Auto Insurance NYS

OBEL Limit

$25,000 *The claimant decides how to spend the money from the following: A. Economic losses from medical bills, loss of earnings, or misc. expenses B. Loss of Earnings only C. Psychiatric, physical or occupational therapy and rehab D. Combination of B & C **Once the claimant decides on which option to spend the money on, that choice CANNOT be changed**

Customizations of vans and pick-ups

(Includes rugs, murals, furniture) The following IS covered for pick-ups *Bedliners *Bedcovers *Caps

Medical Payments

***Optional Coverage ***1st Party Coverage

Uninsured Motorist Coverage

**Mandatory Coverage **1st Party Coverage

Towing and Labor Exclusions

**Parts and Materials**

Who is covered for P.I.P. Benefits?

**The insured and family members if hit as pedestrians (1st Party) **The insured's minor children if injured on a school bus (1st Party) **Pedestrians struck by the insured's vehicle (3rd Party)

Transportation Waiting Periods

**Waiting period for theft--- 48 hours **Waiting period for everything else-- 24 hrs. ex. Bill rents a car for 5 days after the theft of his vehicle. How much will his insurance pay? Answer: 3 days @ $20 per day= $60

P.I.P. Loss of Earnings Coverage

*3 year time limit *Subtracted from the $50,000 per person limit *Calculated at 80% of salary with a limit of $2000 monthly

P.I.P. Limits

*50,000 per person limit *There are some time limits

Comprehensive Exclusions

*All policy exclusions apply *Collision

AIP Eligibility

*Any vehicle in NYS no matter where the owner resides. *Must have attempted to obtain insurance from 3 voluntary carriers in the past 60 days.

NYS is a Non-stacked State

*Can't collect from more than one SUM coverage per accident *Can ONLY collect the actual difference between 1st party's SUM and neg. 3rd parties BI *SUM limits cannot exceed BI limits on the same policy *The UM portion of the SUM replaces UM (cannot collect under both UM's)

Who is covered for Medical Payments?

*Covers insured and passengers in the insured's vehicle *Covers insured and family members if they are hit as pedestrians

P.I.P. Misc Expenses/Other Expenses

*Covers such expenses as home health aides, taxi to doctor, etc *1 year time limit *Subtracted from the $50,000 per person limit *Limit is $25 per day

Duties of the insured in the event of a loss:

*Give immediate notice to the insurance company *Allow insurance company to inspect the damaged vehicle *Notify police if a crime has been commited or it hit and run accident occurred.

P.A.P. Liability Coverage

*Includes Bodily Injury and Property Damage (These can be sold seperately or combined, depending on the insurer) *Mandatory Coverage *3rd Party Coverage

Cancellation Notice

*Insured can cancel at any time--may be required to cancel in writing. *Insurance company must provide written notification *15 days for nonpayment *20 days for any other reason

Electronic Equipment

*Limit $1000 *All non-permanently installed electronic equipment is excluded *Permanently installed electronic equipment IS covered

Uninsured Motorist Coverages

*Medical Expenses *Pain and Suffering *Lost Wages *Funeral Expenses *Misc. Expenses

AIP Coverage

*Minimum Limits: 25/50/10 *Maximum Limits: 250/500/100

P.I.P. Medical Expense Coverages

*No time limit *Subtracted from the $50,000 per person limit

Towing and Labor

*Optional *1st Party Benefit

Non-renewals

*Paperwork must be mailed out at least 45 days prior to expiration, but not more than 60 days prior to expiration of policy *Policies can only be non-renewed after one year on the anniversary date

Medical Payment Coverages

*Pays actual medical bills on a no-fault basis *Pays funeral expenses

Transportation Limit

*Pays up to $20 per day *Pays maximum of $600 per occurence

What SUM Covers

*Provides UNINSURED MOTORIST COVERAGE ***Same as Uninsured Motorits, but expands territory from NYS to the Standard Territorial Definition *Provides UNDERINSURED MOTORIST COVERAGE ***Covers the 1st party if the negligent 3rd party has insurance, but is underinsured.

Who is covered under Uninsured Motorist?

*The insured either in the vehicle or as a pedestrian *Passengers in the insured's vehicle

Defense

*There is NO limit for defense---paid above and beyond any policy limit *Insurance company has duty to defend insured *No consent to settle

Medical Payment Limits

*There is a per person limit (amount varies) *There is a 3 year time limit

P.I.P Funeral Expenses

*This benefit is NOT subtracted from the $50,000 per person *Limit is $2,000 per person

Towing and Labor Coverage

*Towing *Labor only at the actual place of disablement

Territory

*US, US Possesions, Canada, and Puerto Rico

Supplemental Payments

*Up to $250 toward the cost of Bail Bonds *Cost of appeal and attachment bonds *Pre and Post Judgement interest *Up to $200 per day for lost earnings if the insured has to testify in court *Other expenses incurred at the insurance companies request (buys a new suit for court)

