Classifying
What are the 4 critical underwriting considerations ISO makes when classifying a vehicle?
1. Vehicle Weight (light, medium, Heavy, extra heavy)
2. Vehicle size (fleet vs non fleet)
3. Vehicle use (Service, retail or Commercial
4. Vehicle radius (local, intermediate & long distance)
What are the 4 broad areas of exposure you should think of when assessing Auto Liability?
1. Owned Autos
2. Hired & Borrowed Autos
3. Employees non-ownership Liability
4. Bailee loss exposure
What is the broadest symbol an insured can get?
Symbol 1 - Any Auto
What tools can you use to help you figure out what forms to use?
1. UFGAgent
2. Handouts from class
3.State application
4. Reference Connect
When would you have to underwrite for hired and borrowed liability exposure?
When you have an insured that needs their products delivered, but does not want to take on the exposure themselves.
What are the 3 types of vehicle use?
1. Service - transporting personal tools, equipment & incidentals.
2. Retail - pick property up or deliver it.
3. Commercial - transporting property other than those described in service & retail.
What are the 3 components Auto Liability can be broken down into?
1. Liability Loss Exposure
2. Property Loss exposure
3. Personal Loss Exposure
In Section 1 Coverage C- what items are automatically included for liability coverage?
1. Trailers 2,000 lbs or less
2. Mobile equipment being carried or towed with an auto with liability insurance
3. Auto used as a temporary auto for a covered auto
What is uninsured mortorist (UM) & Underinsured mortorist (UIM)
Uninsured Motorists – protects you when the other party that caused the accident has no insurance
Underinsured Motorists – protects you when the other party that caused the accident has inadequate limits
Can you put a private passenger vehicle on a commercial auto policy? Which rule would you find the answer in?
Yes and rule 31
ISO breaks the radius into 3 different categories, what are they?
1. Local 0-50 miles from principal garaging
2. Intermediate - 51-200
3. Long distance - over 200
When looking at an MVR, what makes a driver ineligible?
1. License related conviction in the last 5 years (DWI, Open container...)
2. Vehicular homicide, assault or manslaughter conviction
3. "hit and run" or " leaving the scene" conviction
4. Reckless driving conviction
5. Carless driving conviction
6. Financial responsibility filing
7. no valid license for state of residence
8. Speeding in excess of 20 MPH in the last 3 years
In Section IV, Business Auto Conditions:
Tell me some duties and responsibilities the insured would need to take in the event of a loss.
•These duties and responsibilities include
1.Notifying the police if any laws have been broken
2.Give us prompt notice of the loss or damage
3.Include a description of the property involved
4.As soon as possible give us a description of how, when and where the loss occurred
•Do not Assume any obligation and make no payments without our consent.
•Immediately send copies of any requests, demand, order, notice, summons you received against the suit
•Cooperate with any investigation or settlement of the claim
•Give us authorization to obtain medical records
•Take all responsible steps to protect the covered “auto” from further damage
•Give permission to inspect the auto prior to repair
•Agree to examination under oath at our request
Tell me 3 Auto medical payment coverage exclusions.
Occupying a vehicle used as a premises is not covered under the Medical Payments coverage.
Occupying a covered auto for racing/stunting
When underwriting the insured as a company, what are some of the programs/initiatives you should look for?
1. Driver safety program
2. driver safety initiatives
3. GPS or other tracking devices on the vehicle
4. Strict guidelines on driving (who, when & where)
5. Lot to no tolerance on drivers who disobey rules
6. Excellent maintenance records on all vehicles
7. regular drug testing on all drivers.
When looking at the Primary classification. What 4 critical UW considerations does ISO use to make the matrix, that UW uses to classify a vehicle?
Radius
size
use
Fleet or non-fleet
What are the various coverages available to cover personal loss exposure?
1. Medpay
2. PIP
3. Uninsured motorist coverage
In Section IV, the loss condition #5 states the insured has transferred their rights of recovery against others to Us. This is subrogation. What does that mean?
Subrogation is the assumption by a third party (such as a second creditor or an insurance company) of another party's legal right to collect a debt or damages.
Tell me 3 Common Auto Endorsements
1. Drive Other Car – Broadened Coverage for Named Individuals (CA 7177)
2. Individual Named Insured
3.Employee Hired Auto (CA2054 or CA7166)
4. Fellow Employee Coverage (CA2055 or CA7167)
5.Employees as Insureds (CA9933)
6.Employee as Lessor (CA9947 or CA7184)
7. Waiver of Transfer of Rights of Recovery Against Others to Us (Waiver of Subrogation) (CA0444)
8.Mobile Equipment (CA2015)
9. Multiple Liability Coverage Limitation (IL7006)
10.Additional Insureds
11.Exclusion of Designed Person – CA7117
12. Rental Reimbursement (CA9923 or CA7180)
13. Stated Amount (CA7181)
14. Motor Cargo Coverage CM 70 42
15. Auto Loan/Lease Gap Coverage (CA2071 or CA7169)
16.Trailer Interchange (CA2398)
17.Audio, Visual and Data Electronic Equipment Added Limits (CA9960 or CA7185)
What is a personal loss exposure?
Personal loss exposure describes the possibility of financial loss resulting from injury, sickness or death. Anyone who could suffer injury in an auto accident – either while occupying an auto or as a pedestrian – has a personal loss exposure.
What do the last 2 digits when classifying an Auto, tell you?
Tells you the specific type of business you are engaged in.
How many owned Autos does an insured need to own to have a fleet?
5 or more powered units
Section II Coverage B - Exclusions 7&8 talk about the handling & movement of property. What are the 5 types of exposure the BAP would cover?
1. During loading
2. In transit
3. During unloading
4. Attached mechanical device
5. Hand truck
What is Business Auto Ultra Endorsement, & what does it do
The Business Auto Ultra form, is a form that is added frequently and will enhance any policy.
How are rating territories defined?
Rating territories are defined in terms of the United States Postal Service (USPS) zip codes.