P&C - Personal Auto
Newly Acquired Vehicle
A vehicle for which the insured becomes the owner during the policy period and may be a replacement or additional vehicle
Out of State Coverage Part A - liability coverages
when a "your covered auto" is being driven out of state, coverage is extended to ensure coverage as required by the financial responsibility or compulsory insurance laws of that sate or Canada province (i.e. requires a PIP)
Which of the following is not a duty of the insured if the insured's vehicle is damaged when it hit a tree? A Call the police B Promptly notify the insurance company C Submit a proof of loss D Submit to a physical exam
A Call the Police
Newly Acquired Auto: Any of the following types of vehicles for which the insured becomes the owner during the policy period:
- A private passenger auto -A pickup or van, for which no other insurance policy provides coverage, if the auto: A) Has a gross vehicle weight of 10,000 pounds or less. B) Is not used for delivery or transportation of goods and materials, unless such use is incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment, - For all coverages EXCEPT Part D - A) Coverage for Damage to your Auto, coverage begins on the date the named insured becomes the owner. B) If newly acquired auto is an additional vehicle, the insured must report to the insurer within 14 days. C) 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. A) The insured must report the newly acquired auto to the insurer for coverage to continue. If the insured doesn't report as required, coverage ends after either 4 or 14 days. B) If the Declarations page indicates that either Collision or Other than Collision coverage applies to at least one vehicle, the insured has 14 days to report for either coverage to apply. Automatic coverage ends after 14 days if the insured doesn't report. C) If the Declarations page indicates that NO Collision or Other than Collision coverage applies to at least one vehicle, the insured has 4 days to report for coverage to apply. Automatic coverage ends after 4 days if the insured doesn't report.
Insuring Agreement (continued) 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: a) Breakdown b) Repair c) Servicing d) Loss e) Destruction
Part A Exclusions Liability coverage is not provided for any insured who: Intentionally causes bodily injury or property damage.
- Causes property damage to property he or she owns or is transporting. - 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—this is the care, custody, or control exclusion. - Is responsible for causing bodily injury to an employee (of that insured) during the course of employment by that insured. - 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 B - Exclusions Although legal liability on the part of an insured is not required for Medical Payments Coverage to apply, 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
Other Termination Provisions
- Proof of mailing of 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
Part E Cancellation
- The named insured may cancel the policy for any reason by either returning it to the insurer or giving the insurer advance written notice of the date the cancellation is to take effect - During the first 60 days of a new policy, an insurer may cancel the policy for any reason by mailing notice to the named insured shown on the Declarations. Notice of at least 10 days is required for cancellation due to non-payment of premium, and at least 20 days advance written notice for all other reasons. - After the policy has been in effect for 60 days, the insurer may cancel only for the following reasons: Non-payment of premium - The policy was obtained through fraud or material misrepresentation, meaning the application contained false information and, had the insurer been provided with accurate information, would not have issued the policy - Suspension or revocation of the driver's license of the named insured, any driver who is a household resident of the named insured, any driver who regularly uses a Your Covered Auto State law will supersede this provision
Part C (UM) Insuring Agreement (continued) In addition to the definition of "insured" that applies to the entire policy, the definition of "insured" for UM means:
- The named insured or any family member - Any person occupying a "your covered auto" - Any person who is entitled to recover damages because of bodily injury sustained by an insured and covered by the policy. For example, if Sue sustains bodily injury in an accident caused by an uninsured motorist, her children will be entitled to recover damages for loss of care when Sue is unable to care for them because she broke both her legs in the accident.
