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114 Cards in this Set

  • Front
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Terms:

Covered auto
any vehicle shown in the declarations
Terms:

any vehicle shown in the declarations
Covered Auto
Terms:

newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
Terms:

examples of a newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
Terms:

examples of a newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
Terms:

examples of a newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
Terms:

examples of a newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
Terms:

examples of a newly acquired auto
means any of the following types of vehicles that are acquired by the insured during the policy period:

 A private passenger auto; or

 A pickup or van, for which no other insurance policy provides coverage, that

 Has a gross vehicle weight of less than 10,000 lbs.(GVW is the maximum
recommended weight including the vehicle, fuel and fluids, passengers, and all
cargo); and

 Is not used for the delivery or transportation of goods and materials unless such use is
incidental to a business of installing, maintaining or repairing furnishings or
equipment; or farming or ranching.

 A non-owned temporary substitute vehicle or trailer while an insured vehicle is out of
service because of breakdown, loss, destruction, service or repair.

 Any owned trailer designed to be pulled by a private passenger vehicle, pickup or van,
including a farm wagon or farm implement while being towed.
When does Collision Coverage and/or Other Than Collision Coverage for a newly acquired auto begin?
the date the insured becomes the owner
Collision Coverage and/or Other Than Collision Coverage

this coverage to apply, the insured must ask
the company to insure it within...
 14 days of becoming the owner if the Declarations indicate that Collision and/or Other Than
Collision Coverage applies to at least one auto. In this case, the newly acquired auto will
have the broadest coverage now provided for any auto shown in the Declarations.
 4 days of becoming the owner if the Declarations do not indicate that Collision and/or Other
Than Collision Coverage applies to at least one auto. A $500 deductible applies if a loss
occurs to the newly acquired vehicle before the insured notifies the insurer of its purchase.
Collision Coverage and/or Other Than Collision Coverage

this coverage to apply, the insured must ask
the company to insure it within...
 14 days of becoming the owner if the Declarations indicate that Collision and/or Other Than
Collision Coverage applies to at least one auto. In this case, the newly acquired auto will
have the broadest coverage now provided for any auto shown in the Declarations.
 4 days of becoming the owner if the Declarations do not indicate that Collision and/or Other
Than Collision Coverage applies to at least one auto. A $500 deductible applies if a loss
occurs to the newly acquired vehicle before the insured notifies the insurer of its purchase.
Collision Coverage and/or Other Than Collision Coverage

this coverage to apply, the insured must ask
the company to insure it within...
 14 days of becoming the owner if the Declarations indicate that Collision and/or Other Than
Collision Coverage applies to at least one auto. In this case, the newly acquired auto will
have the broadest coverage now provided for any auto shown in the Declarations.
 4 days of becoming the owner if the Declarations do not indicate that Collision and/or Other
Than Collision Coverage applies to at least one auto. A $500 deductible applies if a loss
occurs to the newly acquired vehicle before the insured notifies the insurer of its purchase.
Terms:

Occupying means
in, upon, getting in, on, out of or off a vehicle
Terms:

Throughout the Personal Auto Policy, you and your refer to
 The named insured shown in the Declarations; and

 The spouse of the named insured, if a resident of the same household.
Terms:

If the spouse ceases to be a resident of the same household during the policy period or prior to the
inception of the policy, the spouse will only be considered under the definition of you and your
until the earlier of
 The end of 90 days following the spouse's change of residency;
 The effective date of another policy listing the spouse as a named insured; or
 The end of the policy period.
Insured as used in the policy means
 You or any family member for the ownership, maintenance or use of any auto or trailer.

 Any person using your covered auto.

 For your covered auto, any person or organization but only with respect to legal responsibility for
acts or omissions of a person for whom coverage is afforded under Part A.

 For any auto or trailer other than your covered auto, any other person or organization but only
with respect to legal responsibility for acts or omissions of you or a family member for whom
coverage is afforded under Part A. This provision applies if the person or organization does not
own or hire the auto or trailer.
Insured as used in the policy means
 You or any family member for the ownership, maintenance or use of any auto or trailer.

 Any person using your covered auto.

 For your covered auto, any person or organization but only with respect to legal responsibility for
acts or omissions of a person for whom coverage is afforded under Part A.

