Chapter 14: Multirisk Management Contracts: Auto

Insuring other vehicles

*A miscellaneous type vehicle endorsement can be added to the PAP to insure motorcycles, mopeds, motor scooters, go golf carts, motor homes, no other vehicles* - the miscellaneous type vehicle endorsement can be used to provide all the coverage of the PAP, including liability, medical payments, and insured motorist, and physical damage coverage

Stacking

Situation that arises when a single auto policy covers two vehicles, and the court interprets this situation to you and limit of liability equal to double the amount shown in the policy declarations

Financial responsibility

This one sentence states, *" When this policy is certified as future proof of financial responsibility, this policy shall comply with the law to the extent required"*

Types of automobile policies

Two general types of auto insurance: *commercial use* *personal use* - the personal automobile policy (Pap) is the newest of the policies for personal use Automobiles and has nearly displaced other personal use forms - you will probably buy a Pap or policy similar to it

No fault coverage

the liability coverage in the PAP protect you against loss if you are responsible to someone else for bodily injury or property damage because of an accident that was your - all the other coverages pay benefits without regard to fault. They could be referred to as no-fault coverages -PIP (personal injury protection)

Auto insurance plans

*Arrangement in which drivers who cannot buy auto liability insurance through the usual channels can apply to be assigned to an insurer who must sell them coverage that meets the requirements of the financial responsibility law* -formerly called assigned risk plans because they operate on an assignment basis - every company writing auto insurance in the state is a member of the planet each must take its share of such business -if a company writes 10% of the auto insurance business in the state, it has to accept 10% for the qualified applicants -in spite of generally higher rates than those found in the voluntary market, auto insurance plans have caused significant losses to the Auto insurance industry

Maryland state fund

*Government operated residual Market company provides coverage to drivers who cannot obtain insurance through the regular Market* - in spite of her premiums, it has suffered heavy losses - originally, it was to Bear such losses itself (through taxation), but the law now requires that the Private insurance Industry subsidize the fund

Residual market (shared market)

*Insurance Market created by state law that exists to provide Insurance to people who cant buy through the usual channels* Auto insurance plans Reinsurance facilities Joint underwriting associations Maryland state fund

Substandard market

*Insurance market in which some companies offer limited auto coverage to high risk drivers at high premiums* This assumption underlying laws requiring motorists to buy automobile liability insurance is that it is available - some drivers cant buy insurance through the usual channels because, as a group, their losses are excessive

Joint underwriting association(JUA)

*State plan in which all automobile insurers are members and the Association is, in effect, an insurance industry company* - seven Insurance are appointed as servicing carriers to act as agents for the association - an applicant for insurance who cannot meet underwriting requirements in the regular Market is issued policy by the servicing carrier on behalf of the association, as far as the policyholder is concerned, the association is his or her insurer - premiums and losses are shared by all the auto insurance in the state, similar to the auto insurance plan - *jua differs from an auto insurance plan and that only designated service and carriers can issue covers to participants*

Reinsurace facilities

*State plan in which every Auto insurer is required to issue auto insurance to any licensed driver who applies and can pay the premium; in return, insurers can transfer the burden of bad risk to a pool to which all auto insurers belong* -as members of the pool, insurers share in both premiums and losses -the insurer generally knows nothing about this Arrangement, like all other insurers, he or she receives a policy issued by the company to which he or she applied -in some states a specific insurer is designated to service a policy or pay for losses of a given insured, then then sure likely knows his or her status in the facility

Out of state coverage

*The out-of-state provision takes care of a situation in which your liability limits comply with the financial responsibility or compulsory insurance law in your state but are inadequate in another state* - it provides that, under such circumstances, your possible provide at least the minimum amount and types of coverage required by the state in which you are driving (EX: suppose you have limits of 15/25/15. If you are driving in a state that requires 25/50/20 and are in an accident, your insurer will interpret your policy as if it had higher limits. Your policy will provide the limits you need in any state or province in which you may be driving)

Uninsured motor vehicle

*The policy defines it as a land motor vehicle or trailer of any type, with the following specifications:* -one to which no bodily injury liability bond or policy applies at the time of the accident -one to which there is a bodily injury liability bond or policy in force, but limit the liability is less than that specified by the financial responsibility law in the state where your covered auto is garaged -a hit and run vehicle whose operator/owner cannot be identified and that hits you or any family member, a vehicle you or any family member are occupying or your covered auto -one to which a bodily injury liability bond or policy applies at the time of the accident, but the company denies coverage or is insolvent *an uninsured motor vehicle does not include any of the following vehicles or types of equipment:* -owned by, furnished, or available for the regular use of you or any family member -owned or operated by a self-insurer under any applicable motor vehicle law, except a self insurer who is or becomes insolvent -owned by any government unit or agency -operated on rials or crawler treads -designed mainly for use of public roads and used while not on public roads

comprehensive (other-than-collision)

