6 - Personal Auto Policy Flashcards
(41 cards)
4 ways to “satisfy the minimum financial responsibility requirements”
1) certificate of self insurance
2) surety bond
3) certificate of deposit or cash to be held by the state treasurer
4) auto liability insurance policy (most common)
Do farm vehicles need to satisfy the minimum financial responsibility requirements?
No
Split limit policy
1) 15k per person for bodily injury liability
2) 30k per occurrence for BI liability
3) 10k per occurrence for PD
The 15k is WITHIN the 30k, NOT added.
Insurer would pay 10k for that occurrence for PD.
Combined Single Limit Policy
One limit applied to BI & PD
Who is BI liability for?
The other party you injure.
Who is Uninsured Motorists (UM) Liability for?
You and your passengers in case you’re hurt by an uninsured motorist and it’s their fault
Personal Auto Policy
Broadest type of person lines auto policy sold.
Business Auto Policy
Designed for vehicles in commercial use, such as pickup and delivery of goods or merchandise.
Rates
Based on age, gender, driving record and territory
Underwriting
Keeps insurance companies profitable and in business by balancing risk and the premium paid by insured
Coverage
Provides broad coverage and is strictly underwritten
Does a PAP cover motorcycles?
No
Structure if the PAP
Definitions
Part A - Liability ; BI or PD to others
Part B - Medical Payments ; BI to you/pass
Part C - uninsured motorists ; BI to insured
Part D - damage to your auto ; insured vehicle
Part E - duties after ; notify & help
Part F - general provisions ; legalities
Bodily injury
Bodily harm, sickness or disease, including death that may result.
Property damage
Physical injury to, destruction of, or loss of use to tangible property
Is a kid away at college still apart of “the household” on a policy?
Yes, still a resident
Owners policy is _______?
Drivers policy is ______?
Primary
Excess
Is a trailer covered on a PCP?
Yes it’s covered for liability
When you buy a new car is it covered?
Automatically for the broadest coverages found on the Declarations WITHIN 14 DAYS
Bail Bonds
Part A Supplementary Payments
Up to $250 for Bail Bonds required bc of accident that resulted in BI or PD
Appeal Bonds & Interest
Part A Supplementary Payments
Will pay premiums on appeal bonds and interest accruing after a judgment on your behalf
Loss of Earnings
Part A Supplementary Payments
Up to $200 per day if it requires your attendance at hearings or trials
Intentional Acts
Part A Exclusions
Running someone over on purpose
Your Own Property In Transit
Part A Exclusions
Your property isn’t covered while being transported from A to B
Dresser damaged on back of truck during accident is t covered.