 For any auto or trailer other than your covered auto, any other person or organization but only
with respect to legal responsibility for acts or omissions of you or a family member for whom
coverage is afforded under Part A. This provision applies if the person or organization does not
own or hire the auto or trailer.
Insured as used in the policy means
 You or any family member for the ownership, maintenance or use of any auto or trailer.

 Any person using your covered auto.

 For your covered auto, any person or organization but only with respect to legal responsibility for
acts or omissions of a person for whom coverage is afforded under Part A.

 For any auto or trailer other than your covered auto, any other person or organization but only
with respect to legal responsibility for acts or omissions of you or a family member for whom
coverage is afforded under Part A. This provision applies if the person or organization does not
own or hire the auto or trailer.
Insured as used in the policy means
 You or any family member for the ownership, maintenance or use of any auto or trailer.

 Any person using your covered auto.

 For your covered auto, any person or organization but only with respect to legal responsibility for
acts or omissions of a person for whom coverage is afforded under Part A.

 For any auto or trailer other than your covered auto, any other person or organization but only
with respect to legal responsibility for acts or omissions of you or a family member for whom
coverage is afforded under Part A. This provision applies if the person or organization does not
own or hire the auto or trailer.
Insured as used in the policy means
 You or any family member for the ownership, maintenance or use of any auto or trailer.

 Any person using your covered auto.

 For your covered auto, any person or organization but only with respect to legal responsibility for
acts or omissions of a person for whom coverage is afforded under Part A.

 For any auto or trailer other than your covered auto, any other person or organization but only
with respect to legal responsibility for acts or omissions of you or a family member for whom
coverage is afforded under Part A. This provision applies if the person or organization does not
own or hire the auto or trailer.
Insured is defined under Coverage B - Medical Payments as
the named insured or any family member
while occupying any motor vehicle or trailer, the named insured or family member as a pedestrian if
struck by a motor vehicle, and any other person while occupying a covered auto.
Insured is defined under Coverage B - Medical Payments as
the named insured or any family member
while occupying any motor vehicle or trailer, the named insured or family member as a pedestrian if
struck by a motor vehicle, and any other person while occupying a covered auto.
Insured is defined under Coverage B - Medical Payments as
the named insured or any family member
while occupying any motor vehicle or trailer, the named insured or family member as a pedestrian if
struck by a motor vehicle, and any other person while occupying a covered auto.
Insured is defined under Coverage C - Uninsured Motorists as
 The named insured and family members;

 Any other person while occupying a covered vehicle; and

 Any person entitled to recover damages because of injuries to the named insured or family
members (such as parents of a deceased minor child).
Insured is defined under Coverage C - Uninsured Motorists as
 The named insured and family members;

 Any other person while occupying a covered vehicle; and

 Any person entitled to recover damages because of injuries to the named insured or family
members (such as parents of a deceased minor child).
Insured is defined under Coverage C - Uninsured Motorists as
 The named insured and family members;

 Any other person while occupying a covered vehicle; and

 Any person entitled to recover damages because of injuries to the named insured or family
members (such as parents of a deceased minor child).
Insured is defined under Coverage C - Uninsured Motorists as
 The named insured and family members;

 Any other person while occupying a covered vehicle; and

 Any person entitled to recover damages because of injuries to the named insured or family
members (such as parents of a deceased minor child).
Terms:

Owned autos
vehicles owned by the insured or acquired during the policy period
Terms

nonowned autos
any private passenger auto, pickup, van, or trailer
which is operated by or in the custody of, but is not owned or furnished for the regular use of the named
insured or a family member.
Terms

nonowned autos
any private passenger auto, pickup, van, or trailer
which is operated by or in the custody of, but is not owned or furnished for the regular use of the named
insured or a family member.
Automobile Liability Insurance protects the insured against financial loss arising from legal liability
when ...
his or her auto injures someone or damages property that belongs to others
The limits written are applied on a per person/per accident basis, meaning ...
following a claim, the limits are restored to the original amounts written
ownership or operation of an auto
involves 3 types of loss:
1. Legal liability (for injuries and/or property damage to others);

