Chapter 6 Connecticut Auto Insurance

Motor Carrier Policies of Insurance Public Liability MCS-90

endorsement is used to assure the vehicle has both pollution liability coverage and is provided at the proper limit.

Uninsured Motor Vehicle Exclusions

does not include: GOV. vehicle,vehicle on rails, off road,motor home

Towing and Labor

endorsement in PAP. a. owned/non owned vehicles b. policy will pay up to $25 toward towing or labor costs at site of breakdown

Part E Duties after Accident

1. notify insurer ASAP 2.cooperate with insurer 3. submit physical exams 4.authorize insurer to obtain medical reports 5.submit written proof of loss 6. insured not required to repair damages ASAP.

CT State Minimum Liability Coverage

20/40/10 $20,000 per person $40,000 per accident $10,000 property damages

Underinsured Motorist Coverage (also included in Part C)

A. covers BI sustained by an insured caused by negligent operator who possesses insurance, but limits of liability carried by the at-fault driver are not sufficient to cover damages awarded to an injured insured. B. Insured will collect benefits from his own policy C.Insurer will reduce the damages an injured person is entitled to recover from his Underinsured Motorist Coverage by the the total amount collected from the auto BI liability insurance covering the at fault driver.

PD Exclusions

A. electrical/mechanical, wear and tear, damage to tires from road/ or freezing. B. personal effects unless permanently installed in the auto by factory.

Supplementary Payments

Additional Coverage on top of limit of liability for BI or PD. A. up to $250 for bail bonds b. premiums on appeal bonds and bonds to release attachments c.interest accruing after a judgement d. up to $200 a day for loss of earnings for required court attendance

PROOF OF LOSS

MUST BE SUBMITTED TO AN INSURER BEFORE A CLAIM IS PAID.

Comprehensive

Other than collision coverage - damage by fire,theft,vandalism, flood, earthquake, missiles, explosion, hail or water, glass,falling objects or colliding with animal.

Pedestrian Coverage

Part B states coverage applies to insured or family member while a pedestrian is struck.

Transportation Expenses (comprehensive)

Part D of policy says an addition to its limits,without the application of a deductible. up to $20 per day to a maximum of $600 for transportation expenses incurred as a result of theft or any other covered loss. covered losses 24 hours theft 48 hours many policies provide this coverage ($30-$900)

Auto Liability Exclusions

a. intentional injury to others b. injury or damage while using auto as livery/cab for fee c. WC related injuries d. damage to property owned by insured or rented by insured. e. business of servicing auto f. vehicles less than 4 wheels h. race cars

Motor Carrier Coverage Form

alternate truckers coverage form, and may provide more appropriate coverage for some insureds. a motor carrier is anyone who transports property auto in a commercial enterprise, regardless of whether he was hired for that purpose. a trucker is someone who is engaged in the business of property for hire while a motor carrier may be someone who is engaged in transporting property for hire. trucks,taxis,buses, limos

Right of Salvage

concept allows insurer to recoup some of a total loss paid resulting from a covered peril. A. a constructive loss is one in which the cost to recover or save the property in danger exceeds the value of such property. (total loss)

Owned Auto

considered owned if own dec. page a. PAP covers an insured or family members if responsible for BI or PD to others which operating nonowned auto (excess basis) b. borrowed auto or rented auto used by named insured are nonowned c.leased vehicle is hired auto. a rented auto is not a hired auto.

Collision

defined as " the upset of the covered auto or damage because of its impact with another auto or object" a. paid regardless at fault b.if insured is unable to collect from at-fault third party his policy will pay for the loss. insurer attempts to subrogate against at fault party. c.also applies to damage to a nonowned auto being operated by insured on excess basis.

