P and C 6 Auto Insurance Flashcards
Property Coverage
Four basic areas of the Homeowners contract that provide coverage for an insured’s property: 1) Dwelling, 2) Other Structures, 3) Unscheduled Personal Property, 4) Loss of Use
Bodily Injury
Usually defined to include bodily harm, sickness, or disease, also including required care, loss of services, and resulting death.
Subrogation
The transfer to the insurance company of the insured’s right to collect for damages. After paying a claim, the company stands in the place of the insured in suing the negligent party, thus preventing the insured from collecting twice.
Property Damage
A type of loss covered under many liability contracts. Includes the insured’s liability for damage to property of others or loss of use of tangible, physical property.
Financial Responsibility Law
State laws that require owners of operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
Personal Auto Policy
Easy-to-read Auto policy that provides broad coverage for both owned and non-owned autos that are used, maintained, and/or operated by the insured and family.
Assigned Risk
There are some applicants that underwriters do not care to insure, but because of state law or otherwise, must be provided protection. To become authorized, a casualty company must agree to participate in the Assigned Risk Pool and take its turn providing Auto insurance to high-risk drivers. Also known as the auto insurance plan.
Auto Insurance
An insurance contract designed to indemnify exposures of loss arising from the ownership, maintenance, or use of an automobile.
Collision Coverage
In Auto insurance, a type of Physical Damage coverage that covers loss that occurs when the insured auto strikes another object or vehicle. May also included upset or overturn of the insureds auto.
Comprehensive Coverage
In Auto insurance, a broad Physical Damage Coverage that covers all property losses except collision (e.g., fire, water, theft, hail etc.) and other perils or property that are specifically excluded. Also called Other Than Collision Coverage (OTC)
Garage Policy
A policy that provides coverage for garage businesses (dealers, service stamps, garages, parking lots, etc.). Includes coverage for liability, physical damage, and garagekeepers’ losses arising out of owned, non-owned, and hired autos.
Garage Keepers Legal Liability
A type of Bailee coverage (protecting the business for damage to the property of their customers) available to automobile repair shops, service stations, and parking lots or storage garages.
