Risk

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PAP

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Personal Auto Policy

widely used throughout US

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Eligible vehicls

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four wheeled vehicle owned or leased by insured for at least 6 consecutive months

a pick up van with a gross vehicle wieght of 10,000 pounds or less
cannot be used for deliveries

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Autos covered by policy include

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any auto shown in declarations
newly aquired auto
trailer owned by named insured
temp or substituve vehicle non owned

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newly aquired auto

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overage depends on whether it is replacement or addtion and whether the declarations indicates atl east one auto for collision

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liability coverage

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it protects a covered person against a suit or claim arising out of ownership or operation of a covered vehicle

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split liimits

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liability coverage is done unders split limits

aomounts fo insurace for bodily insurance property damage liablilt are stated separately

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defense costs

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insurere also agrees to provide defense and pay all legal defense costs for claims covered by the policy

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liability coverage applies to who

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tha named insured and any resident family emembers
any person using the named inusred auto
any person or organizaion llegally responsible for any insureds use of a covered auto on behalf of htem

any person or org legally responsible for the named insureds or family emembers use of any auto or trailer other than a ocvoered uaot or the one owned by the prson

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Supplementary payments can be maid

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the cost of a bail bond
premiums on appeals bonds
interest accruing afera judgment
loss of earnings 200/day
other reasonable expenses

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exclusions

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intentional injury or damage
proptery owned or transported
proptery rented used or in the insured car
bodily injury to an employee
use as a public livery or conveyance
vehicles used in auto business
vehicles with less htan 4 wheels
vehicles funished for insured regular use

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if accident occurs in another state

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if the financial responsibilty law int hat state has higher iability limits PAP will automatically provide the higher limit

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if more than one liabilytpocily covers a loss...

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the insurere pays its pro rata of the loss for owned vehicle
the insurance coverage is excess over any other insurance for a non owned vehicle

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Medical payment coverage

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covers all reasonable medical and funeral expenses incurred by an insured in an accident

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2 groups covered medically

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the named insured and fmaily members are covered
while occupying the vehicle or as a pedestrian strcuk by a car

other persons occupying a covered auto are covered
no completely covered in nonowned vehicle

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how long can medical services be rendered

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3 years

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is it based on fault

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no

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exclustions to the coverage includ injuries sustained

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in a vehicle w/ less then 4 wheels
operating a vehicle for livery or conveyance
when the vehicle is used as a residence
when the vehicle is used w/o reasonable belief or permission
when the vehicle is compting in races

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if more than one auto policy covers a loss

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the insureer pays its pro rata share of the loss for an owned vehicle
the insurace coverage is excess over any other insurance for a non owned vehicle

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unisured motorist coverage

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the unisnured motorist coverage pays for the bodily injusry coaused by an unisured motoris by a hit and run drive or by negligent driver whos inuce copmay is insolvent

the unisured driver must e legally liable

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cover applys too

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named insured and family memebers

any other person occupying the covered auto

any person legall entitled to recover damages- living spouse

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unisured

coverage doesnt apply when

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an insured is injured in or by an auto owned by the named insured bu tnot insured by the policy

ther is primary coverage under another policy
the vehicle is used for livery or conveyance - not carpool

when workers compensation benefits are applicable

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limitation when more than one iuninured motoris coverage provision applies

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ex- if an isurer proveds coverage ona vehicle not owned by the named insured, the insuace proveded is excess over any collectile insurace proveded ona primary basis

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coverage for damage to vehicle

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the insurer aggrees to pay for any direct and acidental loss to a covered auto or any non owned auto

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2 optional coverages available

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collision coverage
other than collision coverage

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collistion

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the upset of our covered auto ornonowned auto or its impact with another vehicle or object

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other than collision

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a loss because of
missles or falling object
fire
malicious mischief
theft
explotions
hail water flood
riot or civil commotion
contact w/animal
glass breakage
windstormq

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non owned aut o is also covered uner coverage for damange to vehicle

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a non owned aut is a private passenger auto, pickup van or trailer not owne or funishd or made availabe for regular use of the named insured or family member whi l it is in the custody of or being operated by named insured or family member

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substitut cars - coverage damange

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also covered the policy ofers broadest coverage applicable to any covered auto shown in declaration

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CDW

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collision damage waiver
maybe necesar when reenting a car most independent agents recomend it

