Auto Insurance (New)

PART F - General Provisions

1. Policy Period ___D____ - Some insurance companies write policies for 6 months and others for 12 months. 2. Policy Territory ___G____ - United States, its territories or possessions, Puerto Rico, or Canada. 3. Policy Changes ___F____ - Policyholders make changes to their policies such as adding vehicles or operators and changing coverages or deductibles. The insurance company responds to a change by sending an endorsement reflecting the change and premium. 4. Policy Cancellation ___A____ - Policies may be cancelled by the insurer or the insured. State statutes impact cancellation and notice requirements for both cancellation and non-renewal notices to protect the interests of both. 5. Subrogation ___H____ - When the insurance company pays a claim to the insured and seeks to collect from the at-fault party to recover payment. 6. Transfer of Interest ___C____ - The policy prevents the insured from assigning the policy to another except in the case of death when the policy may benefit the surviving spouse in the same household until the end of the policy period. 7. Fraudulent Activity ___E____ - The policy does not provide coverage when the insured engages in fraud or misrepresentation. 8. How the Company May be Sued ___B____ - Legal action against the insurer cannot be taken until all policy terms have been complied with and the company has agreed in writing that an insured has an obligation to pay.

3.19 Assignment - How are limits applied?

3.18 HOW are limits applied? When your car is damaged in an accident, an insurance company considers the following items when determining how much to pay for repairs or replacement: • Physical damage losses are reimbursed for actual cash value or the amount needed to repair or replace the property, whichever is less, minus your deductible. • The most the policy will pay for a non-owned trailer is $1,500. • Electronic equipment (i.e. audio, video) permanently installed in the car in a different location not normally used by the auto manufacturer for this equipment is limited to $1,000. • Collision and Other than collision coverage are usually written with a deductible that applies separately to each occurrence. Instructions 1. Answer the following questions. 1. Marcus likes customizing his Honda Civic. He recently got a new system with video equipment, lighting, and extra-loud speakers installed in the car's trunk. The equipment is worth $3,800. If all the components installed in the trunk are stolen, how much will his auto insurance pay? $1,000 $1,500 $5,000 Actual cash value of the stereo None of the above 2. While visiting a national park, David and Tina discover that the trailer they borrowed for their vacation has been vandalized. All the windows are smashed in and the tires slashed. The estimate to repair the damage is $4,750. How will the physical damage coverage on their auto insurance respond to this loss? This is not covered under the PAP $1,000 $1,500 $4,750 None of the above 3. Edwin has a $500 deductible for Collision and $250 for Other than Collision. If Edwin hits a deer and has $2,350 in damages, his Part D coverage will pay _________. $1,000 $1,500 $1,850 $2,100 $2,350

3.20 Transportation Expenses

3.20 Transportation Expenses In addition to collision and comprehensive coverage, Part D also provides coverage for Transportation Expenses. Transportation Expenses • Covers transportation expenses due to physical damage loss to covered auto • Covers loss of use expenses due to loss to a non-owned auto • Pays $20 per day/$600 max • 48 hour waiting period for total theft of auto • 24 hour waiting period after other losses Question Marla returns to a parking lot one evening to discover that her car is missing. The next morning, she rents a car to temporarily replace her stolen vehicle. She returns the car 10 days later when the insurance company pays for the stolen car. Her rental car expenses were $300 (10 days x $30/day). Her car is insured for other than collision coverage under her personal auto policy. How much of this bill will the insurance company pay? Rich rents a Ford Focus on vacation. While en route from the airport, he makes a wrong turn onto a one-way street and hits another car head on. The car rental agency loses five days of rental fees that they can charge for the vehicle while the Focus undergoes repairs. Rich's pickup truck has collision coverage under his personal auto policy. Would his PAP pay for the rental agency's loss of use of the Focus?

