CHAPTER 7 PART 1 Flashcards
(83 cards)
Covered Auto
any vehicle in the declarations, a newly acquired auto, or attached trailer
Newly acquired auto
=new to you
>new vehicles acquired by the insured during the policy period
>when it replaces an old vehicle through an endorsement, coverage is provided instantly
>is entitled to the broadest coverage available on the policy (except collision)
Gross vehicle weight
has a maximum limit of 10,000lbs
-including vehicle, fuel & fluids, passengers, & cargo
Family member
a person related by blood, marriage, or adoption who is a resident of the household
owned autos
personal vehicles owned by the insured
non-owned auto
vehicles with no ties in ownership to the insured
temporary substitute vehicle
rental vehicles while the insured’s primary is out of use
Financial Responsibility Law
> CA law requires anyone that drives a vehicle MUST have financial responsibility at all times
drivers must carry proof whenever they drive a car & upon request
Acceptable ways to show proof of financial responsibility in CA are:
> purchasing liability insurance
deposit $35,000 with dmv
purchasing a surety bond for $35,000 obtained from a company licensed in CA
a DMV self insured certificate
private passenger auto must meet these for personal auto policy
> must be used for personal use only
owned by an individual/married couple
includes RV’s & 6 wheeled RV’s
ppa qualify for a pap
Do commercial vehicles qualify for a pap?
No
>are used for business
>are owned by a commercial company
VEHICLE eligibility for a pap
> any vehicle listed on the declarations page
new vehicles
newly acquired vehicles
temporary substitute vehicles
> driving safety record
miles driven annually
years driving experience
are principle rating factors in determining an insured’s premium
What is liability?
> is an insurance coverage that is meant to pay out for losses that occurred due to negligence of the insured
will pay for BI &PD due to an accident for which the insured is legally responsible
Liability features (4 feat.) >features=includes >SOS/E
- supplementary payments
- out of state coverage
- split limit vs. combined single limit
- exclusions
Supplementary payments`
> bail bonds up to $250
appeal bonds in full for a claim that is covered
interest in judgment
other reasonable expenses, including loss of earning up to $200 a day for loss of earnings due to assissting any legal proceedings
Split limit
> is the most commonly used form of a policy coverage
its is Per Person/Per Occurrence where an insurance company will cover a specific amount for BI for 1 person & another amount for the whole accident itself also separating the amount paid out to any PD
PER PERSON/PER OCCURRENCE/PD
payout amounts are itemized
Combined single limit
> is one whole dollar amount
>is one amount that can be used in any form as long as it doesn’t exceed the coverage amount
Out of State Coverage
> you’re automatically covered in any state in the US, its territories, & Canada
automatically adjusts itself to the minimum liability limits of that state at no extra cost to the insured
will not adjust itself to a lower limit
Mexico is not included
Liability will automatically exclude the following:
> intentional damages/injury
damages to personal belongings
injury that happens at work
when using the vehicle for livery conveyance
any damages that were caused by: selling, servicing, repairing, parking or storing vehicles
any commercial vehicle
theft, or use without permission
any that is insured under a nuclear energy policy
any vehicle with less that 4 wheels
any vehicle that the insured/family member uses on a daily basis that is not covered on a policy
any vehicle located inside a racing facility for the purpose of racing
Medical Payments
> pays for necessary medical & funeral costs (up to specified limit) because of an accident
payout is EXTRA
it can cover if the insured is occupying a vehicle or struck by one as a pedestrian, regardless of fault
one dollar amount PER person in the vehicle
coverage can last up to 3yrs
this is in addition to liability
Who is covered under Medical Payments?
> the insured, passengers, or any family member while occupying a vehicle or trailer
the insured or family member hit as a pedestrian by a vehicle
Exclusions to medical payments, if the INSURED is using/STRUCK BY:
>a car with less than 4 wheels >used as a public livery >using it as a premises >commercial vehicle >if workers comp is available
Exclusions to medical payments, if any, LOSSES caused by:
>Fallout LV
>nuclear weapon >war/rebellion/revolution >nuclear reaction >radiation >radio active contamination
