injury Liability claim and that settlement impairs the insurance company's ability to recover payments made to any insured. An insured is occupying a "your covered auto" while it is being used as a public or livery conveyance. An insured is using a vehicle without a reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a "your covered auto" under this coverage. While insured by workers' compensation or disability insurance. No payment will be made under this coverage for injuries that might benefit any insurer, or self-insurer, under any workers' compensation or disability benefits law. This means that if workers' compensation or disability insurance is in place, that coverage must pay before this coverage applies. If the insured is legally responsible for punitive or exemplary damages, this coverage does not apply.

Underinsured Motorists Coverage (UIM)

-may be required by state statutes as part of the Uninsured Motorists Coverage - Underinsured Motorists Coverage (UIM) protects the insured against drivers who do have auto liability insurance, but whose coverage limits are inadequate or insufficient to respond to claims. The coverage pays only up to the amount that exceeds the limit of liability of the at-fault party.

Part F - General Provisions Cancellation

-named insured can cancel for any reason eith by returning it to insurer or giving insurer advance written notice of date cancellation is to go into effect -during first 60 days of new policy, insurer can cancel policy by mailing notice to named insured. Notice of at least 10 days is required due to non payment & at least 20 days for all other reasons for cancellation -after 60 days of policy in effect insurer can cancel due to non payment, policy obtained thru fraud, suspension of id of named insured

Part D - Coverage for Damage to Your Auto Insuring Agreement

-pays for direct and accidental damage, regardless of fault, subject to the policy's exclusions - and those contained in this coverage part. Covered vehicles are Your Covered Auto and non-owned autos. Part D of the policy is the only section that defines non-owned auto.

Part F - General Provisions Policy Period and Territory

-policy only provides coverage for accidents and losses that occur during the policy period and within the policy territory. The policy territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, and while being transported between their ports. Mexico is NOT in the policy territory.

Part F - General Provisions Other termination provisions

-proof of mailing any notice constitutes sufficient proof of notice -If the policy is cancelled, the insured may be entitled to a premium refund. If so, the insurer will send the refund -The effective date of cancellation stated in the notice will become the end of the policy period

Selected Endorsements Extended Non-Owned Coverage for a Named Individual (PP 03 06)

-provides coverage by removing or altering some of the Personal Auto Policy's exclusions or limitations. It also covers non-owned autos furnished or available for the insured's regular use. -provides excess liability coverage, for the individual named on the endorsement and for the business use of a commercial type vehicle that the named insured does not own. It can be used to provide excess liability coverage for the use of a vehicle as a public or livery conveyance. -An extra premium charge applies for liability and medical payments purchased by this endorsement.

Part C - Uninsured Motorists Coverage (UM) Insuring Agreement

-provides insurance to insured persons injured in accidents that are caused by another party. The other party must be legally responsible for bodily injury to an insured that arises out of the ownership, maintenance, or use of an "uninsured motor vehicle." If the other party is NOT legally responsible (or not at-fault), this coverage doesn't apply. -insurer will pay damages that an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury. Unless the policy specifically states that Uninsured Motorist Physical Damage (UMPD) is also provided, this section of the policy only applies to bodily injury damages.

Part C - Uninsured Motorists Coverage Limit of Liability

-shown in the Declarations is the maximum the insurer will pay in any one accident. -the most the insurer will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the Declarations, or vehicles involved in the accident -If the loss is covered under more than one Part of the policy, payment will not be duplicated.

Insuring Agreement

-the insurer will pay reasonable expenses incurred for necessary medical and funeral services caused by an accident, sustained by an insured, and incurred within 3 years of the accident -Unlike Liability Coverage, Medical Payments Coverage does NOT require an insured to be legally responsible for causing injuries. The policy defines insured in Part B, as: the named insured or any family member occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads OR any other person (passenger) while occupying insured auto

Part D - Coverage for Damage to Your Auto Transportation Expenses

-the insurer will pay, without application of a deductible, a maximum of $20 per day, up to $600, for transportation expenses incurred because of a collision or comprehensive loss -If the damaged auto is a non-owned auto, coverage only applies if the insured is legally responsible for the loss. -If the loss is caused by a total theft of the covered auto or a non-owned auto, the insurer will only pay expenses incurred during the period beginning 48 hours after the theft, and ending when the auto is returned to use or the insurer pays for the loss. -If the loss is caused by a peril other than theft of the auto, the insurer will only pay expenses beginning when the auto is withdrawn from use for more than 24 hours.