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Adjuster Pro Section-3
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Adjuster Pro Section-3
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Adjuster Pro Section-3The Personal Auto Policy (PAP) - -A policy that combines liability insurance
with other optional coverages
-PAP Policies can cover - --Individuals and residing family members
-People driving car with owner's permission
-Four-wheeled vehicles under 10,000 lbs
*Insurable interest is required
-PAP Policies will indemnify for: - --Property Damage
-Personal Injury
-Legal Defense
-What will PAPs not pay for - -Punitive Damages
-8 Sections of Typical PAP - -1. Declarations
2. Part A Liability
3. Part B Medical Payments
4. Part C Uninsured Motorist
5. Part D Coverage for Damages to Your Auto
6. Part E Duties After an Accident or Loss
7. Part F General Provisions
8. Endorsements
-Auto Insurance Deductibles - -Fixed amount on a Per Claim Basis
-Deductibles typically only apply to what type of Auto Insurance coverages -
-Collision and Comprehensive
-Your Covered Auto Definition - -1. The car specified on declarations page
2. Any car the named insured borrows with permission
3. A newly acquired auto
4. A trailer that the insured owns
5. A temporary substitute for a car or trailer listed on the dec page due to an
incident
-Newly Acquired Auto definition - -Any new or used vehicle that the insured
gets during the current policy period
-Rules for Adding Newly Acquired Atuo - --If new auto is replacing auto
listed on dec page, no reporting is needed.
-If new auto is not replacing auto listed on dec page, insured has 14 days to
report to insurer
,-Comprehensive and Collision Coverage can be added within 4 days of
getting new car and are automatically applied for first 4 days with $500
deductible
-Covered Person - -1. The named insured and family members living in the
same household
2. Someone using covered auto with permission
-Minimum amount of auto required for some states - -$25,000 for person's
injuries
$50,000 max for all injuries in any one accident
$10,000 max for all property damage
-Primary Coverage in PAP - -Coverage is primary if it involves a car the
insured owns
-Secondary Coverage in PAP - -Coverage is secondary if it involves a car the
insured does not own
-Out of State Coverage Provision in PAP - -If you meet your home state's
requirements, it is assumed you meet the requirements of any other state.
-PAP Part A - Supplementary Payments - --Assist policyholder with a variety
of accident-related expenses
-Not subject to liability limits
May include:
-Lost wages up to $200 per day
-Expenses due to insurer's request such as retrieving accidents reports or
records
-Bails bonds up to $250
-Accrued interest after a judgement
-Premiums on appeal bonds and attachment bonds
-PAP Part A - Exclusions - --Intentional Damage
-Property owned or transported by the insured
-Damages incurred under the scope of employment, except domestic
employees ineligible for workers' comp
-Properties rented or used by insured
-Hired vehicles transporting people or goods
-Company-owned business vehicles
-Damages or injuries caused whole repairing servicing storing etc.
-Vehicles taken without permission
-No-Fault Insurance - --Designed to indemnify the insured for his own
injuries regardless of fault
-Covers bodily injury only
, -Mandatory in some states
-PAP Part B - Medical Payments - --Provides coverage for the insured
-Pays medical expenses of the insured, no matter who caused them
-Applies when anyone considered an insured under the policy is occupying or
struck by auto
-Includes vehicle-pedestrian accidents
-Covers eligible payments for up to 3 years, per insuring agreement
-Exclusions to Medical Payments Part B - --Accidents where an insured is
occupying a vehicle with less than four wheels
-Autos rented or leased for hire
-Autos used without Permission
-Commercial Vehicles
-Vehicles located for use as a residence
-Medical payments begin only after PIP coverage is exhausted.
-PAP Part C - Uninsured/Underinsured Motorist Coverage - --Covers bodily
injuries cause by people with insufficient or no insurance
-Coverage for physical damage can be counted as uninsured
-Uninsured Motorist - -1. Driver with no liability insurance
2. Driver whose insurer won't pay
3. Hit and run driver
-Underinsured Motorist - -Driver who does not have enough insurance to
pay for all damages
-Exclusions to UM/UIM Coverage - --Insured's own auto that is not listed in
policy
-Government Vehicles
-Off-Road Vehicles
-Vehicles used as a premises
-Covered autos that are rented or used for hire
-Cars used without reasonable belief that permission was granted
-PAP Part D - Damage to Your Auto - --Called Physical Damage
-Protects insured's financial interest in the car
-Two types: Collision and Other Than Collision
-PAP Part D - Collision Coverage - --Pays for damage to insured's vehicle
caused by collision or rollover
-Applies even when insured is at-fault
-For covered auto and any non-owned car insured is driving
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