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32 Cards in this Set
- Front
- Back
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What are the 2 major auto exposures that individuals want to be protected against |
*Liability *Damage to their own auto |
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What is Liablilty |
This means to protect the insured in case they injure someone or damage someone elses property through the use of their auto |
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What is Damage to Their Own Auto |
this means to protect them in case the auto is damaged in an accident or suffers other types of damage, such as fire &theft |
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Why is the Auto Policy considered a PACKAGE POLICY |
Because it can provide coverage for both property and liablilty
*The insured is not required to have both to have coverage |
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What does the Auto Policy consist of |
*Declarations Page *Policy form |
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What does Named Insured mean |
This is listed on your declarations, includes you & your spouse, AS LONG AS THE SPOUSE LIVES IN THE HOUSEHOLD |
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What does Insured mean |
The insured is the NAmed Insured (NI), family members of the named insured & permissive drivers of the auto |
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What is a Covered Automobile |
Includes any vehicle listed in the declarations, including private passenger autos which have 4 wheels, pickup trucks, vans, and farming vehicles (No business use), includes any trailer owned by the named insured (while its being towed by the auto) Includes temp subsitutes and non owned autos |
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What is a TEmporary Auto Subsitute |
A replacement vehicle for the vehicle listed on the declarations, such as a rental car, a loaner car while the insured vehicle is being repaired or serviced; usually for a specific time |
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What does Non-owned Auto mean |
A vehicle owned by your friend/relative that is provided for business or pleasure use; a borrowed vehicle for regular use |
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Describe COVERAGE A-LIABILITY |
*Coverage liability will pay for BI or PD which the insured becomes legally obligated to pay bc of a auto accident caused by the insured *also includes SUPPLEMENTARY PAYMENTS, which means in addition to the liablity limit, we will pay other reasonable expense incurred at our request, loss of earnings, but will not pay income bc of attendance at hearings or trials at our request |
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What are some exclusions to Liablity Coverage |
WE DO NOT PAY FOR: *intentional loss caused by the insured *damage to property the insured owns or transports *Work Comp losses *Losses that arise from the insured using the vehicle as a taxi or delivery vehicle *losses that arise if someone steals the insured vehicle and causes BI or PD *loss caused by the insured vehicles that are less than 4 wheels or designed for use off public roads *losses caused by the insured using their vehicle in pre arranged rtacing contests, LOSSED CAUSED BY THE INSURED DURING UNOFFICAL RACES WOULD BE COVERED |
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What are the Limits of Liability |
Coverage based on a spilt limit basis *The minimum limits in NC are 30/60/25, this means the policy will pay... $30,000 for one person, $60,000 for 2 or more people injured, and $25,000 property damage caused by the insured
*NC IS A FINACIALLY RESPONSIBLE LAW STATE. THIS MEANS THAT ALL DRIVERS ARE REQUIRED TO HAVE LIABILITY INSURANCE |
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What is Out of State Coverage?? |
This is a condition or provision in the policy that modifies the auto policy to meet other states finacial responsibility requirements and other state laws concernin out of state drivers when the covered auto is being driven in that state |
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What is the Other Insurance Clause?? |
This states that the other insurance company will only pay its portion of a loss if the auto is also insured by other insurance
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What happens if you have an accident that is your fault in someone elses car?? |
If you are driving someone elses vehicle and have an accident that is your fault, the insurance that pays is the one that follows the auto, NOT THE DRIVER. THEREFORE, THE VEHICLES INSURANCE IS PRIMARY (PAYS FIRST) & THE DRIVERS INSURANCE IS EXCESS (PAYS ADDITONAL AMOUNT UP TO THEIR POLICY LIMIT ONCE THE PRIMARY LIMIT IS EXHAUSTED) |
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What is Coverage B-Medical Payments Insuring Agreement?? |
This means that the insurance will pay reasonable expenses incurred for medical and funeral expenses bc of BI caused by an auto accident and sustained by the insured (pays for the insured and anyone that was in the car with the insured that is injured) IT DOES NOT PAY FOR THE OTHER PERSON IN THE VEHICLE THAT IS INJURED OR THE PERSON THAT WAS STRUCK BY THE INSURED VEHICLE. *Medical payments will pay for expense incurrd within 3 years from the accident |
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What is MED PAY?/ |
Med pay is referred to 1st party coverage bc it pays for the insured |
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What are the exclusions for Coverage B - Medical Payments |