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
Trailer
A vehicle designed to be pulled by a private passenger auto, pickup, or van
Medical payments claim will be paid by the insurer within ___ months of the date of the occurence
36 months
Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy? A Coverage includes injuries suffered by someone using a covered vehicle without permission B Coverage does not apply to any vehicle being used to carry property or persons for a fee C Coverage does not apply to a vehicle used primarily for use off public roads D Covered persons include the named insured, family members and any other person occupying the covered auto
A Coverage includes injuries suffered by someone using a covered vehicle without permission
Which of the following claims would be covered by Collision Coverage under Part D of the Personal Auto Policy? A Damage to the insured auto's bumper when the auto crashed into a tree B Damage to the auto caused by objects blown into it during a severe windstorm or tornado C Breakage of the windshield caused by collision with a stone or other missile D Damage to the auto caused by collision with an animal on the roadway
A Damage to the insured auto's bumper when the auto crashed into a tree
The Personal Auto Policy applies: A Only in the U.S., its territories, Canada, and Puerto Rico B Anywhere in the world C Only in the U.S., its territories, Canada, Puerto Rico, and Mexico D Only in the U.S. and its territories
A Only in the U.S., its territories, Canada, and Puerto Rico
Policyholder J's PAP includes Other Than Collision coverage, but no Collision coverage, with a $200 deductible. After her parked car rolls downhill and hits a tree incurring $500 in damage to the car, $150 of which is from glass breakage, how much will her insurance company pay? A Zero B $350 C $150 D $500
A Zero
Comprehensive covers all of the following losses, except: A Rollover B Falling objects C Theft D Contact with a deer
A Rollover
The Personal Auto Policy's definition of family member includes: A A person related to the named insured who is a resident of a household (including a foster child) B A member of the named insured's immediate family, regardless of place of residence C Persons related to the Named Insured who have frequent use of the insured automobile D Any person using the insured automobile with the named insured's permission
A a person related to the named insured who is a resident of a household (including foster child)
Part C Insuring Agreement (continued) The following types of vehicles are NOT included in the definition of uninsured motor vehicle :
A 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. A vehicle that is owned or operated by someone who is self-insured, unless the owner or operator is or becomes insolvent. - A vehicle owned by any government agency. - A vehicle that operates on rails or crawler treads, such as a train or piece of mobile equipment like a bulldozer. - A vehicle designed mainly for use off public roads, such as a snowmobile or ATV. - A vehicle permanently located for use as a residence, such as a motor home or trailer in a campground.
All of the following are true about a newly acquired additional vehicle, except: A It can be used to transport goods for hire if receipts are less than $10,000 B It must be reported to the insurer within 14 days of purchase C Coverage is as broad as the broadest coverage on any vehicle under the policy D It may be used on a farm
A) It can be used to transport goods for hire - can't use to transport goods and materials (unless use is incidental to the insured's business of installing, maintaining or repairing furnishings or equipment
All of the following are true of automobile physical damage Coverage D, except: A It covers damage to the insured auto and to another auto with which it collided B Damage to the insured auto that is caused by colliding with a deer would be covered under Other Than Collision coverage C It covers damage to the insured auto regardless of liability D Collision coverage usually is written with a deductible
A) it covers damage to the insured auto and to another auto with which it collided
An uninsured motor vehicle is any of the following, except: A A vehicle with liability limits less than the state requirement B A company car C A vehicle that does not have insurance D A vehicle insured by an insolvent insurance company
B A company car
Which of the following vehicles is not considered an uninsured vehicle? A A vehicle insured for less than the state's minimum required coverage B A vehicle owned by the government C A vehicle whose coverage is denied by its insurer D A vehicle that disappears after it hits and runs
B A vehicle owned by the government
All of the following are true of automobile liability coverage, except: A It provides third party protection B It pays up to $500/day for loss of income by the insured C It may be written with either split or single limits D It protects the insured for losses when the insured is legally liable
B It pays up to $500/day for loss of income by the insured
Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy? A It provides coverage for labor costs incurred after being towed to a repair shop B It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement C It provides coverage for towing a covered auto involved in a collision D It provides coverage for towing charges incurred when towing a disabled vehicle to the insured's home
B It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement
A ____________vehicle is a covered vehicle when Your Covered Auto is being repaired due to a covered loss.
Temporary Substitute
Part C - UM - Exclusions Coverage is NOT provided when any insured sustains bodily injury under the following circumstances:
An 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.
