Personal Auto Policy: Liability, Med Pay, and UM Coverage Flashcards Preview

Course 2 Vocab > Personal Auto Policy: Liability, Med Pay, and UM Coverage > Flashcards

Flashcards in Personal Auto Policy: Liability, Med Pay, and UM Coverage Deck (18):
1

Policy period

The time frame, beginning with the inception date, during which insurance coverage applies.

2

Vehicle identification number (VIN)

A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.

3

Collision coverage

Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn.

4

Other than collision (OTC) coverage

Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded.

5

Compensatory damages

A payment awarded by a court to reimburse a victim for actual harm.

6

Punitive damages (exemplary damages)

A payment awarded by a court to punish a defendant for a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear any relation to a party’s actual damages.

7

Split-limits basis

Separate coverage limits that allow one limit for bodily injury to each person; a second usually higher limit for bodily injury to all persons in each accident; and a third limit for all property damage in each accident.

8

Single-limits basis

One coverage limit that applies to all damages arising from bodily injury or property damage or both, resulting from a single accident.

9

Prejudgment interest

Interest that may accrue on damages before a judgment has been rendered.

10

Supplementary payments

Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured’s earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer’s request.

11

Attachment

The act of seizing property to secure a judgment.

12

Postjudgment interest

Interest that may accrue on damages after a judgment has been entered in a court and before the money is paid.

13

Public or livery conveyance

In case law, a method of transportation that is indiscriminately offered to the general public, such as a taxi or public bus.

14

Uninsured motor vehicles

A land motor vehicle or trailer that is not insured for bodily injury liability, is insured for less than the financial responsibility limits, is a hit-and-run vehicle, or whose insurer denies coverage or becomes insolvent.

15

Subrogation

The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.

16

Arbitration

An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a settlement, which can be final and binding.

17

Underinsured motorists (UIM) coverage

Coverage that applies when a negligent driver has liability insurance at the time of the accident but has limits lower than those of the injured person’s coverage.

18

Named insured

A person, corporation, partnership, or other entity identified as an insured party in an insurance policy’s declarations page.