Ch. 5 - Auto Insurance Note Cards Flashcards
1
Q
A professional assessment to determine extent of damage.
A
Appraisal
2
Q
Proof that one can pay for damages caused, often fulfilling by purchasing insurance.
A
Financial Responsibility
3
Q
A person granting a lease of a motor vehicle.
A
Lessor
4
Q
The transporting of people or things for hire (ex. Taxi service).
A
Livery
5
Q
When something cannot occur simultaneously with something else.
A
Mutually Exclusive
6
Q
An automobile used for private needs rather than for business uses.
A
Private Passenger Vehicle
7
Q
An insurance policy for the owners of private passenger vehicles that combines physical damage insurance on the automobile, with liability insurance for claims from use of the auto.
A
Personal Auto Policy (PAP)
8
Q
6 parts of PAP:
A
- Part A - Liability Coverage
- Part B - Medical Payments Coverage
- Part C - Uninsured Motorist Coverage
- Part D - Coverage for Damage To Your Auto
- Part E - Duties After An Accident or Loss
- Part F - General Provisions
9
Q
What does PAP protect you for in terms of losses?
A
- Legal liability (for injuries and/or property damage to others)
- Injury to the insured or members of the insured’s family
- Damage to or loss of the auto itself
10
Q
Located on the first page of the policy; defines terms used in policy
A
Definitions
11
Q
Bodily harm, sickness or disease, including death that results from the injury.
A
Bodily Injury
12
Q
Physical injury, destruction or loss of use of tangible property.
A
Property Damage
13
Q
Terms in PAP that refer to:
- The named insured shown in the Declarations
- The spouse of the named insured, if a resident of the same household
A
You and Your
14
Q
If spouse ceases to be resident, they are only covered on policy until:
A
- The end of the 90 days following the spouse’s change of residency.
- The effective date of another policy listing the spouse as a named insured.
- The end of the policy period.
15
Q
A person related by blood, marriage, or adoption who is a resident of the household (including ward or foster children).
A
Family Member
16
Q
What is included under Your Covered Auto?
A
- Any vehicle shown in the declarations
- A newly acquired auto
- Any trailer owned
- Any auto or trailer not owned by the insured but used as a temporary substitute for a vehicle described above which is out of normal use because of its breakdown, repair, serving, loss, or destruction.
17
Q
A vehicle designed to be pulled by a private passenger auto, pickup, or van, or farm wagons and implements while towed by any of the above vehicle types.
A
Trailer
18
Q
Any of the following vehicles that are acquired by the insured during the policy period:
- A private passenger auto
- A pickup or van, for which no other insurance provides coverage that: Has a gross vehicle weight less than 10,000lbs, is not used for the delivery or transportation of goods and materials unless such is incidental to a business of installing, maintaining, or repairing furnishings/equiptment, and/or is not used for farming/ranching.
A
Newly Acquired Auto
19
Q
GVW
A
Gross Vehicle Weight
20
Q
The maximum recommended weight including the vehicle, fuel and fluids, passengers, and all cargo.
A
Gross Vehicle Weight (GVW)
21
Q
- Coverage will be the broadest offered on any existing vehicle on the declarations (notice not needed by insurer)
- If the vehicle is in addition to the listed vehicles, policy grants coverage if the insurer is notified within 14 days prior to ownership.
A
Liability, Medical Payments, and Uninsured Motorist Coverage For Newly Acquired Auto For Replacement Vehicles
22
Q
The upset or impact of a covered vehicle or nonowned auto with another vehicle or object.
A
Collision
23
Q
What losses are included in Other-Than-Collision?
A
- Missiles or falling objects
- Fire
- Theft/larceny
- Explosion
- Earthquake
- Windstorm
- Hail
- Water
- Flood
- VMM
- Riot/civil commotion
- Contract with birds or animals
- Breakage of glass
24
Q
What Other-Than-Collision was previously known as.
A
Comprehensive
25
Collision Coverage and/or Other Than Collision Coverage For A Newly Acquired Auto:
1. Begins on the date the insured becomes the owner.
2. Insured must ask the company to insure the vehicle within 14 days of becoming the owner
3. Will have the broadest coverage provided
4. If not notice is given, and a loss occurs within the first 4 days of ownership, coverage can still be requested. ($500 deductible will apply.)
26
In, upon, getting in, on, out of, or off a vehicle.
Occupying
27
Liability coverage that protects the insured against loss arising from legal liability when an automobile that the insured owns, operates, or maintains is involved in an accident.
Insuring Agreement Liability Coverage
28
What is covered/paid under the Insuring Agreement?
1. Bodily injury and property damage due to an accident caused by the insured.
2. Defense costs as long as the policy covers a particular loss.
3. Costs for settling/defending the insured as deemed appropriate.
29
The person named in an insurance policy that is protected under the contract and to whom the insurer pays benefits/provides services.
