Final Flashcards
Guest hazard statute
operator of a vehicle becomes absolutely liable to an injured guest/passenger
Family purpose doctrine
a parent if liable for the negligent actions of their child involved in a car accident while driving the parents car
parental vicarious liability
parents can be held liable for their Childs harmful actions
financial responsibility laws
does not specifically require insurance but requires individual or business to prove they can pay for damages resulting from an accident
vicarious liability
a legal rule that holds a person responsible for the actions of others
open-peril coverage
policy covers anything that happens to your house and stuff expect those explicitly excluded from your policy
“insured” (HO)
you relatives and anyone under 21
“insured” PAP
policy holder and anyone in the vehicle
Fair rental value (HO)
income protection for landlords, if the property is damaged and can’t be rented out, the coverage pays rent on behalf of tenants.
additional living expense (HO)
reimbursed you for extra living expenses if you are forced to live elsewhere after a covered insurance claim
Underinsured motorist coverage
protects you if you’re hit by a driver who doesn’t have enough coverage to pay for the damages or injuries they caused
Split limit, 50/100/30
Bodily injury per person, Bodily injury per accident, and Damage to property per accident:
primary coverage
coverage that pays out regardless of whether
there are other insurance policies covering the same risk
secondary (excess) coverage
Excess policies, also called secondary policies, extend the limit of insurance coverage of the primary policy or the underlying liability policy
Compulsory insurance laws
insurance that a person or business is legally required to buy
4 insurance options for high-risk drivers
auto insurance assigned risk pool
reinsurance pool
joint underwriting association
Maryland state auto insurance find
no-fault auto insurance
where neither party accepts fault and just collects from their own insurance policy it lowers the insurance rates by avoiding lawsuits
pure no-fault
each party collects from their own insurance and has no right to sue
modified no-fault
only used in 13 states monetary and verbal threshold
add on no-fault
person can collect and still has the right to sue
choice no-fault
allows person to elect out of no fault
newly acquired auto-provision
automatically receive coverage regardless of notifying the insurer of coverage other than physical damage
for physical damage covered for 14 days under the broadest coverage provided by the policy
PAP liability exclusions
intentional damage, business use, motercycles
Section 1 homeowner’s coverage
Coverage a: dwelling - where you live 100% coverage
Coverage b: other structures, covers structures separate from dwelling - 10% coverage
Coverage c: personal property no matter where in the world 50% coverage
Coverage d: loss of use - additional living expense 30% covered
duties if a loss occurs PAP
- notify the insurer of a claim
protect property involved in loss
cooperate with insurer