2. Injury to the insured or members of the insured's family arising out of an auto accident; and

3. Damage to or loss of the auto itself.
ownership or operation of an auto
involves 3 types of loss:
1. Legal liability (for injuries and/or property damage to others);

2. Injury to the insured or members of the insured's family arising out of an auto accident; and

3. Damage to or loss of the auto itself.
ownership or operation of an auto
involves 3 types of loss:
1. Legal liability (for injuries and/or property damage to others);

2. Injury to the insured or members of the insured's family arising out of an auto accident; and

3. Damage to or loss of the auto itself.
What is Part A of the PAP?
Liability Coverage
Part A- Liability Coverage of the Personal Auto Policy (PAP) protects the insured against
loss arising from legal liability when an insured's automobile is involved in an
accident.
A PAP may be written with split limits of liability.
In split limits, what do these limits refer to?
the first 2 limits refer to bodily injury liability limits. The first limit is the most the policy
will pay for injuries to any one person; the second limit is the most the policy will pay for the injuries of
2 or more persons injured in a single accident. The third limit is the property damage limit for a single
accident. These limits are per accident and are restored automatically for the next accident.
A PAP may be written with split limits of liability.
In split limits, what do these limits refer to?
The first limit is the most the policy
will pay for injuries to any one person; the second limit is the most the policy will pay for the injuries of
2 or more persons injured in a single accident. The third limit is the property damage limit for a single
accident. These limits are per accident and are restored automatically for the next accident.
If the insured becomes legally
obligated to pay due to an accident, the Liability policy will pay for ...
bodily injury and property damage
If the insured becomes legally
obligated to pay due to an accident, the Liability policy will pay for ...
bodily injury and property damage
If the insured becomes legally
obligated to pay due to an accident, the Liability policy will pay for ...
bodily injury and property damage
Policy limits expressed as 25/50/25 would provide what?
$25,000 coverage per person for a maximum of $50,000 per accident, and $25,000 property damage coverage per accident
Out-of-State coverage provides
higher limits, or other required types of coverage, in case of accident in
another state or Canadian province that requires higher financial responsibility limits than the limits
insured on the policy.
this clause states that the policy will only pay the proportion of the loss that the limit of insurance bears to the total of all available coverage
Other Insurance
Medical Payments coverage pays
all necessary medical and funeral expenses incurred and services
rendered to the insured or any other person while occupying a covered auto, because of an accident, for
up to 3 years
How will payments that are
also available under liability or Uninsured Motorists coverage impact Medical Payments?
will reduce the amount payable under Medical Payments Coverage
True or False

Loss while occupying a vehicle with less than 4 wheels is covered under Medical Payments
False
True or False

Loss while occupying a vehicle used as a public livery is covered under Medical Payments
False
True or False

Loss while occupying a vehicle used as a public livery for the exclusive purpose car pools is covered under Medical Payments
True
True or False

Loss while occupying a vehicle used as a premises is excluded from Medical Payments Coverage
True
True or False