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temporary transporation

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PAP also pays for tem transporation

expense must be a result of a covered loss

includes charges from rental cars
coverage is subject to a daily and total limit

coverae for towing an dlabor costs can be added by endorsment

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exclustion

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use as a pbucli livery and conveyance

damage from wear and tear freezing and mechanical or electical breakdown

radioaactive or war
certain electronic equipment
rtapes reconrds disks
gov destrcutions or confiscations
trailer camper body or motor home
racing vehicle

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total loss

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the policy pay for actual cash value less than deductable

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partial loss

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the policy pays only the amount necessary to repair or replace vehiclethe damage property of like kind and quality

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clarifying endorcement

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to exlude coverage for diminution in value from a direct and accident physical damage loss

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gap insurance

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insured can purchase gap insureance to cover the dfference between amaoun insurere pay and toatled car the amount owed by lease or loan

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if more than one autop olicy voers physical damant

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insurer pays it pro rate share of loss ofr owned vehicle
the insuracen coverage is excess over any other insurace fo a non owneved vehicle

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apprasial provision

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policy for damage includes an appraisal proision for nhandling disputs over the amount of physical damage and loss

either side can bring an appraisal up

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duties after accident

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promptly notify insruance company
cooperate with the insuree int he investigagtion and settlement
send the insure copies of any legal notices received in concetion w/ accident
take phsical exam

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other duties

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policy must be notified for a hit and run
insured must be allowed to inspect vehicle the insured can deny coverage only if failur to comply to prejudicial to the insurer

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general provisionst

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coverage in us us territori pr and canada
all stats restrict right to cancel

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cancellation

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can canel at any time by returning policy or a written notice

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insurere can cancel if

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the premium has not been paid
drivers lisence hs been suspended
policy was obtained through material misrepresentation

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nonrenewal

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if insurer decides to discontion coverage the insured mmust be notified at least 20 days before end of pd

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automatic ermination

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policy is automitcally terminated if the insured declins the insures off to renew

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ISO commercial propetery program

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insurance services office

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what does it do

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has designed a mjor a commercial protery program that makes avaialbe packaged policies

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packaged policy

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tailored to meet the specific needs of the business

combines two or more coverages into a single policy

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advantages of package policy

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fewere gaps in coverage

lower premiums and convenience

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policies contain

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common policy declarations
common policy conditions
coverage parts commercial propety, crime

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buildint and personal property coverage form

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this ia commerical property coverage part that is widely used to cover direct physical damage loss to commerical vildings and personal property

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wha does it cover

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building describe in declartions including fixtures and permantilly installed machinery and equipment

busines persoanl propert such as furniter oand coputers
personapl propetery of other in the care custody or control or the named insured is also covered

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cause of loss form

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must be added to the policy to have a complete contract

specifies the coverd perils for the business and personal property coverage

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cause of loss form proveds 11 basical cause of loss

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fire lighting explosion windstorm or hail, smok, aircraft, riot, vandalaism, sprkler leagage, sinkhole, covacnic actions

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COL also covers

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falling objects, wight of snow ice or sleet, water damage also collaps is converd for certain causes such as hiddne decay

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col special form

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risks of direct physical loss unless specifically exlluded

also includes glass damage

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reporting form

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used to insure fluctuations in business personal property

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what are premiums based on

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based on actual value of the covered propert

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when can insured report inventory

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daily, monthly , quarterly or annual basis

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undereports?

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if a loss occurs a that location revoery is limited to the proportion that the last value reported bears to the correct value that should have been reported

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busines income insurance

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designed to cover the loss of business income, expense that contineu during shut down period and extra expense because of loss

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business income and extra expense coverage form

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form covers the loss ofbusiness income due to suspension of operations udring a period of restoration

extra expense such as relocation,
and extedned busines income provitions covers the reduction in earning for a limited period after the business reopens
busines incomes is defined as the net profit or loss before income taxes that woudl have been earned andcontinuion normal opersate epxpense including payrol

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busines income coverage can be purchase w/ how much co insurance

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50-125%

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how is coinsurance selected

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depends on teh lenght of time it takes to complete repairs and resume operations

a higher percentage would be selected if the busines expects to be shut downf or a whil

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optional coverage includs

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maximum period of indemnity of 120 days- elimitaned the coinsurance requirement

monthly limit of indemnity- elinates coinsurace requirement and limits maximom monthly amouth that iwll be paid for each 30 day period

businss inccome agreed value- this opeion supsends coinsurace clause and places limint on monthly amount paid provded the agree amout of insurance is carreid

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extra expense coverage from

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separae fromt hat can be used to cover the extra expense incurred by the firm in continuing persation during a period of restoration

can be sued by firms that mus continue to operate after loss occurs

the form does not coer loss of business income

expense to continu operation are coverd, subject to certain limits

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endorsment can be added to...

