Chapter 6 Personal Auto Policy
If a loss is caused by a _______, the insurance company will only pay transportation expenses incurred during the period that begins 48 hours after the theft & ends when the auto is returned to use or the insurance company pays for the loss. Payments begin 24 hours after loss caused by all other covered perils.
total theft of the covered auto or a non-owned auto
____ IS covered under Part C - Uninsured Motorist Coverage.
Accident was caused by a hit-&-run driver
_____ is NOT part of the limit of liability, is the most paid by the insurance company regardless of number of insureds, premiums shown or number of vehicles involved.
Amount of surcharge to be applied to the policy
The process of ____ is used when the insurance company & the insured do not agree on the recovery of damages or the amount recoverable by the insured. Each party selects an arbitrator who then jointly select a third arbitrator who determines the insured's amount of damages.
Arbitration
Bodily harm, sickness, or disease, including death that results.
Bodily Injury
____ is the upset of the covered vehicle or a non-owned auto or its impact with another vehicle or object.
Collision
____ are accidents involving an owned vehicle that is uninsured, a vehicle while being used as a public or livery conveyance, the insured using a vehicle without the reasonable belief of entitlement to drive it, using a vehicle while engaged in business, when Workers' Compensation benefits apply & punitive or exemplary damages.
Excluded under part C
A ____ is any private passenger auto, pickup, van or trailer not owned by, furnished to, or available for the regular use of the named insured or a family member, while being used by the named insured or a family member.
Non-owned auto
The Part D ____ loss is the lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind & quality. Part D does not pay for betterment.
Limit of liability
Under ______, the insurance company will pay reasonable expenses incurred within 3 years of the accident. The limit applies per person & payments are only made for necessary medical & funeral services caused by the accident.
Medical Payments Coverage
____ provides open perils coverage for loss caused by any peril that is not excluded in the policy.
Other Than Collision (OTC, Comprehensive)
______ include an insured occupying a vehicle with fewer than 4 wheel, using a vehicle as a public or livery conveyance or a residence, struck by an uninsured vehicle owned or furnished to an insured family member, using a vehicle without the reasonable belief of entitlement to drive it, using a vehicle while engaged in business or when Workers' Compensation benefits apply, or injuries sustained due to war, nuclear hazard or racing.
Part B, Medial Payment exclusions
_____ provides insurance to persons injured i accidents caused by another party who is legally responsible for injuries to an insured that arise out of the ownership, maintenance or use of an uninsured motor vehicle.
Part C - Uninsured Motorists Coverage (UM)
_____, also known as the physical damage coverages collision & other than collision, pays for direct & accidental damage, regardless of fault, to the insured's covered vehicles & non-owned autos.
Part D - Coverage for Damage to Your Vehicle
_____ include an insured vehicle being used as a public or livery conveyance; damage as a result of wear & tear; freezing; mechanical breakdown; road damage to tires; war or nuclear hazard; tapes, disks, or other media; & electronic equipment unless it;s permanently installed in the vehicle.
Part D exclusions
______ include prompt notification of any claims & legal papers received; cooperation in the claims investigation & settlement; submission to a physical exam; authorization for the insurance company to obtain copies of medical reports & records; submission of requested proof of loss; notification to the police is a hit-&-run driver is involved & protection of property from further damage.
Part E - Duties After an Accident or Loss
_____ include bankruptcy or insolvency of an insured' changes to the policy; fraud; legal action against the insurance company; right to recover payment; policy period & territory; policy termination provisions; transfer of the insured's interest in the policy; & accident payments involving two or more insured auto policies.
Part F - General Provisions
Medical payments coverage applies, ______, to any insured occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads.
Regardless of fault
____ is NOT covered under Comprehensive
Rollover
____ for the personal auto policy include Extended Non-Owned Coverage for a Named Individual, Towing & Labor Costs Coverage Endorsement, Miscellaneous Type Vehicle Endorsement, Named Non-owner Coverage for a Named Individual, Excess Electronic Equipment Coverage, Limited Mexico Coverage, Optional Limits Transportation Expenses Coverage & Joint Ownership Coverage Endorsement.
Selected Endorsements
If a loss is covered under more than one Part of the policy, payment will not be duplicated or ____.
Stacked
____ coverage pays for the cost of transportation expenses incurred as a result of a covered collision or other than collision cost. No deductible applies & the limit of coverage is up to $20 per day, or a total of $600.
Transportation expenses
_____ covers the insured against drivers who have auto liability insurance but the coverage limits are inadequate. ____ coverage will pay the amount over the at-fault driver's coverage up to the ____ limit.
Underinsured Motorists Coverage (UIM)
If the insurance company makes a claim payment, the person on behalf of whom payment was made must assign its right to recover damages from another party to the insurance company. If a claimant recovers from another party after the insurance company has made payment, the claimant must reimburse the insurance company.