Temporary substitute
Any auto or trailer that is non-owned while being used in place of an insured vehicle which not available because of breakdown, repair, servicing, loss, or destruction
Declared auto
Any vehicle shown in the Declarations
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:BreakdownRepairServicingLossDestruction A temporary substitute is NOT a "your covered auto" under Part D - Coverage for Damage to your Auto.
A bird hits and breaks a windshield of an insured vehicle. This is covered under which of the following coverages of the PAP? A Supplementary payments B Other than collision C Collision D Liability
B Other than collision
An insured accidentally backs into the neighbor's son on his skateboard. The son has medical expenses and there is damage to the skateboard. Which sections of the insured's policy will pay? A Medical payments and collision B Personal injury and property damage C Bodily injury and collision D Bodily injury and property damage
B Personal injury and property damage
Which statement is NOT correct about the Right to Recover Payment under the PAP? A The insured must reimburse the insurance company if the insured is paid by the other party B The Right to Recover is an insured's right C The person who is paid a claim must give the insurance company the right to recover damages D The right to recover involves going after the negligent party to pay for the insured's loss
B The Right to Recover is an insured's right
Which statement is not correct about the Right to Recover Payment under the PAP? A The insured must reimburse the insurance company if the insured is paid by the other party B The Right to Recover is an insured's right C The person who is paid a claim must give the insurance company the right to recover damages D The right to recover involves going after the negligent party to pay for the insured's loss
B The Right to Recover is an insured's right It's the insurer's right
To whom must the insured assign recovery rights after being paid by the insurance company for a collision loss caused by another party? A The insured must assign rights to the negligent party's insurer to pay the insured's company for the damage B The insured must assign the rights to the insurance company to recover from the negligent party or insurer C The insured does not have to assign her rights to anyone as she has been paid for the loss D The insured must assign rights to the negligent party to pay the insurance company
B The insured must assign the rights to the insurance company to recover from the negligent party or insurer
Which of the following claims would be insured under Uninsured Motorists Coverage? A The insured was driving his uninsured car at the time of the accident B The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver C A thief stole the insured's car and was paralyzed after being struck by a drunk driver D An insured is sued and the other party is awarded an injury settlement and punitive damages
B The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver
Under the PAP, a temporary substitute would be covered if used: A To pick up a new refrigerator that will not fit in the family car B While an insured auto needs servicing C Because the insured's auto is an automatic, and their daughter wants to learn to drive manual D To test drive new models
B While an insured auto needs servicing
Which of the following vehicles is not considered an uninsured vehicle? A A vehicle whose coverage is denied by its insurer B A vehicle owned by the government C A vehicle that disappears after it hits and runs D A vehicle insured for less than the state's minimum required coverage
B A vehicle owned by the government
Which of these statements is not true about Uninsured Motorist coverage? A A driver is considered uninsured when his/her insurer denies a claim B Coverage is automatically provided for the damage to the insured vehicle C A hit-and-run driver is considered uninsured D Bodily injury must be caused by another person who is legally responsible
B Coverage is automatically provided for the damage to the insured vehicle
Under the PAP, which of the following is not considered occupying an automobile? A Getting out of the car B Standing by the car exchanging insurance information C Slamming fingers in a closing door D Jumping off the hood
B) Standing by the car exchanging insurance information
Three parts of a split limit #/#/#
Bodily Injury (BI) limit per person / BI limit per accident / Property Damage (PD) limit per accident ex: 100/300/50 $100,0000 per person for BI covered with maximum BI aggregate limit of $300,000 per accident $50,000 for limit for property damage per accident
Which of the following is not eligible for a Personal Auto Policy? A A trailer being used as a farm wagon B A 9-passenger station wagon C A private passenger auto used as a taxicab D A van that is used to haul gardening supplies for personal use
C A private passenger auto used as a taxicab
