Auto Personal and Commercial lines Policy
Terms in this set (57)
2 General agreement
4 Part A - Liability coverage
5 Part B1 - Medical payments coverage
6 Part B2 - Personal injury protection coverage
7 Part C - Uninsured/underinsured motorists coverage
8 Part D - Coverage for damage to your auto (comprehensive and/or collision)
9 Part E - Duties after an accident or loss
10 Part F - General provisions
Occupying‖ ISO Definition
Occupying a car involves being in, or upon; getting in, on, out, or off. In some cases, coverage may hinge on whether or not the injured person was ―occupying‖ an automobile.
Trailer means a vehicle designed to be pulled by a private passenger auto, pickup, panel truck or van. It also means a farm wagon or farm implement, but only while towed by one of these vehicles. A ―trailer is not motorized.
Coverage for new or newly acquired auto's
Newly acquired replacement vehicle on the date the insured becomes the owner (all coverages automatic for remainder of policy period, except for 30 day limit on physical damage)
Coverage for new or newly acquired auto's
An insured must declare an additional vehicle within 30 days
For a pickup or van to qualify
must have a Gross Vehicle Weight of less than 25,000 lbs.;
to is automatic on the day the insured purchases it.
(Person Auto Policy)
any auto or trailer
It means that the named insured or a family member can use any auto—owned or nonowned—and still be considered an insured under the terms of the PAP
payments made under the terms of the PAP are in addition to the limit of liability
The first supplementary payment
up to $250 for the cost of bail bonds.
The second supplementary payment
premiums on appeal bonds and bonds to release attachments in any suit defended by the insurer.
The third supplementary payment
for interest accruing after a judgment is entered in any suit defended by the insurer.
The fourth payment
The insurer promises to pay up to $50 a day for loss of earnings of an insured if that insured attends hearings or trials at the request of the insurer
The fifth supplementary payment
all-inclusive one—other reasonable expenses incurred at the request of the insurer.
Liability Exclusion one
This exclusion reinforces the stipulation in the liability insuring agreement that damages for BI or PD must result from an auto accident.
Liability Exclusion two
denies liability coverage for any insured for property damage to property owned or being transported by that insured.
Liability Exclusion three
The PAP will not provide liability coverage for any insured for property damage to property rented to, used by, or in the care of that insured.
Liability Exclusion four
applies to liability coverage for any insured for bodily injury to an employee of that insured; the exclusion does not apply to BI to a domestic employee unless workers compensation benefits are required or available for that domestic employee.
Liability Exclusion five
The intention of this exclusion is to deny coverage in those situations where it is obvious that the insured is holding the vehicle out for hire to the general public. The exclusion is to apply when the insured makes the vehicle available for use by the general public or attempts to make a profit through the hiring out of his or her vehicle. This exclusion is not meant to apply to instances such as using a private passenger auto for deliveries of pizza or newspapers.
Liability Exclusion six
for any insured while employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking vehicles designed for use mainly on public highways.
Liability Exclusion seven
for any insured maintaining or using any vehicle while that insured is employed or otherwise engaged in any business not described in exclusion 6. Exclusion 7 does not apply to the maintenance or use of a private passenger auto, a pickup or van, or to a trailer used with such vehicles.
Liability Exclusion eight
liability coverage for any insured using a vehicle without a reasonable belief that the insured is entitled to do so; the exception is for a family member using the named insured's covered auto owned by the named insured.
Liability Exclusion nine
there is no liability coverage for any insured for BI or PD for which that insured is an insured (or would be an insured) under a nuclear energy liability policy.
Individual Named Insured endorsement (TE 99 17G)
The BAP may cover these auto exposures eligible for a PAP when they are combined with a commercial risk or when a vehicle is used in business. Which will duplicate coverage features found in the PAP for the individual insured named in the Declarations
BUSINESS AUTO POLICY Cancellation
The insurer may cancel the policy by written notice of cancellation, stating the reason for cancellation, at least 10 days before the effective date of cancellation.
BUSINESS AUTO POLICY Cancellation
If this is not a renewal or continuation policy, and if it has been in effect for 60 or fewer days, the insurer may cancel for any reason.
BUSINESS AUTO POLICY Cancellation
If this is a renewal or continuation policy, or if it has been in effect for more than 60 days in the initial policy period, the insurer may cancel only for following reasons:
(a) Fraud in obtaining coverage;
(b) Failure to pay premiums when due;
(c) An increase in hazard within the control of the insured which would produce an increase in rate;
(d) Loss of the insurer's reinsurance covering all or part of the risk covered by the policy; or
(e) If the insurer has been placed in supervision, conservatorship or receivership and the cancellation or non-renewal is approved or directed by the supervisor, conservator or receiver.
BUSINESS AUTO POLICY Non-Renewal
written notice of non-renewal, stating the reason for non-renewal, at least 60 days before the expiration date.
COVERED AUTO DESIGNATION SYMBOLS
Owned Autos Only
Only those autos the insured own (and for Liability Coverage any trailers the insured don't own while attached to power units the insured owns. This includes those autos the insured acquires ownership of after the policy begins.