Insured
30
Who is included under Part A - Liability Insured:
1. The insured or any family member for the ownership, maintenance, or use of any auto/trailer.
2. Any person using an insured’s covered auto with permission.
3. The insured’s covered auto
4. Any auto or trailer other than the insured’s covered auto that is being rented.
31
Provision that promises to pay certain costs on behalf of the insured such as:
1. Bail bonds (up to $250)
2. Premiums on appeal bonds/bonds to release attachments in suits covered (covered in full)
3. Interest on a judgment upon the judgment being entered
4. Other reasonable expenses incurred at the request of the insurer (such as up to $200 per day for loss earning for assisting in legal proceedings).
5. Amounts payable in addition to the liability limit.
Supplementary Payments Provision
32
1. Intentional injury or damage.
2. Damage to property owned/being transported by a covered person.
3. Damage to property rented, used, or in the care of a covered person, except a home/private garage.
4. BI to an employee during the course employment, except domestic employees not required to be covered by workers compensation.
5. Use of a vehicle as a public or livery conveyance, except carpools.
6. Damage caused by any person while engaged in the business of selling, repairing, servicing, storing, or parking vehicles designed for use mainly on public highways.
7. Use of commercial-type vehicles in any business.
8. Persons using a covered auto without permission.
9. Persons insured under a nuclear energy policy.
10. The ownership, maintenance, or use of:
Any vehicle with fewer than 4 wheels.
Off road vehicles.
Any uncovered autos owned by the insured.
Vehicles owned by a family member, unless the named insured is using the vehicle.
Racing vehicles.
PAP Exclusions
33
2 types of Limits of Liability for PAP
1. split limit
| 2. combined single
34
Coverage uses 3 dollar amounts that, in the event of an accident, these numbers specify the max amount the policy will pay for:
1. BI for each person involved
2. BI for the entire accident (regardless of number of people involved)
3. Property damage
Split Limit
35
Coverage uses one dollar amount, indicating the max coverage for all losses, regardless of the number of people involved or the amount of property damage.
Combined Single
36
1. When a covered auto is involved in an auto accident that occurs in any state or Canadian province outside of the principal garage location, out of state coverage applies to the accident.
2. If the state/province has a financial responsibility law specifying limits of liability higher than what is shown in the Declarations, the insured’s policy will provide the higher specified limits.
3. If state/province has compulsory insurance requiring nonresident to maintain insurance whenever the vehicle is used in the state, the insured’s policy will provide the least required minimum amounts/coverage.
Out of State Coverage
37
The liability section that states that if there is other insurance available to pay for covered loss, the insurer will only pay its share of the loss.
Other Insurance Clause
38
Medical payments coverage pays reasonable expenses associated with necessary medical and funeral expenses caused by an accident; must be rendered within 3 years of the accident.
Part B: Medical Payments Coverage -Insuring Agreement
39
In Part B - Medical Payments Coverage, who is defined as an insured?
1. The named insured (“you”) or any family member occupying vehicle
2. The named insured or family member as a pedestrian if struck by a vehicle.
3. Any person while occupying a covered auto.
40
What is not covered under Part B - Medical Payments Coverage?
1. While occupying vehicles that:
- Have less than 4 wheels
- Used as a public livery
- Used as residence
- Used without permission
- Commercial type vehicle for business
- Racing vehicle
2. While occupying/when struck by any vehicle that’s:
- Owned/used by the insured
- Owned/used by insured’s family member, other than a covered vehicle.
3. In course of employment if workers comp benefits are required.
4. While occupying a vehicle in a racing facility.
5. Nuclear weapon, war, insurrection, rebellion/revolution, or nuclear reaction.
41
Limits of Liability and Other Insurance under Part B - Medical Payment Coverage
1. Regardless of fault, coverage depends on a per-person basis for BI.
2. Other insurance clause matches Liability Coverage Section.
42
Provides the insured with money for bodily injuries that the insured would be legally entitled to recover from the owner/operator of the vehicle that does not carry the required liability insurance coverage.
Uninsured Motorist (UM) Coverage
43
UM
Uninsured Motorist
44
PAP
Personal Auto Policy
45
A vehicle that does not carry the required insurance.
Uninsured Vehicle
46
4 Categories of Uninsured Motor Vehicles:
1. No liability bond/insurance for vehicle.
2. Bond/insurance is less than required by the financial responsibility laws of the state in which the accident occurred.
3. The accident was a hit-and-run accident, and the driver cannot be identified.
4. The bonding company/insurance company denies coverage/is insolvent.
47
UM Vehicle doesn’t include any vehicle that's:
1. Owned/used by the insured or a family member.
2. Owned by a self-insurer unless self-insurer becomes insolvent.
3. Owned by a government agency.
4. Operated on rails/crawler treads.
5. Designed for off public road usage.
6. While used as a residence
48
Part C: Uninsured/Underinsured Motorist Insured:
1. The named insured and family members.
2. Any person while occupying a covered vehicle.
3. Any person entitled to recover damages because of injuries to one of the above.
49
Another name for Coverage for Damage to Your Auto.
Physical Damage Coverage
50
Coverage For Damage To Your Auto
Includes both collision and other than collision coverage when a premium is shown on the Declarations.
51
Agreement that states that the insurer will pay for direct and accidental loss to a covered/nonowned auto, minus any applicable deductible on the Declarations.
