Personal Auto Coverage Guide : Interpretation and Analysis

by Thamann, David D.; McCracken, Michael K.

• ISBN13: 9780872183773
• ISBN10: 0872183777
• Format: Paperback
• Copyright: 1999-04-01
• Publisher: Natl Underwriter Co

Summary

Develop detailed knowledge of this key coverage area that is crucial to your business. Included you'll find information about the major coverages, including Liability, Nonowned and Medical Payments, the most common endorsements, and the hottest issues.

Table of Contents

Underwriting a Personal Auto Policy	1	(8)
Eligibility	1	(1)
Underwriting a Personal Auto Submission	2	(2)
Age, Sex, and Marital Status	2	(1)
Driving Record	2	(1)
Use of Car	2	(1)
Type of Car	3	(1)
Occupation	3	(1)
Rating a Personal Auto Policy	4	(2)
Rating Example	4	(2)
Arrangement of the Policy	6	(3)
The ``Dec'' Page	6	(1)
Contents of the PAP	7	(1)
Mandatory Endorsements	7	(1)
Other Endorsements	7	(2)
Definitions	9	(8)
``You'' and ``Your''	9	(1)
Changes in Insured Status	9	(2)
``We,'' ``Us,'' and ``Our''	11	(1)
Leased Cars	11	(1)
``Bodily Injury''	11	(1)
``Business''	11	(1)
``Family Member''	11	(2)
``Occupying''	13	(1)
What is ``Occupying''	13	(1)
``Property Damage''	14	(1)
``Trailer''	14	(1)
``Your Covered Auto''	14	(1)
``Newly Acquired Auto''	15	(2)
Liability Coverage	17	(18)
The Insuring Agreement - Promise To Pay Legal Liability And Provide Defense	17	(2)
The Insuring Agreement - Who Is An ``Insured''	19	(3)
Supplementary Payments	22	(1)
Exclusions	23	(9)
Intentional Injury Exclusion	23	(1)
Damage to Owned Property Exclusion	24	(1)
Care, Custody, or Control Exclusion	24	(1)
Liability to an Employee of the Insured Exclusion	25	(1)
Public or Livery Conveyance Exclusion	26	(1)
Business Use Exclusions	26	(1)
``Reasonable Belief'' Exclusion	27	(2)
Nuclear Exclusion	29	(1)
Paragraph B Exclusions	29	(1)
Off-Road Vehicles	29	(1)
Furnished for Regular Use	30	(1)
Racing Exclusion	31	(1)
Limit of Liability	32	(1)
Out of State Coverage	33	(1)
Financial Responsibility	34	(1)
Other Insurance	34	(1)
Medical Payments Coverage	35	(8)
Who and What is Covered	35	(2)
Exclusions	37	(3)
Vehicles with Fewer Than Four Wheels	37	(1)
Public or Livery Conveyance	37	(1)
Vehicles as Residences	37	(1)
Workers Compensation	38	(1)
Vehicles ``Owned or Provided''	38	(1)
What is ``Furnished or Available''?	38	(1)
Reasonable Belief	39	(1)
Vehicle Used in Business	39	(1)
War and Nuclear	40	(1)
Racing	40	(1)
Medical Payments Conditions	40	(3)
Limit of Liability	40	(1)
Other Insurance	40	(3)
Uninsured Motorists Coverage	43	(10)
Who is Covered for UM	44	(1)
What is an ``Uninsured Motor Vehicle''?	44	(1)
No Insurance	44	(1)
Limits Lower than State Minimums	44	(1)
Hit and Run Vehicle	45	(1)
Denial of Coverage	45	(1)
What is Not an Uninsured Motor Vehicle?	45	(2)
Vehicles Owned or Furnished	45	(1)
``Self Insured'' Vehicles	46	(1)
Government Owned Vehicles	46	(1)
Rails and Crawler Treads	46	(1)
``Off-Road'' Vehicles	46	(1)
Vehicles Used as Residences	46	(1)
Exclusions	47	(1)
Vehicles Owned but Not Insured	47	(1)
Family Members and Other Insurance	47	(1)
Settlement without Consent of the Insurer	47	(1)