3.21 Assignment Newly Acquired Vehicle Rule

3.21 Newly Acquired Vehicle Rule Like the other coverages we've discussed, there are rules about newly acquired vehicles for physical damage coverage. Instructions 1. Refer to the rules below and review the scenario. 2. Answer the below question. Physical Damage Coverage (Comp/Collision) 1. If another vehicle on the auto policy has physical damage coverage: a. Coverage begins the day car is acquired as long as insured requests coverage within 14 days of acquiring the auto. b. The new auto will have the broadest coverage provided for any vehicle already listed on the policy. 2. If no vehicles on the auto policy with physical damage: a. Coverage must be requested within 4 days after acquiring the auto. b. If a loss occurs in the time before coverage is requested, a $500 deductible applies. Gary had an older Toyota Corolla and carried only Liability and Medical Payments coverage on his policy. He traded the Toyota in on a new model and forgot to tell his insurance company until his new car was involved in a car accident 7 days later. How will his auto policy respond?

Conditions - Other Insurance

Assume for a moment that you are not feeling well and that you ask a co-worker to drive you to a walk-in clinic at the end of your shift. Your co-worker drives you in your car so you can get home later. Your co-worker causes an accident on the way to the clinic, causing injuries and property damage. Whose insurance will pay for the resulting liability claims? Your policy will pay. If/once limits are exhausted, the co-workers insurance would be expected to respond. The reason for this, is that: • The vehicle owner's policy is always primary, the driver's policy, if any, is always excess. • If the claim is higher than the policy limits on the primary policy, they will look to the other insurance to make up the difference. You should be careful about loaning your car to others. Your insurance is still primary if they cause an accident while driving your vehicle.

Auto Assignment Risk Plan

Auto Assigned Risk Plans Insurance Price & Availability Varies While insurance is a product that can be purchased, it is still very different from every other retail product. While we can go to a supermarket to buy a loaf of bread and expect to pay the same amount as every other customer that is not the case with auto insurance. Prices for auto insurance vary widely with many encountering similar prices, others with lower prices, and some with dramatically higher prices - whilst others may not be able to find coverage at all. The reason some drivers have a difficult time obtaining auto insurance is because they are not the average driver and insurance companies don't want to take on the extra risk. For Example: Some drivers have a poor driving record with lots of costly claims or they may have been convicted of a DUI in the past. But, it's still in society's best interest to make sure these drivers have some insurance coverage so they can live up to their financial responsibility in the case of an accident. Assigned Risk Plans States typically offer assigned risk or residual insurance markets for high risk vehicle owners who are unable to purchase a policy in the standard voluntary market. The ultimate responsibility for operating results is typically shared by the licensed companies operating in the state. How a driver gets to the assigned risk company or a residual market depends on the state. In most cases, the driver is guided by an agent to request coverage from a residual market when they have been unable to secure a policy in the standard or voluntary market. Assigned risk plans may vary by state.

Activity - Exclusions-Auto Business Exclusions

Auto Business Exclusions The Auto Business exclusions can be confusing. The Part A-Liability exclusion is saying that the mechanic's PAP will not pay any liability because he is the one employed in the business of auto service. The exclusion does not say that the customer's policy will not respond for the liability as the customer is not the one in the business of servicing autos. Should the garage mechanic's business liability be involved with the claim? Yes, but the car owner's policy will respond if needed. The Part D exclusion is specific to a non-owned auto so it says no Part D to a car not on your policy if damaged while you are in the auto servicing, etc. business. So, yes if the mechanic wrecks your car, your Part D will repair it, but his policy's Part D will say No.

