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Personal Auto Policy
pap
| Term | Definition |
|---|---|
| Part A | – Liability Coverage |
| Part B | – Medical Payments Coverage |
| Part C | – Uninsured Motorist Coverage |
| Part D | - Coverage for Damage to Your Auto |
| Part E | Duties After an Accident or Loss |
| Part F | – General Provisions |
| The ownership/operation of an auto involves 3 types of potential loss & PAP must provide protection for these losses under diverse circumstances | Legal Liability Injury to insured or members of the insured’s family Damage to or loss of auto itself |
| Bodily injury | Bodily harm, sickness, or disease including death that results from injury |
| Property damage | Physical injury, destruction or loss to tangible property |
| You & Your | Named insured shown on declarations page Spouse of insured if resident of same household |
| Family Member | Person related by blood, marriage or adoption who is resident of household |
| Trailer | Vehicle designed to be pulled by private passenger auto, truck or van |
| Newly Acquired Auto | Private passenger auto Gross vehicle weight less than 10,000 lbs Not used for delivery or transportation of goods unless incidental to a business Not used for farming or ranching |
| Your Covered Auto | Any vehicle shown on declaration page A newly acquired auto Any trailer owned Any auto or trailer not owned by insured but used as temporary substitute |
| Collision | Upset or impact of covered vehicle |
| Other than collision (previously comprehensive) includes losses caused by the following | Missiles or falling objects Fire Theft Explosion/earthquake Windstorm Hail, water or flood Vandalism malicious mischief Riot/civil commotion Contact w/birds or animals Breakage of glass |
| Collision coverage & other than collision coverage | Coverage begins when insured becomes owner Must notify insurer within 14 days of become owner Provides broadest coverage as stated on declarations page If insurer is not notified and insured incurs loss within 4 days of ownership, coverage may still be |
| Occupying | Means in, upon, getting in, on, out of, or off a vehicle |
| Owned Auto | Eligible vehicles titled to insured or acquired during policy period |
| Nonowner Auto | Private passenger auto, pickup truck, van or trailer operated or in custody of insured but not titled to or for regular use by insured |
| Hired Auto | Vehicles leased, hired, rented or borrowed from someone other than employee or partner |
| Temporary Substitute | Vehicle not owned by insured but used as temporary substitute while covered vehicle is out of use due to breakdown, repair, servicing etc |
| 2 types of liability limits: | split limits and combined single limit |
| Split Limits – uses 3 dollar amounts | Bodily injury for each person Bodily injury for entire accident (regardless of the # of people) Property damage Ex 25/50/25 |
| Combined Single Limit | 1 limit which combines bodily injury & property damage regardless of the # of people or amount of property damage |
| MEDICAL PAYMENTS | Services & expenses must be rendered within 3 yrs from date of accident |
| Uninsured Motorist | Coverage provided for bodily injuries the insured would be legally entitled to recover from the owner/operator of a vehicle that does not carry the minimum financial responsibility required by state |
| 4 categories define uninsured motorist: | 1. No liability bond or insurance for vehicle 2. Bond or insurance is less than what is required for financial responsibility laws of the state the accident occurred 3. Accident was hit-and-run and driver cannot be identified 4. Bonding/Insurance compa |
| Underinsured Motorist | Coverage helps insured with bodily injury damage caused by another motorist who has insufficient coverage Pays difference between at fault drivers bodily injury limits and insured UIM limit |
| PART D – COVERAGE FOR DAMAGE TO YOUR AUTO | Commonly called physical damage coverage which includes: Collision Other than Collision (comprehensive) |
| Payment of Loss | Insurer has option of paying money, repairing or replacing damaged/stolen property. If property is stolen, insurer can return property to insured repairing any damages or keep all or party of property at an appraised amount |
| No Benefit to Bailee | Insurance will not directly or indirectly benefit any bailee (someone who has your vehicle for repairs like mechanic). Provision is intended to provide coverage for victim of loss rather than paying bailee |
| Other Sources of Recovery | If other insurance is applicable, will pay on a proportional basis |
| Appraisal | If insured & insured cant agree on value, either party can demand an appraisal. Each party picks and pays for own appraiser, who selects a 3rd appraiser called an umpire. Decision reached by at least 2 appraiser is binding for both parties. |
Created by:
kita1506
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