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89 Cards in this Set
- Front
- Back
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Florida Financial Responsibility Law |
Liability Insurance limits at least 10,000/20,000/10,000; Standard policies provided that limits will meet minimum requirement of laws in other states |
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Trigger. |
Accident involving: Bodily injury, Property damage, rendering auto inoperative, certain serious traffic violations, such as DUI or committing a Felony. |
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Who are the covered persons under medical payments of a PAP?
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The named insured and family members while occupying any motor vehicle designed for use mainly on public roads or any type of trailer,Any other persons occupying your covered auto,As a pedestrian if struck by any motor vehicle designed for use mainly on public roads or any type of trailer.
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Jill has a golf cart, which she wishes to cover under her PAP; what endorsement should she add to the PAP?
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Miscellaneous Type Vehicle Coverage
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When does Florida Statute require that a vehicle owner or operator show proof of financial responsibility?
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When in an accident which involves bodily injury or property damage
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How does the coverage for bodily injuries work under the Uninsured Motorist provision?
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It is a form of coverage to pay compensatory damages for BI under one's own policy, for amounts, which would otherwise have been recovered from the liability insurance of another, either an uninsured motorist or one who has lower limits.
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What is the maximum paid under the death benefit alone for PIP?
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$5,000
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Defined vehicles subject to the 'no-fault' law include:
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Motor vehicles which are self-propelled with four or more wheels and which are required to be licensed
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Which statement best describes one's position under the Florida No-Fault Law,when total economic loss exceeds Personal Injury Protection benefits, without exceeding a threshold?
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No suit for intangible damages permitted; however, suit for economic loss not paid (or payable) under Personal Injury Protection is permitted.
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What is meant by a 'Safe Driver Insurance Plan'?
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The operators have had no accidents or serious traffic violations during the prior 3 year period.
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Which of the following has liability coverage under an individual's PAP, when a covered vehicle owned by the named individual is being 'road tested' by an auto-mechanic?
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The named individual
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What are medical payments in auto insurance coverage?
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Medical payments are reduced by any amounts payable for the same expense under Liability, PIP or Uninsured-Motorist coverage,Medical payments limits apply per person,They are expenses incurred for required medical and funeral services for covered persons injured by accident without regard to fault or legal liabilities.
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Which vehicles are eligible under the Personal Auto Policy?
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A pickup or van that has a gross vehicle weight of less-than 10,000 pounds and is not used to deliver or transport goods or materials and Private passenger autos.
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How are losses paid in Part D of a PAP
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The limit of liability provision calls for payment of the lesser of actual cash value or the cost to repair or replace, and a special limit of $1,500 applies to any non-owned-auto that is a trailer.
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Uninsured Motorist coverage may be issued on either a stacked limit or unstacked limit. Which of the following is true of UM coverage?
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'Non stacked' coverage is offered at a reduced rate,'Non stacked' limits mean that uninsured motorists coverage only applies to the limit of the applicable motorvehicle covered on the policy,'Stacked' limits mean that if uninsured motorist coverage applies to more than one insured vehicle, the limits may be added together to cover injuries to any person in an accident.
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How is physical damage rated?
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Pick-up trucks and vans are rated based on their original costs new,ISO has assigned a symbol recognizing both the value of the car and its damage-ability in accidents; a separate symbol is given for all makes and models of automobiles,The age of the vehicle is also considered in the rating with rates declining for older vehicles. |
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PIP Benefits
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Death, Medical, Loss of time from work and replacement services.
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All automobile policies subject to the 'no-fault'law include PIP coverage:
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PIP coverage only applies to bodily injury and related economic loss
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Which vehicles are not covered (excluded) from the PAP policy?
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Those vehicles, which do not meet the status of the term"covered auto",Any vehicle located inside a facility designed for racing, for the purpose of competing in or practicing for any prearranged or organized racing or speed contest, Any vehicle with less than four wheels or designed mainly for use off public roads.
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When selecting Uninsured Motorist coverage, What are the insured choices.
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Apply for limits lower than the Bodily Injury limits provided by the policy,Reject Uninsured Motorist Coverage,Reject the 'stacking' form of coverage.
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What determines the rates for automobile policies?
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Where the vehicle is garaged,The age, sex and marital status of the persons operating the vehicle,How the vehicle is used and the prior driving records of the persons operating the vehicle.
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What is the Florida law on cancellation of a personal automobile policy?
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When cancellation is permitted, the insurer is required to give 45 days written notice to the insured. Ten days notice is permitted for nonpayment of premium,During the first 60 days of a new policy, an insurer may cancel the policy for any reason other than discrimination, After the first 60 days, an insurer may only cancel for non-payment of the premium, material misrepresentation or fraud, or suspension or revocation of the driver's license or registration of an operator.