Auto Rating

Auto Underwriting Importance of Setting Rates In addition to underwriting a policy, setting appropriate rates is also very important to ensure that a company can make a profit while providing a product at a reasonable price. If an insurance company sets their rates too high, customers may not purchase their policies as price is often an important component in a consumers purchasing decisions. Insurance companies must also be concerned with whether or not they are setting their rates too low. If a company's rates are too low they will not generate enough revenue to pay for their customer's losses and may even draw more high risk customers wishing to purchase their policies at rates that are lower than their competitors. Rating Factors Auto insurance rates depend on who is driving the car and where the car is being driven. The insurance companies have established rate classifications based upon: 1. Age 2. Gender 3. Driving Record; and, 4. Territory For Example: An 18 year old male driving within busy city limits will pay a higher premium than an 18 year old female driving in the same city. This is not considered to be an unfair discrimination since their rates are based on statistical data provided to the state Department of Insurance. Young men, as a group, are simply known to have more accidents than young female drivers. Remember that insurance rates are based upon the Law of Large Numbers. Driving Record A person's driving record is a factor in the rates as well. The more violations an individual has the more likely they are to have a loss that the insurance company must then pay. The result of this is that customers with poor driving records are charged a higher rate to ensure that the company can pay the more frequent claims. Type of Vehicle The type of car that is being insured does not determine the rate for liability, but rather the collision and comprehensive coverage. Liability insurance for BI and PD pays others and doesn't cover the insured's car. An insured can do just as much damage with an older car compared to a brand new one.

Auto Underwriting & Rating - Auto Underwriting

Auto Underwriting Insurance Companies Each individual insurance company establishes its own set of underwriting rules. These underwriting rules help ensure profitability; since they make sure that the policy premium aligns with the risk that is being taken on by the company. Underwriters An underwriter's job is to ensure business is being written correctly and adhering to the established rules. The underwriter reviews and signs the insurance application. Underwriters must conform to all state and federal regulations under the Fair Credit Reporting Act. Underwriting Process As part of the underwriting process, underwriters (and underwriting systems) determine the level of risk that a given customer presents to an insurance company and determines whether or not that level of risk meets the insurance companies underwriting rules. This process depends on accurate and complete information which is often obtained not only through an insurance agent and customer via a completed insurance application but also via vendor reports that are ordered, such as Motor Vehicle Reports (MVR's), background checks, credit reports, etc. Today, many companies automate part of their underwriting function. Insurance companies program their quoting software so that it does not allow a policy to be bound that does not follow the insurance companies underwriting rules. If the underwriter agrees with the agent, the policy is issued to the new customer. If the underwriter disagrees with the agent, the agent is given the opportunity to supply additional information that might make a difference in the underwriter's decision. Upon additional review by underwriting, the application may be rejected and both the agent and applicant are notified that the company is unwilling to accept the risk.

Supplementary Payments

Bail Bonds: The auto policy will pay up to $250 for the cost of Bail Bonds required because of an accident that results in bodily injury or property damage covered by the policy. This also includes incidents for related traffic law violations. This clause in the policy only pays for the cost of Bail Bonds, not the traffic fines that are involved. Appeal Bonds and Interest: The auto policy will also pay the premiums on Appeal Bonds and interest accruing after a judgment is entered in any suit the insurance company defends on your behalf. So if you were involved in an auto accident and the other party that you injure places a lawsuit against you, your insurance company will defend and pay the cost of the lawsuit. If the company loses the lawsuit, they can elect to appeal (which they have the right to do). However, in order to appeal the judgment, the insurance company must post an Appeal Bond guaranteeing that should it lose the appeal, they will go ahead and pay the judgments plus any Accrued Interest on the judgment. Loss of Earnings: The insurance company will pay up to $200 per day for your lost earnings if they require your attendance at hearings or trials. They will not pay for other income you lose, but will pay other reasonable expenses you incur at their request.

WHAT are the coverage benefits?

Coverage provided by Medical Payments covers reasonable expenses for necessary medical and funeral services as a result of an accident. Time Limits • This coverage is available for 3 years following an accident. Coverage Limits • Customers select the level of coverage they want. • Typical limits are $1,000, $2,000, $5,000, $10,000. NOTE that Medical Payments does not duplicate liability coverage. In other words, Med Pay does not pay for injuries you cause to others in another vehicle, just your passengers.

Non-owned auto vs. Covered auto

Definitions As we learned earlier, physical damage coverage pays for direct and accidental loss to the named insured's covered auto or a non-owned auto against loss caused by collision or other than collision. 1. Your covered auto means any vehicle shown in the Declarations, a newly acquired auto, and any trailer you own. 2. A non-owned auto is any private passenger auto, pickup truck, trailer, or van not owned by or available for regular use of the named insured or family member. An example of this is a short-term rental car.