AIP Procedure

1. All auto insurers in NYS must take the same percentage of assigned risk as the business they write in the voluntary market. 2. The program assigns the applicant to the insurer. 3. Both brokers and agents can bind coverage. 4. The insurance company must continue to renew the insured for 3 years. **Policy can only be cancelled for: *Non-payment *Suspension or revocation of license *Failure to provide underwriting or accident information

NY State Vehicle Financial Responsiblity Law

1. All vehicles except for emergency vehicles must carry liability insurance. Insurance satisfies the states requirement that auto owners have enough funds to pay for losses that they are legally liable for. 2. Proof of coverage must be carried. *Must include name and address of provider 3. Both the owner and the driver are legally liable for accidents. 4. The vehicle owners insurance is PRIMARY and will indemnify both the owner of the vehicle and the driver. 5. The drivers insurance is EXCESS and will indemnify only the driver

Valid Reasons to Cancel a Policy

1. Policy in effect 1-60 days *Policy can be cancelled for a broad variety of reasons 2. Policy in effect 61 or more days *Non-payment of premium *Fraud and mis-representation or concealment *License suspension or revocation

Who is insured under the P.A.P

1. You 2. Family Members 3. Any person using your covered auto 4. An organization that you are driving on behalf of. (ex. Employer, social club, religious institution) is always covered under the drivers policy. (There is no coverage when driving the organizations car)

Verbal Threshold

A person can only sue if serious injury is sustained: 1. Death, dismemberment, or signficant disfiguration. 2. Loss of an organ or loss of use of an organ 3. Any fracture 4. Any loss of a bodily function for 90 days or more.

Family Members

A person related to you by blood, marraige, or adoption, and who is a resident of your household. Wards and foster children are also included.

Tort Limitation

A tort is a civil, not criminal wrong that violates the rights of another. Persons injured in an auto mobile accident in NYS can only sue if they meet a Verbal Threshold

Event that changes Bodily Injury Limits

Accident causing a death 25/50 -------- 50/100 60m--------- 100,000 Only minimum limits are affected by a death. Other limits do not change.

Event that changes Bodily Injury and Property Damage Limits

Accidents OUT of NYS *If the required minimum coverage in other state is higher than the insured's current NYS limits for BI and PD, policy will automatically increase their current NYS limit to the states minimum limit.

P.I.P. Vehicle Eligibility

All vehicles are required to carry liability MUST carry P.I.P. Excluded Vehicles: *Vehicles on rails (trains and trolleys) *Agricultural and Contractors Mobile Equipment *Motorcycles *School Buses

Mandatory Photo Inspection

Applies to vehicles with any physical damage coverage (Collision and/or Other Than Collison *Comprehensive) *This law gives the insurance company the right to inspect the vehicle *The insured has 5 days to complete the inspection *If not done in 5 days, then physical damage coverage will be suspended. *Suspended physical damage coverage will be reinstated upon inspection.

Choice of Repair Shop

Auto insurers can recommend or suggest specified repair shops, but consumers are not required to use those shops. They can use any repair shop they choose.

Uninsured Motorist Pays what the negligent 3rd parties ____ insurance would of paid had that coverage been available.

Bodily Injury **Limits selected for Uninsured Motorist cannot be higher than the insured's selected limits for Bodily Injury**

Bodily Injury

Bodily harm, sickness, disease or death

When does Uninsured Motorist Apply?

Both of the following MUST apply *Accident must NOT be at fault (3rd party must be negligent) *Accident must have occured within NYS Any ONE of the following MUST apply *The negligent 3rd party has no insurance *The negligent 3rd party insurance company denies the claim (Insolvent or claim excluded) *Hit and Run Accident

Appeal Bonds

If you appeal a case, you will not pay until appeal is heard

Filing P.I.P. Claim

Injured party should submit a claim within reasonable time frame---30 days

How to determine if Negligent 3rd Party is Underinsured

Limit of 1st Party's SUM (Minus) Limit of Negligent 3rd Party's B.I.

Occupying

Means in, upon, getting in, getting on, getting out, or getting off a vehicle (NOT UNDER)

Bodily Injury Limits

Minimum Split Amounts in NYS: 25/50 25,000 per person 50,000 per occurence Minimum Single (combined) in NYS: 60m (Single or Combined limit includes BI & PD) 60,000 per occurence

Collision Deductibles

Minimum deductible in NY is $100

Comprehensive Deductible

Minimum in NY is $50

Property Damage Limits

Minimum split limit: 10m Minimum single limit: 60m (Also includes BI)

Supplementary Uninsured/Underinsured Motorist (SUM)

Optional Coverage 1st Party Coverage

Misc. Type Vehicle Coverage/Recreational Vehicles

Optional Endorsement **This is availabe as an endorsement or as a stand alone policy** Provides coverage for recreational vehicles including: Owned Golf Carts All Terrain Vehicles (ATV) Liability is mandatory Motor Homes

Joint Ownership Coverage

Optional Endorsement Adds an additional person as Named Insured if the car is co-owned

Named Non-Owned

Optional Endorsement Allows policy to be written with no listed vehicle

Spousal Liability

Optional Endorsement Provides Liablity coverage if your spouse sues you. (This endorsement must be offered to its policyholder every year)

Physical Damage Coverages

Optional coverages that provide benefits to the insured's own vehicle **Optional Coverage **1st Party Coverage **Coverage's are Collision and/or Other Than Collision (Comprehensive)

Personal Auto Policy

P.A.P.