Insuring Agreement for Part D: Coverage For Damage To Your Auto
52
Any private passenger auto, pickup, van, or trailer which is operated by or in the custody of, but is not owned or furnished for the regular use of the named insured/family member.
Nonowned Autos
53
Paid if the loss is caused by collision or other-than-collision, as long as the corresponding coverage is indicated in the Declarations. Applies to both covered auto and a nonowned auto.
Transportation Expenses
54
Transportation Expenses daily coverage and max coverage for Part D: Coverage For Damage To Your Auto
$20 per day; $600 max
55
When do Part D: Coverage For Damage To Your Auto begin?
After 24 hours, unless theft. Theft coverage begins after 48 hours.
56
Is there a deductible for Part D: Coverage For Damage To Your Auto transportation expenses?
Not subject to deductible and limited to the period of time required to repair or replace vehicle.
57
Exclusions for Part D: Coverage For Damage To Your Auto
Includes the following exclusions for Part D: Coverage For Damage To Your Auto for losses/damages to/caused by any of the following:
1. If vehicle is being used a public livery.
2. Wear and tear, freezing, mechanical/electrical breakdown, and road damage to tires.
3. Radioactive contamination, nuclear weapons, war, insurrection, rebellion, or revolution.
4. Electronic equipment designed for reproduction of sound such as radios, tape decks, CD players not permanent in vehicle..
5. Any TV/computer things not permanent in vehicle.
6. Total loss due to confiscation/destruction by governmental or civil authorities.
7. Camper, trailer, or motor home not shown in declarations.
8. Awnings, cabanas, or additional living spaces equipment.
9. Nonowned vehicles used without a belief that any insured is entitled to do so.
10. Radar detection equipment
11. Customer furnishings/equiptment in pickup/van.
12. Any nonowned auto being used by any business of selling, repairing, storing, servicing, or parking vehicles.
13. Any covered auto located in a racing facility.
14. Any nonowned auto rented by any insured due to rental agreement or state law.
58
Limit of Liability for Part D: Coverage For Damage To Your Auto
1. The lesser of:
The ACV of the vehicle at the time of loss (includes adjustment for depreciation and physical condition).
The amount necessary to repair/replace the vehicle.
2. Losses to nonowned autos are covered at the broadest coverage available. Trailers are limited to $1500.
3. Electronic equipment permanently installed is covered up to $1000.
59
4 Additional PAP Provisions for Part D: Coverage For The Loss of Auto
1. Payment of Loss
2. No Benefit To Bailee
3. Other Sources of Recovery
4. Appraisal
60
Payment of Loss For Part D
The insurer has the option of paying money, repairing/replacing damaged or stolen property. If stolen property is received, the insurer may return the property to the insured, paying for any damage or they may keep all/part of the property at an agreed/appraised amount.
61
No Benefit To Bailee for Part D
The insurance will not directly/indirecly benefit any carrier or bailee.
62
Other Sources of Recovery for Part D
If other insurance is available, the insurer will pay on a proportional basis.
63
Appraisal for Part D
If the insured/insurer cannot agree on a settlement, either party can demand appraisal. Parties then select and pay for own appraiser. The appraised selects an umpire. Decision must be reached y 2 of the appraisers to be binding.
64
A third selected appraiser.
Umpire
65
Outlines the duties required of any person seeking damages under the policy following a loss or accident.
Part E - Duties After An Accident or Loss
66
Part E - Duties After An Accident or Loss - Included Duties
1. Prompt notification of loss.
2. Cooperating with the insurer.
3. Forwarding any legal papers received.
4. Submitting to a physical exam when requested.
5. Allowing the insurer access to medical records.
6. Submitting a proof of loss.
7. Notifying the police of a hit and run accident/stolen vehicle.
8. Protecting the property from further loss.
9. Allowing the insurer to inspect and appraise the damaged property.
67
When is the insurer relieves of its duty to provide coverage according to Part E - Duties After An Accident or Loss?
If the insured fails to comply, resulting in harm to the insurer, the insurer is relieved of its duty to provide coverage.
68
Part F: General Provisions:
```
Describes conditions that apply to all coverage parts in addition to the previously applied conditions as follows:
Bankruptcy
Policy Changes
Fraud
Legal Action Against The Insurer
Subrogation
Policy period and territory
Termination
Transfer of Insured's Interest In The Policy (assignment)
Two or More Auto Policies
```
69
Termination Provision:
Right and duty of the insured/insurer to cancel or nonrenew coverage. 10 days notice for nonpayment of premium/cancelled within the first 60 days of initial coverage. 20 days notice for all other reasons. If policy has been in force for more than 60 days, insurer can only cancel because of nonpyament, if a driver’s license has been suspended/revoked, or policy was obtained through material misrepresentation. For nonrenewal, insurer most provide 20 days notice.
70
Transfer of Insured’s Interest In The Policy (assignment) Provision:
Insured cannot transfer their rights/interests in the policy without written consent of the insurer. If they die, coverage will be provided for the surviving spouse/legal rep until end of the policy period.