Public or Livery Conveyance	47	(1)
Reasonable Belief	47	(1)
Workers Compensation and Disability Benefits	48	(1)
Punitive Damages	48	(1)
UM Coverage Conditions	48	(2)
Limit of Liability	48	(1)
Other Insurance	48	(1)
Arbitration	49	(1)
Underinsured Motorists Coverage (UIM)	50	(1)
Uninsured Motorists Property Damage Coverage (UMPB)	50	(3)
Coverage For Damage To Your Auto	53	(22)
The Insuring Agreement - Coverage for Direct and Accidental Loss	53	(1)
The Scope of ``Auto Equipment''	54	(2)
The Insuring Agreement - Collision and ``Other Than Collision''	56	(2)
Definition of ``Nonowned Auto''	58	(1)
Physical Damage Coverage For Long Term Rental Vehicle Transportation Expenses	59	(2)
Physical Damage Coverage Exclusions	61	(8)
Public or Livery Exclusion	61	(1)
Wear and Tear Exclusion	61	(2)
War And Nuclear Exclusion	63	(1)
Electronic Equipment Exclusions	63	(2)
Governmental Or Civil Authorities Exclusion	65	(1)
Trailers, Campers, Mobile Homes Exclusion	66	(1)
``Reasonable Belief'' Exclusion	67	(1)
Radar Detection Equipment Exclusion	67	(1)
Custom Furnishings Exclusion	68	(1)
Business Use Exclusion	68	(1)
Racing Exclusion	69	(1)
Rental Cars Exclusion	69	(1)
Limit of Liability	69	(2)
Payment of Loss	71	(1)
No Benefit to Bailee	71	(1)
Other Sources of Recovery	72	(1)
Other Sources of Recovery - Primary v. Excess Coverage	72	(1)
Appraisal	73	(2)
Duties After Loss and General Provisions	75	(10)
Duties After and Accident or Loss	75	(3)
``Prompt Notice'' Of Loss Or Claim	76	(1)
Other Duties When Seeking Coverage	76	(2)
General Provisions	78	(7)
Bankruptcy	78	(1)
Changes	78	(1)
Fraud	79	(1)
Legal Action Against Us	79	(1)
Our Right to Recover Payment	79	(2)
Policy Period and Territory	81	(1)
Termination	81	(2)
Transfer of Your Interest in This Policy	83	(1)
Two or More Auto Policies	83	(2)
Endorsements Available for the Personal Auto Policy	85	(12)
Additional Insured - Lessor --- PP 03 19	85	(1)
Auto Loan/Lease Coverage --- PP 03 35	86	(1)
Certificate of Insurance - Trusts --- PP 03 33	86	(1)
Customizing Equipment Coverage --- PP 03 18	87	(1)
Damage to Your Auto (Maximum Limit of Liability) --- PP 03 08	87	(1)
Damage to Your Auto Loss Settlement Amendment --- PP 03 43	88	(1)
Excess Sound Reproducing Equipment, Audio, Visual and Data Electronic Equipment, and Tapes, Records, Discs and Other Media --- PP 03 13	88	(1)
Extended Non-Owned Coverage for Named Individual --- PP 03 06	89	(1)
Federal Employees Using Autos in Government Business --- PP 03 01	89	(1)
Full Safety Glass Coverage --- PP 03 15	89	(1)
Full Windshield Coverage --- PP 03 25	89	(1)
Joint Ownership Coverage --- PP 03 34	89	(1)
Liability Coverage Exclusion Endorsement --- PP 03 26	90	(1)
Limited Mexico Coverage --- PP 03 21	90	(1)
Loss Payable Clause --- PP 03 05	91	(1)
Mexican Collision Coverage --- PP 03 56	91	(1)
Miscellaneous Type Vehicle Endorsement --- PP 03 23	92	(1)
Miscellaneous Type Vehicle Amendment (Motor Homes) --- PP 03 28	92	(1)
Named Non-Owner Coverage --- PP 03 22	92	(1)
Optional Limits Transportation Expenses Coverage --- PP 03 02	92	(1)
Participating Coverage for Damage to Your Auto --- PP 03 24	92	(1)
Single Liability Limit --- PP 03 09	93	(1)