Loss during the course of employment if Workers Compensation benefits are required would be covered under Medical Payments
False
Would Loss while occupying or if struck by any vehicle owned or regularly furnished for use by the insured, other than a covered vehicle have medical payments coverage?
No
Would Loss while occupying a vehicle without a reasonable belief of permission to do so have medical payments coverage?
No
Coverage for Damage to Your Auto, commonly called
physical damage coverage
physical damage coverage, includes
collision and other than collision coverage
collision and other than collision coverage can also be called ...
comprehensive coverage
Define Collision
the upset or impact of a covered vehicle or nonowned auto with another vehicle or object
he upset or impact of a covered vehicle or nonowned auto with another
vehicle or object is the defintion of ___
Collision
Vandalism or malicious mischief would be covered by
Other than Collision
What part of an auto policy would cover Breakage of glass
Other than Collision
What part of an auto policy would cover loss from Fire
Other than Collision
What part of an auto policy would cover loss from Missiles or falling objects
Other than Collision
What part of an auto policy would cover loss from Theft or larceny
Other than Collision
What part of an auto policy would cover Explosion or earthquake
Other than Collision
What part of an auto policy would cover Windstorm;
Other than Collision
What part of an auto policy would cover Hail, water or flood
Other than Collision
What part of an auto policy would cover Riot or civil commotion
Other than Collision
What part of an auto policy would cover Contact with birds or animals
Other than Collision
The policy also will pay up to $__ per day up to a maximum of $____ for transportation expenses
incurred by the insured because of theft of a covered auto and loss of use expenses the insured is legally
obligated to pay because of theft of a nonowned vehicle
$20 per day up to a maximum of $600
After the theft of a covered auto, when are expenses covered?
48 hours after
the theft
Nonowned vehicles are defined in the coverage section as
any private passenger auto, pickup, van or
trailer not owned or regularly used by the insured or a family member, and any auto or trailer being used
as a temporary substitute vehicle while a covered vehicle is out of use
Nonowned vehicles are defined in the coverage section as
any private passenger auto, pickup, van or
trailer not owned or regularly used by the insured or a family member, and any auto or trailer being used
as a temporary substitute vehicle while a covered vehicle is out of use
Nonowned vehicles are defined in the coverage section as
any private passenger auto, pickup, van or
trailer not owned or regularly used by the insured or a family member, and any auto or trailer being used
as a temporary substitute vehicle while a covered vehicle is out of use
If other insurance applies to the nonowned auto, how will coverage will be treated?
as excess over any other collectible insurance
What part of the insurance policy would cover Damage due to wear and tear, freezing, mechanical or electrical breakdown, and road damage to
tires
This is not covered. it is specifically excluded from the physical damage coverage
True or False

Loss due to radioactive contamination, nuclear weapons, war, insurrection, rebellion or revolution is not covered by the physical damage coverage
True
What part of the policy would cover Loss to electronic equipment designed for reproduction of sound, including radios, stereos, tape decks, and compact disk players and accessories
This is not covered unless it includes permanently installed
equipment and its accessories
Would Loss due to confiscation or destruction by governmental or civil authorities be covered?
No;
because any insured
engaged in illegal activities or failed to comply with environmental protection agency or
department of transportation standards
Loss to a camper body or trailer not shown in the declarations is excluded from coverage. This does not apply to ...
newly acquired
camper bodies or trailer for first 30 days)
Loss of radar detection equipment would be covered by ...
This would not be covered under the auto insurance policy.
True or False

custom furnishings or equipment in any pickup or van is covered by Physical Damage Coverage
False
True or False

Loss to any nonowned auto being maintained or used by any person while engaged in the business of selling, repairing, storing, servicing, or parking vehicles
would have physical damage coverage
False
Under this provision The insurer has the option of paying money, repairing or replacing the damaged or stolen property
Payment of Loss
Under the Payment of Loss Provision if stolen property is recovered the insurer may
return the
property to the insured, paying for any damage, or they may keep all or part of the property at an
agreed or appraised amount.
What policy pays
for damages that the insured is legally entitled to recover from a negligent owner of an uninsured
vehicle.
Uninsured Motorist Coverage
coverage generally defines 4 ways a vehicle may be categorized as an uninsured motor vehicle
1. There is no liability bond or insurance for the vehicle;

2. The bond or insurance is less than that required by the financial responsibility laws of the state in
which the accident occurred;

3. The accident was a hit and run accident and the driver cannot be identified; or

4. The bonding company or insurance company denies coverage or is insolvent.
Underinsured Motorist
Coverage will act as _____ coverage over the at-fault motorist's bodily injury coverage.
excess
True or False

UIM coverage will pay the difference between the insured's UIM limits and the at-fault driver's bodily injury limits.
True
Hired autos include those autos that are ...
hired, rented, or borrowed from someone other than an
employee or partner.
the distinction between a hired and nonowned
auto does not depend on whether or not payment is made for the use of the auto, but rather ...
whether or not it is owned by an employee.
The Personal Auto Policy provides coverage for any auto or trailer not owned by an insured, while used
as a temporary substitute for any other vehicle described in the policy which is out of normal use
because of the following:
 Breakdown;

 Repair;

 Servicing;

 Loss; or

 Destruction.
The Personal Auto Policy provides coverage for any auto or trailer not owned by an insured, while used
as a temporary substitute for any other vehicle described in the policy which is out of normal use
because of the following:
 Breakdown;

 Repair;

 Servicing;

