Plans
In a no-fault system, a plan that provides certain personal injury protection (PIP)-type benefits such as medical payments and disability coverages to injured victims, without regard to fault.
What is an Add-on plan?
Law enacted to ensure that motorists have the financial ability to pay for any property damage or bodily injury they might cause as a result of driving or owning an auto.
What is Financial responsibility law?
Coverage that provides a source of recovery for occupants of a covered auto or for qualifying pedestrians who are injured in an accident caused by an at-fault motorist who does not have the state minimum liability insurance or by a hit-and-run driver.
What is Uninsured motorists (UM) coverage?
The term referring collectively to insurers and other organizations that make insurance available through a shared risk mechanism to those who cannot obtain coverage in the admitted market.
What is a Residual market?
Territory, age, gender and marital status.
What are Primary Rating Factors?
In a no-fault system, a plan that gives the insured the option, at the time an auto insurance policy is purchased or renewed, of choosing whether to be covered on a no-fault basis.
What is a Choice no-fault plan?
Law that requires the owners or operators of automobiles to carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be licensed or registered.
What is Compulsory auto insurance law?
Coverage that applies when a negligent driver has liability insurance at the time of the accident but has limits lower than those of the injured person’s coverage.
What is Underinsured motorists (UIM) coverage?
A state-wide reinsurance pool to which insurers can assign premiums and losses for high-risk drivers; original insurers service the policies, but all insurers in the pool share the losses and expenses of the facility in proportion to the total auto insurance they write in that state.
What is a Reinsurance facility?
In a no-fault system, a dollar limit in total medical expenses an injured victim must exceed before he or she is permitted to sue the other party.
What is Monetary threshold (dollar threshold)?
Plan that allows for lower basic premiums for accident-free driving records and a surcharge for accidents.
What is a Safe driver insurance plan (SDIP)?
State statutes that require motorists to purchase (or require insurers to make available) insurance that provides minimum first-party benefits to injured persons regardless of fault.
What is No-fault laws?
Coverage that pays benefits, regardless of fault, for medical expense, income loss, and other benefits, resulting from bodily injury to occupants of a covered auto.
What is Personal injury protection (PIP) coverage?
Organization that designates servicing insurers to handle high-risk auto insurance business; all auto insurers in the state are assessed a proportionate share of the losses and expenses based on their percentage of the voluntary auto insurance premiums written in the state.
What is a Joint underwriting association (JUA)?
In a no-fault system, the designated criteria that are verbally “set forth in the statute that limit the right to sue.”
What is Verbal threshold?
Plan for insuring high-risk drivers in which all auto insurers doing business in the state are assigned their proportionate share of such drivers based on the total volume of auto insurance written in the state.
What is a Automobile insurance plan?
Prohibits uninsured drivers from initiating lawsuits for non-economic damages, such as pain and suffering.
What is No pay, no play law?
Insurance that covers automobile accident victims on a first-party basis, allowing them to collect damages from their own insurers regardless of who was at fault.
What is No-fault automobile insurance?
It provides insurance to high-risk applicants. It requires all private insurers to subsidize any losses, but the insurers can recover losses by surcharging their insureds.
What is State fund mechanism?
A fund designed to provide a source of recovery for victims of motor vehicle accidents when an at-fault motorist is unable to pay any judgment.
What is an Unsatisfied judgment fund?
A no-fault plan that places some restrictions on the right to sue an at-fault driver but do not entirely eliminate the right.
What is Modified no-fault plans?
Injured auto accident victims must prove that another party was at fault before they can collect damages from that party.
What is the tort liability system?
The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.
What is Subrogation?
Some insurers offer insurance programs for high-risk drivers. These insurers accept their own applications, service their policies, pay their claims and expenses, and retain full responsibility for their underwriting results.
What is Voluntary Market Programs?
Insurers often divide auto insurance applicants into homogeneous classes, or rating categories, such as “preferred,” “standard,” and “nonstandard,” that reflect different levels of exposure to loss.
What is Matching Price to Exposure?