Chapter 6 Personal Auto Policy Flashcards
Named insured listed?
Listed in Declarations and includes the spouse if a resident of the same household
Who is a family member?
person related to named insured by blood, marriage, or adoption, including a ward or foster child who is a resident of teh household
what’s a covered auto??
Any vehicle shown in the Declarations, a newly acquired auto, any trainer the insured owns or a non-owned auto or trailer while being used as a temporary substitute of vehicle
What’s a temporary substitute vehicle
non-owned vehicle used in place of insured vehicle that is out of normal use due to breakdown, repair, servicing loss or destruction
what is a newly acquired auto
one to which te named insured takes title and either rpelaces an existing vehicle owned by named insured, ora vehicle that increases the total number of vehicles owned by the named insured
The supplementary payments under Part A- Liability Coverage include?
cost bail bonds, appeal bonds, post-judgement interest, loss of earnings, and reasonable expenses while assisting the insurer in the defense of a claim
Part A exclusions include?
bodily injury or poperty damage intentionally caused by an insured; property in the insured’s care, custody, and control; bodily injury to an insured’s employee while working for the insured; using a vehicle as public or livery conveyance; working in the automobile business orusing a vehicle while engaged in business; and a vehicle used by a person without the reasonable belief of entitlement to drive it
Part A Liability does NOT apply to???
vehicles with fewer than four wheels, vehicles that are owned by not insured, uninsured vehicles owned by family members; vehicles furnished for the regular use of the named insured or family members; and vehicles inside a racing facility used for competing in, practicing in or preparing for a race
Maximum Limit Paid under Part A- Liability COverage is sown where?
On the policy’s Declarations and applies per accident for all bodily injury and property damage arising from one accident including damages for care, loss of services and death
What are stacked payments??
If a loss is covered under more than one part of the policy, payment will not be duplicated or stacked
Does Part A- Liability Coverage apply when a covered auto is driven outside the state?
YES! extends to provide coverage required by financial responsibility or compulsory insurance laws of that state
What does personal auto policy pay when other insurance applies at the time of loss?
only its share of the loss in the porportion of the policy’s limit bears to all insurance in place
Under medical payments coverage, insurer will pay what?
insurer will pay reasonable expenses incurred within 3 years of the accident! LImit applies per person and payments are only made for ecessary medical and funeral services caused by the accident
Does fault apply in medical payments?
Medical coverage applies regardless of fault to any insured occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads
Part B Medical Payment exclusions are?
Insured occupying a vehicle with fewer than 4 wheels, using a vehicle as a public or livery conveyance or a residence, struc by an uninsured vehcle owned or furnished to an insured family member, using a veihcle without the reasonable belief of entitlement to drive it, using a vehicle while engaged in business or when workers’ compensation benefits apply or injuries sustained due to war, nuclear hazard or racing
Part C- Uninsured Motorists Coverage provides insurance to who?
persons injured in accidents caused by another party who is legally responsible for injuries to an insured that arise out of the ownership, maintenance or use of an uninsured motor vehicle
What are excluded under part C?
accidents involving an owned vehicle that is uninsured, a vehicle while being used as a public or livery conveyance, the insured using a vehilce without the reasonable belief of entitement to drive it, using a vehicle while engaged in business, when workers’ compensation benefits apply, and punitive or exemplary damages
When is the process of arbitration used?
when the insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured. Each party selects an arbitrator who then jointly select a third arbitrator who determines the insured’s amount of damages
Underinsured Motorists Coverage provides insurance to?
covers the insured against drivers who have auto liability insurance bu the coverage limits are inadequate. UIM coverage will pay the amount over the at fault driver’s coverage up to the UIM limit
Part D- Coverage for Damage to Your Vehicle (aka physical damages coverages collision and other than collision) pays for WHAT
direct and accidental damage, regardless of fault, to the insured’s covered vehicles and non-owned autos
What is collision?
Collision is the upset of the covered vehicle or a non-owned auto or its impact with another vehicle or object
Other Than Collision provides
Open Perils coverage for loss caused by any peril that is not excluded in the policy
What is a non-owned auto?
private passenger auto, pickup, van or railer not owned by, furnished to, or available for the regular use of the named insured or family member, while being used by the named insured or a family member
Transportation expenses coverage pays for what?
cost of transportation expenses incurred as a result of a covered collision or other than collision loss. No deductible applies and the limit of coverage is up to $20 per day (total of $600)