 Loss; or

 Destruction.
True or False

Businesses who sell, service, repair, park or store vehicles are not eligible for coverage under the
Business Auto Coverage Form.
True
True or False

Businesses who sell, service, repair, park or store vehicles are eligible for coverage under the
Business Auto Coverage Form.
False
Why are businesses who sell, service, repair, park or store vehicles are not eligible for coverage under the Business Auto Coverage Form.
Because of their unique exposures, broader, specialized coverage is
needed.
What types of risks are
eligible for coverage under the Garage Coverage Form?
1. Franchised and non-franchised auto dealers;

2. Truck, truck-tractor and commercial trailer dealers;

3. Motorcycle, recreational vehicle and mobile home dealers;

4. Automotive repair shops;

5. Service stations;

6. Car washes;

7. Storage garages and public parking facilities.
What types of risks are
eligible for coverage under the Garage Coverage Form?
1. Franchised and non-franchised auto dealers;

2. Truck, truck-tractor and commercial trailer dealers;

3. Motorcycle, recreational vehicle and mobile home dealers;

4. Automotive repair shops;

5. Service stations;

6. Car washes;

7. Storage garages and public parking facilities.
What types of risks are
eligible for coverage under the Garage Coverage Form?
1. Franchised and non-franchised auto dealers;

2. Truck, truck-tractor and commercial trailer dealers;

3. Motorcycle, recreational vehicle and mobile home dealers;

4. Automotive repair shops;

5. Service stations;

6. Car washes;

7. Storage garages and public parking facilities.
one of two supplemental schedules must be attached to the garage form which one would be attached for auto dealers?
Auto Dealers Supplemental Schedule
The Auto Dealers Supplemental Schedule contains specific information concerning ...
classes of vehicle operators (employees who regularly drive or are furnished vehicles)

coverage for customer's liability or

damage to customer's vehicles, and

physical damage coverage on insured vehicles.

The supplemental schedule also indicates whether coverage is written on a reporting form basis
and whether liability coverage for pick up and delivery of automobiles is insured
The Non-Dealers and
Trailer Dealers Supplemental Schedule contains information on the insured's ...
payroll,

garagekeepers coverage (damage to customer's vehicles),

hired and nonowned vehicle coverage,

owned vehicle coverage, and

reporting form information.
one of two supplemental schedules must be attached to the garage form.

What are the two forms?
Auto Dealers Supplemental Schedule

Non-Dealer and Trailer Dealers Supplemental Schedule
Garage operations are defined as ...
the ownership,
maintenance or use of locations for garage business, including adjoining roads and other accesses
the ownership,
maintenance or use of locations for garage business, including adjoining roads and other accesses
Garage operations
the Garage Coverage Form provides liability protection for ...
insured's premises, autos,
products, and work performed.
Garage
Operations - Other than Covered Autos requires that the loss or damage must result from
the insured's
garage operations
With a Garage Coverage Form, if liability coverage is insured, what types of other vehicles are also covered for liability?
trailers with a load capacity of 2,000 pounds or less;

mobile equipment while being
carried by a covered auto; and

temporary substitute nonowned vehicles used while a covered auto is out of service.
With a Garage Coverage Form, if liability coverage is insured, what types of other vehicles are also covered for liability?
trailers with a load capacity of 2,000 pounds or less;

mobile equipment while being
carried by a covered auto; and

temporary substitute nonowned vehicles used while a covered auto is out of service.
Who is an insured is also defined in the liability section of the Garage Coverage Form. The persons
insured differ according to whether the loss results from ...
a covered auto exposure or from the garage
operations.
On the Garage Coverage Form covered auto exposures, insured means
1. The individual or organization named in the declarations,

2. Individuals who operate a covered auto with the insured's permission, and

3. Any person liable for the conduct of the insured.
True or False

Owners (including employees and their families) of vehicles the insured borrows are not considered
insured's under the Garage Form Policy
True
True or False

Owners (including employees and their families) of vehicles the insured borrows are considered insured's under the Garage Form Policy
False
The Garage Form

For garage operations (other than covered autos), insured means
1. The individual or organization named in the declarations, and

2. Partners, employees, directors, officers and shareholders, while acting within the scope of their
duties.