Right to Recover Payment
Extended Non-Owned Coverage for a Named Individual Towing & Labor Costs Coverage Endorsement Miscellaneous Type Vehicle Endorsement Named Non-Owner Coverage for a Named Individual Excess Electronic Equipment Coverage Limited Mexico Coverage Optional Limits Transportation Expenses Coverage Joint Ownership Coverage Endorsement
Selected Endorsements
The amounts of coverage for bodily injury & property damage are separate. Split limits are expressed using 3 separate limits: a bodily injury (BI) limit per person, a bodily injury (BI) limit per accident, & separate limit of for property damage (PD) per accident. If Part A of a policy is written with limits of 100/300/50, the policy will provide of $100,000 per person for BI with a maximum BI aggregate limit of $300,000 per accident. Additionally the policy will provide a $50,000 limit for PD per accident.
Split Limits
After an automobile policy has been in effect for 60 days, the insurance company may cancel the policy, except when ______.
Submission of four or more claims during a single policy period.
In addition to the limit of liability, the insurance company also makes other payments: if a bail bond is required because of an accident, the policy will pay up to $250 for the cost of the bail bond so long as the accident resulted in a covered bodily injury or property damage claim. If defending a suit, the insurance company will pay premiums on appeal bonds & bonds to release attachments. Any interest that accumulated after a judgement has been entered will also be paid by the insurance company if it defends a suit. The policy pays up to $200 a day for loss of earnings because the insurance company requests attendance at hearings or trials. This does not include loss of other earnings. The policy will also pay for reasonable expenses incurred at the insurance company's request. This does NOT include traffic fines.
Supplementary Payments
The ____ under Part A - Liability Coverage include the cost of bail bonds, post-judgement interest, loss of earnings & reasonable expenses while assisting the insurance company in the defense of a claim.
Supplementary Payments
A ______vehicle is covered vehicle when Your Covered Auto is being repaired due to a covered loss.
Temporary Substitute
A _____ is a non-owned vehicle used in the place of an insured vehicle that is out of normal use due to breakdown, repair, servicing, loss or destruction.
Temporary substitute vehicle
The policy may be terminated by either the named insured or the insurance company.
Termination
This endorsement provides payment, at the designated amount, for towing to a garage or for labor performed at the site of disablement. The coverage applies per occurrence & to either a Your Covered Auto or the insured's use of a non-owned auto.
Towing & Labor Costs Coverage Endorsement
A vehicle designed to be pulled by a private passenger auto or a pickup or van. Trailer also includes a farm wagon or farm implement while it's being towed by a private auto pickup or van.
Trailer
The named insured may not transfer or assign his/her interest in the policy without the insurance company's written consent. However, if the named insured died, the resident spouse will automatically become the named insured. By the same token, if the named insured dies, his/her legal representative will automatically becomes the named insured but only with respect to legal responsibility for maintenance or use of any Your Covered Auto. This automatic coverage is provided until the end of the policy period.
Transfer of Your Interest in This Policy
The insurance company will pay, without application of a deductible, a maximum of $20 per day, up to $600, for transportation expenses incurred because of a collision or comprehensive loss. If the damaged auto is a non-owned auto, coverage only applies if the insured is legally responsible for the loss. If the loss caused by a total theft of the covered auto or a non-owned auto, the insurance company will only pay expenses incurring during the period beginning 48 hours after the theft, & ending when the auto is returned to use or the insurance company pays for the loss. If the loss is caused by a peril other than theft of the auto, the insurance company will only pay expenses beginning when the auto is withdrawn from use for more than 24 hours.
Transportation Expenses
If two or more policies issued by the same insurance company apply to the same accident, the maximum limit of liability that will be paid will not exceed the policy with the highest limits.
Two or More Auto Policies
This coverage is slightly different from Uninsured Motorists Coverage,& may be required by state statutes as part of the Uninsured Motorists Coverage. In other states, coverage is optional or added by endorsement. Underinsured Motorists Coverage (UIM) protects the insured against drivers who do have auto liability insurance, but whose coverage limits are inadequate or insufficient to respond to claims. This coverage pays only up to the amount that exceeds the limit of liability of the at-fault party.
Underinsured Motorists Coverage (UIM)
No coverage is provided for nay insured who commits ____, makes fraudulent statements, or engages in fraudulent activity with respect to a claim for any accident or loss.
Fraud
Under Part D, within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage?
14 days
If an insurance company non-renews an insured's policy for underwriting reasons, ____ is the minimum number of days' notice to the insured.
20
Includes trade, profession, or occupation. The courts have determined that business activities have two components: they are continuous in nature & offer the opportunity for profit.
Business
A medical Payments claim will be paid by the insurance company within how many months from the date of the occurrence?
36
A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration?