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Bob wants to increase the $10,000 per person maximum personal injury protection benefit on his PAP; what endorsement should he add to the PAP?
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Additional Personal Injury Protection
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Insured's responsibilities after a loss under Part E of a PAP.
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Prompt notice of any claim and forwarding of any legal papers,Reports to the police if it is a UM hit and run claim or theft claim,Cooperation and submission to physical exams and to examination under oath if requested.
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Satisfying Law |
Auto Insurance of at least 10,000/20,000/10,000, Qualified self-insurer,Certificate of deposit for $30,000. |
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Penalties |
Suspension of Operator's Driver's License and suspension of all of owner's vehicle registrations. |
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Named Non-Owners Policy |
Required by operator who must file SR-22 and does not own a vehicle. |
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Avoiding Penalties |
Satisfy claims by other-Securing and filing release form liability by injured party,being found not guilty by court,depositing cash in an amount sufficient for compensation for all injuries. Provide certification of financial responsibility for future accidents by purchasing auto liability or filing SR-22 for 3 years. |
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Non-Residents |
Subject to Florida Financial Responsibility Law, operating privileges suspended in Florida for 90 days of the preceding 365 days, 90 days do not have to be consecutive. |
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No-Fault Law |
Removes claims for Liability System,Insurer pay benefits,helps maintain rising cost of liability Insurance.Owners defined motor vehicles must carry PIP,Insured's PIP provides first-party benefits for economic loss regardless to fault,those who comply are not liable for bodily injuries. Covers BI not PD. |
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Motor Vehicle |
Any self-propelled vehicle with 4 or more wheels designed for use on Florida highways. Trailers, semi-trailers designed for use with such vehicles. |
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Exempted definition of "Motor Vehicles" under No-Fault |
Mobilehomes,Taxicabs,Limousines,Governmentally owned vehicles used in mass transit (5 or less passengers)and School Buses. |
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Owner under PIP (Doll) |
Debtor in possession One who holds legal title Leases with option to purchase Leases under agreement of six Months or more. |
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Evidance of Insurance |
Must be provided each year upon registration of vehicle. Insurance and substitutes: Cash,Auto Insurance,Bonds,Self-Insurance (qualified with the state) |
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Penalties for Non-Compliance (RIP) |
R-Registration and Driver's License Suspended I-Immunity from legal liabilities denied P-Personally liable for PIP benefits up to $10,000 |
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Personal Injury Protection Benefits (MIDS) |
Medical payments 80%, Income Loss Payment 60%, Death Benefit $5000 (can be paid in addition to $10,000 Limit) Services payments of 100%. Follows the insured. |
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Medical Benefits |
Services and Care must be received 14 days of accident, Benefits reimbursed only if provided by license physician, osteopathic physician, chiropractic physician, dentist, hospital, license transportation and treatment provider. Will not reimburse for massage or acupuncture regardless of provider of service and if not diagnosed max. is $2500 |
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Extended Personal Injury Protection (Endorsement) |
For named insured and family members, increases PIP medical from 80% to 100%, Income Loss from 60% to 80%. |
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Limit for PIP Benefits |
$10,000 per person per accident, $2500 limit if individual not diagnosed with emergency medical condition. |
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Additional Personal Injury Protection (Endorsement) |
For named insures family members, increases per person maximum by amounts such as $10,000, $25,000, $40,000, $90,000 (increases do not affect $5000 death Benefit) |
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Other Requirements |
Must offer coverage without work loss benefits, which a premium reduction, Must offer deductibles of $250, $500, $1000 which are subtracted from the total medical expense before the percentage of payment is applied for claims. |
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Personal Injury Protection is Primary |
Against ALL other forms of Medical and disability insurance coverages, except for Worker's Compensation (PIP is excess over WC) |
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Who is covered under Personal Injury Protection? |
Named Insured, Persons other than named insured or resident relatives. |
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PIP Exclusions (SOFI) |
Stealing, Owned but not covered, Felony related injury and Intentional Self-inflicted injury.
