What is the Personal Auto Policy (PAP)?
A personal mines policy that provides several types of insurance fir loss that resukts frim the non bysiness use of certain types of motor vehicles.
How long is your spouse covered under the same auto insurance policy as you if they reside at a different address?
Your spouse is covered up to 90 days after relocating to a new residency
What is considered occupying an auto?
1. on top of an auto
2. Getting in or out an auto
3. Getting on or off an auto
Getting your finger stuck in the door is considered occupying an auto and IS covered. (True or false)
True
Delivery drivers are covered under Personal Auto Policy (true or false)?
False. They are covered under the company in whom they deliver for. Personal does not carry over to business.
Trailers are automatically covered for liability by the vehicle towing it (true or false)
True
What are the types of Autos covered?
1. Owned Auto/Covered Auto
2. Non-Owned Auto
3. Temporary Substitute
4. Hired Auto
5. Newly Acquired Auto
What is considered non-owned auto?
A private passenger vehicle not owned by you or a family member and not available for REGULAR use
What is considered a Temporary Substitute?
A non-owned vehicle that you are driving while your insured vehicle is being repaired/withdrawn from use (I.e.: a rental after a car wreck that you were not liable for)
What is considered hired auto?
Hired auto provides liability protection when you are driving a rented or hired vehicle (i.e.: limo's taxis, ride share)
What is considered a Newly Acquired Auto
A replacement or an additional vehicle is automatically covered for an interim period of time.
What is the required limits for auto insurance in the state of Missouri?
25/50/25
What are the three ways to verify proof of insurance?
1. A certificate of insurance (insurance card)
2. A bond or certificate of deposit of money or securities deposited with the state
3. A certificate of self-insurance that contain the word "self-insured" and has the following statement: "This card must be
What another phrase frequently used in replacement for "proof of financial responsibility"?
Proof of insurance
What is the structure of a Personal Auto Policy? (6 parts)
A. Liability - 3rd Party
B. Medical Expenses/Loss of Income - 1st Party
C.. Uninsured/Underinsured Motorist - 1st Party
D. Physical Damage - 1st Party
E. Duties after an Accident or Loss
F. General Provisions
What is the acronym ROI mean?
Loss of Income
What is Liability. Auto Coverage?
Where the insurance company will pay on the insured's behalf when the insured is legally liable for the bodily injury (BI) and/or property damaged (PD).
Who does bodily injury (BI) benefit/coverage apply to?
3rd party when the insured is liable for injury
Who does property damage (PD) benefit/coverage apply to?
3rd party when the insured is liable for property damage
Who does medical expenses/loss of income benefit/coverage apply to?
1st party regardless of fault
What does Uninsured and Underinsured benefit/coverage apply to?
1st party INJURY coverage when the first party is NOT at fault
What are supplemental payments?
Where the insurer will pay above and beyond for court costs, bonds (up to $250), loss of earnings for name am insured to appear in court (up to $200/day), and investigative costs towards the case they are liable for
What is Primary/Excess coverage?
Where the owners auto policy will pay FIRST towards a liability claim when you're vehicle is borrowed with your permission and involved in an accident
The borrowed driver used their insurance once the owner of the vehicle insurer reaches its limits.
Who and what is excluded in liability coverage? (5 answers)
1. You and yours
2. Your employees injured ON THE JOB
3. Active mechanics/valet with your car in their possession (bailee)
4. Intentional Damage
5. Using the vehicle as livery (work)
What is the medical payment limit and loss of income limit if you decide to add this benefit/coverage to your policy?
Medical limit = $2,000 | Loss of Income limit is $100 per week, up to 52 weeks.
Uninsured Motorist will pay under what 4 situations
1. At fault party insurer denies coverage for reasons, such as not cooperating with the insurance company
2. At fault party did not purchase insurance
3. The owner/operator of the motor vehicle is immune from liability (law enforcement, government officia
What is underinsured motorist coverage?
Coverage that will pay the 1st party for injuries when the at fault party is responsible for an accident but doesn't have enough coverage to pay for the 1st parties injuries l.
What is collision coverage?
Provides coverage for physical damage to 1st party's vehicle who collided with an object or an unknown vehicle (including dead animals)
What is Comprehensive/Other Than Collision coverage? Give examples also
Open peril coverage for your vehicle minus a deductible to cover anything not excluded.
- Theft
- Flood
- Vandalism
- LIVING animals
- Window damage (from hail, golfball, Rock)
- Falling Objects
- Fire, Earthquake, Windstorm, Hail
What is a settlement?
The actual cash value (ACV) payment provided to 1st persons property that is physically damaged
What does "Right of Salvage" mean?
The insurer will pay out for the total loss of the vehicle and then retain possessions of the vehicle.
What is salvage value?
The scrap value for d damaged property that the insurer is entitled to collect when vehicle is totaled
What is the Liberalization Clause?
Any change/benefit in a policy beyond standard that will benefit nee policyholders at no extra cost will automatically be applied to all current policyholders.
What is recovered property?
When the named insured has received payment for the loss and the property is recovered.
What coverage is required to be offered in writing to all policyholders?
Medical expenses - 1st Party (it is optional coverage, not required. But MUST be offered by insurer)
What coverage is required to be offered if the insured is carrying physical damage ?
Rental reimbursement - 1st Party
Collision and other than collision are usually written with a deductible. (True or false)
True
What are physical damage exclusions? Give 5 common examples.
1. Wear and Tear
2. Company Cars/livery/Valet
3. Electronic Equipment � unless PERMANENTLY installed
4. Losses due to war or nuclear hazard
5. Non-owed auto being used on the auto business
What does the abbreviation PAP stand for?
Personal Auto Policy
Within the PAP structure, what is PART A?
Liability - 3rd Party
Within the PAP structure, what is PART B?
Medical Expenses & Loss of Income - 1st Party
Within the PAP structure, what is PART C?
Uninsured/Underinsured Motorist - 1st Party
Within the PAP structure, what is PART D?
Physical Damage - 1st Party
Within the PAP structure, what is PART E?
Duties after an Accident or Loss
Within the PAP structure, what is PART F?
General Provisions