Part B: Medical Payments - WHO is covered?

EXAMPLE: Consider the following scenario: Jill is a soccer mom. She typically has half of her daughter's soccer team in her minivan. One day, she gets into an accident and everyone in her vehicle suffers injuries: Jill, her daughter, and the girls who are passengers. Regardless of fault, Jill's Med Pay will help with her and her daughter's medical expenses as well as the girls in the minivan. However, it would not cover the medical bills of the other car's occupants. The reason for this is that Medical Payments provides coverage for the following individuals: 1. Named Insureds and any family member: ○ Occupying the insured's or another vehicle ○ Struck by another vehicle 2. Any other person while occupying the insured's vehicle

The Personal Auto Policy - Eligibility Requirements

Eligibility for a Personal Auto Policy can be divided into three categories: a. Eligible Persons b. Eligible Vehicles c. Eligible Uses 1 Who are eligible persons for a personal auto policy? Individuals, related people / unrelated people who live together 2 What are eligible vehicles for a personal auto policy? Cars, Pickup Trucks and Vans that gross weight less 10K lbs 3 What are the eligible uses of vehicle on a personal auto policy? For personal use and not for transport of goods / materials, except those incidental to the insured's business of furniture/equipment installation, maintenance / repair, or farming / ranching Did you know? Pickup Trucks are often advertised as a 1/2-ton, 3/4-ton or one-ton. Does this mean that's what the truck weighs? No, that's left over from the days when it used to refer to the carrying capacity. Back in the 1960s, a Ford F100 was a true 1/2-ton truck as it carried 1,000 lbs. (1 ton = 2,000 lbs). Today, trucks of a similar size are heavier and have much large load capacity so you have to know the actual gross vehicle weight to determine personal auto insurance eligibility. Gross Vehicle Weight (GVW) refers to the weight of the vehicle plus the weight of the payload (what it can carry). A Chevrolet Silverado 2500HD is considered a 3/4-ton truck. It weighs 6,334 lbs. unloaded and 9,500 lbs. when loaded to capacity. This means the truck has a GVW-Gross Vehicle Weight of 9,500 lbs. Can you write it on a personal auto policy? What about the 1-ton Silverado 3500HD with a GVW of 13,025 pounds?

3.10 Assignment

Instructions 1. Read the following on how Newly Acquired Vehicles are covered on an auto policy 2. Read the scenario and complete the questions below Newly Acquired Vehicle Rules When you get a new car, you are either replacing a car that's already on your auto policy or you are adding it. Let's see how that car would be covered depending on the type of coverage. Liability, Medical Payments, Uninsured Motorist • Newly acquired car replacing one listed on policy ○ Automatically has the broadest coverage (policy term) provided for any vehicle already listed on the policy. • Newly acquired car not replacing one listed on policy ○ Must request coverage within 14 days after acquiring the auto. Physical Damage Coverage (Comp/Collision) • If another vehicle on the auto policy has physical damage coverage ○ Coverage begins the day car is acquired as long as insured requests coverage within 14 days of acquiring the auto. New auto will have the broadest coverage provided for any vehicle already listed on the policy. • No vehicles on the auto policy with physical damage ○ Coverage must be requested within 4 days after acquiring the auto. If a loss occurs in the time before coverage is requested, a $500 deductible applies. Scenario Stella has an auto policy with two cars: a 2-year old car with physical damage and $250 deductible and an 8-year old pickup with liability and medical payments coverage only. Stella trades in the pickup for a new truck, but forgets to notify her insurance company. Two months later she has an accident in a parking lot damaging both her pickup and another car. Question How will Stella's policy respond to the liability claim? Answer Question Will the policy cover the damage to her new truck? Answer

