PAP - Personal Auto Policy Flashcards
Vehicle Type for PAP
private passanger auto, pick-up or van with a GVW under 10,000lbs owned OR 6month+ lease OR used in farming
Eligible Persons
Individuals, Related persons, and unrelated persons LIVING TOGETHER
NOT Eligible
Corporations, partnerships or other combinations of interest
Declaration Page
Identifies NI, Mailing Address, STATE, Policy Period, Coverage, Limits, Premium and Loss payee
Define: You
Name Insured
Define: Family Member
resident relative or ward/foster children
Define: Trailer
Designed to be pulled
Define: Your covered auto
1) Listed on Dec Page
2) Any temporary substitute for described vehicles out of normal use due to breakdown, loss or destruction
3) Owned trailer
4) Newly aquired
List the “Parts” of a PAP
A) Liability
B) Medical Payments
C) Uninsured Motorist
D) Damage to your covered auto
Part A: Liability
Insurer has a duty to defned NI against claims and lawsuits, paying on behalf of the insured
BI
Bodily Injury
physical harms, sickness or disease, or death resulting from damages
Ex) Medical bills, Loss of income, Pain&Suffering
PD
Property Damage
includes damages to tangible property and loss of use of such property
Liability Excludes
- intentional acts
- damages to property owned or being transported by that person
- property damage to property rented, used by or in the care of that person except a rented residence premises or private garage
- Injuries to employee in course or employment
- Auto used in business
- Without permission
When is no liability coverage afforded?
1 - using a vehicle owned while not insured
2 - vehicle with less than 4 wheels or deigned for off-road or racing use
3 - vehicle furnished for regular use other than a your covered auto
PAP Liability Limits
Single limit, CSL Combined Single Limit, Split limit
Split limit
BIperperson/BIperaccident/PDperaccident
min $10/$20/$10
What is the most common way to write a policy?
Split limit
Part B: Medical Payments
- Limits are per person/ per accident
- Common limits: 500, 1000, 2000 & 5000
- Pays necessary medical expenses and funeral services for 3 years from the date of accident to the insureds regardless of fault
- Does not pay for lossed wages
- NI and family member as occupant of or pedestrian struck by any vehicle designated for the roads and other passengers in your covered auto
PAP, Part B, Exclusions
(1) Occupying a vehicles with less than 4 wheels (pedestrian struck by motorcycle is covered)
(2) Using your covered auto for public or livery vehicle
(3) If workers comp is payable aka workers comp pays first
(4) Occupying a vehicle furnished for the regular use of the NI, spouds and family members
(5) Occupying a vehicle without permission
(6) Occupying a vehicle for business purposes other tha a private passanger auto/pu/van
(7) Racing in a designated facility
(8) Used as a residence or premises
Med Pay
Insured’s med pay coverage is PRIMARY when occupying owned autos.
Insured’s med pay coverage is EXCESS when occupying non-owned autos.
Amounts payable for med pay are reduced by any amounts paid for the same expense under Liability, PIP and U/M.
Part C: Uninsured Motorist
- governed by statute, pays compensatory damages to insured for BI under ones own policy for amounts otherwise entitles to from others
- does not pay punitive or exemplary damages
For PAP, Part C is applicable under what types of conditions describing the other party involved?
1-uninsured 2-underinsured 3-Hit and Run 4- Insolvent company 5-If at-fault party's company denies coverage
Define insured under PAP part C
Insured and family members (any vehicle) and as pedestrian; others while occupying insured’s motor vehicle
PAP, Part C, Limits
min $20,000 CSL or 10/20 split limit
Policy comes stacked with same limits as liability; insured may reject U/M OR purchase U/M lower or equal to liability limits OR purchase non-stacked benefits
Insured must sign a form when rejecting, reducing or elects non-stacked benefits
Company must notify of benefits annually
CSL
Combined Single Limit
Occupying Non-owned
Non-stacked: broadest limit of insured vehicles, excess over vehicle occupying
Stacked: Add together vehicles on policy of insured, excess over vehicle occupying
Occupying Owned Auto
Non-stacked: Limits of vehicle occupying
Stacked: Add limits of vehicles under insured policy together for available amount
Part D: Damage to your covered auto
Physical damage; ACV or cost to repair or replace- lesser
Covers your covered auto and non-owned auto when using one that is not furnished or available for your regular use
Covers OTC and Comp (aka Other Than Collision and Comprehension); all losses not covered by collision
-> missiles, falling objects, fire theft, larceny, explosions, earthquake, wind, hail, water, flood, vandalism, riot, civil commotion, contact with birds or animals, glass breakage
Collision
may not issue without OTC: impact with another object or upset