71
Two or More Auto Polices Provision:
If the insurer has issued 2 or more policies that will respond to the same loss, the insurer’s liability will be the highest applicable limit of insurance under one policy.
72
Optional endorsements can be used to modify the PAP to fit the needs of individuals
Selected Endorsements
73
Common Endorsements in PAP:
1. Amendment of Policy Provisions - Ohio
2. Towing and Labor Costs
3. Extended Nonowned Coverage For Named Individual
4. Miscellaneous Type Vehicle
5. Joint Ownership Coverage
74
Endorsement modifies the policy to conform with state law.
Amendment of Policy Provisions - Ohio Endorsement
75
Endorsement provides basic limit of $25 for towing and labor costs incurred at the place a vehicle is disabled. Higher limits are available for additional premium.
Towing and Labor Costs Endorsement
76
Endorsement can broaden the liability only, or liability and medical payments coverage provided in the policy for individuals specifically named on the endorsement. Coverage includes autos used by the insure, used of covered vehicles to carry people/property for a fee, and use of covered vehicles in business.
Extended Nonowned Coverage For Named Individual Endorsement
77
Endorsement used to expand the definition of a covered auto to include motorized vehicles such as motorcycles, motor homes, golf carts, dune buggies, and other recreational vehicles. The liability and medical payments exclusions regarding vehicles with less than 4 wheels doesn’t apply when this endorsement is attached to the policy.
Miscellaneous Type Vehicle Endorsement
78
Endorsement used when individuals own a vehicle together (insurable interest), but do not meet the traditional definition of an insured in the personal auto policy. Coverage applies to individuals who reside in the same household who are not husband or wife.
Joint Ownership Coverage Endorsement
79
General Form Structure for Business Auto Coverage Form:
```
SectionI - Covered Auto
Section II - Liability Coverage
Section III - Physical Damage Coverage
Section IV - Business Auto Conditions
Section V - Definitions
```
80
Section in CA form that explains the designation symbols used in that coverage form and states whether things such as newly acquired vehicles/temp vehicles are covered.
Covered Auto (Section I)
81
Section in CA form that covers the insured’s legal responsibilities in an accident or negligent act. Pays for BI or PD to others, as well as legal fees incurred by defending the insured in a suit.
Liability Coverage (Section II)
82
Section in CA form that covers damage done to the insured’s property, including any covered autos; personalized to each commercial auto form.
Physical Damage Coverage (Section III)
83
Section in CA form that defines coverage in more detail by determining things such as policy period, coverage territory, and how coverage applies in certain situations.
Conditions (Section IV)
84
Section in CA form that defines terms and phrases that appear throughout the policy; located at the end of the policy.
Definitions (Section V)
85
CA
Commercial Auto
86
A land motor vehicle, trailer, or semitrailer designed for use on public roads/any other land vehicle that is subjected to compulsory financial responsibility laws where it’s licensed/principally garaged (doesn’t include mobile equipment).
Auto
87
Includes semitrailer
Trailer
88
Any of the following types of land vehicles, including attached machinery/equipment:
- Bulldozers, farm machinery, forklifts
- Vehicles that travel on crawler treads
- Vehicles that provide mobility to cranes, shovels, loaders, or road construction.
- Mobility compressors, pumps, spraying/welding equipment, and cherry pickers
Mobile Equipment
89
Coverage for contracts is not included unless the contract falls within:
1. A lease of premises.
2. A sidetrack agreement
3. Easement or license agreement (except within 50 feet of a railroad).
4. Indemnification of a municipality.
5. Part of a contract in which the tort liability of another is assumed.
6. Rental agreements for “autos” but not for the damage to the auto.
Insured Contract for CA
90
An agreement made with a railroad when track is used by an insured.
sidetrack agreement
91
Imposed in the absence of a contract.
Tort
92
What is not covered in a CA Insured Contract?
Demolition near railroads, autos rented with a driver, certain agreements made by carriers for hire.
93
4 form used for CA:
1. Business Auto Coverage Form
2. Business Auto Physical Damage Coverage Form
3. Garage Coverage Form
4. Motor Carrier Coverage Form
94
Forms used when the business owners that have an auto-related exposure to loss.
Commercial Auto Coverage Forms
95
CA form that covers most commercial auto exposures, except truckers, garages, and motor carriers.
Business Auto Coverage Form
96
CA form that covers physical damage protection only for the insured’s owned or hired business autos.
Business Auto Physical Damage Coverage Form
97
CA form that covers businesses that regularly have autos of others in their care, custody, or control, including auto dealerships, auto repair/service garages, and businesses that park vehicles for others.
Garage Coverage Form
98
CA form that is an alternative to the trucker’s coverage form; covers businesses that transport either owned or nonowned property.
Motor Carrier Coverage Form
99
How is a CA form written?
Can be written as a monoline policy or as part of a commercial package policy.
100
What must be attached to CA Coverage forms>
A specific declaration page must be attached to the policy; different page is used with each of the 4 CA coverage forms.
101
Purpose of CA
Designed to protect the business owner against liability and physical damage losses that result from owning/using autos.