*any type of non-excluded loss-causing event other than collision* -missiles falling objects -fire -theft or larceny -explosion -windstorm -hail,water, or flood -malicious mischief or vandalism -riot or civil commotion -contact with bird or animal -breakage of glass the insurer will pay up to $20/day(max $600) for transportation expenses in the event your auto is stolen (rental, public transportation, taxis, etc) -must notify police promptly of covered auto is stolen -expenses begin 48 hours after the theft -offer owing and labor coverage for an additional premium

Coverage for damage to your auto-Part D

*first party insurance* -insurer agrees to pay for direct and accidental loss to your covered auto and to any other non owned auto used by you or a family member, subject to policy limitations and exclusions -you have the option of buying coverage for your automobile on an open peril basis by purchasing both collision and comprehensive (also call other than collision) coverage -you may instead opt to buy just collision or just other-than-collision, or neither -a premium for the coverage must be stated in the declarations for coverage to apply -distinction btwn the two coverages may be important because collision protection generally carries a higher deductible than other-than-collision coverage *collision* the upset (turner over) of a covered auto or non owned auto, or striking another object

Personal automobile policy (PAP): declarations

*identifies you by name, address, and shows the term of the policy, the premiums charged, the coverage's provided, and the limits of liability of the coverages* - you, and your spouse, if you are married are the named insured(s) - a description of the automobile(s) covered- by year, name, model, identification or serial number, and date of purchase- is included - the lowest-paying for physical damage to the automobile is listed to protect the lender who has financed the automobile purchase, and the garaging address is shown *losses are generally greater in urban than in rural areas* - the place where your car is garaged affects the premium -

Underinsured motorists coverage

*insurance that fills in the coverage gap that arises when negligent party meets the financial responsibility law of the state, but the auto accident victim has losses in excess of the negligent drivers liability limit* -negligent driver meet the legal insurance requirements but is legally responsible for additional amounts, the driver is not an uninsured motorists -permits the insured to purchase coverage for this situation -you may purchase under insured motorists coverage in amounts up to the amount of liability (Part A) protection you purchased -will pay the difference btwn the at-fault drivers liability and the at-fault drivers limit of liability insurance, up to the amount of under insured motorists coverage purchased (EX: you were hit by a driver and had damages of $60,00. Assume the other driver is found liable but only carries $30,000 of insurance. an under insured coverage equal to your limit of liability says, $100,000 would cover the remaining $30,000 of loss above the at fault drivers insurance. Your total payment, could not exceed the underinsured coverage. So if total loss was $115,000; you would receive $30,000 from at fault driver and $70,000 from your own insurer. The remaining $15,000 loss is still the responsibility of the at fault driver, but may be difficult collecting it)

Financial responsibility laws

*laws that acts to induce motorists to but auto liability insurance so victims of their negligence will receive compensation* -typical law requires evidence of financial responsibility when a driver is in an accident or is convicted of a specified offense, such as driving while intoxicated -simplest way to prove such responsibility is to have an auto liability insurance policy with specified limits to meet or exceed min limits -insurers and consumer advocacy groups recommend a min of $100,000 of bodily injury protection per person and $300,000 per accident to avoid paying from your pocket in case of liability

Auto insurance premium rates

*pricing factors of auto insurance include* - make of the car -age of a car - what is the car is driven to and from work - age and gender of the driver - marital status, and - location of the car; locations are critical because of some markets, insurers are pulling out due to large losses - these factors are underwriting factors - the driving record is an important factor in classifying a driver as a preferred driver or substandard risk

compulsory auto liability insurance

*requires that automobile registrants to have specified liability insurance in effect at all times* -about half of all states require evidence of insurance prior to licensing the driver or the vehicle

unsatisfied judgement funds

*state organizations that provide compensation in situations when an injured motorist obtains a judgement against the party at fault but cannot b/c the party has neither insurance nor resources* -the max amount the injured party may claim from the fund is usually the same as that established by the state's financial responsibility law - -