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Tort Exemption |
Immunity from suits of others is granted to those who comply with No-Fault Law. Tort Benefits follows the vehicle. |
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PIP Exceptions |
Piercing the non-economic thresholds may sue for pain, suffering, inconvenience and mental anguish. |
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Piercing Threshold to allow for Non-Economic Losses (Lids) |
Loss of bodily function Injury of permanent nature Death Scarring and Disfigurement that is permanent and significant. |
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Personal Auto Policy (PAP) Sections: |
Declarations, Agreement and Definitions, Part A:Liability, Part B: Medical Payments, Part C: Uninsured Motorist, Part D: Physical Damage, Part E: Duties after an Accident, Part F: General Provisions, P.I.P added by endorsement. |
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Personal Auto Policy: |
Private passengers Auto grossing less than 10,000 pounds, Not used for delivery or transporting goods(except those goods incidental to insured's business of furniture or equipment installation, maintenance,repair,farming or ranching) |
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Stacked Uninsured Motorist Coverage |
Coverage limits provided for tow or more vehicles are added together in-determining the limit of insurance coverage available to an injured person in any one accident. |
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Non-Stacked: |
Differs from stacked. |
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PAP Section A: Liability |
Pays on behalf of insured money damages for the bodily injury and property damage of others for which insured is legally liable, also includes defense against claims or suits for such liabilities. (Primary in owned and excess in non-owned) |
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Part A: Supplementary Payments (Liable) |
Loss of earning up to$200 per day to attend trial Interest on judgments Appeal Bonds Bail Bonds up to $250 Legal Expenses Expenses incurred at Insured's request |
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Part A: Exclusions "Liability" |
Intentional Injury,Property Damage to property owned or being transported by insured;Property rented,used or in care of the insured;employee injury,Transporting using vehicle as a public or livery conveyance,Auto Dealers, Business usage,Stealing and covered under a nuclear energy policy. |
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Part A: Exclusions "Property and Limits"
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Vehicles less than 4 wheels,Regularly furnished vehicle to Insured and family member,vehicle located in facility designed for racing or speed contest. Single-Min. $30,000(BI/PD PER CLAIM) Split-min. 10,000/20,000/10,000($10,000 per person BI,$20,000 per accident total BI,$10,000 per accident PD) |
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Part B: Medical Payments |
Pays necessary Medical and Funeral expenses without regard to fault or legal liability for Services rendered within 3 years from date of accident. |
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Part B: Medical Payments Exclusions |
Vehicles less than 4 wheels,Transporting using vehicle as a public or livery conveyance(except carpool),Benefits payable by worker's compensation (Occupational injuries)Regularly furnished vehicle,Stealing,Business-use,Occupying as residence,war or nuclear reaction,occupying vehicle located in facility designed for racing or speed testing. |
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Part B: Medical Payments Limits |
Amount payable for Medical payments is reduced by amounts payable for same expenses under liability,PIP,Uninsured-Motorist;Common Limits-$500,$1000,$2000 and $5000;per person/per accident; Primary in own Auto.excess in non-owned autos |
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Part C: Uninsured Motorist |
Compensatory Damages for bodily injury only(No punitive or Exemplary);Paid by one's own policy amounts which otherwise have been recovered from the liability insurance of another. |
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Part C: Uninsured Motorist Triggers (Hindu): |
Hit and run driver, Insolvent Insurer (Insurer is Insolvent and cannot pay claim), No Insurance (No liability coverage), Denied Coverage (other party denied for liability coverage), Under insured (Liable party has not enough coverage) |
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Part C:Uninsured Motorist Limits: |
Single: $20,000 per accident (Minimum Limits), Split:10,000/20,000($10,000 per person for bodily INJURY, $20,000 total per accident for bodily injury higher limits permissible), Primary: When occupying owned Auto. Excess:When occupying non-owned Auto. |
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Part C: Order of UM pay-outs: (PLUM) |
Worker's Comp-Primary over other PIP (Primary over all other coverage) Liability (If injured part has tort claim) Uninsured Motorist (If uninsured motorist is triggered) Medical Payments (After any other coverage for bodily injury) |
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Part D: Physical Damage |
Pays for direct and accidental loss of "your covered Auto" and "Non-owned Auto". |
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Part D: Non-Owned Autos |
Private passenger auto,pickup,van or trailer not owned or furnished by nor available for regular use to insured or family members. Coverage applying is broadest applicable to any "Your Covered Auto" and excess to any other collectible insurance. |
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Part D: Physical Damage "Two Coverages" |
Collision-upset or impact with another object. Comprehensive(other than Collision)-direct and accidental loss not covered by collision;Missiles,Falling Objects,Fire,Theft,Larceny,Explosion,Earthquake,Windstorm,Hail,Water,Flood,Vandalism,Riot,Civil-commotion,contact with bird or animals,broken glass. |
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Part D: Physical Damage Exclusions |
Carpooling, Racing or Speed Contest,Electronic Equipment, Tapes or Other Media,Electrical or Mechanical Breakdown,Wear or Tear,Confiscation by the government,Freezing,War,Custom Equipment,Awning or Cabanas,Trailers or Campers,Non-Owned Autos with named Exclusions. |
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Part D: How Claims are paid |
Lesser of Actual Cash Value or cost to repair or replace. Special $1500 limit for non-owned trailers. |
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Part E and Part F: Other Provisions |
Part E: Duties following a Loss Part F:General Provisions |
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Part E: Duties following a Loss
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Preserve insurer's rights, Prompt notice to company and cooperate with insured.
