Chapter 3 Flashcards
Our insured has $2 million tpl with the SPF44. She injured by a driver who only carries basic tpl. Your insured successfully sues the responsible party for $2.5 million. How much will each policy pay? From what policy will the insured recover, and how much?
Responsible drivers tpl $200,000
Our insureds SEF44 $1.8 million
The insured will need to collect the remaining $500,000 through further civil action
SEF 20
Loss of use
SEF 27
Damage to rental vehicle
Same perils as SPF 1
Certain vehicle types
Only name insured or spouse covered
Identify why a client would need an SEF20 Loss of Use Endorsement
SPF1 only provides loss of use by theft of the entire vehicle and for minimal limits
Increase the limits of coverage beyond $25-$30 per day
Expand the type of loss from only theft losses to all insured losses.
SEF4A
Explosives
SEF4B
Radioactives
SEF5
Long Term Leases
SEF5C
Short Term Lease under 30 days
SEF5D
Removes conversion exclusion
SPF4
Garage risks
Carrying passengers for compensation or hire. What is not excluded?
Carpool/sharing cost of trip
Carrying clients
Carrying domestic servants
Transporting children for school
SEF6A
Taxi and private bus
SEF6B
School bus
SEF6C
Public bus
SEF6D
Commercial driving school
If a client is renting an automobile on a short term basis (not in relation to a claim), what options do they have to cover physical damage on that rental?
Purchase coverage through the rental car company
Endorsement to SPF1 with SEF27 Legal Liability for damage to Non Owned vehicles
Identify 5 conditions to the SEF27
Coverage is restricted to the insured and their spouse
Coverage is for the same perils as on the owned vehicle for which the endorsement is added
No more than one non owned auto may be used at any one time
Coverage is restricted to certain types of vehicles
Coverage for physical damage to the non owned vehicle is subject to a dollar limit specified in the endorsement
SPF6
Liability for non owned vehicle added to CGL or sold separately
SEF94
Adding physical damage to non owned vehicle
94 plus 6 equals 100 ** tip to remember
SEF30
Exclude operation of attached machinery
Attached machinery covered by CGL
SEF31
Non owned equipment
Insures liability arising from use of non owned equipment
May include physical damage
SEF21B
Blanket Fleet
Allows all changes to vehicles to be reported at the end of term
Identify 3 situations where a client would require coverage under the SPF6
Employees driving their own vehicles on behalf of the business
Vehicles that are hired or rented by the business
Vehicles operated under contract- hiring delivery services (contingent liability)
What is the purpose of the SPF4
When operating a client’s vehicle, their SPF1 will not pay
Businesses require coverage while operating non owned vehicles as part of their business