General provisions-Part F

- bankruptcy or insolvency ever cover person cannot relieve the insurer of any obligation under the policies. The fact that you are bankrupt insurance companies obligation to pay a third party claim it or you - changes in the policy can be made only in writing and may affect the premium charge. If the form is revised to provide more coverage without a premium increase, the policy you have you automatically provided - the insurance does not provide any coverage for any insured who made fraudulent statement or engaged in fraudulent conduct in connection with any accident or loss for which covered under the policy - and insured can I start legal proceedings against the insurer until they has been full compliance with all the terms of the policy - if a person who receives payment from the insured has the right to recover damages from another, then surely has the right to subrogation. Such a person must have to Insurance exercise its right and do nothing after I lost two presidents them - you can cancel the policy by returning to the show or providing Advance written notice of the date that cancellation is to take effect - then sure can cancel the policy at any time for non-payment of Premium. During the first 60 days the policy is in effect, they sure can't cancel pain 10 days notice for any reason, unless the policy is a renewal or continuation policy - if you have another policy issued by the company and both apply to the same accident, the max limit under all the promises will not exceed the highest applicable limited liability under any one policy - transfer of the interest in the policy may not be assigned without the insurer written consent, except when the insured dies. The surviving spouse or the legal representative of the insured will have courage and till the end of the policy. - the policies territorial limits are the US, its territories and possessions, Puerto Rico and Canada. Note that this does not include Mexico. If you don't want to buy Mexican Insurance. You will have it. Also, the coverage is limited to the policy period

Defense

- defense costs often run into the thousands of dollars, making this a significant benefit of liability insurance *if you are found liable, the insurer pays on your behalf to the plaintiff(s) up to the limit(s) of liability under the policy* - the insurance responsibility to defend and when the limit is reached (is paid in award or settlement to third-party claimants) - the insurance changed the right to settle claims without the insurance approval if it finds the this expedient - such actions keeps many cases out of court and reduces Insurance claim expenses - it can cause dissatisfaction, if the insured did not expect to have to settle

Personal automobile policy (PAP): definitions

- definitions of crucial elements of insurance policies because the meaning of a term May determine and a particular instance whether or not you have coverage - anytime found in quotations in the policy is defined Ex: this Pap defines "you" and "your" with the limitation or spouses that leave the residence, the spouses are not covered - *if the spouse ceased to be resident of the same household during the policy period or prior to the Inception of this policy, the spouse will be considered "you" and "your" under this policy but only until the earlier of*: *(1)* the end of 90 days following the spouses change of residency, *(2)* the effective date of another policy listen the spouse as a named insured, or *(3)* the end of the policy period -*"bodily injury"* occurs when there is bodily harm, sickness, or disease including a resulting death -*"property damage"* involves physical damage to, destruction of, or loss of use of tangible property -A "business" includes trade, profession, or occupation -*"family member"* means a resident of your household related to you by blood, marriage, or adoption ; includes a ward or foster child -*"occupying"* means in, upon, getting in, on, out or off -*"trailer"* means a vehicle designed to be pulled by a private passenger auto or pickup, panel truck, or van. Also means farm wag or farm implement being towed by one of the vehicles listed *"Your covered auto" includes the following: * - any vehicle shown in the Declarations -a "newly acquired auto" -any "trailer" you own -any auto or trailer you do not own while used as a temporary substitute for any other vehicle described in this definition that is outof normal use because of its breakdown, repair, servicing, loss or destruction

Supplementary payments

- in addition to the limit for liability, then Sharon will pay after $250 for the cost of bail bonds required because I'm an accident if the accident results in bodily injury or property damage covered by the policy - this would not cover the cost of a bond for a traffic ticket you receive when there is no accident - premiums on appeal bonds and bonds to release attachments are paid and in his suit the insurer defends - up to $200 a day for loss of earnings because of attendance at hearings or trials is also available

Liability Coverage-Part A: exclusions

-the wording of the insuring agreement of Part A provides for open perils liability coverage -some exclusions apply to unprotected persons and others apply to noncovered vehicles A. We do not provide Liability Coverage for any "insured" *(1)* who intentionally causes "bodily injury" or "property damage" *(2)* for "property damage" to property owned or being transported by that "insured" *(3)* for "property damage" to property: -rented to; -used by; or -in the care of; that "insured" This exclusion (A.3) does not apply to "property damage " *(4)* for "bodily injury* to an employee of that "insured" during the course of employment. This Exclusion (A.4) does not apply to "bodily injury" to a domestic employee unless workers comp benefits are required or available for that domestic employee *(5)* for the "insured" 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 share-the-expense car pool *(6)* while employed or otherwise in the "business" of: -selling -repairing -servicing -storing or -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: -you -any "family member" or -any partner, agent, or employee of you or any "family member"