All of the following are excluded under Part A of the Personal Auto Policy, except: A Damage caused by a vehicle designed mainly for off road use B Intentional damage caused by the insured C A vehicle driven by an unlicensed driver D Use of a non-owned vehicle without permission
C A vehicle driven by an unlicensed driver
Which of the following uses of a vehicle is not excluded under the Medical Payments coverage? A An insured rides a motorcycle B A neighbor uses the insured's car without permission C Insured uses a truck for incidental purposes D An insured drives a company car
C Insured uses a truck for incidental purposes
Which statement is false regarding the Personal Auto Policy? A Collision coverage will cover damage to the insured vehicle regardless of liability B Uninsured Motorist Coverage is provided by Part C C Theft is covered under property damage liability D The PAP provides medical payments for up to 3 years
C Theft isn't covered
The Extended Non-Owned Coverage endorsement to the Personal Auto Policy should be added by an insured who is: A Traveling to Mexico and will be renting a car there B Towing a rented snowmobile C Being furnished a company car D Renting a motorcycle
C Being furnished a company car
If an insurer non-renews an insured's policy for underwriting reasons, what is the minimum number of days' notice to the insured? A 45 B 30 C 20 D 60
C) 20
Which of these statements is not true about Uninsured Motorist coverage? A A driver is considered uninsured when his/her insurer denies a claim B A hit-and-run driver is considered uninsured C Coverage is automatically provided for the damage to the insured vehicle D Bodily injury must be caused by another person who is legally responsible
C) Coverage is automatically provided for the damage to the insured vehicle UIM insurance provides coverage for bodily injury only.
Which of the following damages would be covered under the Liability Coverage of the Personal Auto policy? A Damage to a neighbor's riding lawn mower in the care of the insured B Damage to property being transported by the insured C Damage caused to a rented garage by the insured auto D Damage to a rental car rented to the insured
C) Damage caused to a rented garage by the insured auto liability coverage is not provided for any insured who: - causes property damage to property he or she owns or is transporting - causes damage to property rented to, used by or in the care of insured
Which of the following is covered under Part C - Uninsured Motorist Coverage? A A family member is struck by an insured vehicle B The insured is also covered by Workers' Compensation C Punitive damages awarded for the insured D Accident was caused by a hit-and-run driver
D Accident was caused by a hit-and-run driver
What is the purpose of the Extended Non-Owned Coverage for a Named Individual endorsement? A Covers an individual who does not own a car B Coverage is extended 25 miles into Mexico C Extends coverage for a leased vehicle D Covers non-owned vehicles furnished for the insured's regular use
D Covers non-owned vehicles furnished for the insured's regular use
Part D - Insuring Agreement - Collision - Other Than Collision
Collision - The upset of the covered vehicle or a non-owned auto, or its impact with another vehicle or object, such as a tree. Collision is the single named peril in the policy. OTC: - Provides coverage on an open perils basis, which means all causes of loss other than a collision loss and (are?) not excluded in the policy. OTC, or Comprehensive, includes but is not limited to the following causes of loss: Missiles or falling objects Fire Theft or larceny Explosion or earthquake Windstorm Hail, water, or flood, including a flash flood Malicious mischief or vandalism Riot or civil commotion Contact with a bird or animal Breakage of glass (If caused by an accident, this loss may be applied to collision coverage instead, in order to avoid a double deductible.)
After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except: A Non-payment of premium B Suspension of the driver's license of the named insured's or household resident C Material misrepresentation of information on the application by the insured D Submission of four or more claims during a single policy period
D Submission of four or more claims during a single policy period
The insurer's limit of liability for a vehicle damaged by a loss under Part D is which of the following? A Actual cash value B The greater of actual cash value and replacement value C Replacement value D The lesser of actual cash value and replacement value
D The lesser of actual cash value and replacement value
Part D - Coverage for Damage to Your Auto
Coverage Part D of the personal auto policy addresses coverage for damage to the insured's auto, also known as physical damage coverage. Part D provides first-party property damage coverage for the insured's covered autos and also provides some coverage for non-owned vehicles being operated or used by the insured and family members.
