Chapter 6: Personal Automobile Policy Flashcards
What are the minimum limits and coverages required to be carried
$15,000- injury to one person in one accident
$30,000- injury to two or more in one accident
$5,000- damage to property of others in one accident
What is the PA Motor Vehicle Financial Responsibility Law
must have insurance and adequate limits
What is the PA Automobile Insurance Plan and what is its purpose
provides coverage to individuals who are unable to secure insurance through the regular voluntary automobile market
What are the Basic First Party Benefits
Medical expenses up to the required minimum $5,000 ; usually identified within first 18 months
Full tort and Limited Tort Option
Full- full financial compensation
Limited- no pain and suffering or non-monetary damages; premium reduction
Added First Party Benefits & limits
Medical Expenses Benefits- $5,000-$100,000
Work Loss Benefit- 80% of actual loss of gross income after 5 day waiting period ($1,000 per month, $5,000 aggregate per person, maximum of $2,500 per month and $50,000 aggregate per person)
Funeral Expense Benefit- $1,500 or $2,500
Accidental Death Benefits- $5,000 to $25,000
Difference between Uninsured and Underinsured Motorists Coverage
Uninsured- pays insured for bodily injury from uninsured/negligent driver
Underinsured- pays for losses suffered by insured with insufficient liability limit
What is covered and what options/selection are required in PA
any registered vehicles must carry at least liability coverage, with limits $1,500 per person, $30,000 per accident, and $5,000 property damage or CSL of $35,000, $5,000 medical first party benefits
7 specific exceptions that turn limited tort into full tort
- injury considered serious
- if at fault driver is convicted/accepts for DUI
- is operating vehicle in another state
- At fault driver intends to injure themselves or another
- At fault driver has not maintained financial responsibility by law
- Claim for vehicle defect is against a person in the business of manufacturing, designing, etc. otherwise maintaining
- person is injured as an occupant of a commercial vehicle
Non-economic loss
pain, suffering, other non-monetary losses
Serious injury
injury resulting in death, serious impairment of a body function or disfigurement
PA specific requirement regarding rental car coverage
minimum required liability limits
$15,000 in bodily injury liability insurance per person ($30,000 per accident) and $5,000 in property damage liability coverage per accident
eligibility requirements for Personal Auto Policy
*Ownership & Autos
Ownership- individuals or jointly owned
Autos- private passengers, pickups or vans, Trailers, misc. vehicles (only covered by endorsements)
newly acquired auto
*vehicles listed on that you become owner
private passenger, pick up or van with GVW less than 9,000lbs and not used in business other than farming/ranching
4 specific parts of newly acquired auto
- Coverage begins on the date you become owner, report w/n 14 days or end of policy period for replacement
- Replacement or trade-in or additional vehicle, broadest coverage provided of the currently insured vehicle
- Liability, PA first party benefits and UM/UIM to apply: named insured must acquire auto during policy period and must report coverage w/n required time
- For COV D, 14 days if policy currently collision/other than coverage; if current policy doesn’t reporting period is 4 days and coverage is w/ $500 deductible
How coverage applies to replacement auto vs. additional auto
see pg. 5 chart
4 parts of “who is an insured” under Personal Auto Policy Liability Section
- you- named insured and resident spouse & any family member
- any person using your covered auto
- any person/organization for liability under your covered auto
- auto/trailer other than your covered auto, any person/org. has coverage for legal responsibility either named insured/family member
*see pg. 7 chart
What are the supplementary payments and how do they affect the limits of liability- 6
- paid in addition to limits in dec pages
1. $250 for cost of bail bonds b/c of auto accident
2. premium on appeal bonds
3. interest accruing after judgement
4. up to $200/day for loss of earnings b/c of trail
5. other reasonable expenses occurred at insurance companies request
6. pre-judgement interest paid
Part A- Liability Exclusions (13)
no liability for insured persons…
-who intentionally cause bodily injury or property damage
-property damage to property owned/transported by that insured
Exclusions for UM &UIM
- while an insured is occupying their own vehicle
- punitive damage
- insured using vehicle w/o reasonable belief; excluded family member
- an insured cannot settle any claim w/o insurers consent
- while your covered auto is being used as public livery
- if full tort is selected
*7. not able to collect non-economic damages if selected limited tort (UM)
Stacked vs. non-stacked UM/UIM benefits
Stacked- insured and family members limits equal to the amount of limits shown
NonStacked- limits expressed is the most that is available for any insureds
COV D- Damage to your covered auto
*insuring agreement
bodily injury…
-sustained by an insured
-caused by an accident
COV D- Damage to your covered auto
*what is collision
upset/overturn of covered auto or non-owned auto or their impact with another vehicle or object
COV D- Damage to your covered auto
*what is covered under Other Than Collision (OTC)
Missiles or falling objects
fire
theft or larceny
explosion or earthquake
windstorm
hail
water or flood
malicious mischief or vandalism
riot or civil commotion
contact with bird/animal
breakage of glass
COV D- Damage to your covered auto
*what is the two part definition of non-owned auto
private passenger vehicle which is not owned or furnished for the regular use of the named insured or family member
What are the two parts of transportation expense & limits
Insured is paid if loss is caused by collision/other than
If loss is caused by theft than payments subject to 48hr waiting period
Limits: $20 a day, maximum of $600
Exclusions (will not pay) under COV D
Loss while used as a public livery
Damage due to- wear/tear, freezing, breakdown
Road damage to tires
loss due to war
loss to electronic equipment
media
loss by governmental authority
loss to unlisted tailor, camper, motorhome
use of non-owned auto w/o reasonable belief of permission
loss to radar/laser detectors
loss to custom furnishings/equipment
Employed in selling, servicing, repairing or parking cards
Vehicle located in facility for racing
loss for rental vehicle
Duties after an accident or loss (part E)
Same as others
COV for Damage to your auto- protect from further loss, notify police of theft, permit inspection/appraisal of damaged property
Endorsement: Towing & Labor Costs
Coverage for towing and labor every time an auto becomes disabiled
*limits $50, $75, or $100
Endorsement: Extended Non-owned coverage
extends coverage for insured’s personal use of a company car
Endorsement: Miscellaneous type vehicle
alters the definition of covered vehicle to include scheduled vehicles such as motorcycles, motor homes, all terrain vehicles, dune biggies and golf carts
*Recreational Vehicle Policy
Endorsement: Joint Ownership Coverage
covers joint owner of auto listed
*unmarried individuals, non-resident relatives, parent co-owns auto
