Chapter 20 Flashcards
Major changes in the “new” form are exclusions for __ ___ and using the auto as part of a transportation network platform, such as Uber or Lyft.
car sharing
The average U.S. consumer spent about $___ on auto insurance in 2015
889
An eligible vehicle is a four-wheeled motor vehicle owned by the insured for __ or more continuous months.
6
Important provision is the definition of ___ ___ auto.
your covered auto
Four classes of vehicles are considered to be covered autos:
- any vehicle shown in the declarations
- a newly acquired auto
- a trailer owned by the named insured
- ____ _____ _____
a temporary substitute vehicle
the first class of vehicles under the your covered auto, any vehicle shown in the declarations, covered autos include a private passenger auto, station wagon, sport utility vehicle, pickup or __ owned by the named insured.
van
a newly acquired private passenger auto, pickup, or van is covered auto if
it is acquired by the named insured during the policy period.
with respect to liability coverage, medical payments coverage, and uninsured motorists coverage, coverage begins
on the date you become the owner.
With respect to coverage for damage to your auto, however, a different set of rules applies. If the declarations page indicates that collision coverage applies to at least one auto, the ___ ___ auto is automatically covered on the date of ownership, but you must notify the insurer within __ days after you become the owner for collision coverage to continue.
newly acquired, 14
If the declarations page does not indicate collision coverage for at least one auto, a newly acquired auto is automatically insured for collision coverage for only ___ days. You must notify the insurer within four __ days after you become the owner for collision coverage to continue.
4 days
If the time limit notification for a newly acquired auto has expired, coverage will begin on the day cover is
requested for the newly acquired auto.
a ___ owned by the named insured is also a covered auto.
trailer
a nonowned auto or trailer that you are temporarily using because of mechanical breakdown, repair, servicing, loss or destruction of a covered vehicle.
temporary substitute vehicle.
The PAP consists of a declarations page, a definitions section, and the following six parts: Part A: liability coverage Part B: medical payments coverage Part C: Uninsured motorists coverge Part D: \_\_\_\_\_\_\_\_\_ Part E: Duties after an accident or loss Part F: \_\_\_\_\_ \_\_\_\_\_
coverage for damage to your auto, general provisions
____ ____ is the most important part of the personal auto policy. protects a covered person against a lawsuit or claim arising out of the ownership or operation of a covered vehicle.
liability coverage
The PAP is typically written with ___ ____, meaning that the amounts of insurance for bodily injury liability and property damage liability are stated separately. For example, split limits of 100,000/300,000/50,000 mean that you have bodily injury liability coverage of up to 100,000 for each injured person and a max of 300,000 bodily injury coverage for each accident. you also have 50,000 for property damage liability coverage.
split limits
with split limits, the thousands are often omitted. so the limits would be stated as
100/300/50
a ___ ___ applies to both bodily injury and property damage liability: the total amount of insurance applies to the entire accident without a separate limit for each injured person.
single limit
the insurer’s duty to settle or defend the claim ends when the limit of liability has been ____ by payment of a judgement or settlement.
exhausted.
the following four groups are insured parties under the liability section of the PAP:
- the named insured and any resident family member
- any person using the named insured’s covered auto who reasonably believes he or she is entitled to use the auto
- any person or organization legally responsible for any insured’s use of a covered auto on behalf of ____________
- any person or organization legally responsible for the named insured’s or family members use of any ___ or ___
that person or organization, auto or trailer.
under the second group of the liability section of the PAP, if Juan permits his girlfriend Maricela to drive his care several times over the past six months, if maricela uses his car without express permission, she is
covered under his policy as there is a reasonable belief she is entitled to use the car.
under the third group of the liability section of the PAP, if luke drives his car on an errand for his employer and negligently injures another motorist, and the injured motorist sues Luke’s employer, the employer has coverage under
Luke’s PAP
In addition to policy limits and a legal defense, certain ____ ____ can be paid. these are the amount paid in addition to judgments, settlements, and legal defense costs.
supplementary payments
supplementary payments include the following:
up to $___ for the cost of a bail bond
premiums on appeal bonds and bonds to release attachments
interest accruing after a ___
up to $250 daily for the loss of earnings
other reasonable expenses
250, judgement
There is a lengthy list of exclusions that applies to the liability coverage under the PAP. they are summarized as follows:
- intentional injury or damage
- property owned or transported.
- property rented, used, or in the insured’s car.
- bodily injury to an employer.
- use as a ___ or ___ conveyance.
- vehicles used in the auto business.
- other business vehicles
- using a vehicle without ___ ___ the person is entitled to do so.
- nuclear energy exclusion
public and livery, reasonable belief
exclusions of liability coverage cont’d:
- ownership, maintenance, or use of your covered auto while enrolled in a personal vehicle sharing program under the terms of a written agreement and being used by anyone other than the insured or any family member.
- vehicle with fewer than __ ___
- vehicle furnished or made available for the named insured’s regular use
- vehicle owned by, furnished, or made available for the regular use of any family member.
- ___ ____
4 wheels, racing vehicle
online or digital network designed to connect passengers with drivers for pre-arranged transportation for a fee.
transportation network platform
can be added to the PAP, covers insured while operating a nonowned auto on a regular basis.
extended nonowned coverage endorsement
an important provisions applies if an accident occurs in a state other than where the covered auto is principally garaged. If the accident occurs in a state that has a financial responsibility law with higher liability limits than the limits shown in the declarations, the PAP
automatically provides the higher specified limits.
likewise, if the state has a compulsory insurance or similar law that requires a nonresident to have insurance whenever he or she uses a vehicle in that state, the PAP provides the
required minimum amounts and types of coverage.
medical payments coverage is frequently included with a PAP. Medical payments are
paid without regard to fault.
the company will pay all reasonable medical and funeral expenses incurred by an insured for services rendered within three years from the date of the accident. Covered expenses include medical, surgical, x-ray, dental, and funeral expenses.
medical payments coverage
two groups are insured for medical payments coverage:
- named insured and __ ___
- other persons while occupying a covered auto
both groups are covered if they are injured while occupying a motor vehicle or are injured as pedestrians when struck by a motor vehicle designed for use mainly on public roads.
family members
if you are injured by a farm tractor, snowmobile, or bulldozer, your injuries are ___ ____ because they are not designed for use mainly on public roads.
not covered