Activity - Exclusions

Intentional Injury to others Does not provide Liability Coverage for any "Insured" ----- Unauthorized use (theft) Exclusion does not apply if the damage results from the total theft of "your covered auto" or any "non-owned auto". --- Racing We do not provide Liability Coverage for the ownership, maintenance or use of any vehicle, located inside a facility designed for racing, for the purpose of: a) Competeing in; or b) Practicing or preparing for; any prearranged or organized racing, or speed contest --- Livery (taxi) For that "insured's" liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This Exclusion (A.5.) does not apply to a share-the-expense car pool. --- Auto Business (selling, repairing, servicing, storing, parking) We do not provide Liability Coverage for any "Insured". 6.While employed or otherwise engaged in the "businessIncludes trade, profession or occupation." of: a.Selling; b.Repairing; c.Servicing; d.Storing; or e.Parking; vehicles designed for use mainly on public highways. This includes road testing and delivery. This exclusion (A.6.) does not apply to the ownership, maintenance or use of your covered auto by: a.You; b.Any "family member"; or c.Any partner, agent or employee of you or any "family member". --- Vehicles with less than 4 wheels We do not provide Medical Payments Coverage for any "insured" for "bodily injury": Sustained while "occupying" any motorized vehicle having fewer than four wheels. ---- Off-road use vehicles. Liability covers use of non-owned golf carts We do not provide Liability Coverage for the ownership, maintenance or use of:To any non-owned golf cart.

HOW are limits applied?

Medical Payment limits are applied on a per person basis, regardless of the number of persons injured in the vehicle. Example: Let's say Angel is on a summer vacation road trip with his extended family. There are seven people in the van, including Angel. Angel has an accident on the highway and everyone in the van is injured, including himself. Angel has $5,000 in Medical Payments coverage. How will his Med Pay respond? Angel's Med Pay will respond with $5,000 available for each person injured (seven people in the van).

Mexico Extension Endorsement

Mexico Extension Endorsement The unendorsed Personal Auto Policy limits the policy territory so that it does not include Mexico. The Mexico Extension Endorsement adds coverage to extend liability and physical damage while entering Mexico. The endorsement is limited to only a few miles across the border and is intended only to cover the insured until they can purchase coverage from a Mexican company. Example: Mark is driving into Mexico on vacation. He should plan to purchase insurance from a broker who represents a licensed Mexican company prior to crossing the border into Mexico. The standard auto policy territory does not include Mexico.

ENDORSEMENTS - Ownership Endorsements

Ownership Endorsements There are three ownership endorsements: 1. Joint Ownership 2. Extended Non-owned 3. Named Non-owner Joint Ownership The Joint Ownership endorsement is used to cover multiple owners when 2 or more relatives who may not reside together or unrelated individuals residing together. Example: Policy named insureds are Mom and Dad and their adult daughter living in the household is listed an operator. The daughter purchases a vehicle titled jointly to her and her Mom. Adding the Joint Ownership endorsement provides her the benefits of a named insured on that vehicle and prevents having to write a separate policy on her car. Extended Non-owned This endorsement overrides the exclusion on regular use of a non-owned auto. It extends liability from policyholder's auto policy to also cover a vehicle they don't own but use regularly like a company car. The endorsement may also include Med Pay. Example: Fred insures the car he owns and also drives a company car that is owned and insured by his company. He may endorse Extended Non-Owned Liability to his own auto policy to provide him personal liability protection and Medical Payments coverage while driving the company car as an added layer of protection. Named Non-owner Provides liability, Med Pay and UM to individuals who do not own an automobile to cover them when driving cars owned by others. Example: Mary was convicted of driving while intoxicated and must provide proof of insurance to state authorities. She no longer owns a car. Mary may purchase a policy with a Named Non-owner endorsement to demonstrate her responsibility to the state.