102
Contains info on the named insured, coverage provided, limits of insurance, premium, and a list of all endorsements. Nuclear energy liability exclusion (broad form) must also be attached.
Declarations on CA
103
Vehicles That May Be Insured Under CA Coverage:
1. Commercial vehicles, including trucks of all sizes and shapes, truck-tractor units, semi-trailers,and service/commercial trailers.
2. Public vehicles such as cabs or livery vehicles and rental cars.
3. Private passenger type vehicles including station wagons, jeeps, pickup trucks, panel vans, and utility trailers designed to be pulled by private passenger autos.
4. Other types of vehicles such as ambulances, farm machinery designed for use on public roads, antique autos, fire trucks and police cars, construction equipment used on public roads, and special/mobile equipment.
104
Describes the auto designation symbols that define the type of vehicles insured for specific coverages in the form of numbers.
Section I - Covered Autos
105
Auto Symbols Used With Business Auto Coverage Form:
1, 2, 3, 4, 5, 6, 7, 8, 9, 19
106
Is "your" or "you" used in CA?
No. CA doesn’t use the “your covered auto” definition like a PAP. The covered auto symbols instead denote what coverage is granted.
107
Any auto including owned, leased, hired, or borrowed autos (used only for liability coverage).
1
108
Owned autos only.
2
109
Owned private passenger autos only.
3
110
Owned autos, other than private passenger autos only.
4
111
Owned autos subject to no-fault.
5
112
Owned autos subject to a compulsory uninsured motorists law.
6
113
Specifically described autos only
7
114
Hired autos only (leased, hired, rented, or borrowed other than from employees, partners, or members of an LLC).
8
115
Nonowned autos only (autos that are not leased, hired, rented, or borrowed. Coverage is included for autos owned by employees, partners and members, if an LLC, if used in the insured’s business or personal affairs).
9
116
Mobile equipment subject to compulsory, financial responsibility, or other motor vehicle insurance law only.
19
117
Newly Acquired Autos under Section I of CA:
1,2,3,4,5,6 policies will also apply to any additional autos of the same type that the insured acquires during the policy period.
7 only applies if the insurer already covers all autos owned or if the newly acquired vehicle is replacing a previously owned auto. Must inform the insurer of requested coverage within 30 days.
118
Certain Trailers, Mobile Equipment, and Temporary Substitutes under Section I of CA
If liability coverage is provided, it covers the following as well:
Trailers w/ a load capacity of less than 2000lbs
Mobile equipment while being carried/towed
Temporary substitute vehicles used while an auto is out of service.
119
Coverage states that the policy will pay for BI or PD to 3rd parties caused by an accident resulting from the insured’s ownership, maintenance, or use of any covered auto.
Also covers pollution expenses resulting from an accident caused by the ownership, maintenance, or use of a covered auto that results in BI or PD.
Section II - Liability Coverage:
120
Who is an insured under Section II - Liability Coverage for CA?
The person or organization named in Declarations for any covered auto.
Anyone else while using a covered auto with the insured’s permission, except:
Owners of the auto
Someone using a covered auto who is in the business of selling, repairing, servicing, parking, or storing autos unless the business is owned by the insured.
Anyone, other, than employees, partners, lessees, or borrowers, while moving property from a covered auto.
Employees and partners for autos they own.
Anyone liable for an insured’s conduct is also considered an insured, but only to the extent of their liability.
121
Coverage Extensions Under Section II - Liability Coverage for CA?
Supplementary payments available in addition to the limit of insurance for BI or PD:
All expenses insurer incurs
Up to $2000
The cost of bonds to release attachments
Reasonable expenses incurred by the incurred by the insured at the insured’s request
Costs taxed against the insured in any suit
Accrued interest on any judgment
122
Exclusions under Section II - Liability Coverage for CA?
Expected or intended injury/damage
Contractual liability other than an insured contract
Obligations under Workers Compensation, disability benefits, unemployment, or similar
Employee indemnification/employer’s liability
BI to any fellow employee caused by an employee
PD or covered pollution costs
BI or PD resulting from the handling or property while moving
War
Racing
123
Benefits required by state law to be paid to any employee by an employer in the case of injury, disability, or death as the result of an on-the-job hazard.
Workers Compensation
124
Limits of Insurance under Section II - Liability Coverage for CA?
The last section of Section II - Liability; covers the limits of insurance either as a single limit or a split limit.
125
Available coverages for Section III - Physical Damage Coverage of CA?
```
Comprehensive coverage
Specified causes of loss coverage
Collision coverage
Towing coverage
Glass Breakage - Hitting a Bird or Animal - Falling Objects or Missiles
```
126
Coverage Extensions for Section III - Physical Damage Coverage of CA?
Transportation expenses
| Loss of use expenses
127
Limits of Insurance for Section III - Physical Damage Coverage of CA?
The lesser of
The ACV of the covered auto at the time of loss OR
The cost of repairing/replacing the damaged/stolen property with similar property.
Max for loss of audio, video, and data of electronics is $1000 if permanently installed in the vehicle.