Snowmobile Endorsement --- PP 03 20	93	(1)
Sound Receiving and Transmitting Equipment --- PP 03 55	93	(1)
Supplementary Medical Payments Coverage --- PP 03 70	93	(1)
Suspension of Insurance --- PP 02 01	94	(1)
Tapes, Records or Other Devices --- PP 03 04	94	(1)
Towing and Labor Costs Coverage --- PP 03 03	94	(1)
Trailer/Camper Body Coverage (Maximum Limit of Liability) --- PP 03 07	95	(1)
Underinsured Motorists Coverage --- PP 03 11	96	(1)
List of PAP Endorsements (discussed in this chapter) in Numeric Order	96	(1)
Miscellaneous Type Vehicles	97	(10)
Motor Homes	97	(1)
Travel Trailers	98	(1)
Motorcycles and Other Similar Vehicles Not Used For Business Purposes	98	(1)
Snowmobiles and All-Terrain Vehicles	99	(1)
Dune Buggies	99	(1)
Golf Carts	100	(1)
Antique and Classic Autos	100	(1)
Electric Autos	101	(1)
The Miscellaneous Type Vehicle Endorsement, PP 03 23	101	(3)
Snowmobile Endorsement, PP 03 20	104	(3)
Nonowned Coverage	107	(12)
Introduction	107	(1)
Extended Nonowned Coverage Endorsement	107	(4)
Liability Coverage	107	(3)
Medical Payments Coverage	110	(1)
Rating	110	(1)
Named Nonowner Coverage	111	(4)
General Features of PP 03 22	111	(1)
Liability Coverage	112	(2)
Medical Payments Coverage	114	(1)
Uninsured Motorists Coverage	114	(1)
Rating	115	(1)
Regular Use	115	(4)
No-Fault Automobile Insurance	119	(10)
Types of No-Fault Laws	119	(1)
General Description of Coverage	120	(1)
Elements of No-Fault Coverage	121	(2)
No-Fault Benefits	121	(2)
An Illustration of No-Fault Benefits	123	(3)
Tort Liability Exemption	124	(1)
Compulsory No-Fault Laws	125	(1)
Property Damage	126	(1)
Constitutionality of No-Fault Laws	126	(3)
Financial Responsibility and Compulsory Insurance Laws	129	(58)
Financial Responsibility Laws	130	(1)
Compulsory Insurance Laws	130	(1)
Unsatisfied Judgments	131	(1)
Judgements and the Laws	132	(1)
Insurance Policies and the Laws	132	(1)
Required Limits by State or Province	133	(4)
Issues in Personal Auto Insurance
Automatic Coverage	137	(7)
Newly Acquired Autos	137	(2)
Inoperable Autos - When ``Acquired?''	139	(2)
Trailers	141	(1)
Named Insured's Ownership	141	(1)
``Replacement'' v. ``Additional'' Automobile	142	(2)
Betterment	144	(2)
What is ``Collision?''	146	(22)
Collision in General	146	(1)
Collision With Road or Ground	147	(4)
Collision With Water	151	(1)
Falling Objects	152	(1)
Missiles	153	(3)
Malicious Mischief or Vandalism	156	(4)
Windstorm	160	(2)
Hail Damage	162	(1)
Collision Following Theft	162	(1)
Contact With Bird or Animal	163	(1)
Glass Breakage	164	(1)
Shifting of Cargo	164	(1)
Other Causes of Loss	165	(1)
Proximate Cause	166	(2)
Insurable Interest in Stolen Autos	168	(8)
Misrepresentation and an Insurer's Right to Cancel a Policy	176	(2)
Public or Livery Conveyance	178	(4)
Stacking	182	(2)
What Qualifies As ``Use'' Of Auto?	184	(3)
Appendix A: Personal Auto Policy (Reproduced)	187	(12)
Appendix B: Selected Endorsements (Reproduced)	199	(4)
Appendix C: UM Requirements by State	203	(2)
Appendix D: ``No-Fault'' States with Unrestricted Right to Sue	205	(2)
Appendix E: Personal Auto Checklist	207	(2)
Appendix F: Special State Endorsements	209