6
____ is NOT considered an uninsured motor vehicle.
A company car
If the insured & the insurance company are unable to agree about the amount of a loss, either party may demand an appraisal. Each party selects, & pays for, its own appraiser. The appraisers prepare separate appraisals of the ACV & amount of loss. If they fail to agree, they select an umpire to whom they submit their difference. If any two of the three parties agree, that decision is binding. The insured & insurance company share the expenses of the umpire & appraisal.
Appraisal
If the insurance company & the insured do not agree on the recovery of damages or the amount recoverable by the insured, each party may select an arbitrator (at each party's expense) who then jointly select a third arbitrator (with the expense split equally by each party). A decision agreed upon by the arbitrators will be binding as to the insured's entitlement to & the amount of, damages.
Arbitration
The policy automatically terminated if the insured, or a legal representative, fails to accept or pay for a renewal or continuation of the policy. In addition, coverage automatically terminates if the named insured secures other auto insurance on an auto shown on the declarations.
Automatic Termination
____ or insolvency of an insured does not relieve the insurance company of its obligations under the policy. If the insured declares ____, the insurance company must still comply with all obligations of the policy.
Bankruptcy
This endorsement amend the definition of "you" & "your" to refer to 2 or more individuals, other than husband & wife, who reside in the same household, or to non-resident relatives who jointly own the insured vehicle. Non-resident relatives.
Joint Ownership Coverage Endorsement
The named insured may cancel the policy for any reason by either returning it to the insurance company or giving the insurance company advance written notice of the date the cancellation is to take effect. During the first 60 days of a new policy, an insurance company may cancel the policy for any reason by mailing notice to the named insured shown on the declarations. Notice of at least 10 days is required for cancellation due to non-payment of premium, & at least 20 days advance written notice for all other reasons. After the policy has been in effect for 60 days, the insurance company may cancel only for the following reasons: non-payment of premium. The policy was obtained through fraud & material misrepresentation, meaning the application contained false information &, had the insurance company been provided with accurate information, would not have issues the policy. Suspension or revocation of the driver's license of the named insured, any driver who is a household resident of the named insured, any driver who regularly uses a Your Covered Auto. State law will supersede this provision.
Cancellation
No changes may be made unless they are contained in a written endorsement issues by the insurance company. The insurance company may also adjust the policy premium if changes occur that affect information that determines premium rates, such as number or type of vehicles insured, drivers of insured vehicles, the overnight locations of vehicles, & insurance coverages, deductibles, & limits of liability. If the insurance company makes a change that broadens coverage under the current edition of the insured's policy, & the changes doesn't generate a premium charge, the change automatically applies to the insured's policy.
Changes
The upset of the covered vehicle or a non-owned auto, or its impact with another vehicle or object, such as a tree. Collision is the single named peril in the policy.
Collision
The limit of the policy may applied to bodily injury (BI) &/or property damage (PD). A combined single limit policy has a maximum aggregate per accident, regardless of the type of loss (BI or PD).
Combined Single Limit
A _____ is any vehicle shown in the Declarations, a newly acquired auto, any trailer the insured owns, or a non-owned auto or trailer while being used as a temporary substitute vehicle.
Covered Auto
What is he purpose of the Extended Non-Owned Coverage for a Named Individual endorsement?
Covers non-owned vehicles furnished for the insured's regular use
This endorsement provides coverage for electronic equipment that is permanently installed in the vehicle in a location not used by the auto manufacturer. Coverage increases the policy limit from $1,000 to the amount shown on the endorsement. Includes $200 of coverage for tapes, records, discs & other media used with covered excess electronic equipment.
Excess Electronic Equipment Coverage
This endorsement provides coverage by removing or altering some of the Personal Auto Policy's exclusions or limitations. The endorsement covers non-owned autos furnished or available for the insured's regular use. The endorsement provides excess liability coverage, for the individual named on the endorsement & for the business use of a commercial type vehicle that the named insured does not own. The endorsement can be used to provide excess liability coverage for the use of a vehicle a a public or livery conveyance. An extra premium charge applies for liability & medical payments purchased by this endorsement.
Extended Non-Owned Coverage for a Named Individual
A ______ is a person related to the named insured by blood, marriage or adoption, including a ward or foster child who is a resident of the household.
Family Member
A person related to the named insured by blood, marriage or adoption who is a resident of the named insured's household. A family member includes a ward or foster child.
Family Member
When the policy is certified as future proof of financial responsibility, the policy shall comply with the law to the extent required.
Financial Responsibility
Part C - Uninsured Motorists Coverage (UM) provides insurance to insured persons injured in accidents that are caused by another party. The other party must be legally responsible for bodily injury to an insured that arises out of the ownership, maintenance,or use of an "uninsured motor vehicle." If the other party is NOT legally responsible (or not at-fault), this coverage doesn't apply. The insurance company will pay damages that an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury. Unless the policy specifically states that Uninsured Motorist Physical Damage (UMPD) is also provided, this section of the policy only applies to bodily injury damages. In addition to the definition of "insured" that applies to the entire policy, the definition of "insured" for UM means: the named insured or any family member. Any person occupying a "your covered auto." Any person who is entitled to recover damages because of bodily injury sustained by an insured & covered by the policy. For example, if Sue sustains bodily injury in an accident caused by an uninsured motorist, her children will be entitled to recover damages for loss of care when Sue is unable to care for them because she broke both her legs in the accident.