128
Exclusions for Section III - Physical Damage Coverage of CA?
```
Nuclear hazard
War and military action
Racing
Wear and tear, freezing, mechanical breakdown, or tire damage not caused by loss.
Loss to sound equipment
```
129
Deductible Provision of Limits of Liability for Section III - Physical Damage Coverage of CA?
States that the amount of any loss will be reduced by the amount of the deductible show in the declarations. Does not apply to losses caused by fire or lightning.
130
Section IV - Conditions of CA?
```
Appraisal of physical damage coverage
Duties in event of accident claim, suit, or loss
Legal action against the insurer
Loss payment: Insurer may
Pay for the repair or replacement
Return the stolen property and pay for repairs
Take all or part of the damaged property at agreed/appraisal value
Subrogation: The transfer of right of recovery against others to insurer.
Bankruptcy
Concealment/fraud
Liberalization
No Benefit To Bailee
Other insurance
Premium audit
Policy period
Coverage territory
Two or more coverage forms or policies
```
131
The transfer of right of recovery against others to insurer.
Subrogation
132
Section I - Covered Autos of Garage Coverage Form:
21 - Any auto
22 - Owned autos only
23 - Owned private passenger autos only
24 - Owned autos other than private passenger autos only
25 - Owned autos subject to no fault
26 - Owned autos subject to a compulsory uninsured motorists law
27 - Specifically described autos
28 - Hired autos only
29 - Nonowned autos used in your garage business
30 - Autos left with you for service, repair, storage, or safekeeping
31 - Dealer’s autos
133
Garage Coverage Form number for:
| Dealer’s autos
31
134
Garage Coverage Form number for:
| Autos left with you for service, repair, storage, or safekeeping
30
135
Garage Coverage Form number for:
| Nonowned autos used in your garage business
29
136
Garage Coverage Form number for:
| Hired autos only
28
137
Garage Coverage Form number for:
| Specifically described autos
27
138
Garage Coverage Form number for:
| Owned autos subject to a compulsory uninsured motorists law
26
139
Garage Coverage Form number for:
| Owned autos subject to no fault
25
140
Garage Coverage Form number for:
| Owned autos other than private passenger autos only
24
141
Garage Coverage Form number for:
| Owned private passenger autos only
23
142
Garage Coverage Form number for:
| Owned autos only
22
143
Garage Coverage Form number for:
| Any auto
21
144
Contains the same basic coverage found in the Business Auto Coverage Form with unique coverages developed to meet the special needs of businesses that sell, service, repair, park, or store vehicles.
Garage Coverage Form
145
Garage Coverage Form Risks:
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Franchised/non franchised auto dealer
Truck and trailer dealers
Motorcycle, mobile home dealers
Car washes
Service stations
Auto repair shops
Storage garages/public parking facilities
```
146
Garage Coverage Form Structure:
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Section I - Covered Autos
Section II - Liability
Section III - Garagekeepers Liability
Section IV - Physical Damage Coverage
Section V - Garage Conditions
Section VI - Definitions
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147
The ownership, maintenance, or use of locations for garage businesses, including adjoining roads and other accesses.
Garage Operations
148
Goods made or sold by the insured in the garage business; failure to provide warnings or instructions.
Products
149
Work that someone performed on the insured’s behalf, and the providing of or failure to provide warnings or instructions.
Work Performed By The Insured
150
Section II - Liability Coverage of Garage Coverage Form - 2 form types
1. Garage Operations - Other than Covered Autos
| 2. Garage Operations - Covered Autos
151
Garage Operations - Other than Covered Autos coverage/insured:
Loss/damage must be direct result from the insured’s garage operations
Who Is An insured?
The person/organization named in the Declarations
Partners, employees, directors, officers, and shareholders during duty,
152
Garage Operations - Covered Autos coverage/insured:
Loss/damage protection from losses resulting from the ownership, maintenance, or use of covered autos.
Who Is An insured?
The person/organization named in the Declarations
Anyone else while using the auto except: owners of the auto, business autos owned by the insured, insured’s customers with no insurance, and employees/partners for autos they own.
Anyone liable for an insured’s conduct
Employees operating a vehicle not owned, hired, or borrowed by the insured for business/personal affairs.
153
Garage Form Coverage Section II - Liability Coverage Extensions?
Identical to Business Auto Coverage form.
154
Garage Form Coverage Section II Liability -Exclusions?
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The following are not covered:
Expected/intended injury
Contractual Liability
Workers comp
Employee indemnification and employer’s liability
Fellow employee
Care, Custody, or Control
Leased autos
Pollution exclusion applicable to garage operations - other than covered autos and covered autos
Racing
Watercraft or aircraft
Defective products
Work performed
Loss of use
Product recall
War
Distribution of material in violation of statutes
```
155
Garage Form Coverage Section II - Liability Coverage Limits of Insurance and Deductibles
$100 deductible for property damage to autos because of work done by the insured business.
156
Covers damage for which the insured is liable to customer’s auto left in the insured’s care, services, repairs, parking, or storage. (Coverage triggered by symbol 30.)
