PL - Personal Liability

Question 1

Is PL different than Section II of the HO policy?

Answer 1

Performs the same coverage function as section II of HO policy

Question 2

Who is eligible for PL?

Answer 2

owner-occupants OR non-owner occupants (dwelling, condo, mobile, co-op, apt)

Question 3

Who/what does PL cover?

Answer 3

NI, residing spouse & residing relative for legal liability for BI and PD from private residence and personal activities. Also provides coverage for medical payments to others

Question 4

PL Minimum limits

Answer 4

$100,000 for BI/PD - includes medical payments to others ($1,000 min)

damages to property of others ($1,000 min)

Statutorily imposed parental vicarious liability (when children vandalize public property) - $10,000 cap

Question 5

NO PL coverage for…

Answer 5

Loss assessment
permitted incidental occupancies
home business
certain watercraft over 26ft & 25 HP can be endorsed
Personal Injury and Farm Liability **canNOTbe endorsed

Question 6

Excess Liability

Answer 6

requires that the original claim be covered by the underlying and then will be paid by this policy

• Follow form
• Stand alone policy

Question 7

Follow form

Answer 7

coverage, limitations, provisions & exclusions are EXACTLY LIKE THE UNDERLYING POLICY

Question 8

Stand alone policy

Answer 8

Same coverage as underlying, but has own limitations, provisions, & exclusions - may not pay

Question 9

Umbrellas

Answer 9

these are standardized with some variatinos & coverage by underlying is not required - often offers additional coverage but is not underlying (non-owned water/aircraft, CCC, Personal Injury, Worlwide premises)

When claims involve umbrella and not the underlying, the umbrella becomes primary and is subject to a deductible known as SIR

Question 10

SIR

Answer 10

Self Insured Retention: the deductible that becomes subject with umbrellas