Insuring Agreement
No legal action may be taken against the insurance company by anyone unless he/she has complied fully with the policy. In addition, no one may sue the insurance company until it agrees in writing that the insured has a legal obligation to pay for damages.
Legal Action Against the Insurance Company
Part D - Coverage for Damage to Your Auto pays for direct & accidental damage, regardless of fault, subject to the policy's exclusions - & those contained in this coverage part. Covered vehicles are Your Covered Auto & non-owned autos. Part D of the policy is the only section that defines non-owned auto. A deductible applies & will be the amounts shown on the declarations for Collision coverage & Other Than Collision coverage, which is also known as comprehensive coverage. The deductibles for Collision & Other Than Collision coverages need not be the same. If this coverage pays for damage to a non-owned auto, the broadest coverage appearing on the Declarations will apply. The policy defines non-owned auto as: any private passenger auto, pickup, van or trailer not owned by, furnished, or available for the regular use of the named insured or a family member, while being used by the named insured or a family member. Any auto or trailer being used as a temporary substitute for the covered auto, while the covered auto is out of normal use due to: breakdown, repair, servicing, loss, destruction.
Insuring Agreement
The insurance company will pay reasonable expenses incurred for necessary medical & funeral services caused by an accident, sustained by an insured, & incurred within 3 years of the accident. Unlike Liability Coverage, Medical Payments Coverage does NOT require an insured to be legally responsible for causing injuries. The policy defines insured in Part B, as: the named insured or any family member occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads. These vehicles do NOT have to be owned by the insured & include any type of trailer. Any other person, such as a passenger, while occupying the insured auto.
Insuring Agreement
The insurance company will: pay damages for bodily injury or property damage for which any insured becomes legally responsible. Settle or defend any claim or suit asking for such damages. Pay all defense costs it incurs, in addition to the liability limits. The insurance company's duty to settle or defend ends when the limit of liability is exhausted. The insurance company will not defend or settle any suit or claim that is covered under this policy. The policy defines insured in Part A as: the named insured or any family member for the ownership, maintenance, or use of any auto. Any person using the covered auto with permission. A person or organization, for "your covered auto," if legally responsible for an insured.
Insuring Agreement
_____ contains a definition for "uninsured motor vehicle." An uninsured motor vehicle is one that: doesn't have insurance or a bond in place at the time of the accident. Has insurance in place at the time of the accident. However, the bodily injury liability limits are less than those required by the financial responsibility or compulsory insurance laws in place in the state where the insured's "your covered auto" is principally garaged. Is a hit-&-run vehicle. The owner or operator of the vehicle can't be identified AND must hit: the named insured or a family member, a vehicle occupied by the named insured or a family member; or "your covered auto." Has insurance, but the insurance company either denies the claim or becomes insolvent. The following types of vehicles are NOT included in the definition of "uninsured motor vehicle." A vehicle that's owned by the named insured or a family member OR vehicle that's furnished or available for the regular use of the named insured or a family member, such as a company car. A vehicle that is owned or operated by someone who is self-insured, unless the owner or operator is or becomes insolvent. A vehicle owned by any government agency. A vehicle owned by any government agency. A vehicle that operates on rails or crawlers treads, such as a train or piece of mobile equipment like bulldozer. A vehicle designed mainly for use off public roads, such as a snowmobile or ATV. A vehicle permanently located for use as a residence, such as a motor home or trailer in a campground.
Insuring Agreement
The ____ shown in the Declarations is the maximum the insurance company will pay for each person injured in any one accident. This is the most the policy will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the declarations, or vehicles involved in the accident. if the loss is covered under more than one Part of the policy, payment will not be duplicated.
Limit of Liability
The insurance company's _____ for loss is the lesser of the ACV of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind & quality. In the event of a total loss, adjustments will be made for depreciation & physical condition when determining the ACV. If a repair or replacement results in better than like kind or quality, the insurance company will not pay for the amount of the betterment. There is a maximum limit of $1,500 for a non-owned trailer & $1,000 for certain electronic equipment.
Limit of Liability
The limit of liability is shown in the declarations is the maximum the insurance company will pay in any one accident. This is the most the insurance company will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the declarations, or vehicles involved in the accident. If the loss is covered under more than one Part of the policy, payment will not be duplicated.
Limit of Liability
The maximum limit paid under Part A - Liability Coverage is shown on the policy's declarations. That limit applies per accident for all bodily injury & property damage arising from that one accident, including damages for care, loss of services & a death. The limit shown in the declarations is the most the insurance company will pay in any one accident, regardless of the number of: insureds, claims made, vehicles or premiums shown in the declarations, vehicles involved in the accident. If the loss is covered under more than one part of the policy, payment will not be duplicated. Personal auto policies may have liability limits written as: Special Limits or Combined Single Limit.
