Transcript General Nature of Homeowners Program

General Nature of Personal Auto Policy
1. Designed to cover three types of loss:
• legal liability
• injury to insured or family members
• damage to the auto itself
2. Subject to limitations, the policy covers:
• others while driving the insured auto
• the named insured and family while
driving other autos
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Personal Auto Policy Eligibility
1. Auto owned by individual or husband & wife
2. Private passenger automobile
3. Pickup, van, or panel truck that
• has a GVW of less than 10,000 lbs.
• is not used for delivery or transportation
of goods unless
• incidental to business of installing or
repairing furnishings or equipment
• for farming or ranching
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PAP Policy Format
Part A
Liability
Part B
Medical payments
Part C
Uninsured motorist coverage
Part D
Coverage for damage to your auto
Part E
Duties after an accident or loss
Part F
General provisions
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PAP Liability Insuring Agreement
1. Insurer promises to pay damages for “bodily
injury” or “property damage” for which any
“insured” becomes legally responsible
because of an auto accident.
• 1998 edition of the PAP is written with
split liability limits (e.g., 20/40/15).
2. Key elements in determining coverage, then,
are whether the individual is an “insured,”
and whether the auto being operated is a
covered auto.
30-4
“Insured” as used in this part means:
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
responsibility for acts or omissions of a
person for whom coverage is afforded under
this Part.
30-5
“Insured” as used in this part means:
4. For any auto or “trailer,” other than “your
covered auto,” any person or organization
but only with respect to legal responsibility
for acts or omissions of you or any family
member for whom coverage is afforded
under this part. This provision (B.4.) applies
only if the person or organization does not
own or hire the auto or “trailer.”
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J. “Your covered auto” means:
1. Any vehicle shown in the Declarations.
2. A “newly acquired auto”.
3. Any “trailer” you own.
4. Any auto or “trailer” you do not own while
uses as a temporary substitute for any other
vehicle described in this definition which is
out of normal use because of its:
a. Breakdown;
b. Repair
c. Servicing;
d. Loss; or
e. Destruction.
This provision (J.4.) does not apply to Coverage
for Damage to Your Auto.
30-7
Newly Acquired Auto
Inclusion of a “newly acquired auto” in “Your
Covered Auto” provides coverage for new autos,
but on a qualified basis.
1. auto must meet PAP eligibility requirements
• private passenger auto or
• a pickup or van that does not exceed the
gross vehicle weight limitation and
• not used for delivery or transportation of
goods except as allowed by the eligibility
requirements).
2. Separate provisions apply for coverages other
than physical damage and for the physical
damage coverages.
30-8
Newly Acquired Auto
3. For liability, medical payments, and
uninsured motorists coverages,
replacement autos are automatically
covered for the remainder of the policy
period, without notice to the insurer.
4. For additional vehicles, the insurer must be
notified and coverage must be requested
within 14 days of the date of acquisition for
these coverages.
30-9
Newly Acquired Autos - Physical Damage
Replacement and additional vehicles are
automatically covered for 14 days, for whatever
physical damage coverage is already provided for
at least one insured auto.
1. New auto has the broadest physical damage
coverage provided by the policy.
2. If policy does not include physical damage
coverage on any autos, newly acquired autos
are automatically covered for 4 days.
• $500 deductible.
• If coverage is not requested within grace
period, coverage begins when requested.
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PAP Liability Exclusions
A.1.
A.2.
A.3.
A.4.
A.5.
A.6.
intentional injury or damage
to property owned or being transported
care, custody and control
injury to employees
while used as a public or livery conveyance
non-family members employed in auto
business
A.7. business use of trucks
A.8. being used without reasonable belief of
permission
A.9. nuclear exclusion
30-11
PAP Liability Exclusions (continued)
B.1.
motorcycles
B.2.
owned by or furnished for regular use of
named insured
B.3.
owned by or furnished for regular use of
relatives (but this exclusion does not
apply to named insured)
B.4.
any vehicle located inside a facility
designed for racing or competing.
30-12
Supplementary Payments
1. Cost of bail bonds required because of an
accident covered under the policy, up to $250
2. Premiums on appeal bonds to release
attachments in suits covered under the policy
3. Interest on judgments after judgment is
entered
4. Loss of earnings up to $200 a day while
attending trials at company’s request
5. Other reasonable expenses incurred at the
request of the insurer
30-13
PAP Medical Payments Coverage
Medical payments insuring agreement agrees to
pay medical expenses for
1.
