Exam 2 - Personal "AUTO" Policy Flashcards
What are the 4 coverages of PAP?
liability, medical payments, uninsured/underinsured motorists, physical damage
In liability coverage, WHO is insured?
Name, family, permissive user, any person/org for a covered auto
What are the 4 covered autos?
cars in the list, temp substitute car, newly acquired car, owned trailer
Which covered auto is covered in liability ONLY?
owned trailer
What is the liability coverage requirement for a newly acquired car with a replacement car?
Automatic
What is the liability coverage requirement for a newly acquired car with an additional car?
Report within 30 DAYS
What is the physical damage coverage for a replacement car?
Report within 30 DAYS
What is the physical damage coverage for an additional car?
Report within 30 DAYS
What are the split limits for liability coverage?
BI per person / BI per accident / PD
What is a temporary substitute car?
Covered auto that is non-owned, has automatic coverage
Liability coverage covers..
Body injury, property damage, defense cost
What is recommended TO BUY for covering the injuries of other people?
High limits of liability
Does liability cover driving out of state?
Yes, PAP will adjust to meet that state’s minimum liability coverage
What is subrogation?
Insurance pays for the insured’s damages, then seeks reimbursement from the negligent party
Why is subrogation good?
Prevent insured collect $ twice, hold bad party accountable, hold down rates
What are the rules for subrogation?
IF all is good, insurance is reimbursed ACV of the car and good party is reimbursed deductible
Insured person cannot give up or waive the insurance company’s right to pursue subrogation
What is the exception for subrogation?
In the Homeowners policy, insured party can WAIVE before loss
What does not count for liability coverage?
Intentional injury, property OWN/RENT/BORROW, BI to employee on job, uber, permissive user for business, two wheels, company car
What is the endorsement that can provide coverage for you using a company car?
Extended non owned coverage
Who is eligible for medical payments?
Anyone even if they’re negligent
Who is covered in medical payments?
Name, family, others using insured car
What is the exclusion of medical payments?
Intentional injury, property OWN/RENT/BORROW, BI to employee on job, uber, permissive user for business, two wheels, company car AND car used as residence (camper, trailer truck)
What is an uninsured coverage?
Coverage that pays BI and PD to your car caused by driver with no car insurance
What do you need in order to have coverage of the uninsured driver to be liable for your injuries?
Police report
Who is covered in the UM coverage?
Name, family, others using covered car
What are considered an uninsured car?
Hit/run, no car liability applies
What is underinsured coverage?
Where the UIM will pay the DIFFERENCE between risky and insured’s UIM policy limits