Owned Private Passenger Autos Only.
Only the private passenger autos the insured owns. This includes those private passenger autos the insured acquires ownership of after the policy begins.
Owned Autos Other Than Private Passenger Autos Only.
Only those autos the insured owns that are not of the private passenger type and for Liability Coverage any trailers the insured don't own while attached to power units the insured owns. This includes those autos not of the private passenger type the insured acquires ownership of after the policy begins.
Owned Autos Subject to No-Fault
Only those autos the insured owns that are required to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those autos the insured acquires ownership of
after the policy begins provided they are required to have No-Fault benefits in the state where they are licensed or principally garaged.
Owned Autos Subject to a Compulsory Uninsured Motorists Law
Only those autos the insured owns that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This includes those autos the insured acquires ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement
Hired Autos Only.
Only those autos the insured leases, hires, rents or borrows. This does not include any auto the insured leases, hires, rents or borrows from any of the insured's employees or partners or members of their households.
Non-owned Autos Only
Only those autos the insured does not own, lease, hire, rent or borrow that are used in connection with the insured's business. This includes autos owned by the insured's employees or partners or members of their households but only while used in the insured's business or the insured's personal affairs.
Medical Payments Coverage - Endorsement TE 99 03B
The insurer will pay reasonable expenses incurred for necessary medical and funeral services to or for an insured who sustains bodily injury caused by accident. The insurer will pay only those expenses incurred within three years from the date of the accident.
Personal Injury Protection - Endorsement TE 04 01 C
The insurer will pay Personal Injury Protection benefits because of bodily injury resulting from a motor vehicle accident and sustained by a person insured. The insurer's payment will only be for losses or expenses incurred within three years from the date of accident.
Uninsured/Underinsured Motorists Insurance - Endorsement TE 04 09D
The insurer will pay damages which an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury sustained by an insured, or property damage caused by an accident. The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle.
Damage to Your Auto
This coverage used to be known as ―stated amount coverage.‖ The insured states an amount for valuation of the car and believes that is the amount he should be paid in the event of a total loss.
This endorsement is typically used to provide physical damage to an older car (10 years or more) for which the symbol no longer provides an adequate premium for the exposure.
Limited Mexico Coverage
This endorsement extends all coverages of the PAP to anything that happens to the insured's car in Mexico, but within 25 miles of the U.S. border. It applies only if the insured is in Mexico for 10 days or less. The insured must purchase Mexican insurance for this endorsement to apply.
Mexican Collision Coverage
this endorsement applies anywhere in Mexico—not just within 25 miles of the border.
Sound Receiving and Transmitting Equipment
This endorsement covers such equipment that is not specifically designed to operate off the electrical system of the car.
Supplementary Medical Payments Coverage
the endorsement extends medical pay to any other residents of the named insured's household. It also covers anyone struck by the named insured's covered auto.
Tapes, Records or Other Devices
provides up to $200 coverage for tapes, discs, etc. used with a car's sound reproducing equipment. The tapes, etc. must belong to the named insured and be in the named insured's ―covered auto‖ at the time of loss, for coverage to apply.
The endorsement removes the parts of physical damage exclusion 5 that apply to such items. No deductible applies to this coverage.
Towing and Labor Costs Coverage
is endorsement pays a certain amount per disablement for the service.the endorsement provides the same coverage to a non-owned auto the insured may be driving. The base limit is $25 per disablement,
When a two-family dwelling is occupied by co-owners, each occupying separate and independent premises within the building, it is permissible to issue a Homeowners Policy to one of the two co-owner occupants of the dwelling and endorse the policy, the insuring HO-301 to provide Section I or Section II coverage for the other co-owner.
Relative Occupied Condominium
It is permissible to issue a HO-CON-B or HO-CON-C Policy in the name of both owner and relative by attaching Endorsement HO-301, showing owner as additional insured non occupant.
covers dwelling, other private structures on the premises, and personal property on and away from premises against loss by fire, extended coverage, vandalism and malicious mischief and theft.
covers dwelling and other private structures on the premises against all risks of physical loss with certain exceptions. In addition, Form HO-B covers personal property on and away from the premises against loss by fire, extended coverage, vandalism and malicious mischief, theft and certain other named perils.
covers dwelling, other private structures on the premises and personal property on and away from premises against all risks of physical loss with certain exceptions.
Extensions of Coverage
(Forms HO-A, HO-B and HO-C) provides Loss of Use (Additional Living Expense and Rental Value), and Consequential Loss Coverage against the policy perils. Trees, Shrubs, Plants and Lawns are covered against certain named perils. Also included is Coverage for Reasonable Repairs, Property Removal and Automatic Removal.
for tenants covers personal property on and away from premises against loss by fire, extended coverage, vandalism, and malicious mischief, theft and certain other named perils.
for tenants covers personal property on and away from the premises against all risks of physical loss with certain exceptions.
for condominium unit owners covers personal property on and away from premises against loss by fire, extended coverage, vandalism and malicious mischief, theft and certain other named perils.
for condominium unit owners covers personal property on and away from the premises against all risks of physical loss with certain exceptions.