Auto Flashcards
Financial responsibility
- Auto insurance is not mandatory in Indiana.
* proving financial responsibility is mandatory
Proving financial responsibility:
D. I. B. S
D-deposit cash with treasurer. $40,000
I-Insurance: purchase at least the minimum limits for Indiana. 25/50/25.
B-BMV approved you as a self insurer
S-surety bond provided to the state. $75,000
Accident with a borrowed vehicle
- The owners vehicle is borrowed with permission.
* The driver is involved in an auto accident.
How will the insurance company pay
Owners.
Primary
Owner &
driver
Drivers Excess/secondary Driver only
Declarations-definition part a part B Part C Part D Part E Part F
- Liability bodily injury and property damage.
- Medical payments to you and yours. •Uninsured and underinsured motorist. •Damage to your auto/physical damage. Collision and other than collision (comprehensive)
- Duties after an accident or loss.
- General provisions
The Declarations
- The named insured always listed on the declaration.
- The vehicles Vin. Must have at least four wheels never used for delivery.
- Policy period/Policy term.
- The coverage limits 25/50/25
An insured
Age/drivers license is not factor for a claim
Owned auto
A trailer owned by the named insured. Temporary substitute a borrowed vehicle/trailer that you are driving while yours is out of service/getting repaired.
Newly acquired auto: liability extends for 14 days
Newly acquire replacement auto: trading in a car for a new car. Liability is the same as the auto that was replaced till the end of the policy period.
Nonowned auto
A private passenger auto, farm auto, or trailer not owned by or furnished for the regular use of either you or your relatives, other than a temporary substitute auto
Hired auto
Provides coverage only for autos leased, hired and rented by the named insured
Cancellation clause
Nonpayment of premium – 10 days
Cancellation for reasons other than non-payment
60 days or less – Notification requirement 10 days
More than 60 days/non-renewal – 20 days
Acceptable reasons for cancellation after 60 days in affect
- Suspended or revoke license. •Concealment, fraud or misrepresentation.
- A drinking/drug use violation while driving.
- Moving to a state where the insurance company has not been admitted
Requirements for the cancellation and non-renewal letter
Requirements:
Cancellation
• reason.
•Coverage available through auto insurance plan.
•The right to a hearing with the commissioner
Nonrenewal:
•reason.
•Coverage available through auto insurance plan
Bodily injury and property damage
- The only mandatory coverage when an auto policy is purchased.
- Pays when the insured is legally liable for bodily injury or property damage.
The purpose of bodily injury
Hey is the third party when the first party is legally Liable before:
•medical bills
•lost wages
•pain and suffering
•funeral expenses.
Minimum limit 25/50The purpose of property damage
Pays the third-party when the first party is legally liable for damage to the property of others:
•their cars
•their trees
•their mailboxes
•stop sign/telephone poles
minimum limit: 25Split limits
One for bodily injury, one for property damage
Combine single limit/Single limit
Bodily injury and property damage are shared per currents
Convert a split limit to a single limit
Add the two per occurrence limits
Action when an at fault accident occurs in a state with higher minimum
Indiana limit: 25/50/25.
Indiana limits after an at fault accident: 50/100/25
Supplement payments
In addition to liability limits, they pay above and beyond the liability limit.
Loss of earnings for the named insured/insured to testify: up to $200 per day
Medical payments
The only covers that pay is regardless of fault. Provides coverage when an accident caused by drinking and driving.
Purpose of medical payments
Limits lawsuits
Medical payment provides coverage to
- First party coverage for you and yours. •The named insured/passengers in the insured vehicle.
- The named insured and family members when hit while a pedestrian/cyclist. •Named insured/family member as a passenger in an accident in another vehicle
Medical payments coverage
Doctor bills
dentist bills
hospital bills
funeral expenses
Medical payments limits
Optional coverage.
•No required limit.
*The lowest available limit is $1000.
*Max limit: $10,000.
- Per person limit.
- Three-year limit (36 months)from the date of an accident to place a claim
First party coverage –Not at fault accident uninsured motorist bodily injury
There are three specific times that both uninsured motorist bodily injury and property damage will pay to the first party.
- The third-party has no insurance.
- The third parties insurance company has no money (insolvent).
- The third-party has no Indiana minimum limits 25/50/25.
Hit and run will pay for injuries.
Require limits: minimum limits: 25/50.
Requirements-optional
•must be offered
•can be rejected in writing.
First party coverage – Not at fault accident: uninsured motorist property damage
There are three specific times that both uninsured motorist bodily injury and property damage will pay to the first party.
- The third party has no insurance.
- The third party’s insurance company has no money (insolvent).
- The third-party has no Indiana minimum limits 25/50/25.
Hit and run will not pay to fix your car. So fix your car you must carry collision.
Required limits-Minimum limits: 25
Requirements: optional
•must be offered without a deductible (maximum $300).
•Not available without uninsured motorist bodily injury.
Underinsured motorist
- First party coverage for injuries.
- Pays when the third-party carries the Indiana state minimum limits (25/50)and doesn’t have adequate coverage for first party injuries.Requirements:
•optional
•must be offered
Limits: minimum required limit is 50/50
Damage to your auto/physical damage
Collision:
•first party coverage-you and yours.
•Fixes your car.
Collision only covers:
- hitting an object other than an animal.
- Hit and run driver damages to your car. 3.Roll over (upset)
Damage to your auto/physical damage
Other than collision/comprehensive
•open peril coverage:
theft
vandalism
impact with an animal/bird
falling objects *glass breakage* (due to pebble, golf ball)
flood
fire
earthquake
wind storm
hailWhich coverage will pay for your windshield damage due to a rollover? Which coverage will pay to fix your vehicle when it is involved in a hit-and-run?
Collision
Which coverage will pay if your car is stolen and found the next day crashed into a telephone pole?
Comprehensive
Loss evaluation/settlement
Actual cash value
Transportation expense
•A coverage that pays for transportation in the event of a covered loss.
•Pays up to $20 per day/$600 per occurrence.
•Waiting period:
*48 hours after a theft to receive coverage.
*24 hours after any covered loss
Rental reimbursement
A coverage that pays the expense of a rental car while your vehicle is being repaired in the body shop after a covered accident
Transportation networks company (TNC) drivers
Insurance company must provide a statement to TNC that states personal insurance may not provide coverage
Duties after a loss Clause Part E
•Notify and cooperate with the insurance company.
•Theft.
*Notify the police.
•If requested, must submit a proof of loss statement within 60 days.
•Not required to get an appraisal
Policy territory: the standard territorial definition
Part F: general provisions exclusions
Carpooling is acceptable
Arbitration
The insured an insurer cannot reach an agreement settling a claim
Automobile insurance plan AIP
It is mandatory for all insurance companies to participate
Coverage with auto insurance plan
•Can last three years.
•The maximum coverage a limit is 25/50/25.
•The maximum medical payment limit is $1000.
No rental reimbursement
Auto insurance plan ineligible
- Unlicensed drivers. 
* Owes past due premium for auto coverage during the past 12 months
