Exploring Personal Auto Policy (2.1)
What are the different parts/sections of a Personal Auto Policy (PAP)?
What is..?
- Declarations
- Insuring Agreements
- Definitions
- Sections/Provisions Part A-F
- Endorsement(s)
Part A Insuring Agreement describes coverages and exclusions, what is an example of an exclusion?
What is..?
- Illegal activity
- Intentional harm
_____ _ _____ ______ Coverage provides auto accident medical coverage up to a limited amount without requiring a determination of fault.
What is..?
- Part B - Medical Payments Coverage
What are the definitions of Part C - Uninsured Motorists Coverage and Part D - Damage to Your Auto Coverage?
What is..?
- Part C - Uninsured Motorists Coverage: compensates an insured and family members for injuries caused by at-fault uninsured motorist, a hit-and-run driver, or a driver whose insurer is insolvent.
- Part D - Damages to Your Auto Coverage: the insurer will pay for direct or accidental loss to an insured for auto damages. These losses include collision, OTC, and loss of use.
Explain what Coverage for Damage to Your Auto (Maximum Limit of Liability) Endorsement?
What is..?
The endorsement that allows owners of high-value antique cars or restored show cars to insert a stated amount of insurance in the policy. Stated amount may be less than the appraised value of vehicle, which would lower deductible.
Why do Personal Auto Policies (PAP's) include Endorsement(s)?
What is..?
- To follow state-specific laws and regulations. (example No-Fault States VS Fault States)
- Provide optional/additional coverage for policyholders that would want that coverage.
Sometimes, two or more auto insurance policies could cover the same auto claim... The _____ ______ ______ of ______ _ explains how the loss should be apportioned between the two policies.
What is..?
- Other Insurance provision of Part A
What are the two classes of insureds for Part B - Medical Payments Coverage?
What is..?
- Named insured and family members living in the insured's household
- Anyone else occupying a covered auto
What are two main/unique points that comes with Part C - Uninsured Motorists Coverage?
What is..?
Punitive Damages are not covered, and potential Arbitration Panel
The Personal Auto Policy (PAP) can be customized via ________ that provide additional coverages for customers that need the coverage. _________ takes priority over the regular PAP.
What is..?
Endorsements
"Your covered auto" describes the types of vehicles classes covered in a PAP... what are these 4 classes?
What is..?
1) Any vehicle listed in the declarations. (cars, vans, trucks)
2) Any newly acquired auto. (new vehicles need to be reported within the first 14 days of purchase, excludes any preexisting conditions)
3) Any trailer owned by the named insured.
4) A temporary substitute auto or trailer. (rentals)
Part A of the PAP provides liability coverage for these 4 points, they are?
What is..?
- The named insured and family members living in the insured's household.
- Anyone using the named insured's covered auto
- Any person or organization legally responsible for the acts of a covered person while using a covered auto
- Any person or organization legally responsible for the named insured's or family member's use of any automobile or trailer.
The insurer promises to pay reasonable and necessary medical expenses incurred by an insured because of bodily injury caused by an accident. This is called?
What is..?
- PAP's medical Payments Insuring Agreement
Explain Glass Breakage Coverage talked in the chapter.
What is..?
- The insured can elect to have the glass breakage covered as apart of collision loss, paying for collision coverage deductible.
What are the 4 types of endorsements for other than personal autos discussed in the chapter?
What is..?
- Miscellaneous Type Vehicle Endorsement
- Snowmobile Endorsement
- Trailer/Camper Body Coverage (Maximum Limit of Liability) Endorsement
- Coverage for Damaged to Your Auto (Maximum Limit of Liability) Endorsement
What are the 6 Provisions/Sections that are included in the PAP?
What is..?
- Part A Liability
- Part B Medical
- Part C Uninsured Motorist
- Part D Damages
- Part E Duties After Loss
- Part F General Provisions
What are the two types of liability damages? What are the definitions of these damages?
What is..?
- Compensatory Damages: compensation medical bills, loss wages, and other financial consequences from accident.
- Punitive Damages: insured was willful, malicious, or grossly negligent.
*** Damages are covered up to policy limit and includes Lawsuit/Defense expenses. ***
Name an exclusion(s) that could apply to PAP Medical Payments Coverage.
What is..?
- Workers Comp
- Illegal Activities
- Intentional Harm
Uninsured Motorist Coverage pays for...
What is..?
Compensatory damages that the insured person is entitled to recover from the uninsured motorist because of bodily injury caused by accident.
Name 3 examples of Miscellaneous Type Vehicle Endorsement.
What is..?
- Motor homes, motorcycles, all-terrain vehicles, dune buggies, golf carts, off-road vehicles, and fewer than four-wheel vehicles.
Define each of the following:
- Declarations
- Insuring Agreements
- Definitions
- Endorsements
What is..?
- Declarations: Customization of policy (names, VINs, vehicles, policy period)
- Insuring Agreements: General statement stating Insurer will cover Insured if premiums are paid, and policy terms are followed.
- Definitions: Define terms/phases used in policy. Includes Whom/What/When coverage applies.
- Endorsement(s): Always one Endorsement for specific State Laws, then any other/additional Endorsement(s) if applicable.
Part A of the PAP covers 5 types of supplementary payments... these are?
What is..?
- Cost of bail bonds
- Premiums on appeal bonds and bonds to release attachments
- Interest accruing after a judgement
- Loss of earnings because of attendance at trails
- Other reasonable expenses incurred at the insurer's request
*** Up to the policy limit! ***
Explain the "Other Insurance" Provision...
What is..?
- The 'Other Insurance" Provision determines the amount payable for a loss under Medical Payment Coverage.
- May include analyzing whether more than one insurance policy covers for the same injuries. (Example: ANIS Video(s) where friend in the insured's vehicle has their own coverage plus the insured's coverage.)
Explain the difference Part D - Damage to Your Auto Coverage Collision and Other Than Collision (OTC)?
What is..?
- Collision Coverage: Addresses situations in which a covered vehicle collides with another vehicle or object. Examples: two or more vehicles accident and running into tree.
- Other Than Collision (OTC): Addresses physical damage to a covered auto resulting from any cause except for collision, lower cost/deductibles. Examples: Hail and Deer Hit
What are the 4 types of endorsements that address additional coverage gaps?
What is..?
- Excess Electronic Equipment Coverage
- Non-Owner Vehicle Coverage
- Auto Loan/Lease Coverage (GAP)
- Towing/Labor Coverage