PART D: Physical Damage

Part D - Physical Damage Coverage Part D of the Personal Auto Policy covers for damage to your own vehicle, it is commonly known as physical damage coverage. Physical Damage coverage: • Pays for direct and accidental loss to the named insured's covered vehicle against two types of losses: ○ Collision; or, ○ 'Other than Collision', also known as Comprehensive. • Does not cover personal property in the vehicle such as laptops, cell phones, golf clubs, etc. Collision is defined as upset or impact to your vehicle or another vehicle or object. Note that: • When it comes to vehicles you own, you must list them on the policy and purchase the individual physical damage coverages for them to apply. • If you own a car but choose not to add it to your policy you will not have physical damage coverage. • If you add a vehicle but choose to purchase only 'Other than Collision' coverage, you will not be provided 'Collision' coverage on that car. Other Than Collision (Comprehensive) Perils Comprehensive coverage is an 'all risk' type coverage in that it provides coverage for what is NOT covered by Collision as long as it's not excluded. Here are some typical 'Other than Collision' losses. • Missiles or Falling Objects • Fire • Theft or larceny • Explosion or earthquake • Windstorm • Hail, water, flood, Mischief or vandalism • Riot or civil commotion • Contact with animal • Breakage of glass Some examples of excluded perils for Other than Collision include freezing, mechanical or electrical breakdown, and road damage to tires.

PART E & F: Personal Auto 3.23 Assignment

Question: What must an insured do after a loss? Answer: PART E - Duties after an accident or loss section of the auto contract answered: Must notify insurance company promptly of how, when and where the accident / loss happened. Also should include the names and addresses of any injured persons / witnesses.

HOW are limits applied?

Similar to liability coverage, UM coverage limits are applied: • Per Person / Per Accident (Split Limits); or, • As a Single Limit (CSL) • Aggregate Limits - Limits coverage for all losses during the policy period to the specified aggregate limit. Aggregate limits is typically not used in personal lines but it may be helpful to be familiar with the terminology. NOTE that UM coverage CANNOT be higher that your own liability limit.

The Personal Auto Policy - Policy Components & Coverage Parts

The declarations page provides a summary of the who, what, when, where and how of the policy contract; the insuring agreement is what we typically call the 'contract.' The insuring agreement begins with definitions and then details the various coverage parts as well as any endorsements attached to the policy. Instructions: 1. Access and review the Auto Policy Contract Note: It is not necessary to read the full text of this document. for this exercise you only need to be familiar with the policy components, sections, and coverage parts. 2. Complete the below questions. The acronym 'DICED' can be used to describe the components of an insurance policy. What does 'DICED' stand for? D...Declaration I...Insuring Agreement / Contract C...Conditions E...Exclusions D...Definitions 2 The sections of an auto insurance contract are referred to by part letter and name (e.g., PART A - Liability Coverage.) What are all the parts of an auto insurance contract? (Include both the letter and name.) Part A - Liability Part B - Medical Payments Part C - Uninsured Motorist Part D - Coverage for Damage to your Auto Part E - Duties after an Accident or Loss Part F - General Provisions 3 The protection provided by an auto policy can be summed up by saying, "It protects my body, my car, and my assets." What are the specific coverages that fall under each of these categories? My Body Medical My Car Property My Assets Liability

WHERE does coverage apply?

The great thing about where coverage applies is that it is the same for all coverage parts of the policy. So, medical payments coverage applies in the same locations as liability: 1. All U.S. States; 2. U.S. territories and possessions; and, 3. Canada.

3.15 Assignment

Underinsured Motorists Coverage (UIM) Underinsured Motorists coverage, also known as UIM, pays the difference between the insured's actual damages for bodily injury and the amount of liability insurance carried by the driver who was at fault, up to the limits of the insured's underinsured motorists coverage. The financial responsibility limits carried by some drivers often falls far short of fully reimbursing the insured for a loss. Underinsured motorists coverage fills this gap. Underinsured Motorists Coverage varies by state. Uninsured Motorists Property Damage Coverage (UMPD) Uninsured Motorist Property Damage (UMPD) covers your insured vehicle when it is damaged by a driver who doesn't have auto insurance (uninsured). The requirement for this coverage varies by state. UMPD pays for damage to your vehicle when hit by an uninsured driver. ○ There is usually a deductible for this coverage ○ If the insured has both Collision and UMPD, they may choose which coverage to use as primary Instructions 1. Answer the following question. Sam carries $100,000 of UIM coverage. She's involved in an accident and sustains serious injuries. The other driver, who was at-fault, carries the state minimum of $50,000 liability coverage. Sam's damages for bodily injury total $65,000. How much will Sam's UIM coverage pay? Answer: $15000?