Insured and family if injured while
“occupying or struck by”
2.
Others: while “occupying”
30-14
Medical Payments Exclusions
1. Vehicles with less than four wheels (1)
2. Vehicle used as public or livery conveyance (2)
3. Owned by/furnished for regular use of named insured (5)
4. Owned by/furnished for regular use of resident relatives (6)
5. Operated without permission (7)
6. Nonowned trucks in business (8)
7. Located for use as a residence (3)
8. If workers comp benefits are payable (4)
9. War (9)
10. Nuclear (10)
11. Occupying a vehicle in facility for racing or competing (11)
30-15
Limitations on Medical Payment Recoveries
1. Medical payments reduced by liability and
UM payments.
2. Recipient agrees to apply payment against
judgment.
3. Excess over nonowned auto.
4. Subject to subrogation.
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Uninsured Motorists Coverage
1. Pays what an uninsured driver’s insurance
company would have paid if he or she had
insurance.
2. Uninsured motorist defined
•
no insurance
•
hit-and run
•
insurer becomes insolvent
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Uninsured Motorists Coverage
3. Basis of settlement
• judgment against negligent party not
conclusive as to existence of liability or
amount to which insured is entitled
• loss settlement by negotiation or
arbitration
30-18
Underinsured Motorists Coverage
1. Mutually exclusive with uninsured motorist
2. Pays when other driver insured, but
inadequately
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Physical Damage Insurance
1. Loss other than by collision-basically openperil excluding collision
2. Loss by collision
3. Physical damage: nonowned autos
• private passenger, pickup or vans
• not owned by or furnished for regular use
of named insured or family member
• includes temporary substitute auto
30-20
Physical Damage Exclusions
5 exclusions apply to owned & nonowned autos
• while used as public or livery conveyance (1)
• wear and tear, deterioration etc. (2)
• radioactive contamination, nuclear damage (3)
• destruction/confiscation by civil authority (7)
• vehicle inside facility for racing, competing (13)
30-21
Physical Damage Exclusions
3 exclusions apply to nonowned autos.
• nonowned auto used without reasonable
belief of permission (7)
• nonowned auto used in auto business (11)
• loss to a rental vehicle if rental company is
precluded from recovery by state law or
rental agreement
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Physical Damage Exclusions
6 exclusions apply to specific property
• sound systems unless permanent (4)
• electronic equipment (5)
• tapes, records, disks for (4) and (5) above
• camper bodies, trailers, motor homes not
listed in the policy (6)
• fuzz-busters (10)
• custom furnishings or equipment in pickup
or van (11)
30-23
Part E: Duties After an Accident or Loss
1. Give notice to insurer
2. Cooperate with insurer
3. Send notices of legal papers
4. Submit to physical examination
5. Authorize insurer to obtain records
6. Submit proof of loss when required
7. Notify police if a hit-and-run driver is
involved
8. Notify police if the car is stolen
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Extended Liability Coverage
Extends PAP to cover certain non-owned autos
that would otherwise be excluded:
1. Autos furnished for regular use of of the
Named Insured.
2. Autos furnished for regular use of resident
relative.
3. Non-owned autos that are not private
passenger autos used by NI or resident
relative in business.
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Named Non-Owner Policy
1. Designed for persons who do not own an
auto, but want drive other car coverage.
2. Covers named insured only (even spouse
not included).
3. Coverage is excess over any insurance on
the non-owned auto.
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Miscellaneous Type Vehicle Endorsement
Used with PAP to provide coverage on certain
recreational motor vehicles:
motor homes
motorcycles,
mopeds, motorscooters, motorbikes
go-carts
all-terrain vehicles
dune buggies
golf carts
antique autos
classic autos
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Cost of Increased Liability Limits
BI Limits
Factor
$20,000/40,000
1.00
25,000/50,000
1.07
50,000/100,000
1.27
100,000/300,000
1.41
250,000/500,000
1.53
500,000/1,000,000
1.57
PD Limits
Factor
$15,000
1.00
25,000
1.02
50,000
1.05
100,000
1.10
250,000
1.17
500,000
1.19
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Cost of Increased Limits
Medical Payments
$1,000 limit
2,000 limit
5,000 limit
=
=
=
$11
17
30
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PAP Deductible Credits
Deductible
None
$50
100
200
250
500
1,000
Comprehensive
Collision
Percent of
Percent of
$100 Deductible $200 Deductible
118%
109%
100%
88%
83%
66%
49%
----105%
100%
98%
89%
74%
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