Personal Lines - 3 C.1 Personal Auto Supplement

Auto or Motorcycle Accident Prevention Course

- 3 years of reduced premiums available to policyholders who complete course - Course must: * provide 6 hours of classroom and field driving instruction * be approved by insurer - Anyone court-ordered to take the course is not eligible for premium discount

Cancellation or Nonrenewal of a Motor Vehicle Policy

- Insured may cancel by giving notice or returning policy - For first 60 days of policy, insurer may cancel for any reason - After 60 days, Insurer may only cancel or refuse to renew for specific reasons - For nonrenewal, insurer must give 30 days' notice

What are some approved reasons for cancelling/not renewing a policy after 60 days?

- Non-payment of premiums (10 days) - Misrepresentation or fraud in insurance application - Insured is convicted of a crime that increased hazard - Insured performed willful acts that increased hazard - Insured violated any local fire, health, safety, building, or construction regulation that increased hazard - Substantial increase in risk - The commissioner determines that continuing the policy would place the insurer in violation of state insurance rules ** all other reasons the insurer has at least 30 days

Out of State Losses

- OK insurance covers losses in other states and Canada - If another state has higher insurance requirements, OK insurance will meet those requirements

To meet the requirement of proving financial responsibility in the State of Oklahoma what should you do?

- buy motor vehicle liability insurance - bonds and self insurance are other alternatives as well

Notice of Cancelation

- for nonpayment of premiums, insurer must give 10 days' notice - for all other reasons, insurer must give 30 days' notice

If an insurer decides to cancel a Personal Auto policy (for a reason other than non-payment of premiums) after the policy has been in effect for 60 days, the insurer must provide written notice to the insured __________ in advance.

30 days

What time does an auto policy expire?

An auto policy will expire at 12:01 a.m. Standard Time on the expiration date stated in the policy.

Consumer Protections

Insurers must not assign driving record points, cancel, refuse to issue or renew, or charge a higher premium if the insured has been involved in a collision and was not at fault. Insurers must not cancel, refuse to issue or renew, or charge a higher premium if the insured had lower liability limits with a previous insurer (without actuarial justification). Insurers must not cancel, increase rates, or refuse to issue or renew for traffic complaints, citations, or other traffic charges if the insured is acquitted, arrested but no charges were filed, or arrested and the charges were dropped. Insurers must not cancel or annul a policy because a policyholder was involved in an occurrence leading to liability.

If an insurer violates any of the Consumer Protections, what could happen?

Insurers who violate these rules can have their certificate of authority suspended or revoked, after being given notice and a chance for a hearing. The commissioner may also censure or fine the insurer.

Oklahoma Minimum Insurance Requirements

Required liability insurance: - $25,000 for bodily injury, per person in one accident - $50,000 for total bodily injury for two or more persons in one accident - $25,000 for property damage per accident

What is "Stacking"?

Stacking" is a general term that refers to various ways of combining or multiplying UM coverage if needed to cover damages. IN OKLAHOMA --- you may only "stack" UM coverage if the insurance company expressly provides for it in the policy

UM - Uninsured Motorist Also what is excluded?

Uninsured Motorist Coverage pays for injuries to you or your passengers when you're involved in an accident with an uninsured driver, a driver who does not have enough liability coverage to pay all the damages, a hit-and-run driver, or someone whose liability insurer is insolvent. excluded: property damage/trucks driven by employees who are covered by w/c

Can you exclude named persons (such as high-risk individuals) by adding endorsements to policies?

Yes

Can you have coverage through multiple insurance policies to meet Oklahoma's Minimum Insurance Requirements?

Yes - as long as minimum requirements are being met you can have this provided through multiple policies

Can you refuse Uninsured Motorist coverage?

Yes but it must be done in writing

Tracy has an auto liability policy that covers two cars for up to 100/300/100. Which of the following statements is TRUE?

a . Tracy's UM/UIM coverage may not exceed 50/150. b . If Tracy gets severely injured in an accident with an Underinsured Motorist, she may stack her UM/UIM limits for total coverage of $400,000, if needed. c . Tracy can buy UM/UIM coverage with bodily injury limits as low as 25/50. d . Tracy's policy must include Property Damage UM/UIM of at least $25,000.

Eloise borrows Uriah's car while her car is in the shop, and while she is running errands, she rear-ends a minivan, injuring the driver and 3 other passengers. Each of the passengers suffers $45,000 in injuries, and the driver suffers $40,000. Uriah has a liability policy with limits of 50/100/50, while Eloise carries the minimum liability coverage for Oklahoma. The primary policy will pay __________ and the secondary policy will pay __________ for this occurrence, and Eloise will have to pay __________ out-of-pocket.

b . $100,000; $50,000; $25,000 Uriah's Policy is Primary: --- 50/100/50 --- it pays $100,000 (limit) Total Damages = $175,000 $175,000 - $100,000 = $75,000 left Eloise's Policy is Secondary: --- 25/50/25 --- it pays $50,000 (limit) $75,000 - $50,000 = $25,000 So Eloise will have to pay $25,000 out of pocket

Oklahoma Motor Vehicle Insurance requires all drivers to prove they are ___________ _____________ to protect the public from risk.

financially responsible

Medical Pymts

pays for any medical costs incurred by the driver or passengers of the insured vehicle after an accident.

Collision

pays for damages to your vehicle after a collision with another vehicle or an inanimate object

Comprehensive

pays for damages to your vehicle that are caused by something other than a car accident, such as fire, vandalism, theft, etc.

Other Optional Auto Coverages

1. Collision 2. Comprehensive 3. Medical Pymts 4. Uninsured Motorist (UM)