Casualty 4: Commercial Auto Insurance

Front 1

4 Types of Commercial Auto Forms

Back 1

-The Business Auto Coverage Form

(90% of time)

-The Garage Coverage Form

-The Trucker Coverage Form

-Motor Carrier Form

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BAP- Section 1- Covered Autos

Back 2

on the dec page of the BAP, a symbol appears next to each coverage listed

Symbols 1-5 allow the insured to purchase liability coverage, physical damage, coverage or both

Symbols 6-19 provide only liability coverage; no pd coverage can be purcahsed with these symbols

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Symbol 1- Any Auto

Back 3

broadest coverage, b/c it has no limitations or restrictions on the type of auto is covered, if vehicle is an "auto" it is subject to certain exclusions and conditions- many insurance companies use it cautiously and may only use to cover liability, no pd

Front 4

Symbol 2- Owned Autos Only

Back 4

used to cover any auto that is owned by the named insured, including those purchased after inception date, any owned or non-owned trailer being pulled by an owned vehicle is also covered, but only for liability

Front 5

Symbol 3- Owned Private Passenger Autos Only

Back 5

used to cover any private passenger auto that is owned by the named insured, might be used if the insurer is willing to cover a fleet of private passenger autos but doesn't want to assume the liability of any larger vehicles that the insured may acquire after the inception date

Front 6

Symbol 4- Owned Auto Other Than Private Passenger Autos

Back 6

used to cover any auto, other than a priavte passenger auto, that is owned by the named insured, auto purchasd after inception date are covered as long as they are the same type of vehicle, owned & non-owned trailers ar also covered for liability only, if they are attached to owned vehicle

Front 7

Symbol 5- Owned Autos Subject to No-Fault

(PIP) Benefits

Back 7

applies to vehicles licensed or garaged in a state where no-fault coverage is available, but only to autos required to have such coverage, autos acquired after inception date are also covered

Front 8

Symbol 6- Owned Autos Subject to Compulsory Uninsured Motorist Law

Back 8

applies to any auto owned by the named

insured, that is licensed or garaged in a state that requires insureds to carry UM coverage

Front 9

Symbol 7- Specifically Described Autos Only

Back 9

applies only to those autos that are specifically scheduled on the policy and for which a premium charge applies- liability is extended to any owned trailer that is specifically described

in the policy & with a load capacity of less than 2,000 pounds, insured only has 30 days to

report newly acquired autos

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Symbol 8- Hired Autos Only

Back 10

covers only those autos that the insured has leased, hired, rented or borrowed, does not cover auots that have been leased, hired,

rented or borrowed from an EE, business partner, LLC member or any of the preceding group's households

Front 11

Symbol 9- Non-owned Autos Only

Back 11

used to provide liability coverage for the use of autos that the named insured does not own, lease, hire, rent or borrow that are used in connection with the named insured's business, may be an auto owend by an ee or by partners

or members of their housholds, or by anyone else being used to run an errand for named insured

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Symbol 19- Mobile Equipment Subject to Compulsory Auto Financial Responsibility Requirements

Back 12

applied to land vehicles that are conisdered mobile equipment under the definition of mobile equipment, extends the BAP to cover mobile equipment only in those states where such equipment is subject to registration and/or licensing laws

Front 13

BAP Section II- Liability Coverage

Back 13

covers legal liability of the insured up to the liability limit plus unlimited efnese costs and supplementary payments for "auto accidents" which occur during the policy period, pollution damage will be covered if caused by the accident

Front 14

BAP- Insureds

Back 14

-named insured while owning or operating a covered auto

-others, including any employee, while using a covered auto with permission

-other who become liable for the conduct of an insured

-EE's while loading or unloading property to or from a covered auto

Front 15

BAP- Not Covered

Back 15

person working in an auto-type business unless that's the insured's business, persons other than an ee while proving property to/from covered auto, owner of a hired or borrowed auto and partners and members of a LLC are not insureds for any auto owned by the partner or member or for any auto owned by a member of their households

Front 16

BAP-Supplementary Payments- Insurer will pay on behalf of insured

Back 16

all expenses the insurer incures, up to $2000 for bail bonds, cost of bonds to release attachments in any "suit" against the "insured", reasonable expenses incurred by the insured including loss of earnings up to $250 per day b/c of work time missed due to the "suit", all court costs taxed against the insured, accrued interest in any judgment

