Auto Flashcards
Part A
Liability Coverages
Part B
Medical Payments
Part C
Uninsured Motorist
Part D
Coverage for damage to your auto
Part E
Duties after an accident or loss
Part F
General Provisions
You and Your
The named insured listed in the declarations, and the spouse if a resident of the same household. The named insured should always be the person or persons to whom the vehicle is titled and registered, unless it’s a leased vehicle.
Private Passenger Auto
Shall be deemed to be owned by a person if the auto is owned or leased under contract for a continuous period of at least 6 months.
Bodily Injury
Bodily harm, sickness, or disease, including death that results
Business
Includes trade, profession, or occupation
Family Member
A person related to the named insured by blood, marriage, or adoption who is a resident of the named insured’s household. A family member includes a ward or foster child
Occupying
Means in, upon, getting in, getting on, getting out, or getting off a vehicle
Property Damage
Physical injury to, destruction of, or loss of use of tangible property
Trailer
A vehicle designed to be pulled by a private passenger auto or a pickup or van. Trailer also includes a farm wagon or farm implement while it’s being towed by a private passenger auto pickup, or van
Your Covered Auto
- Any vehicle shown in the Declarations
- A newly acquired auto
- Any trailer that the insured owns
- Any auto or “trailer” the named insured doesn’t own while being used as a temporary substitute for any other vehicle described in this definition, which is out of the normal use because of:
- -Breakdown
- -Repair
- -Servicing
- -Loss
- -Destruction
Newly Acquired Auto
A private passenger auto
A pickup or van, for which no other insurance policy provides coverage, if the auto:
Has a gross vehicle weight of 10,000 pounds or less.
Is not used for delivery or transportation of goods and materials, unless such use is incidental to the insured’s business of installing, maintaining, or repairing furnishings or equipment, For example, if the insured is a plumber; he may use his pickup or van for the transportation of his tools.
Newly Acquired Auto Coverages
For all coverages EXCEPT Part D – Coverage for Damage to your Auto, coverage begins on the date the named insured becomes the owner.
If newly acquired auto is an additional vehicle, the insured must report to the insurer within 14 days.
A replacement auto for another with all coverages except collision and comprehensive (other than collision) is covered for liability and medical payments for the remainder of the policy period, even if the insured does not report the replacement.
Newly Acquired Auto Part D
Coverage for Damage to your Auto automatic coverage begins on the date the named insured becomes the legal owner of the vehicle.
The insured must report the newly acquired auto to the insurer for coverage to continue. If the insured doesn’t report as required, coverage ends after either 4 or 14 days.
If the Declarations page indicates that either Collision or Other than Collision coverage applies to at least one vehicle, the insured has 14 days to report for either coverage to apply. Automatic coverage ends after 14 days if the insured doesn’t report.
If the Declarations page indicates that NO Collision or Other than Collision coverage applies to at least one vehicle, the insured has 4 days to report for coverage to apply. Automatic coverage ends after 4 days if the insured doesn’t report.
How many days must an insured report the purchase of a new vehicle WITH collision? WITHOUT?
14 With
4 Without
Part A - Liability Coverage
Insuring Agreement
The insurer will:
Pay damages for bodily injury or property damage for which any insured becomes legally responsible.
Settle or defend any claim or suit asking for such damages.
Pay all defense costs it incurs, in addition to the liability limits. The insurer’s duty to settle or defend ends when the limit of liability is exhausted.
The insurer will not defend or settle any suit or claim that is not covered under this policy. The policy defines insured in Part A as:
The named insured or any family member for the ownership, maintenance, or use of any auto.
Any person using the covered auto with permission.
A person or organization, for “your covered auto,” if legally responsible for an insured.
Supplementary Payments
If a bail bond is required because of an accident, the policy will pay up to $250 for the cost of the bail bond so long as the accident resulted in a covered bodily injury or property damage claim.
If defending a suit, the insurer will pay premiums on appeal bonds and bonds to release attachments.
Any interest that accumulates after a judgment has been entered will also be paid by the insurer if it defends a suit.
The policy pays up to $200 a day for loss of earnings because the insurer requests attendance at hearings or trials. This does not include loss of other earnings.
