Auto Insurance Flashcards
What are the coverage parts of auto insurance?
Liability
Medical payments
Uninsured motorists
Damage to your auto
Duties after loss
General provisions
What is the definition of an auto policy?
You have a private passenger auto, pickup truck or van - temporary substitute - or owned trailer
What is the definition of covered auto?
Any vehicle shown in the declarations, including newly acquired auto or trailer
What is a newly acquired auto?
Vehicles acquired during the policy period
What is collision ?
A covered vehicle or non owned auto is impacted by another vehicle or object.
Any time your car hits something
What is other than collision ?
Damage to a vehicle caused by
Falling objects
Fire
Theft or larceny
Earthquake
Windstorm
Hail
Vandalism
Contact with birds or animals
What is a split limit ?
1st limit : bodily injury per person
25k
2nd limit: bodily injury per accident
50k
3rd limit: property damage per accident
25k
What is a combined single limit policy?
Combines bodily injury and property damage into one number
50k for bodily
25k for property
All dollars can be used for anything that occurs
Why don’t we automatically get a combined limit policy?
The difference is that the combined pays out more in claims therefore the policy is expensive
What is per occurrence liability ?
Maximum payment for all claims that arise from a single accident or occurrence
What is per person liability ?
Maximum payment for bodily injury to a single person in an accident regardless of policy limits
What is an aggregate limit?
Maximum limit of coverage under a liability policy during the policy term
When an insurance company says enough is enough.
What do medical payments cover?
Medical and funeral expenses
Pays per person , per accident
For accidents up to 3 years old
What is an uninsured motorist?
Pays for bodily injury if vehicle owner has no insurance
Is underinsured
Hit and run [always considered uninsured motorist]
What is included in damage to your auto?
Collision and other than collision
Optional coverage ; subject to deductible
Only applies if a premium is shown on the declaration
What is limit of liability ?
Either the actual cash value at the time of the loss or the amount needed for repair or replacement [whichever is less]
What is payment of loss?
Payment, repair , or replacement of damaged or stolen property
What is no benefit to bailee?
Insurance does not directly or indirectly benefit any carrier or Bailee
What is a Bailee?
Bailee is someone who has taken custody or control of your vehicle [repair shop]
What is an appraisal in auto insurance?
When in a car accident , getting a third party to access the car to determine its value
What are duties after a loss ?
Prompt notification of loss- letting insurance know right away
Cooperating with insurer- emotional time. Try to help
Forwarding any pertinent legal papers- police reports etc
Submit to a physical exam if requested by insurer
Allowing access to medical records
Submitting proof of loss
Notify police or hit and run
Protect property from further damage
Allow insurer to inspect and appraise damaged property
What are common policy conditions ?
Bankruptcy - does not relieve the insurer from its obligations
Policy changes - may only be effected by endorsements
Fraud - no coverage if insured has made fraudulent statements
Subrogation- insurers right to recover payment
Ex. Your in an accident and it’s totaled , insurance company is replacing car with check.
Policy period and territory- time period and location where coverage will apply
How long does insurance company have ability to cancel a policy for non payment of premium ?
10 days
What are some types of miscellaneous vehicle endorsements?
Motorcycles
Motor homes
Dune buggies
Scooters
Golf carts
ALL NEEDED TO BE ADDED