Limit of Liability
This endorsement provides coverage on an excess basis & only for losses & accidents that occur in Mexico & within 25 miles of the U.S. border. In addition, coverage only applies if the insured's visit to Mexico is of 10 or fewer days duration. Coverage only applies if existing liability insurance is in place & was issued by a licensed Mexican insurance company. No coverage is provided for anyone who is a citizen or resident of Mexico.
Limited Mexico Coverage
The _____ under Part A - Liability Coverage is shown on the policy's declarations & applies per accident for all bodily injury & property damage arising from one accident, including damages for care, loss of services & death.
Maximum Limit Paid
This endorsement is used when the insured wishes to increase the limits of liability for transportation expenses that are provided in the personal auto policy ($20 per day, $600 maximum). The vehicle is described on the schedule along with the increased daily limit & the increased maximum limit. The endorsement does NOT change or broaden the insurance that is provided for Transportation Expenses in Part D - Coverage for Damage to Your Auto.
Optional Limits Transportation Expenses Coverage
This endorsement change the policy by adding a definition for "miscellaneous type vehicle," which means a motor home, motorcycle or other similar type vehicle, ATV, dune buggy, or golf cart. In addition, to the definitions section of the policy, the endorsement amends "your covered auto" & "newly acquired auto" to include any "miscellaneous type vehicle" shown on the endorsement. The definition does not include snowmobiles. Various exclusions under Parts A, b & D are also amended to remove exclusions for damage to, & injuries arising out of, vehicles having fewer than 4 wheels & vehicles designed mainly for off-road use. The endorsement excludes coverage for any non-owned vehicles, other than a temporary substitute vehicle.
Miscellaneous Type Vehicle Endorsement
The ____ is listed in the declarations & includes the spouse if a resident of the same household.
Named Insured
This endorsement provides liability,medical payments, & uninsured motorists coverage for individuals who do not own vehicles, but often borrow or rent autos. The endorsement is also designed for individuals who need to prove financial responsibility. Definitions are amended by this endorsement, which also amends certain exclusions. Part D - Coverage for Damage to Your Auto is NOT provided by this endorsement. The endorsement covers only the person named in the endorsement; a spouse & family members may be included if that option is selected on the endorsement. The endorsement provides only Liability, Medical Payments & Uninsured Motorists Coverages.
Named Non-owner Coverage for a Named Individual
Any of the following types of vehicles for which the insured becomes the owner during the policy period: a private passenger auto. A pickup or van, for which no other insurance policy provides coverage, if the auto: has a gross vehicle weight of 10,000 pounds or less. It is not used for delivery or transportation of goods & materials, unless such use is incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment. For example, if the insured is a plumber, he may use his pickup or van for the transportation of his tools. For all coverages EXCEPT Part D - Coverage for Damage toy our Auto, coverage begins on the date the named insured becomes the owner. If newly acquired auto is an additional vehicle, insured must report to insurance company within 14 days. A replacement auto for another with all coverages except collision & comprehensive (other than collision) is covered for liability & medial payments for the remainder of the policy period, even if the insured does not report the replacement.Under the Part D - Coverage for Damage to your Auto automatic coverage begins on the date the named insured becomes the legal owner of the vehicle. The insured must report the newly acquired auto to the insurance company for coverage to continue. If the insured doesn't report as required, coverage ends after either 4 or 14 days. If the declaration page indicates that either Collision or Other than Collision coverage applies to at least one vehicle, the insured has 14 days if the insured doesn't report. If the declarations page indicates that NO collision or Other than Collision coverage applies to at least one vehicle, the insured has 4 days to report for coverage to apply. Automatic coverage ends after 4 days if the insured doesn't report.
Newly Acquired Auto
A ______ is one to which the named insured takes title & either replaces an existing vehicle owned by the named insured, or a vehicle that increases the total number of vehicles owned by the named insured.
Newly acquired auto
If a bailment relationship exists with respect to the covered vehicle, the policy will not make payment for the benefit of anyone who had care, custody or control of the covered auto. For example, if the insured's vehicle was in the repair shop for servicing & the mechanic damaged the vehicle. this policy wouldn't make payment; the repair shop's insurance would have to pay because of its legal liability as a bailee.
No Benefit to Bailee
The insurance company may elect to non-renew a policy; if non-renewing the policy, the insurance company must give the insured written notice before the end of the policy period. At least 20 days advance written notice must be provided (some states require 30, 45 or 60 days notice). In most cases, state law requires the insurance company to list the reason for non-renewal on the notice. State law prevails.
Non-renewal
2 or more persons related by blood, marriage or adoption who reside in separate households. This includes a ward or foster child.