Front 17

BAP- Out of State Coverage Extension

Back 17

increases the limit of liability coverage to meet the limits specified by compulsory or financial responsibility laws of the jurisdiction where the covered auto is being used including no fault coverage

applies when covered auot is away from the state where it is licensed

Front 18

BAP Exclusions

Back 18

liab. assumed under any contract or

agreement; EE injuries,ER's liability or responsibilities under WC or similar law; claims for consequential damage brought by relatives

of an injured fellow EE, damage to property owned or transported by or in care, custody or control of the insured,

Front 19

BAP Exclusions

Back 19

liability resulting from handling of property, before it is moved from the place where it is accepted by the insured for movement to a coverd auto, liability from the movement of property by a mechanical devise that is NOT attached to covered auto, liability for pollusion

or contamination unless arising from normal operating fluids of the vehicle

Front 20

BAP Exlcusions

Back 20

expected or intended injury, completed operations, injuries or damage arising from the use of covered autos in (or while practicing for) organized racing, stunting or demolition

contests and war

Front 21

BAP- Limit of Insurance

Back 21

the limit shown on the dec page for liability coverage is the most that will be paid for all damages and covered pollution costs resulting form any one accident reegardless of the number of covered autos, insureds, premiums paid, claims made or vehicles involved in the accident.

Front 22

BAP Section III- Physical Damage Coverage- Collision

Back 22

overturn of the covered vehicle or collision with another object

Front 23

BAP-Section III- Physical Damage Coverage- comprehensive

Back 23

any loss, other than collision or overturn that is not otherwise excluded, includes glass breakage or hitting an animal

Front 24

BAP-Section III- Specified Casuses of Loss

Back 24

similar to comprehensive but more limited, specified perils are named perils including: fire, lightnin, explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism, and

the sinking, burning, collision or derailment of

a conveyance transporting the covered auto (such as a ship)

Front 25

BAP-Section 3- Transportation Expenses

Back 25

insurer will pay up to $20 per day to a maximum of $600 for temporary transportation expense incurred by the insured b/c of the total theft of a covered auto of the private passenger type, begin paying 48 hours after theft

Front 26

BAP-Section 3- Loss of Use Expenses

Back 26

insurer will pay expenses for which an insured becomes legally responsible to pay for loss of

use of a vehicle rented or hired without a

driver, under a written rental contract or agreement- coverage of $20 per day up to a

max of $600 is available

Front 27

BAP- Loss of Use Expenses- Paid if Caused by

Back 27

comprehensive coverage only if decs indicate that comprehensive coverage is provided for any covered auto ; specified causes of loss coverage only if the decs indicate that specified causes of loss coverage is provided for any covered auto; collision coverage only if the decs indicate that collison coverage is provided for any covered auto

Front 28

BAP- Physical Damage Exclusions

Back 28

caused by nuclear hazards, war or miliatary action, to any covered auto while use in or prepping for any professional or organized racing or demo contest ; wear & tear, freezing, mechanical or electrical breakdown, blow-outs, punctures or other road damage to tires ; tapes, records disks, or other similar devices

Front 29

BAP- Physical Damage Exclusions

Back 29

equipment used for radar or laser detection; electronic equipment that receives or transmits audio visual or date signals, to diminutiion in value due to the covered vehicle being involved in an accident

Front 30

BAP- limit of insurance

Back 30

in the event of a total loss, deprec and physical condition will be considered when determining ACV, if repair or replacement results in better than the like kind or quality, the amount of the betterment is not covered ; $1000 max for electronic equipment perm installed that is not normally used by atuo maker; payments will be reduced by the applicable ded.

Front 31

BAP- Section IV- Conditions

Back 31

most common conditions, duties of the insured following a loss, subro, liberalization, policy periods and coverage territory, premium audit condition specifies due date for final or retrospective premium is one show on the bill sent to the first named insured

Front 32

BAP-Section IV- Conditions

Back 32

loss payment/ physical damage coverages condition states that a loss pyamnet will include any applicable sales tax

forms provide worldwide liability coverage for private passenger autos the insured hires, leases, rents or borrows without a driver for a period of 30 days of less

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Auto

Back 33

land motor vehicle, trailer or semi-trailer designed for travel on public roads, generally does not include mobile equipment

Front 34

bodily injury

Back 34

bodily injury, sickness or disease, including

death resulting from any of these

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property damage

Back 35

damage to or loss of use of tangible property

Front 36

covered pollution cost or expense

Back 36

costs arising out of any order by a gov authority demanding that the insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or respond to or assess the effects of pollutants, does no apply to fuels, lubricants, fluids, exhaust gases, or other pollutants necessary or resulting from normal operation