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a business income policy to cover the loss of business income from dependeent properties

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when is an endorsment used

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when a business depends ona sing supplieer for raw materials or reliseon a single scustomer to purchase its produces
the loss of income must result drom direct damage to propert or the dependent property

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ocean marine insurace

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providd protection for goods transpored by water

one of the oldest forms of transp insurance

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ocean marine insurance forms

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hull insurance

gargo insurace

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hull insurance

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covers physical damage to ship or vessel
a collision liablity clause ocovers the owners legal liablilty if the ship collides with another vessel or dammagesthe cargo

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cargo insurace

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covers the shippof the goods if the goods are damaged or lose

regular shipment can ve covered w/ an open cargo policy

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what does the converage require regarding reports

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this coverage requires ths hipper to report periodically the shipments that are made

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business owner policy BOP

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a package policy spefically dsigend for small to medium sized reail stores ofice building apartment bilding and similar firms

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what does it provid

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liability and property coverage

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when are business ineligible for BOP

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WHEN THEIR LOSS EXPOSURES ARE OUSIDE THOSE CONTEMPLAE FOR AVERAGE SMALL-medium sized firms

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how are property losses covered

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all risk basis, coverage includes building described in declaration, fixures, pernmanetly installed machinery and equipment

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Busines personal property is it covered

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yes, including property int he sured care

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peak season provision

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provids for a temporary icncreas of 25% of the amount of the insurance when inventeory values are at their peak

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additional coverage

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debris removal, collapes and interruption of comptuer operations

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for additional costsBOP

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outdoor signs c, money and security, dmployee dishonesty, mechanicla brak down

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standard deductible for proptery

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500 per occurance

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does BOp also cover liability

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yes similar to CGL

the buisnes ownere is insured for bodily injury and property damage liabilty and advertising and persona injury liabilty

medical expense insurace is also provided.

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General liablity loss exposure

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refers to legal liablity arising out of business operations other than auto or aviation accdients and empoloyee injurees

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some important gernal exposures include

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premises and operation liabilty arising out of ownership and maintenance of the premises

products liabilty , arisitn out of manufacturing and sales products

completed operations liabilty rising out of aulty work preformed away fromt he premises afer the work or operatin is completed

contractual liability arising out of the assumption of legal liabilty through a written or roal contract

cintigent liabilty arisiong out of work done by independent contractors

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Comercial general liabilty policy

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widely used by firms to cover their general liabilty loss exposure

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policy has two forms

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occurence form and claims made form

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occurence policy form

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covers liabilty claims arising out of occurences that ake place during the policy period regardless of when the claim is made

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calimes made form

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covers only claims that are first reported ruing the policy ped or extended reporting pd , provided the event occured after the retroactive date if any stated in policy

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how can the CGL be written

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alone or part of a package

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3 major parts of coearage

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bodily injruy property damage and liabilty

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what must be caused by an occurance

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bodily injury or property damange

ex- accident

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when does coverage not apply

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when loss is known or is apprent before the policy inception date

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what does coverage include

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defense cost, and the insurer has the right to investigage a claim or suit and settle it at its decision

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CGL policy

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coverage for fire legal liabilty

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fire legal liabilty

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covers fire damage to premise rented ot the name insured or temp occupied by the named isure w/ the permission of the owner

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limits

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separate limit of coverage applies

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other damages?

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other damages to proerty rented by the insured is not covered

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Personal and advertising liabilty

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insurer agrees to pay those sums that insured is legally liable to pay as damages brcause of personal and advertisein justy

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policy ocvers legali liabilty resulting from

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false arest, maliciou prosecution, wrongful eciction or entry, slander, violation of privace, and copy right infingement

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medical payments

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insurere will cover the medical expense fo person who are injur in an accdient on the preses or on the ways next to the premises or as a result of the insured operations

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how long do payments have to be incurred

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one year after accdient

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doe slegal liabilty matter

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NO payments are made w/o regard to leagal liabiltiy