Non-resident relatives
Means in, upon, getting in, getting on, getting out, or getting off a vehicle.
Occupying
If more than one policy is in place & provides UM, the total amount the insured may collect cannot exceeds the highest limit applying to any one vehicle. For example, if the insured's limit are 100/300 & the limits on the other policy are 50/100, the most the insured may collect is 100/300. If the loss occurs while the insured is occupying a non-owned vehicle, the policy covering the non-owned vehicle is primary & the insured's coverage is excess. If more than one policy applies, the insurance company pays only its share of the loss, which is the proportion that its limit of liability bears to the total amount of all applicable coverage.
Other Insurance
If other auto liability insurance is in place at the time of the loss, the personal auto policy will only pay its share of the loss. That share is the proportion the policy's limit bears to all insurance in place. For example, if the policy provides $100,000 of property damage liability insurance & another policy will only pay 1/2 of the liability loss. Because the total insurance in place is $200,000 & the limit of liability provided by the insured's policy is $100,000, the insured's policy pays 1/2 of the total insurance in place. This policy pays liability losses on an excess basis for non-owned vehicles. For example, the covered loss involved a car the insured borrowed from his neighbor. The insurance in place on the neighbor's car must pay first (it's primary insurance) & then this policy will pay (it's excess insurance).
Other Insurance
If there is other applicable auto Medical Payments insurance, the insurance company will pay only the proportion that its limit of liability bears to the total of all applicable limits. However, coverage for non-owned vehicles shall be excess over any other collectible auto insurance providing payment for medical or funeral expense.
Other Insurance
If other insurance is in place, or if another party is available to make payment for a covered loss, this policy only pays its proportionate share of the loss (as we've seen in the other coverage parts.) If a loss occurs & the covered auto is a non-owned auto, this policy will pay on an excess basis. Primary coverage is considered insurance provided by the vehicle's owner, any other insurance purchased by the driver of the vehicle.
Other Sources of Recovery
Proof of mailing any notice constitutes sufficient proof of notice. If the policy is cancelled, the insured may be entitled to a premium refund. If so, the insurance company will send the refund. The effective date of cancellation stated in the notice will become the end of the policy period.
Other Termination Provisions
Provides coverage on an open perils basis, which means all causes of loss other than a collision loss & not excluded in the policy. OTC, or Comprehensive, includes but is not limited to the following causes of loss: missiles or falling objects, fire, theft or larceny, explosion or earthquake, windstorm, hail, water, or flood, including a flash flood, VMM, riot or civil commotion, contact with a bird or an animal, breakage of glass (if caused by an accident, this loss may be applied to collision coverage instead, in order to avoid a double deductible.)
Other Than Collision (OTC, Comprehensive)
If _____ applies at the time of the loss, the personal auto policy will only pay its share of the loss in the proportion the policy's limit bears to all insurance in place.
Other insurance
When a "your covered auto" is being driven outside the state in which it is principally garaged (& also within the coverage territory), Part A - Liability Coverage extends to provide coverage as required by the financial responsibility or compulsory insurance laws of that state or Canadian province. For example, if the insured's policy doesn't provide Personal Injury Protection (PIP) coverage & the state in which the vehicle is being driven requires it, the insured's personal auto policy will provide PIP coverage at required limits while insured is in that state.
Out of State Coverage
When a covered auto is driven ______ in which is it principally garaged, Part A - Liability Coverage extends to provide coverage required by the financial responsibility or compulsory insurance laws of that state or Canadian province.
Outside the state
Insuring Agreement Supplementary Payments Part A Exclusions Limit of Liability Out of State Coverage Financial Responsibility Other Insurance
Part A - Liability Coverage
Is using a vehicle while employed or engaging in business. However, a coverage giveback applies to private passenger autos, pickups, vans, & owned trailers used with such vehicles. Is using a vehicle without the reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a "your covered auto" under this coverage. Liability coverage is not provided for the ownership, maintenance or use of: vehicles that have fewer than 4 wheels, such as motorcycles. Vehicles designed mainly for use off public roads, such as snowmobiles or ATVs. An exception applies for off-road vehicles used by an insured in a medical emergency, "trailers," or non-owned golf carts. Vehicles owned by the insured that are not insured on this policy OR not owned by the insured but are furnished to the insured or available for the family member's regular use, such as company car. Vehicles located inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest.
Part A Exclusions
Liability coverage is not provided for any insured who: intentionally causes bodily injury or property damage. Causes property damage to property he or she owns or is transporting. Causes property damage to property rented to, used by or in the care of that insured. An exception exists for damage to a residence or private garage - this is the care, custody or control exclusion. Is responsible for causing bodily injury to an employee (of that insured) during the course of employment by that insured. Owns or is operating a vehicle while it's being used as a public or livery conveyance (meaning it has been hired out to the general public). A vehicle used in the share-the-expense car pool is not considered a public or livery conveyance. Is employed or engaged in the business of selling, repairing, servicing, storing, road testing or parking motor vehicles. An exception exists if the vehicle is being used by an insured, a family member, or a partner or employee of these. For example, Mary's son is a mechanic. If he's test-driving Mary's car & crashes it, the exception to the exclusion applies - meaning he has coverage. However, if his co-worker crashed Mary's car, the exception doesn't apply because the co-worker is not related to Mary, nor is he her partner or employee.
