CFP - Auto Insurance Flashcards
Personal Auto Policy (PAP)
policy that is sold in most states
covers liability, property damaged, auto, medical
Are LSVs covered under auto?
NO
Low Speed Vehicles are not covered on an existing policy
Need standalone policy
AUTO: Part A: Liability Coverage
Covers bodily injury or property damage where driver is responsible
What does 50/100/50 coverage mean?
$50,000 bodily injury per person
$100,000 bodily injury per accident
$50,000 of property damage coverage
AUTO: Part B: Medical Payments Coverage
Provides for medical expenses sustained in an accident
Extends to the occupants
Part B coverage does NOT extend to passengers in a non-owned auto driven by the insured
Significantly less than liability limits
AUTO: Part C: Uninsured Motorist Coverage
If UIM at fault, this will cover the insured
AUTO: Part D: Coverage For Damage to the Insured’s Auto
Comprehensive and collision coverages are designed to repair or replace the insured’s auto when damaged
Comprehensive = “other than collision”
AUTO: Part E: Duties After An Accident or Loss
Give notice to insurance company
Protect the auto from further loss
File written proof of loss
AUTO: Part F: General Provisions
US and Canada
-Named driver
-Excluded driver
-Intentional acts
-Racing
-Vehicles w/less than 4 wheels
What effects auto insurance premiums?
Age
Marital status
Credit
Driving record
Location where car is kept
Type of car
Policy coverage/deductibles
Tort (civil wrong): INTENTIONAL INTERFERENCE
Intentional act that causes injury (NOT covered)
Tort (civil wrong): STRICT AND ABSOLUTE LIABILITY
occurs as a result of legislation
ex: worker’s comp
Tort (civil wrong): NEGLIGENCE
an act or failure to act with appropriate care, and bodily injury or property damage results from such action or inaction
Special damages compensate for measurable losses like:
Loss of limbs
General damages compensate for intangible losses like:
Pain and suffering