The policy will also pay for reasonable expenses incurred at the insurer’s request. This does NOT include traffic fines.
Part A Exclusions
Liability coverage is not provided for any insured who:
Intentionally causes bodily injury or property damage.
Causes property damage to property he or she owns or is transporting.
Causes property damage to property rented to, used by, or in the care of that insured. An exception exists for damage to a residence or private garage—this is the care, custody, or control exclusion.
Is responsible for causing bodily injury to an employee (of that insured) during the course of employment by that insured.
Owns or is operating a vehicle while it’s being used as public or livery conveyance (meaning it has been hired out to the general public). A vehicle used in a share-the-expense car pool is not considered a public or livery conveyance.
Is employed or engaged in the business of selling, repairing, servicing, storing, road testing or parking motor vehicles. An exception exists if the vehicle is being used by an insured, a family member, or a partner or employee of these. For example, Mary’s son is a mechanic. If he’s test-driving Mary’s car and crashes it, the exception to the exclusion applies—meaning he has coverage. However, if his co-worker crashes Mary’s car, the exception doesn’t apply because the co-worker is not related to Mary, nor is he her partner or employee.
Is using a vehicle while employed or engaging in business. However, a coverage giveback applies to private passenger autos, pickups, vans, and owned trailers used with such vehicles.
Is using a vehicle without the reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a “your covered auto” under this coverage.
Vehicles that have fewer than four wheels, such as motorcycles
Vehicles designed mainly for use off public roads, such as snowmobiles or ATVs. An exception applies for off-road vehicles used by an insured in a medical emergency, “trailers,” or non-owned golf carts.
Vehicles owned by the insured that are not insured on this policy OR not owned by the insured, but are furnished to the insured or available for the insured’s regular use, such as a company car
Vehicles owned by a family member that aren’t insured by this policy OR not owned, but are furnished to a family member or available for the family member’s regular use, such as a company car
Vehicles located inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest
Part A Limit of Liability
Shown on Dec page. Limit applies per accident for all BI and PD arising from that one accident regardless of number of insureds, claims made, vehicles or premiums on dec page, vehicles involved in accident.
Split Limits
The amounts of coverage for bodily injury and property damage are separate. Split limits are expressed using 3 separate limits: a bodily injury (BI) limit per person, a bodily injury (BI) limit per accident, and a separate limit for property damage (PD) per accident. If Part A of a policy is written with limits of 100/300/50, the policy will provide coverage of $100,000 per person for BI with a maximum BI aggregate limit of $300,000 per accident. Additionally the policy will provide a $50,000 limit for PD per accident.
Combined Single Limit
The limit of the policy may be applied to bodily injury (BI) and/or property damage (PD). A combined single limit policy has a maximum aggregate per accident, regardless of the type of loss (BI or PD).
Out of State Coverage
When a “your covered auto” is being driven outside the state in which it is principally garaged (and also within the coverage territory), Part A – Liability Coverage extends to provide coverage as required by the financial responsibility or compulsory insurance laws of that state or Canadian province. For example, if the insured’s policy doesn’t provide Personal Injury Protection (PIP) coverage and the state in which the vehicle is being driven requires it, the insured’s personal auto policy will provide PIP coverage at required limits while the insured is in that state.
Financial Responsibility
When the policy is certified as future proof of financial responsibility, the policy shall comply with the law to the extent required.
Other Insurance
If other auto liability insurance is in place at the time of the loss, the personal auto policy will only pay its share of the loss. That share is the proportion the policy’s limit bears to all insurance in place. For example, if the policy provides $100,000 of property damage liability insurance and another policy also provides $100,000 of property damage liability insurance, the insured’s policy will only pay ½ of the liability loss. Because the total insurance in place is $200,000 and the limit of liability provided by the insured’s policy is $100,000, the insured’s policy pays ½ of the total insurance in place.
This policy pays liability losses on an excess basis for non-owned vehicles. For example, the covered loss involves a car the insured borrowed from his neighbor. The insurance in place on the neighbor’s car must pay first (it’s primary insurance) and then this policy will pay (it’s excess insurance).