Part A Exclusions
_____ include bodily injury or property damage intentionally caused by an Insured; property in the insured's care, custody & control; bodily injury to an insured's employee while working for the insured' using a vehicle while engaged in business; & a vehicle used by a person without the reasonable belief of entitlement to drive it.
Part A Exclusions
____ does not apply to vehicles with fewer than 4 wheels, vehicles that are owned but not insured, uninsured owned by family members; vehicles furnished for the regular use of the named insured or family members; & vehicles inside a racing facility used for competing in, practicing in, or preparing for a race.
Part A Liability
Insuring Agreement Part B Exclusions Limit of Liability Other Insurance
Part B - Medical Payments Coverage
Although legal liability on the part of an insured is not required for Medical Payments Coverage to apply, bodily injury sustained by an insured is NOT covered under the following circumstances when an insured: is occupying a vehicle with fewer than 4 wheels. Is occupying any vehicle being used as a public or livery conveyance. A share-the-expense car pool is NOT public or livery conveyance. Is occupying any vehicle that is located for use as a residence or premises - for example, living in one's car or permanently located motor home or trailer used as a residence. Sustains bodily injury in the course of employment & Worker's Compensation benefits are either required or available. Is occupying or struck by a vehicle owned by the insured that is not a "your covered auto" & is either owned by the insured OR furnished to the insured or available for the insured's regular use, such as a company car. Is occupying or struck by a vehicle owned by a family member that is not a "your covered auto" & is either owned by a family member OR furnished to a family member or available for the family member's regular use, such as a company car.
Part B Exclusions
Is using a vehicle without having reasonable belief that he/she is entitled to drive the car. Is using a vehicle while engaged in business; however, a coverage giveback applies to private passenger autos, pickups, vans & owned trailers used with such vehicles. This exclusion applies to the business use of trucks & other commercial vehicles. Injuries sustained because of, or as a result of, any type of war or nuclear hazard or action. Injuries sustained when occupying a vehicle located inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest.
Part B Exlcusions
Insuring Agreement Part C Exclusions Limit of Liability Other Insurance Arbitration Underinsured Motorists Coverage (UIM)
Part C - Uninsured Motorists Coverage (UM)
Coverage is NOT provided when any insured sustains bodily injury under the following circumstances: An insured or family member is injured when occupying, or struck by, a vehicle owned by the named insured or a family member & the vehicle is not insured by this policy. An insured or a legal representative settles an Uninsured Motorists Bodily Injury Liability claim & that settlement impairs the insurance company's ability to recover payments made to any insured. An insured is occupying a "your covered auto" while it is being used as a public or livery conveyance. An insured is using a vehicle without reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a "your covered auto" under this coverage. While insured by Workers' Compensation or disability insurance. No payment will be made under this coverage for injuries that might benefit any insurance company, or self-insurance company, under Workers' Compensation or disability benefits law. This means that if Workers' Compensation or disability insurance is in place, that coverage must pay before this coverage applies. If the insured is legally responsible for punitive or exemplary damages, this coverage does not apply.
Part C Exclusions
Insuring Agreement Transportation Expenses Part D Exclusions Limit of Liability Payment of Loss No Benefit to Bailee Other Sources of Recovery Appraisal Coverage ____ of the personal auto policy addresses coverage for damage to the insured's auto, also known as physical damage coverage. Part D provides first-party property damage coverage for the insured's covered auto & also provides some coverage for non-owned vehicles being operated or used by the insured & family members.
Part D - Coverage for Damage to Your Auto
No coverage is provided for: a non-owned auto when used by the insured or a family member who doesn't have a belief of entitlement to use the non-owned auto. Loss to radar & laser detection devices & equipment. Custom furnishings & equipment in any pickup/van. Custom furnishings & equipment include special carpeting & insulation, furniture or bars, height-extending roofs, & custom murals, paintings, decals & graphics. The following items are not considered custom furnishings or equipment: any cap, bed liner or cover in or upon any pickup. A non-owned auto being used in the auto business. Any auto when located at a racing facility for organized racing. Under Part D if either state law or the rental agreement prevent the rental car company from recovering damages from the insured. Many insurance companies automatically cover a rental vehicle with the same coverage as the insured has on her/her own personal auto policy. If the insured only has liability coverage on a personal auto policy & rents a car for vacation, the rental car is not fully insured by the insured's PAP. The insured will need to fill this gap by buying the rental agency's insurance or upgrading his or her own policy.