Property-Proof of loss, provide records and documents,inventory damaged property,obtain police report for theft,protect from further loss,show damage property. Liability-Avoid Voluntary Payment,Forward legal papers promptly,Aid Insurer in settlement, Notify insurer of claimants. |
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Part F: General Provisions |
Contains contracts conditions-policy changes, coverage denial for fraud, how company may be sued, subrogation rights and transfer of interest. Policy Period-covers losses that occur during the policy period. Territory-Within the US,Puerto Rico or Canada, "Your covered Auto" while being transported between ports of above locations. |
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Endorsements |
Extended Non-Owned Coverage,Towing and Labor, Excluded Equipment Coverage,Named Non-Owner Coverage, Miscellaneous Type Vehicle,Joint Ownership,Increased Limits Transportation Expenses Coverage, Extended Personal Injury Protection and Additional Personal Injury Protection. |
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Extended Non-Owned Coverage (Endorsement) |
Extends coverage for liability and optionally Medical Payments to non-owned auto furnished or available for regular use-separate endorsement available for non-owned vehicles used for public or livery conveyance. |
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Towing and Labor (endorsement) |
$25, $50, $75 or $100 Limits per disablement |
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Excluded Equipment Coverage (Endorsement) |
Permanently installed electronic and media equipment, tapes, discs, media. No Deductible (can be installed in Dash or console) Tapes, records, discs, etc. in covered auto up to $200-customizing equipment for pickups and vans for specific amounts. |
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Named Non-Owned Coverage (Endorsement) |
Non-owner who regularly drives other autos, only coverages available liability, Medical Payments and Uninsured Motorists. |
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Miscellaneous Type Vehicle (Endorsement) |
Motorcycle, Motor-home, Golf Cart, All-Terrain Vehicles. |
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Joint Ownership (Endorsement) |
When Personal Auto Policy issued to covered 2 or more relatives (Whether or not residing together) or Individuals residing together. |
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Increased Limits Transportation Expenses Coverage (Endorsement) |
Basic $20 day/$600 Max increase to any selected limit. |
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Personal Auto Policy Rating |
Rates Based: Where autos are garaged(rates higher in urban areas than rural),Age of driver,Sex and Marital Status of driver,Prior driving record,Use of Vehicle(Pleasure only,commute,business,farm), For physical damage-value of car,Highest-youngest unmarried driver male,lowest-no youthful operators and auto garaged on farm. |
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Rating Discounts |
Multi-Cars, "Good Student" (B average or Better), Senior drivers completing approved defensive driving course,Passive restraint system (Air-bags discount in PIP and Med Pay),Anti-Locks Brakes (discount Collision), Anti-Theft(Discount other than Collision), Youthful driver completing driver training course. |
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Florida Requirements for Tags |
$10,000 Personal Injury Protection $10,000 Property Damage Liability' |
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Unfair Trade Practices |
Generally prohibits discrimination based on race, color, creed, marital status, Handicap, Disability, and No-Fault accidents. |
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Information Disclosure to Claimants |
Insurer must disclose policy information to claimant within 30 days of written request. |
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Glass Breakage-Deductibles |
Prohibits application of any deductible in adjustment of breakage of windshield glass. |
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Mechanical Breakdown Insurance (Not part of PAP) |
coverage against failure of original or replacement part, Payment for usual and fair charge for parts and labor repair or replace, Dollar limit maybe specified with company's responsibility limited actual cash value of vehicle, car rental reimbursement of $15 per day to maximum $75 while insured's vehicle is being repaired, if no longer available. |
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Mechanical Breakdown Insurance: Exclusions |
Lack of customary maintenance, Collision,fire, theft,vandalism,riot, flood,explosion,lightning,earthquake,windstorm,hail,Odometer or other part altered(federal offense)Towing,road service or storage Charges,Seals,gaskets,oil,grease,refrigerant unless required,Tune-ups,racing. |
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Meachanical Breakdown Insurance: Deductibles |
Subtracted from cost of each breakdown Single Deductible if more than one covered part is involved in same breakdown |
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Mechanical Breakdown Insurance: Policy, Terms, Territory |
New cars-36 Months or 36,000 Miles Used Car- 12 months or 12,000 Miles United States, it's Territories or possessions and Canada ( Not Mexico) |
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Mechanical Breakdonw Insurnace: Cancellations |
45 days, 10 days for Non-Payment of Premium. |