Part B
Covers reasonable medical and funeral services, regardless of liability, incurred within 3 years.
ransportation Expenses Coverage under Part D of the Personal Auto Policy begins how long after the covered auto has been stolen? A 72 hours B Immediately C 24 hours D 48 hours
D 48 hours
When an auto has two auto policies with the same insurer, the insurer's liability would not exceed: A The limit of the first one purchased B The limit of the last one purchased C The combined limit of the two policies D The highest limit of the two policies
D The highest limit of the two policies
Which of the following Part D claims would be denied under the Personal Auto Policy? A Earthquake damage to the covered auto B Loss to permanently installed sound reproduction equipment of the covered auto C Loss to electronic ignition equipment of the covered auto D Loss to the covered auto caused by road damage to tires
D) Loss to the covered auto caused by road damage to tires
Choose the physical damage claim that would be covered under the Personal Auto Policy. A Loss due to war B Loss due to radioactive contamination C Mechanical breakdown D Malicious mischief to the tires
D) Malicious mischief to tires
Each is in Part A - Liability Coverage Supplementary payment, except: A $200 a day for loss of earnings due to an insurer request to assist in the trial B $250 for the cost of a bail bond C Premiums on appeal bonds D Payment for all defense costs
D) Payment for all defense costs (the premiums ARE paid on appeal bonds - insuring agreement)
Liability coverage for property rented to, or in the care, custody, or control of the insured is very limited. Damage to a rental car would be covered by either collision or comprehensive coverage as applicable.
Damages covered under Liability coverage of the personal auto policy - damage caused to a rented garage by insured auto IS covered by liability coverage
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 E - Duties After an Accident or Loss
If an insured person, or anyone else, wishes to seek coverage under the personal auto policy, he/she must comply with certain duties. Failure to comply with these duties may result in claim denial if the failure to comply harms the insurance company.In the event of a covered loss, persons submitting claims to the insurance company are required to: - Notify the insurer promptly about how, when, and where the accident or loss occurred. In addition, the insurer must be provided with the names and addresses of anyone with injuries or anyone who witnessed the accident or loss. - Cooperate with the investigation and settlement of any claim. - Promptly send to the insurer any copies of notices or legal papers received. - Submit to a physical exam as reasonably required by the insurer. - Authorize the insurer to obtain copies of medical reports and other pertinent records. - Submit a proof of loss when required by the insurer. When seeking Uninsured Motorists Coverage, the insured must promptly notify the police if a hit-and-run driver is involved and provide legal papers if a lawsuit is filed. An insured making a claim under Part D must protect the property from further damage, notify the police promptly if the vehicle is stolen, and allow the insurer to inspect and appraise the damaged vehicle before its repair or disposal.
Part C - UM - 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.
Other Insurance
If 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).
Other Sources of Recovery Part D
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.
Appraisal Part D
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. The 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 C - UM - 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.
Other Insurance Part B
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.
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 D Exclusions
No coverage is provided for: An insured vehicle being used as a public or livery conveyance. The exclusion does not apply to a share-the-expense car pool. Damage solely a result of wear and tear, freezing, equipment breakdown, or road damage to tires. These are all maintenance issues and are excluded under other types of property insurance. Losses due to war or nuclear hazard. Electronic equipment, unless it's permanently installed in the vehicle. Examples of electronic equipment include radios, stereos, tape decks, CD systems, navigation systems, Internet access systems, computers, telephones, televisions, two-way mobile radios, scanners, and CB radios. Tapes, records, disks, or other media used with electronic equipment. A total loss to Your Covered Auto due to destruction or confiscation or non-owned auto by government or civil authorities. A trailer, camper, or motor home if it isn't shown on the Declarations, unless the vehicle is a non-owned trailer, or is acquired during the policy period and the insured reports the purchase within 14 days. A non-owned auto when used by the insured or a family member who doesn't have a belief of entitlement to use the non-owned auto. Loss to radar and laser detection devices and equipment. Custom furnishings and equipment in any pickup/van. Custom furnishings and equipment include special carpeting and insulation, furniture or bars, height-extending roofs, and custom murals, paintings, decals, and graphics. The following items are not considered custom furnishings or equipment: any cap, bedliner, or cover in or upon any pickup. A non-owned auto being used in the auto business. Any auto when located at a racing facility for organized racing. Under Part D if either state law or the rental agreement prevent the rental car company from recovering damages from the insured. Many insurers automatically cover a rental vehicle with the same coverage as the insured has on his/her own personal auto policy. If the insured only has liability coverage on a personal auto policy and rents a car for vacation, the rental car is not fully insured by the insured's PAP. The insured will need to fill this gap by buying the rental agency's insurance or upgrading his or her own policy.