Two types of modified no fault laws

1) *verbal threshold*: describes the types of injuries for which party at fault is considered liable 2) *monetary threshold*: a monetary limit under which the no fault is assigned -when the claim is over this amount, the fault system kicks in *add on plans*: auto insurance plans that offer compensation to an injured motorist through the individuals own insurer -an injured party can be compensated from his or her own insurer -the insurer can in turn sue the negligent driver

Medical payments- Part B

Coverage overlaps family health insurance coverage - your own family health insurance does not cover nonfamily members riding in your vehicle, so it is narrower than medical payments coverage

Liability Coverage-Part A

In the PAP, the liability insuring agreement can be paraphrased as follows: *we will pay damages for "bodily injury" or "property damage" for which any "insured" becomes legally responsible because of an auto accident. Damages include prejudgment interest awarded against the "insured". We will settle or defend, as we consider appropriate, and he claimed her suit asking for these damages. In addition to our limit of liability, will pay over the fence cost we incur...* *In the liability part of the PAP, the policy defines "insured" as the following:* 1) you or any family member, for the ownership, maintenance, or use of any auto or trailer 2) any person using your covered auto 3) for your covered Auto, any person or organization, but only with respect to Legal representative responsibility for Acts or omissions of a person for whom coverage is afforded under this part 4) for any auto or trailer other than recovered Auto, any person or organisation, but only with respect to Legal responsibility for Acts or omissions of you or any family member for home coverage is a 40 under this part. This provision applies only if the person or organization does not own or hire the auto trailer *the coverage for the car is the first insurance company that pays for the accident* -if the liability is larger, the other drivers policy picks up the rest

Other insurace

In the event of a loss while younare driving a friends car, your insurer will only pay the amount by which a claim exceeds the limit of your friends auto insurance -your friends insurance is *primary coverage* first payee in a situation where two or more coverages apply,and your insurance is excess coverage *the coverage on the vehicle is always primary* (EX: if you were driving a friends car whose insurance had expired and you were an insured under two policies, these two policies would share in any liability attributable to you on a pro rats basis)

Links between holistic risk pieces and auto policies

Injury risk Liability risk Car crash risk Disability risk

Single or split limits

Liability coverage under the PAP can be divided by use of an endorsement into two major sub parts: *bodily injury* - applies when they use of your car results in the injury or death of that students, passengers of other vehicles, or passengers of your automobile *property damage* - coverage applies when your car damages property belonging to others - although the first thing you probably think about under this coverage is the other person's car, this coverage could also cover street signs, fences, bicycles, telephone post, houses, and other types of property *single limit*: coverage under which the insurer will pay on your behalf for all losses up to a specified limit for any single accident, whether the losses are property-related or bodily -injury related -the only limit you are concerned with in this case the single, or aggregate, limit -once all losses equal this limit, you will have to bear the burden of any further Liability *split limit*: coverage under which the insurer applies a set of two limits to bodily injury and an single, aggregate to property damage -for bodily injury limits, one limit applies per person, per accident, and second limit is the total insurer will pay for liability to all persons injured in an -the limit for property damage: *Bodily injury*: $150,000 each person; $300,000each accident *Property damage*: $50,000 each accident Described as 150/300/50 *(Ex: if you caused an accident in which only one person was injured, the coverage is limited to $150,000 for that person. If the accident involved 6 people, each person is covered up to $150,000 but the total for all 6 cannot exceed $300,000. So if they are all badly injured, the limit for the accident may not be enough. An umbrella policy with high limits-such as $1 million- may be very valuable)*