Section III - Garagekeepers of Garage Form Coverage
157
A land motor vehicle, trailer or semitrailer lawfully in the possession of the insured with or without the owner’s consent. Includes autos owned by the insured’s employees, or their family members, if they are paying for services performed.
Customer’s Auto
158
Causes of Loss covered on Section III - Garagekeepers
1. Comprehensive
2. Specified Causes of Loss
3. Collision
159
Loss to a customer’s auto caused by hitting an object or overturn.
Cause of Loss: Collision
160
Loss to a customer’s auto due to fire, lightning, explosion, theft, or VMM.
Cause of Loss: Specified Causes of Loss
161
All loss to customer’s autos except collision or overturn.
Cause of Loss: Comprehensive
162
When the garagekeeper’s coverage is triggered only when the insured is legally liable for damages (unless noted otherwise on the Declarations).
Legal Liability (or Standard) Coverage Option
163
When the garagekeeper’s coverage is triggered without regards to liability (when activated in the declarations for additional premium).
Direct Coverage Option
164
A legal liability coverage, but coverage is given back on an excess basis over any amount collectible under the customers PAP without regard for the insured’s legal liability.
Excess Insurance Option
165
The garagekeeper’s coverage pays as the primary insurer for any loss/damage to customer’s vehicles regardless of whether there is other insurance available for loss
Primary Insurance Option
166
Who is insured under Section III - Garagekeepers?
The named insured
| Partners, employees, directors, and shareholders of the named insured while performing duties.
167
What coverage extensions exist for Section III - Garagekeepers?
Similar to Garage Liability form.
All expenses incurred by the insurer.
Cost of bonds to release attachments to suits.
Reasonable expense incurred by the insured at the insurer’s request ($250 per day for time off work).
Costs taxed against insured in suits against insured.
Interest on full amount of judgment.
168
Section III - Garagekeepers Exclusions
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Contractual obligations
Theft
Defective Parts
Faulty Work
War
Loss to: tape decks not permanently installed, sound equipment not permanently installed, and radar detection equipment.
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169
Section III - Garagekeepers Limits of Insurance and Deductibles:
Must be noted on the declarations and applies regardless of the number of customer’s autos.
Deductibles apply to collision, other than collision, and specified causes of loss.
170
Section IV -Physical Damage Coverage:
Similar to the Business Auto coverage form with additional exclusions:
Not pay for loss of expected profit.
Loss to a covered auto display or stored for more than 45 days.
No collision coverage exists while driven or transported for more than 50 miles apart.
No transportation coverage
171
If the date of the last report of the actual value of the covered auto exceeds the value reported, the insurer will only pay 75% of the loss.
Quarterly or Monthly Reporting Premium Basis
172
Penalty for not carrying adequate limits, resulting in paying only a the percentage of the loss.
Nonreporting Premium Basis
173
Section V - Garage Conditions
Identical to those found in the Business Auto Coverage Form except for Policy Period, Coverage Territory Condition
174
Policy Period, Coverage Territory Condition
Condition that states accidents and losses occurring during the policy period and within the coverage territory are covered.
175
Handles the special insurance needs of vehicles that haul goods for others.
Trucker Coverage Form
176
Trucker Coverage Form 2 classes of carriers:
1. common carriers who transport goods to anyone
| 2. contract carriers who have written contracts with other companies to haul merchandise.
177
Businesses that use their vehicles to carry their own goods; not covered under the trucker’s coverage form.
Private Carrier
178
Any person or organization engaged in business of transporting property for hire
Trucker
179
A private passenger or station wagon type auto, including pickup or van if not used in business.
Private passenger type
180
Trucker Coverage Form Structure:
- Section I - Covered Autos (designation symbols)
- Section II - Liability Coverage
- Section III - Trailer Interchange Coverage: Covers comprehensive, specified causes of loss, and collision coverage
- Section IV: Physical Damage
181
Trucker Coverage Designation Symbols:
41 - any auto
42 - owned autos only
43 - owned commercial autos only
44 - owned autos subject to no fault
45 - Owned autos subject to a compulsory uninsured motorists law
46 - Specifically described autos
47 - Hired autos only
48 - Trailers in your possession under a written trailer or equipment interchange agreement
49 - Your trailers in the possession of anyone else under a written trailer interchange agreement
50 - Nonowned autos only
59 - Mobile equipment subject to compulsory, financial responsibility, or other motor vehicle insurance law only
182
Trucker Coverage #:
| 41
any auto
183
Trucker Coverage #:
| 42
owned autos only
184
Trucker Coverage #:
| 43
owned commercial autos only
185
Trucker Coverage #:
| 44
owned autos subject to no fault
186
Trucker Coverage #:
| 45
Owned autos subject to a compulsory uninsured motorists law
187
Trucker Coverage #:
| 46
Specifically described autos
188
Trucker Coverage #:
| 47
Hired autos only
189
Trucker Coverage #:
| 48
Trailers in your possession under a written trailer or equipment interchange agreement
190
Trucker Coverage #:
| 49
Your trailers in the possession of anyone else under a written trailer interchange agreement
191
Trucker Coverage #:
| 50
Nonowned autos only
192
Trucker Coverage #:
| 59
Mobile equipment subject to compulsory, financial responsibility, or other motor vehicle insurance law only
193
A person or organization providing transportation by auto in the furtherance of a commercial enterprise.
