Personal Auto Policy (PAP) Flashcards
PAP
Designed to insure personal autos owned or leased for at least 6 months under written agreement. However, a spouse who has moved out will still be covered up to 90 days, until spouse gets new coverage, or until the policy expires.
PAP 4 Coverage Parts
A: Liability and Supplementary Payments
B: Medical Payments
C: Uninsured Motorists
D: Damage to your Auto
Part A: Liability and Supplementary Payments
Pay for the following damages: Bodily injury, sickness, disease, death, property damage and pre-judgment interest awarded against an insured.
Part B: Medical Payments Coverage
Optional coverage. Pays for reasonable expenses incurred by an insured for necessary medical and funeral services because of bodily injury caused by an accident, regardless of who is at fault. Covers any named insured or family member injured while occupying a motor vehicle made for use on public roads, being struck by a motor vehicle or any person occupying a covered auto.
Part C: Uninsured Motorist Coverage
Insurer agrees to pay compensatory damages an insured is legally entitled to recover from and owner or operator of an uninsured motor vehicle from an accident in which the uninsured motorist is at fault.
Uninsured Motor Vehicle
A land motor vehicle of any type to which no liability bond or policies apply at the time of the accident.
Hit-and-Run or Phantom Driver
A vehicle owner can not be identified since they did not stop after the accident occurred. Hit-and-run when vehicle causes injury or damage by hitting named insured. Phantom driver is when they did not hit anything but cause the accident without even being aware.
Underinsured Motorists Coverage
Extends uninsured motorist coverage to include underinsured vehicles. One who has coverage but not enough to cover the full amount the insured is legally entitled to recover. Provides same limits as the insured’s liability limits.
Part D: Coverage for Damage to your Auto
Offers coverage for direct and accidental damage to covered autos and non-owned autos and transportation expenses after theft, or another covered loss.
Collision
Coverage that applies to loss due to the upset of a covered auto or its impact with another vehicle or object.
Other than Collision (Comprehensive)
Applies to any direct and accidental loss not caused by collision, unless it is specifically excluded. Includes: falling objects, fire, theft, larceny, explosion, earthquake, wind, hail, vandalism, riot, animals, or glass breakage
Transportation Expenses
Provides coverage for payment sup to $20 per day to a max of $600 for named insured’s temporary transportation expenses and legal liability for loss of use expenses. Applies to expenses incurred for Theft beginning 48 hours after the theft and ending when the auto is returned and for other losses beginning 24 hours after auto is withdrawn from use
Limit of Liability
Lesser fo ACV or the amount necessary to repair or replace property with property of like kind and quality.
Part E: Duties after an Accident or Loss
Insurer be notified promptly of how, when and where accident or loss took place, include names and address of injured people and witnesses. cooperate with insurer in settlement and investigation and send copies of legal papers to insurer. Notify police immediately after hit-and-run for uninsured motorists.
Part F: (General Provisions)
Bankruptcy: does not relieve insurer of any obligations under the policy
Changes: Terms of the policy may not be changed or waived except by endorsement issued by the insurer.
Fraud: No provide coverage for any insured who has made fraudulent statements or actions following an accident or loss.
Legal Action Against Us: No legal action may be brought against the insurer until the claimant has fully complied with all the terms of the policy.
2 or more auto policies: with same insurer, which apply to the same accident, the insurer will not pay more than the highest applicable limit of liability under any one policy.
