Agreement to Pay Damages Property Damage - PowerPoint

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Agreement to Pay Damages Property Damage - PowerPoint Powered By Docstoc
					    General Nature of Personal Auto Policy


1. Designed to cover three types of loss:
    • legal liability
    • injury to insured or family members
    • damage to the auto itself

2. Subject to limitations, the policy covers:
    • others while driving the insured auto
    • the named insured and family while
      driving other autos
                                                30-1
        Personal Auto Policy Eligibility


1. Auto owned by individual or husband & wife
2. Private passenger automobile
3. Pickup, van, or panel truck that
    • has a GVW of less than 10,000 lbs.
    • is not used for delivery or transportation
      of goods unless
        • incidental to business of installing or
          repairing furnishings or equipment
        • for farming or ranching
                                               30-2
               PAP Policy Format


Part A   Liability
Part B   Medical payments
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




                                            30-3
       PAP Liability Insuring Agreement


1. Insurer promises to pay damages for “bodily
   injury” or “property damage” for which any
   “insured” becomes legally responsible
   because of an auto accident.
    • 1998 edition of the PAP is written with
       split liability limits (e.g., 20/40/15).

2. Key elements in determining coverage, then,
   are whether the individual is an “insured,”
   and whether the auto being operated is a
   covered auto.
                                            30-4
     “Insured” as used in this part means:


1. You or any “family member” for the
   ownership, maintenance or use of any auto
   or “trailer.”
2. Any person using “your covered auto.”
3. 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
   this Part.

                                             30-5
     “Insured” as used in this part means:


4. For any auto or “trailer,” other than “your
   covered auto,” any person or organization
   but only with respect to legal responsibility
   for acts or omissions of you or any family
   member for whom coverage is afforded
   under this part. This provision (B.4.) applies
   only if the person or organization does not
   own or hire the auto or “trailer.”




                                               30-6
J. “Your covered auto” means:
 1. Any vehicle shown in the Declarations.
 2. A “newly acquired auto”.
 3. Any “trailer” you own.
 4. Any auto or “trailer” you do not own while
     uses as a temporary substitute for any other
     vehicle described in this definition which is
     out of normal use because of its:
      a. Breakdown;        b. Repair
      c. Servicing;        d. Loss; or
      e. Destruction.
This provision (J.4.) does not apply to Coverage
for Damage to Your Auto.


                                                30-7
             Newly Acquired Auto
Inclusion of a “newly acquired auto” in “Your
Covered Auto” provides coverage for new autos,
but on a qualified basis.
 1. auto must meet PAP eligibility requirements
     • private passenger auto or
     • a pickup or van that does not exceed the
        gross vehicle weight limitation and
     • not used for delivery or transportation of
        goods except as allowed by the eligibility
        requirements).
 2. Separate provisions apply for coverages other
    than physical damage and for the physical
    damage coverages.
                                               30-8
             Newly Acquired Auto


3. For liability, medical payments, and
   uninsured motorists coverages,
   replacement autos are automatically
   covered for the remainder of the policy
   period, without notice to the insurer.

4. For additional vehicles, the insurer must be
   notified and coverage must be requested
   within 14 days of the date of acquisition for
   these coverages.


                                              30-9
   Newly Acquired Autos - Physical Damage

Replacement and additional vehicles are
automatically covered for 14 days, for whatever
physical damage coverage is already provided for
at least one insured auto.
 1. New auto has the broadest physical damage
     coverage provided by the policy.
 2. If policy does not include physical damage
     coverage on any autos, newly acquired autos
     are automatically covered for 4 days.
      • $500 deductible.
      • If coverage is not requested within grace
        period, coverage begins when requested.
                                              30-10
            PAP Liability Exclusions

A.1. intentional injury or damage
A.2. to property owned or being transported
A.3. care, custody and control
A.4. injury to employees
A.5. while used as a public or livery conveyance
A.6. non-family members employed in auto
     business
A.7. business use of trucks
A.8. being used without reasonable belief of
     permission
A.9. nuclear exclusion

                                              30-11
       PAP Liability Exclusions (continued)


B.1.   motorcycles

B.2.   owned by or furnished for regular use of
       named insured

B.3.   owned by or furnished for regular use of
       relatives (but this exclusion does not
       apply to named insured)

B.4.   any vehicle located inside a facility
       designed for racing or competing.