Medical payments- Part B: exclusions

Medical coverage is similar to liability coverage because it is provided on an open peril basis *The exclusions are as follows:* - while occupying a motor vehicle with less than four wheels -while occupying your covered auto when it is being used as a public livery or conveyance -while occupying any vehicle located for use as a residence or premises -during the course of employment if workers compensation is available -while occupying or when struck by any vehicle (other than your covered auto) that is *(a)* owned by you or *(b)* furnished or available for regular use -while occupying or when struck by any vehicle (other than your covered auto) that is *(a)* owned by you or *(b)* furnished or available for regular use of any family member -while occupying a vehicle without reasonable belief that the insured is entitled to do so - while occupying a vehicle when it is being used in the business or occupation of a covered person, unless the vehicle is a private passenger auto, pickup, or van owned by the insured or trailer used with one of these means of transportation -caused by the consequence of nuclear weapons, war, civil war, insurrection, or rebellion or revolution -consequence of nuclear reaction to radiation or radioactive contamination -while occupying any vehicle located inside a facility designed for racing, for the purpose of *(a)* competing in or *(b)* practicing or preparing for any prearranged or organized racing or speed cintest

The fault system

Over half of the states have passed mandatory first party benefits (also known as no fault) laws *no fault*: insurance laws under which benefits are provided by insurers without regard to who caused the accident -requires that insurers compensate insureds for the insureds medical expenses, lost wages, replacement service costs, and funeral expenses incurred as a result of an automobile accident; collectively referred as *personal injury protection (PIP) and medical payments (Med pay)* *under the no fault concept, first party benefits such as PIP are provided without regard to fault as a way to avoid legal battles* (EX: if you were involved in a multicar accident where tort law applied, a lawsuit between the parties likely would result) -this suit would attempt to place blame for the accident, also placing financial responsibility for the losses incurred -under no fault, each inured party would receive compensation from his or her own insurance company -the no fault PIP or Med pay benefits extend first party coverage to expenses associated with bodily injury No fault are not uniform, but typically fall into 3 categories: *Pure no fault*: theoretical insurance laws that would pay only specific damages (economic losses, such as medical expenses and lost wages), but these would be unlimited *modified no fault*: rights to litigate are limited but not eliminated; generally suit can be brought against an automobile driver only when serious injury has resulted from the accident or special damages exceed a given dollar amount -for non serious injuries and those resulting in losses below the threshold, *only no fault benefits are available* -injuries resulting in excess of dollar threshold, permit the injured party to take legal action, including claims for general damages (such as pain and suffering)

Personal automobile policy (PAP)

The automobile insurance contract purchased by most individuals - it begins with declarations page, General insuring agreement, and a list of important definitions *these are followed by the policies six major parts:* -Part A: liability coverage -Part B: medical payments coverage -Part C: uninsured motorists coverage -Part D: coverage for damage to your auto -Part E: Duties after an accident or loss -Part F: general provisions - each of the four first parts has its own insuring agreement, exclusions, and other insurance Provisions, but most conditions are in parts E &F - in a sense, each of the first four parts is a separate policy and the pap in the package that brings them all together

Medical payments-Part B: limit of liability

The limit of liability for medical payments is on a per person basis, such as $5,000 per person - this is the max limit of liability for each person injured in any one accident -if you have two autos insured, with a medical payments limit fir each shown on the declarations page, you cannot add all (stack) the limits together -it may appear that you have $10,000 in medical payments coverage because you have $5000 on each vehicle, but such is not intended by the insurer *when there is other applicable auto medical payments insurance, your policy will pay on a pro rata basis* - with respect to non owned automobiles, PAP, is excess that is, it pays only after the limits of all other applicable insurance have been exhausted

Coverage for damage to your auto-Part D: other provisions

The limit of liability is the lesser of the actual cash value of the stolen or damaged property or the amount necessary to repair or replace - the insurer Reserves the right to pay for the loss and money or repair or replace the damaged property - there are limits as described in the policy, $500 for a non-owned auto and $1,000 for equipment designed solely for the reproduction of sounds - for payment of loss, the insurance will repair or replace the damaged property - if the stolen property is returned damaged, the insurance will pay it *the no benefits of Bailee provision says, "this insurance shall not directly or indirectly benefit any carrier or other Bailee for hire"* - if your car is damaged or stolen while in the custody of a parking lot or Transportation Company, your insurer will pay you and then have the right of subrogation against the negligent Bailee - if other insurance covers a loss, your insurance will pay it shared on a pro-rata basis