Personal Auto Policy Parts A- B- C- D- E- F- Plus ____________
Part A- Liability Coverage Part B- Medical Payments Part C- Uninsured Motorist (UM) Part D- Coverage for Damage to Your Auto Part E- Duties After an Accident or Loss Part F- General Provisions PLUS selected Endorsements hint: first 4 parts are coverages - Liability first: to drive you need to have a minimum of liability insurance, - followed by coverages for others, others who aren't insured / following rules and then you final two are policy specifics / not coverages
Part C - Uninsured Motorists Coverage (UM) Insuring Agreement
Part C - Uninsured Motorists Coverage (UM) 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. The 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. notes
Insuring Agreement - Part D
Part D - Coverage for Damage to Your Auto 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. A deductible applies and will be the amounts shown on the Declarations for Collision coverage and Other Than Collision coverage, which is also known as comprehensive coverage. The deductibles for Collision and Other Than Collision coverages need not be the same. If this coverage pays for damage to a non-owned auto, the broadest coverage appearing on the Declarations will apply.
PAP stands for
Personal Auto Policy
Part F - General Provisions
The General Provisions of the personal auto policy apply to all sections of the policy. They spell out the obligations of both the named insured and the insurance company. - 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. - 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. - 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. - 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. 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.
Non-renewal
The insurer may elect to non-renew a policy; if non-renewing the policy, 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.
Part B - Medical Payments Coverage 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. These vehicles do NOT have to be owned by the insured and include any type of trailer. Any other person, such as a passenger, while occupying the insured 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.
Insuring Agreement The insurer will :
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.
Limit of Liability Part D
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.
Limit of Liability Part B
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.
Part C - UM - Limit of Liability
The limit of liability shown in the Declarations is the maximum the insurer will pay in any one accident. This is 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.
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.
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. By the same token, if 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.
Automatic Termination
The policy automatically terminates if the insured, or a legal representative, fails to accept or pay for a renewal or continuation of the policy. In addition, coverage automatically terminates if the named insured secures other auto insurance on an auto shown on the Declarations.
Part E Policy Period and Territory
The 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 C - Underinsured Motorists Coverage (UIM)
This coverage is slightly different from Uninsured Motorists Coverage, and may be required by state statutes as part of the Uninsured Motorists Coverage. In other states, coverage is optional or added by endorsement. 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.
Joint Ownership Coverage Endorsement (PP 03 34)
This endorsement amends 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. Non-resident relatives - 2 or more persons related by blood, marriage, or adoption who reside in separate households. This includes a ward or foster child.
Miscellaneous Type Vehicle Endorsement (PP 03 23)
This endorsement 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.
Optional Limits Transportation Expenses Coverage
This endorsement is 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.
Selected Endorsements Extended Non-Owned Coverage for a Named Individual (PP 03 06)
This endorsement 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. The endorsement 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.
Excess Electronic Equipment Coverage
This endorsement 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.
Limited Mexico Coverage
This endorsement 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.Coverage only applies if existing liability insurance is in place, and was issued by a licensed insurance company organized in Mexico. No coverage is provided for anyone who is a citizen or resident of Mexico.
Named Non-owner Coverage for a Named Individual
This endorsement 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. Definitions are amended by this endorsement, which also amends certain exclusions. Part D - Coverage for Damage to your Auto is NOT provided by this endorsement. The endorsement covers 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)
This endorsement 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.
Payment of Loss Part D
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.If 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.