                                               30-12
           Supplementary Payments


1. Cost of bail bonds required because of an
   accident covered under the policy, up to $250
2. Premiums on appeal bonds to release
   attachments in suits covered under the policy
3. Interest on judgments after judgment is
   entered
4. Loss of earnings up to $200 a day while
   attending trials at company’s request
5. Other reasonable expenses incurred at the
   request of the insurer
                                               30-13
       PAP Medical Payments Coverage


Medical payments insuring agreement agrees to
pay medical expenses for

1.   Insured and family if injured while
     “occupying or struck by”

2.   Others: while “occupying”




                                           30-14
             Medical Payments Exclusions

 1. Vehicles with less than four wheels (1)
 2. Vehicle used as public or livery conveyance (2)
 3. Owned by/furnished for regular use of named insured (5)
 4. Owned by/furnished for regular use of resident relatives (6)
 5. Operated without permission (7)
 6. Nonowned trucks in business (8)
 7. Located for use as a residence (3)
 8. If workers comp benefits are payable (4)
 9. War (9)
10. Nuclear (10)
11. Occupying a vehicle in facility for racing or competing (11)

                                                          30-15
  Limitations on Medical Payment Recoveries


1. Medical payments reduced by liability and
   UM payments.

2. Recipient agrees to apply payment against
   judgment.

3. Excess over nonowned auto.

4. Subject to subrogation.



                                               30-16
         Uninsured Motorists Coverage


1. Pays what an uninsured driver’s insurance
   company would have paid if he or she had
   insurance.

2. Uninsured motorist defined
     •   no insurance
     •   hit-and run
     •   insurer becomes insolvent


                                           30-17
        Uninsured Motorists Coverage


3. Basis of settlement

   • judgment against negligent party not
     conclusive as to existence of liability or
     amount to which insured is entitled

   • loss settlement by negotiation or
     arbitration




                                              30-18
       Underinsured Motorists Coverage


1. Mutually exclusive with uninsured motorist

2. Pays when other driver insured, but
   inadequately




                                            30-19
          Physical Damage Insurance


1. Loss other than by collision-basically open-
   peril excluding collision
2. Loss by collision
3. Physical damage: nonowned autos
   • private passenger, pickup or vans
   • not owned by or furnished for regular use
     of named insured or family member
   • includes temporary substitute auto

                                             30-20
          Physical Damage Exclusions

5 exclusions apply to owned & nonowned autos
 • while used as public or livery conveyance (1)
 • wear and tear, deterioration etc. (2)
 • radioactive contamination, nuclear damage (3)
 • destruction/confiscation by civil authority (7)
 • vehicle inside facility for racing, competing (13)



                                                 30-21
         Physical Damage Exclusions


3 exclusions apply to nonowned autos.
• nonowned auto used without reasonable
  belief of permission (7)
• nonowned auto used in auto business (11)
• loss to a rental vehicle if rental company is
  precluded from recovery by state law or
  rental agreement



                                              30-22
          Physical Damage Exclusions

6 exclusions apply to specific property
• sound systems unless permanent (4)
• electronic equipment (5)
• tapes, records, disks for (4) and (5) above
• camper bodies, trailers, motor homes not
  listed in the policy (6)
• fuzz-busters (10)
• custom furnishings or equipment in pickup
  or van (11)
                                                30-23
    Part E: Duties After an Accident or Loss


1. Give notice to insurer
2. Cooperate with insurer
3. Send notices of legal papers
4. Submit to physical examination
5. Authorize insurer to obtain records
6. Submit proof of loss when required
7. Notify police if a hit-and-run driver is
   involved
8. Notify police if the car is stolen
                                               30-24
         Extended Liability Coverage


Extends PAP to cover certain non-owned autos
that would otherwise be excluded:
 1. Autos furnished for regular use of of the
    Named Insured.
 2. Autos furnished for regular use of resident
    relative.
 3. Non-owned autos that are not private
    passenger autos used by NI or resident
    relative in business.

                                             30-25
           Named Non-Owner Policy


1. Designed for persons who do not own an
   auto, but want drive other car coverage.

2. Covers named insured only (even spouse
   not included).

3. Coverage is excess over any insurance on
   the non-owned auto.




                                              30-26
   Miscellaneous Type Vehicle Endorsement


Used with PAP to provide coverage on certain
recreational motor vehicles:
      motor homes
      motorcycles,
      mopeds, motorscooters, motorbikes
      go-carts
      all-terrain vehicles
      dune buggies
      golf carts
      antique autos
      classic autos
                                            30-27
        Cost of Increased Liability Limits


        BI Limits          PD Limits     Factor
           Factor
                             $15,000         1.00
  $20,000/40,000    1.00
                              25,000         1.02
    25,000/50,000   1.07
                              50,000         1.05
  50,000/100,000    1.27
                             100,000         1.10
 100,000/300,000    1.41
                             250,000         1.17
 250,000/500,000    1.53
                             500,000         1.19
500,000/1,000,000   1.57

                                                30-28
          Cost of Increased Limits


Medical Payments

      $1,000 limit   =     $11
       2,000 limit   =      17
       5,000 limit   =      30




                                     30-29
             PAP Deductible Credits


              Comprehensive      Collision
                Percent of      Percent of
Deductible    $100 Deductible $200 Deductible

  None             118%                ---
   $50             109%                ---
   100             100%               105%
   200             88%                100%
   250             83%                 98%
   500             66%                 89%
  1,000             49%                74%
                                             30-30

				
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