WHO is covered?

Uninsured Motorists / Underinsured Motorists The auto policy provides coverage to: • Named insured(s); • Resident family members; and, Passengers in the vehicle

PART C: Uninsured Motorist - WHAT is covered?

Uninsured Motorists Coverage Uninsured motorist coverage may either be optional or mandatory, depending on the state requirements. This is a liability coverage that is purchased on your own auto policy to cover you and your passengers in the event you are hit by another negligent driver that has no auto insurance coverage. This includes being hit in a hit and run accident where the other driver is not able to be identified. Coverage applies when "hit" and covers: • Injury expenses that should have been collected from the at-fault driver but they have no insurance. • Pain and suffering may also be claimed NOTE: 1. Vehicle damage is NOT covered as this would be covered under Part D: Collision 2. The term 'phantom vehicle' is used to describe situations where the insured's vehicle is not hit but they are claiming that another vehicle who left the scene caused the crash. A 'phantom vehicle' accident may not be covered by UM.

Vehicle / Physical Damage Endorsements

Vehicle / Physical Damage Endorsements There are four ownership endorsements: 1. Towing and Labor 2. Optional Transportation Expenses 3. Excluded Equipment; and, 4. Miscellaneous Vehicles Towing and Labor Covers towing and costs of labor performed at the place of disablement. Typically limits available are $50, $75 or $100. Policyholders may purchase this protection and choose the level of protection. Optional Transportation Expenses Purchase additional limits above what is provided in Part D ($20 per day/$600 max). Excluded Equipment Coverage Audio, Visual and Data Electronics endorsement adds coverage for such equipment when permanently installed. Customizing Equipment provides coverage for added items like custom rims or specialty tires. Miscellaneous Type Vehicle Endorsement allowing a Personal Auto Policy to be written for vehicles that do not typically fit the eligibility such as golf carts, motorhomes, motorcycles and ATVs. Vehicles eligible for the PAP are private passenger autos, pickups or vans. The Miscellaneous Type Vehicle endorsement is required to insure motorcycles for example since they do not fit that definition.

WHO is covered and WHERE does coverage apply

WHO is covered: Named Insured Resident Family Member WHERE does coverage apply? Canada United States U.S. Territories U.S. Possessions WHO is covered? Part D: Physical Damage covers Named Insureds and Resident Family Members but not passengers or pedestrians. WHERE does coverage apply? This coverage applies in the United States, all U.S. Territories and U.S. Possessions, and Canada. Physical Damage coverage does NOT apply in Mexico.

The Personal Auto Policy - Required Coverage & Limits

What are the auto insurance requirements in your state? Having minimum $15000/$30000 to cover any damages you should cause with your vehicle (Bodily Injury) What else other than 15/30k is there for AZ? $10K Property Damage (Property)

PART A: Liability 3.6 Assignment

What are the seven sub-sections within the PART A - Liability section of an auto policy? Insuring Agreement (Contract) Supplementary Payments Exclusions Limit of Liability Out of State Coverage Financial Responsibility Other Insurance ----- What does the insuring agreement say the policy will pay for defense costs? We will pay all defense costs we incur ----- When does the company's responsibility to pay for defense costs end? When their limit of liability for this coverage has been exhausted ------- When does the policy not pay for defense? If the party is not covered by this policy ------

Definitions

You/Your Refers to the named insured and resident spouse. ---- Family Member Relatives, wards, and foster children in the household of the named insured. --- Occupying In, upon, getting into, onto, out of, or off of a vehicle. Example: High school senior gets on the hood of a friend's car to celebrate graduation and gets seriously injured. --- Temporary Substitute Auto Auto or trailer you are using as a temporary substitute because of breakdown, repair, servicing, loss, or destruction.