*occupying a motor vehicle with less than 4 wheels *using the auto for taxi or delivery purposes *occupying a vehicle that is being sued in the insured business *occupyinf a vehicle such as a motor home *Work Comp losses *losses caused by war or nuclear hazard *loss sustained by prearranged racing contests |
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Medical Payment Coverage |
has a single limit of coverage that applies per person for each accident *The other insurance condition or provision for MEdical Payments is the same as its is for liablilty |
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What is Coverage C-Uninsured/Under insured |
This means that they will pay compensory damages (BI/PD) which an insured is legally entiltled to recover from the owner/operator of an insured vehicle for losses sustained by an insured and caused by an accident. Punitive damages (damages to punish) are not payable under UM/UIM |
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What 4 conditions must be met before the insured can be indemnified (restored) under Part C (UM/UIM) |
1.Loss must be caused by an auto accident 2. Loss must be sustained by the insured 3. Insured must be legally entitled to recover for damages 4. Other vehicle must meet the definition of an uninsured vehicle |
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What is the definition of Uninsured Motor Vehicle |
1. Has no liability coverage 2. Has liability coverage, but not enough to meet the states finacial responsiblity requirements 3. is operated by a hit and run driver that cannot be identified 4. Has insurance but the insurer is insolvent or they deny coverage |
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What VEHICLES do not meet the definition of UM/UIM?? |
1. Vehicles that are owned by a government agency 2. Vehicles operated on rails or crawler treads 3. Vehicles designed for use off private roads |
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What exclusions are there for Coverage C UM/UIM covergae |
WE DO NOT PAY FOR LOSSES *That occur when the vehicle is beiing used for a taxi or delivery *Workers comp *As duplicate payments that were paid by or on the behalf of the person who was legally responsible for the accident |
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UIM Coverage (Underinsured Motorist Coverage) |
will pay teh insured when the person who causes the accident has some liability coverage, but not enough to indemnify the insured for the accident. The policy will pay up to the policy limit
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For liability, Med pay, and UM/UIM coverage |
If a newly acquired vehicle replaces an auto listed in the declarations, the auto automatically has the broadest (best ) coverage provided for any vehicle listed in the declarations. If the newly acquired auto does not replace an auto that is already insured, coverage must be requested within 30 days of acquiring the auto |
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What is Coverage D-Phsyical Damage Coverage (Collision and Other Than Collision/Comprehension) |
This means that the insurance will pay for direct and accidental loss to your covered auto or any non-owned auto, minus any deductable shown on the declarations. If there is a loss to a non-owned auto, we will provide the broadest coverage applicable to any of the covered autos on the declarations
*Collision and Other than collision (comprehensive coverage) DO NOT PAY for any other personal property in the vehicle
The named insured may provide one or both of these coverages. The insured chooses the deductables |
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What is Other than Collision (Comprehensive) |
This covers losses other than collision such as fire, theft, earthquake, windstorm. hail, water, flood, vandalism, glass breakage, contact with a bird or animal
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If someones adds another vehicle or replaces one on their DECLARATION |
If someone adds or replaces a vehicle, it doesnt matter, as long as the insured has at least one auto insured for physical damage, coverage begins on the date the auto is aquired, AS LONG AS THE INSURED REQUESTS COVERAGE WITHIN 30 DAYS OF AQUIRING THE AUTO
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What is Coverage E- Insured duties after a loss or accident |
This coverage details the duties of an insured following a loss...it is the insured responsibility if they are involved in a UM loss, they are required to notify the police promptly if a hit and run driver is involved. *If the loss is a physical damage loss (Collison or Other than collision) (Comprehensive) the insured must take reasonable steps to protect the vehicle from further damge, reasonable expenses required to do so will be reimbursed *The police must be notified if the vehicle is stolen *THE INSURANCE COMPANY MUST BE PERMITTEDTO INSPECT OR APPRAISE THE VEHICLE BEFORE IT REPAIR OR DISPOSAL FOLLOWING A LOSS |
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Coverage F - General Provision |
This part of the policy includes the conditions for the coverages and describes the duties and responsiblilties of the insured and the insurer (insurance company). Th epolicy will only pay for accidents and losses that occur during the policy period that is shown on the declaration page and within the policy territory (US, Puerto Rico, Canada) Also covered are autos transported between territorial ports.
*LEGAL ACTIOn AGAINST THE INSURER MUST NOT BE TAKEN UNTIL ALL POLICY TERMS HAVE BEEN COMPLIED WITH *POLICY TERMS MAY NOT BE CHANGED OR WAIVED EXCEPT BY WRITTEN ENDORSEMENT |