Duties after an accident or loss-Part E

What an accident or loss occurs, you must notify the company property, indicating how, when, and where it happened - notice should include the names and addresses of any injured persons in any Witnesses - you can notify your agent or call the company *You must also comply with the following conditions:* - cooperate with the insurance in the investigation, settlement, or defensive any claim or suit - promptly send the company copies of any notices or legal papers received in connection with the accident or Lowe's - submit, as often as reasonably required and at the insurers expense, to physical exams by physicians in selects, as well as examinations under oath - authorized the company to obtain medical records and other pertinent records - submitted proof of loss when required by the insurer - a person seeking uninsured motorist coverage must also notify the police promptly if a hit-and-run driver is involved and some copies of the legal papers if the suit is brought - the requirement that you notify the police concerning ahead and run it to discourage you from making such an allegation when, in fact, something else caused your accident *If an accident causes damage to your car, or if it is stolen, you must also fulfill the following duties:* - take reasonable steps after loss to protect the auto and its equipment from for the loss (the company will pay for reasonable cost involved and complying with this requirement) - notify the police property if your car is stolen - permit the company to inspect and appraise the damaged property before it's repair or disposal - first duty means that you cannot just walk off and abandon your automobile after an accident. If you do it may very well be stripped as in the abandoned car - second Duty: prompt notification of the police in the event of theft, increases the probability that stolen property will be covered. This requirement also reduces moral hazard involved

Medical payments-Part B: other insurance

any amounts payable by this coverage are reduced by any amounts for the same expenses under Part A (liability) or Part C (uninsured motorists) *a passenger in your car who is injured cannot recover under both liability and medical payments coverage for the same losses* -nor can you recover under both medical payments and the uninsured motorists coverage -inured parties are entitle to indemnity but not double payment - - -

Uninsured motorists coverage-Part C: exclusions

includes: -involving an undeclared motor vehicle owned by you or any family member -while using a vehicle without reasonable belief of permission -when there is other coverage, such workers comp or disability benefits -not applicable to punitive damages exclusion B1 denies payment to a covered person "if that person or the legal rep settles bodily injury claim without or consent" -just b/c a negligent driver is an uninsured motorist, he or she is not free from liability -the insurer does not want its subrogation rights to be affected by agreements btwn the insured and the negligent river, which could include collusive and fraudulent situations

Medical payments- Part B: insuring agreement

insurer agrees to pay reasonable expenses incurred within 3 years from the date of an accident for nessary medical and funeral services because if bodily injury caused by an accident and sustained by a covered person -*covered person:* you or any family member, while occupying, or as a pedestrian when struck by, a motor vehicle designed for use mainly on public roads or a trailer of any type -also any other person occupying your covered auto - you or a family member would be covered by your PAP medical payments protection while occupying a nonowned car, but other passengers in the vehicle are not -no benefits are paid if you are struck by a machine not designed for use on the highway, such as a farm tractor

no fault appraised

interest i no fault free from the belief that the tort system is slow, erratic in its results, and expensive considering the portion of the premium dollar used to compensate persons injured in automobile crashes if tort system could be bypasses, all the expense of the process-including costs of defense and plaintiffs counsel- could be eliminated -make more dollars available for compensation at no additional costs to insureds and perhaps reduce the cost of insurance

Uninsured motorists coverage-Part C

pays for bodily injury (and property damage in some states) caused by an accident with another vehicle whose driver is negligent and *(1)* has no liability insurance or less than required by law, *(2)* was hit and run driver, or *(3)* is a driver whose insurance company is insolvent *covered persons:* you or any family member, any other person occupying your covered auto, and any other person entitled to recovery because of bodily injury to a person in the first two categories -min coverage is the amount required to comply with your states financial responsibility or compulsory insurance law -if you purchase increases amounts of uninsured motorist coverage, you are eligible to buy under insured motorists coverage

Coverage for damage to your auto-Part D: exclusions

the remaining exclusions are dominated by limitations on coverage for auto equipment -Exclusion 4 omits coverage for electronic equipment, including radios and stereos,tape decks, cd systems, navigation systems, internet access systems, personal computers, telephones and more -does not apply to electronics that are permanently instilled in the car *Exclusions:* We will not pay for: 1) *loss to "your covered auto" or any "nonowned auto" which occurs while it is being used as a public or livery conveyance.* This Exclusion (1.) does not apply to a share-the-expense-car pool 2) *damage due to confined to:* a. wear and tear b.freezing c. mechanical or electrical breakdown or failure, or d. road damages to tires This Exclusion(2. does not apply if the damages results from the total theft of "your covered auto" or any "nonowned auto" 3) *loss due to or as a consequence of* a. radioactive contamination b. discharge of any nuclear weapon (even if accidental) c. war (declared or undeclared) d. civil war e. insurrection; or f. rebellion or revolution - - - - - - - - -