Front 37

pollutants

Back 37

any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemical and wate- waste includes materials to be recycled, reconditioned or reclaimed

Front 38

diminution of value

Back 38

an actual or perceived loss in market or resale value that results from a direct, accidental loss

Front 39

temporary worker

Back 39

a person who is furnished to the insured to substitute for a permanent ee who is on leave

or to meet seasonal or short-term workload conditions

Front 40

accident

Back 40

with commercial auto coverages, an "accident" includes continuous or repeated exposure to the same conditions resulting in BI or PD

Front 41

BAP endorsements- can be added

Back 41

-uninsured motorist

-underinsured motorist

-medical payments/ PIP within 3 years

-drive other car coverage

-individual named insured

-employees as additional insureds

-additional insure/lessor endorsement

-specified hire auto & -mobile equipment

Front 42

Garage Form

(vehicles) (symbols 21-31)

Back 42

similar to commercial GL policy covering the premises/operations and products/completed operations hazards as well as providing automobile coverage liability- car dealerships, services statiosn, valet services and parking garage/lots are eligible to be covered under the Garage Policy

Front 43

Exclusions to Garage Liability

Back 43

watercraft or aircraft, injuries that fall under WC, liabilities for damage caused by pollution, loss of use of property if not physically damgegd if it was caused by a delay or failure of the insured to fulfill terms of contract or agreement, claims for product or work recall & liability for real or personal property in teh insured's care, custody & control

Front 44

garagekeepers liability

Back 44

a type of bailee coverage avaiable to automobile repair shops, service stations, valet services and parking lots or storage garages- written either on legal liability basis or direct and primary basis

Front 45

losses not covered by garagekeepers policy

Back 45

theft by an insider; contractual liability; products or work loss, sound reproducing or receiving equipment, other losses such as war, rebellion, racing etc, also clear title issues

Front 46

garage policy- pd section IV

(for business itself)

Back 46

for dealerships, a "blanket limit" can be

provided to cover the entire inventory, a

monthly or quarterly inventory report will be required to verify the fluctuating values of inventory, ded apply with a maximum per loss,

if covered auto is driven or transported more than 50 miles from point of purchase or distribution, collision coverage is excluded

Front 47

Garage Policy Endorsements

Back 47

PIP, UM & Med Paymetns are not standard

driver other car coverage, false pretense- covers theft when the dealership voluntarily parts w/ property b/c of trick or scheme, dealer's driveaway collision- removes the 50 miles exclusion

Front 48

Truckers Form

Back 48

BAP excludes business taht haul the goods of others, Truckers From meets needs of the trucking industry

truckers use their cabs w/ different bodies to transfer- plackard- on trucks- shows who provides coverage

Front 49

Truckers Form- Symbols

Back 49

uses 41-49; 48 & 49 describe coverage applying to trailers in the insured's possession under a written Trailer Interchange Agreements

Front 50

Motor Carrier Coverage Form

(transporting property or passengers, trucks, taxis, buses, limos, etc)

Back 50

alternative to the Truckers Form, motor carrier is anyone who transports property by auto in a commercial enterprise regarless of whether he or she was hired for that purpose, coverages are triggered by using symbosl 61-71,

Front 51

Trailer Interchange Agreement

Back 51

symbols 69 & 70

69- coverage for trailers listed under a trailer interchange agreement that are left in the insured's possession

70- provides coverage for your trailers when listed under a trailer interchange agreement

that are in the possession of another trucker

Front 52

Motor Carrier Act of 1980

Back 52

madated that trucking ooperators must file

proof of pollution liability insurance

Type 1- for hire transporation of nonhazardous property in interstate or foreign commerce the minimum limit is at least $750,000

Front 53

Motor Carrier Act of 1980

Back 53

Type 2- for hire or private transportation of hazardous substance with a minimum limit of $5 million

Type 3- for hire and private transportation of oil listed as a hazardous substance or any hazardous waste or substance not included in Type 2 with a minimum limit of $1 million

Front 54

Motor Carrier Policies of Insurance of Public Liability Endorsement (MCS 90)

Back 54

attached to a policy under which the motor carrier is insured against auto liability claims, used to assure the vehicle has both pollution liability coverage and is provided at the proper limit