Motor Carrier
194
Endorsement used to provide liability and physical damage coverage for the interests of the lessor as an additional insured.
Lessor - Additional Insured And Loss Payee
195
Insolvent:
Bankruptcy/bankrupt
196
Hit and run is always considered what?
An uninsured motorist
197
Endorsement that covers liability insurance when being carried or towed by a covered auto.
Mobile Equipment
198
Endorsement that adds medical payment coverage to a commercial auto policy.
Auto Medical Payments Coverage
199
Endorsement that extends coverage from Business Auto, Business Auto Physical Damage, Garage, and Motor Carrier Coverage forms to vehicles not owned, hired, or borrowed by the insured.
Drive Other Car - Broadened Coverage For Named Individuals
200
Endorsement used with the Business Auto and Motor Carrier coverage to insure a sole proprietor. Limited to $500 physical damage.
Individual Named Insured
201
The federal body that regulates interstate truckers.
Federal Motor Carrier Safety Administration (FMCSA)
202
The Motor Carrier Act of 1980
Federal regulation that apply to contract carriers, common carriers, and freight forwarders that sets out the minimum financial responsibility requirements for for-hire interstate carriers and all carriers of hazardous property.
- $750,000 for transportation of nonhazardous property
- $1 million for transportation of oil and certain hazardous waste
- $5 million for specifically defined hazardous waste
203
Endorsement that insurers that motor carriers comply with the federally mandated coverage for public liability.
Endorsement For Motor Carrier Policies of Insurance for Public Liability: (MCS-90)
204
MCS-90
Endorsement For Motor Carrier Policies of Insurance for Public Liability
205
Law in Ohio that states it is illegal to operate a motor vehicle unless proof of financial responsibility is maintained on the vehicle.
Required Limits of Liability:
-$25000 for BI or death of one person in a single accident.
-$50,000 for BI or death of more than one person in a single accident
-$25000 for damage to property of others in a single accident.
Ohio Motor Vehicle Financial Responsibility Law
206
Bailee
Someone who has taken care, custody, or control of your possessions
207
Uninsured and Underinsured Motorist Law:
Law that states Uninsured Motorist and Underinsured Motorist coverage be offered in Ohio, but not mandatory.
If included in a PAP, it must protect the insured from BI, sickness, disease, or death.
Must also contain coverage for damage to the auto through the lesser amount of either $7500 or the amount available from the policy damages/destruction.
Max deductible is $250.
208
When the policyholders are able to collect more than they would collect under one car insurance policy.
Stacking Uninsured/Underinsured Coverage
209
Combining the limits of coverage by the same person or at least 2 people, whether family members or not, who are not members of the same household.
Interfamily Stacking
210
The aggregating of the limits of coverage purchased by the same person or at least 2 family members of the same household.
Intrafamily Stacking
211
Prohibition Against Use of Intrafamily Liability Exclusion:
Intrafamily liability may not apply an insurer against the owner or operator of an auto unless:
The policy providing liability coverage includes UM/UIM coverage
The intrafamily claim is no precluded by an intrafamily exclusion.
212
Intrafamily Liability Exclusion
Excludes liability insurance coverage for the owner or operator of a motor vehicle against a claim for injury or death suffered by a family member of that owner or operator.
213
Cancellation and Nonrenewal Law:
After a policy has been in effect for 90 days, it may only be cancelled for:
Misrepresentations of material facts
Losing driving privileges
Nonpayment of premium
Change of residence to a state where the insurer is not authorized to transact business.
30 day notice must be given for cancellation unless it’s nonpayment of premium, which only requires 10 day notice.
Written reason for cancellation must be provided; if forgotten, the insurer has 5 days to provide a written reason, otherwise the policy stays in effect.
Before the effective date of cancellation, any unearned premium must be refunded to the insured.
All notices must included:
The policy number
The date of the notice
The effective date of the action
An explanation of the reason for the action
May not cancel or raise premiums for the accidents involving:
Performing duties as an officer, firefighter, investigator, or EMT.
Operating a state mowing, ice removal vehicle.
State highway patrol vehicles.
214
Use of Non-OEM aftermarket Crash Parts Law:
Insurer must comply with the following when replacing parts:
If written estimate is requested, the insurer, repair facility, or installer must identify each non-OEM aftermarket crash part. (Must be in 10pt type)
If oral estimate or no estimate is requested, the insurer, repair facility, or installer must furnish or read to the person the written notice describe above at the time that the oral estimate is given.
Any aftermarket crash part must have the name of the manufacturer inscribed on it. Logo must be visible after installation if possible.
215
Parts not made for or by the manufacturer of the motor vehicle.
Nonoriginal equipment manufacturer (non-OEM)
216
Sheet metal or plastic parts that generally constitute the exterior of a motor vehicle including inner and outer panels.
After-market part