Vehicles Covered

P.A.P. covers both vehicles that you own as well as unowned vehicles

Bodily Injury

Pays 3rd party when you are legally liable for their injury or death B.I. Includes payments for: *Medical expenses of others *Pain and Suffering of others *Lost Wages of others *Funeral Expenses of others *Miscellaneous Expenses of others

Transportation Expense

Pays for substitute transportation if the insured's vehicle is disabled due to a covered loss *Optional *1st Party Benefit

Property Damage

Pays when you are legally liable for damages to the property of others

Towing and Labor Limit

Policyholder chooses between the following options: $25 $50 $75

PAP Eligible Vehicles

Private passenger vehicles (Includes autos, vans, and pick-ups) Private passenger vehicles used on the insured's farm is covered.

Attachment Bonds

Protects seizure of assets

Additional Personal Injury Protection

Same as P.I.P.---Provides additional limits

P.I.P. Exclusions

The following are only excluded under the P.I.P. coverage, but would be covered under other policy coverage's: *Any injury arising out of an felony or eluding police *Intentional self-inflicted injury *Racing *Injury when under the influence of drugs and alcohol

WE

The insurance company

YOU

The person named on the declaration--also that persons spouse if they reside in the same household

Exclusions

These apply to all coverages on the PAP except PIP 1. Intentional Injury 2. Personal property owned by the insured 3. Property in the insured's care, custody and control. (ex. You hit a lawnmower on side of the road--covered. You hit a lawnmower that you borrowed---excluded) 4. Injuries to domestic employees covered by workers compensation 5. Livery or taxi use (share the expense exposures are covered) 6. Garage Business (Need Garagekeepers Policy to cover customers car) Not covered if driving in customers car 7. Business use of a business auto (company car) 8. Cars driven without permission 9. War and Nuclear 10. Vehicles with fewer than 4 wheels 11. Vehicles designed for off road use (dunebuggies, etc) 12. Vehicles available for the insured's regular and frequent use (not owned or listed on the policy) 13. Racing or competition in a facility designed for racing 14. Wear and Tear 15. Freezing 16. Mechanical Breakdown 17. Road damage to tires 18. Electronic Equipment 19. Awnings, cabanas and tents 20. Customization of vans and pick ups 21. Government Action

Motor Vehicle Accident Indemnification Corporation

This applies when both the injured person as well as the person causing the accident have no insurance. (ex. An uninsured passenger injured while an uninsured driver -or- an uninsured pedestrian injured when hit by an uninsured driver) *All auto insurers in NYS are assessed a fee for this program. *The program pays benefits to the injured party when caused by an uninsured motorist. *Limit is 25/50 *Only covers accidents occuring within NYS.

Optional Basis Economic Loss--OBEL

This coverage can only be used after all PIP benefits have been exhausted. 1. Optional Coverage 2. 1st and 3rd Party (3rd party only applies to a pedestrian struck by your car)

Collision

This coverage provides benefits for your vehicle when loss is caused by: *Impact with any object, except an alive animal *Upset (rollover)

Personal Injury Protection (P.I.P.)

This coverage was created by Comprehensive Motor Vehicles Reparations Act (Persons injured occupying automobiles are entitled to certain benefits) *Mandatory Coverage *Both 1st and 3rd Party Coverage

Insurance Information and Enforcement System (IIES)

This is a NYS Vehicle and Traffic Law designed to reduce the number of uninsured vehicles. *The insurer must notify DMV within 7 days of issuing a policy. *The insurer must notify DMV within 30 days of canceling a policy

New York Rental Endorsement

This is a mandatory endorsement in New York that when renting a car provides both Collision and Comprehensive coverage on a rental vehicle, regardless of the coverage carried on the policy. This allows the state to endorse state changes.

Other Than Collision--Comprehensive

This is an open peril coverage that provides benefits to your vehicle. Covers losses due to: * Missles or falling Objects *Fire *Theft *Explosions *Earthquake *Windstorm *Hail *Flood *Malicious Mischief or Vandalism *Riot or Civil Commotion *Contact with an alive animal or bird *Glass breakage (Can also be covered under collision)

New York Auto Insurance Plan (AIP)

This is the involuntary market for auto insurance. The purpose is to provide insurance for those who cannot purchase it through voluntary market

Comprehensive Motor Vehicles Reprarations Act

This law stipulates the criteria for suing in NYS when someone is injured in an automobile accident.

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