Policy definitions

identifies several aspects of policy 1. Bodily Injury 2. Family Member 3. Occupying/alighting (being/getting in,on,upon,out of, off) 4.Trailer (pulled by private auto) NOT COMMERCIAL 5.Covered Auto (temporary,substitute) 6. Newly Acquired Vehicle - liability coverage under PAP provided as soon as you become owner. If vehicle is additional one to the auto listed one dec. page, insured must request coverage within 14 days of its acquisition and both must have coverage for physical damage. **if current auto listed is not covered for physical damage coverage,insured most notify insurer and request coverage within 4 days of the acquisition.**

Property for Hire

if the insured is transporting property for hire the truckers form should be used. the coverages are triggered by symbols 61 through 71 and coverage is written to address the individual neeeds of the insured

Eligibility

in order to be eligible for the PAP the vehicle must be a private passenger auto and must: used for personal use a. have 4 wheels b. be designed for use on public roads. c. be owned or leased for continuous period, 6 months minimum. d. can't be rented by others e. not be used as public/livery conveyance f.be a private auto,pickup, van or jeep with a gross vehicle weight of less than 10,000 pounds No recreational vehicles are covered snowmobiles/motorhomes/motorcycles (except in ma)

Auto Liability Coverage (Part A)

insured will pay damaged for bodily injury or property damage to others arising out of operation. a.prejudgment interest awarded against insured b.insurer will settle/defend any claim or legal law suit c. insurer possesses duty to defend insured if he later files bankruptcy. d. in addition to limits, insurer will pay all defense costs until claim is settled or coverage limits are exhausted e. insurer not required to settle any quit that is not covered. f. PD to others includes physical injury to or destruction of property of others. also includes loss of use of tangible personal property

Medical Payments Coverage Part B

insurer will pay expenses incurred for necessary medical and funeral expenses because of BI caused by an accident and sustained by an insured. A. insurer will only pay medical expenses incurred within 3 years from the date of accident. b.covers named insured/family members and anyone else occupying an auto (passengers)

The Trailer Interchange Coverage

is legal liability coverage for damage to trailers owned by others and the damage is caused by a covered peril under one of the following: collision,comprehensive, or specified causes of loss coverage.

Motor Carrier Act of 1980

legislation mandated that trucking operators must file proof of pollution liability insurance. new financial responsibility requirements were imposed on for hire and private transporters of certain hazardous cargos interstate or instrastate commerce.3 types of freight transport: Type 1 - for hire transportation of nonhazardous propety in interstate or foregin commerce (must carry at least $750,000) Type 2 - for hire or privae transportation (interstate/intrastate) of hazardous substances with a minimum limit of $5 million Type 3 - For hire and private transportation of oil listed as a hazardous substance or any hazardous waste or substances not included in type 2 with a minimum of $2 million.

Coverage Limits

may be written on split or combined single limit basis. ex. split limit policy (i.e.$100,000 per person/$300,000 per accident/$50,000 property damage) ex. single limit policy ($300,000 i.e.) provide a total maximum limit for all types of losses. legal expenses don't reduce coverage

Truckers Coverage Form

meets the needs of the road industry canceled in 2010. the liability coverage is the same as the BAP except there is an addition to who considered to be insured. The expanded definiton includes anyone from whom a vehicle is hired or borrowed and being exlusively used in the named insured's business. Symbols 41 through 49

Personal Auto Policy (PAP)

most recent version is the 2005 coverage form and it is a package policy that provided property and liability protection. A. Coverage for the PAP goes into effect at 12:01am on the inception date. b. Four Coverage Parts: 1. Coverage Part A Liability Coverage 2. Coverage Part B Medical Payments 3. Coverage Part C Uninsured Motorist Coverage 4. Coverage Part D Coverage for damage to the insured auto.

Uninsured Motor Vehicle

not covered by motor vehicle liability insurance, or hit and run, phantom, owner who cannot be identified. or an auto covered by liability insurance but coverage limit is carried lower than the state required minimum.

Part F General Provisions

territory - policy's coverage territory includes the U.S., its territories and possessions Puerto Rico and Canada *NOT MEXICO*

Physical Damage Coverage

this part of the PAP provides property insurance protection for covered auto. a. Collision and Comprehensive b. both pay for direct and accidental damages to the covered auto and are subject to a deductible.

Uninsured Motorist Coverage

will pay compensatory damages that an insured is entitled to collect from his own policy if he or she suffers BI from another driver who does not carry auto liability insurance. A.insured must not be at fault to collect. B. Limits of liability - based on per person/per accident *does not provide PD coverage*