Part D Exclusions
No coverage is provided for: an insured vehicle being used as a public or livery conveyance. The exclusion does not apply to a share-the-expense car pool. Damage solely of a result of wear & tear, freezing, equipment breakdown or road damage to tires. These are all maintenance issues & are excluded under other types of property insurance. Losses due to war or nuclear hazard. Electronic equipment, unless it's permanently installed in the vehicle. Examples of electronic equipment include radios, stereos, tape decks, CD systems, navigation systems, internet access systems, computers, telephones, televisions, two-way mobile radios, scanners & CB radios. Tapes, records, disks or other media used with electronic equipment. A total loss to Your Covered Auto due to destruction or confiscation or non-owned auto by government or civil authorities. A trailer, camper or motor home if it isn't shown on the declarations, unless the vehicle is a non-owned trailer, or is acquired during the policy period & the insured reports the purchase within 14 days.
Part D Exlcusions
If an insured person, or anyone else, wishes to seek coverage under the personal auto policy, he/she must comply with certain duties. Failure to comply with these duties may result in claim denial if the failure to comply harms the insurance company. In the event of a covered loss, Persons submitting claims to the insurance company are required to: notify the insurance company promptly about how, when & where the accident or loss occurred. In addition, the insurance company must be provided with the named & addresses of anyone with injuries or anyone who witnessed the accident or loss. Cooperate with the investigation & settlement of any claim. Promptly send to the insurance company any copies of notices or legal papers received. Submit to a physical exam as reasonably required by the insurance company. Authorize the insurance company to obtain copies of medical reports & other pertinent records. Submit a proof of loss when required by the insurance company. When seeking Uninsured Motorists Coverage, the insured must promptly notify the police if a hit-&-run driver is involved & provide legal papers if a lawsuit is filed. An insured making a claim under Part D must protect the property from further damage, notify the policy promptly if the vehicle is stolen & allow the insurance company to inspect & appraise the damaged vehicle before its repair or disposal.
Part E - Duties After an Accident or Loss
The _____ of the personal auto policy apply to all sections of the policy. They spell out the obligations of both the named insured & the insurance company. Bankruptcy Changes Fraud Legal Action Against the Insurance Company Right to Recover Payment Policy Period & Territory Termination Transfer of Your Interest in This Policy Two or More Auto Policies
Part F - General Provisions
____ is NOT a part of Part A - Liability Coverage Supplementary payment.
Payment for all defense costs
When paying for losses covered under Part D, the insurance company may make payment in cash or by repairing or replacing the stolen or damaged property. If making payment in the form of cash, the insurance company will include any sales tax that applies to the stolen or damaged property. If stolen property is recovered, the insurance company has the option of keeping the stolen property (at agreed or appraised value) or returning it to the named insured. If the insurance company returns the stolen property, it must pay for any damage that resulted from the theft.
Payment of Loss
Part A - Liability Coverage Part B - Medical Payments Part C - Uninsured Motorist (UM) Part D - Coverage for Damage to your Auto Part E - Duties After an Accident or Loss Part F - General Provisions Selected Endorsements The Personal Auto Policy was designed to provide insurance for eligible vehicles that are owned by one or more individuals. Eligible vehicles are private passenger vehicles including cars, SUVs, passengers vans & pickups with a gross vehicle weight of 10,000 pounds or less. The primary use of eligible vehicle must be personal, although incidental business use is allowed - e.g., making sales calls. Delivery or commercial use of an eligible vehicle renders it ineligible for the personal auto policy & requires it to be insured on a business auto policy.
Personal Auto Policy
The policy only provides coverage for accidents & losses that occur during the policy period & within the policy territory. The policy territory is the United State of America, its territories & possessions, Puerto Rico, & Canada & while being transported between their ports. Mexico is NOT in the policy territory.
Policy Period & Territory
Shall be deemed to be owned by a person if the auto is owned or leased under contract for a continuous period of at least 6 month.
Private Passenger Auto
Physical injury to, destruction of, or loss of use of tangible property.
Property Damage
The insurance company's limit of liability for a vehicle damaged by a loss under Part D is ____.
The lesser of ACV & replacement value
The named insured listed in the declarations, & the spouse if a resident of the same household. The named insured should always be the person or persons to whom the vehicle is titles & registered, unless it's a leased vehicle.
You & Your
If a vehicle meets any of the following four definitions, it is a "your covered auto." Any vehicle shown in the Declarations. A newly acquired auto. Any trailer that the named insured owns. Any auto or "trailer" the named insured doesn't own while being used as a temporary substitute of any other vehicle described in this definition, which is out of the normal use because of: breakdown, repair, servicing, loss, destruction.
Your Covered Auto
_____ is NOT a duty of the insured if the insured's vehicle is damaged when it hit a tree.
call the police
_____ uses of vehicle is NOT excluded under the Medical Payments coverage.
insured uses a truck for incidental purposes
