Term
| Financial responsibility laws |
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Definition
| every motor vehicle operated on a state highway, except farm vehicles that are operated only incidentally, must satisfy the minimum financial responsibility requirements. This may be done through a certificate of self-insurance, a surety bond, a certificate of deposit or cash to be held by the state treasurer, or an auto liability insurance policy. |
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Term
example of state's financial responsibility law
minimum requirements |
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Definition
15 gs per person bodily injury liability
30 gs per occurrence for bodily injury liability
10 gs per occurrence for property damage liability |
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Definition
expressed as 15/30/10.
meaning the most this policy owuld pay to ANY ONE injured person for bodily injury is 15 gs in any one occurence. However, no matter how many persons are injured in the same occurence, the most the policy will pay in total for bodily injury liability due to that one occurence is 30 gs. the 15 is within the 30. The 10 gs limit for property damage liability is a separate limit. It does not apply per person, but per occurence. The most the insurer would pay under this policy for all property damage caused by any one occurence is 10 gs, so the most the insurer could pay out for any one occurence is 40 gs. |
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Term
| Combined Single Limit Policies CSL |
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Definition
written with just one policy limit that applies to BI and PD together. There is no per-person limit, and the PD limit is not shown separately. it would need a minimum liability policy limit of 40 gs to be equivalent to a spit 15/30/10 policy.
-cost more and aren't provided by all insurers |
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Term
| Uninsured Motorist liability |
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Definition
| is for you and your passengers in case you are injured by this and it is their fault |
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Term
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Definition
| broadest type of personal lines auto policy sold, and it is the auto policy with which most state exam questions are concerned. |
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Term
| Combined single limit policies CSL |
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Definition
written with just one policy limit that applies to BI and PD together. There is no per-person limit, and the PD limit is not shown separately.
-in order to comply with law this policy would need a minimum liability policy limit of 40 gs to be equivalent to the split limit policy
-are better from clients view, cost more and not offered by a lot |
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Definition
| uninsured motorist usually covers _ only |
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| is for the other party you injure |
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Definition
| or additional coverages that may pay in addition to the policy limits. Bail bonds for ex. |
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Definition
designed for vehicles in commercial use, such as pickup and delivery of goods or merchandise.
-more restrictive
-may be written on a PAP |
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Definition
use of a vehicle in sales, by a person such as a real-estate agent or insurance agent.
-require higher rates. |
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Term
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Definition
| classification tables are based on age, gender, driving record, and territory, from statistical data provided to the state Department of Insurance. |
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Definition
| rules help keep the insurance company profitable and in business by keeping a balance between risk and the premium paid by the insured |
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Definition
| the PAP is the industry standard, both for the state exam and for you sales efforts. It provides very broad _ and is strictly underwritten. |
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Term
who is driving the car
where the car is being driven |
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Definition
| auto insurance rates depend on |
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Definition
| which is lower in a large city, fire or auto? |
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Term
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Definition
| considers and investigates the application, and upon acceptance, she signs her name to the application. Relies on many sources; motor vehicle report, consumer investigative report |
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Term
| motorcycles (only 4 wheel) |
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Definition
| auto policy does not cover |
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Term
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Definition
| the insurer will pay, up to the policy limits, for BI or PD to others, caused by any driver of a vehicle insured under the policy |
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Term
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Definition
| pay med and funeral expenses resulting from a covered event causing bodily injury to you and your passengers |
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Term
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Definition
| covers bodily injury to an insured caused by the owner or operator of an at-fault uninsured vehicle |
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Term
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Definition
| covers your insured vehicle for damage by collision and or other than collision, if either or both are declared. |
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Term
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Definition
| the insured must notify the insurer as soon as possible after loss and must cooperate with insurer's investigation |
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Term
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Definition
| lays out various legal and financial obligations relating to both insurer and insured |
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Definition
| tells who is insured, what type of property (auto) is insured, policy limits, and policy period |
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Definition
a brief clause, includes very broad coverage
'we will pay damages for BI or PD for which any insured becomes legally responsible because of an auto accident; |
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Definition
| bodily harm, sickness, or disease, including death |
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Term
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Definition
| physical injury to, destruction of, or loss of use of tangible property |
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Term
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Definition
| you or your spouse, family member involved in ownership, maintenance or use. any person using a covered auto, for a covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of a person covered by the policy. |
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Definition
| a person related to you by blood, marriage, adoption who is a resident of your household including a ward or foster child. |
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Definition
| 18 yr old daughter crashes boyfriends car who has no insurance. |
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Definition
| owner's policy is always primary. the driver's policy, if any, is always excess |
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Term
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Definition
| if your policy did not contain this language that assumes liability for anoyone driving your car, you would not necessarily be responsible for all negligent accidents caused by a driver of your car. but it states that you are respnsible and the polciy will pay when any person causes BI or PD to others while driving your covered auto. |
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Term
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Definition
any vehicle shown on the declarations page.
any additional auto newly acquired during the policy period is covered right away for the broadest laibility coverages provided for any vehicle already shown i nthe declarations as long as you add it to the policy within 14 days
-if a newly acquired vehicle replaces a vehicle already shown in the declarations, liabilitycoverage is automatically provided without you having to add it to the policy.
-for collision and other collision coverages for a new auto, coverage begins the date you become the owner. the newly acquired auto will have broadest physical damage coverage currently provided for any auto shown in declaration. add to policy within 14 days.
-any trailer you own has automatic liability coverage no declaration needed
-any non-owned vehicle used as a temporary substitute for any other vehicle described above that is out of normal use due to breakdown, repair, servicing, loss or destruction. |
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Term
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Definition
| if none of the vehicles currently shown in the declarations have PD coverage, you must report the newly acquired auto within _ of the time you become the owner in order for collision and other than collision coverages to apply. |
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Definition
| if you comply with the 4-day requirement and a physical damage loss occurs before you asked the insurer to insure the newly acquired auto, a deductible of _ will apply. |
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Term
| when its limit of liability is reached |
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Definition
| the insurer's duty to settle or defend ends when _ |
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Term
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Definition
| the policy will pay up to _ for the cost of bail bonds required because of an accident that results in BI or PD covered by the policy, including those for related traffic-law violations. |
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Definition
| guaranteeing that should it lose the appeal, it will go ahead and pay the judgment plus any accrued interest on the judgement. |
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Definition
| the company will pay up to _ a day for your lost earnings if it requires your attendance at hearings or trials. |
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Definition
| things that are never covered |
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Definition
| you are not covered if you run over someone on purpose |
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Term
| your own property in transit |
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Definition
your own property is not covered if damaged while it is being transported.
-you are moving and your furniture is damaged in an accident, whether in a moving van or your own auto |
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Definition
| during the course of their employment, this is covered by workers' compensation soooo it is exempt from PAP |
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Definition
| if you use your car as a taxi or limousine service, no coverage. Car pool is covered. |
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Term
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Definition
| there is no coverage for any person in the business of selling, reparing, servicing, storing, or parking cars. -leave your car with a repair shop. mechanic takes car and runs over someone. your policy will not cover the mechanic. however, his activities would be covered under a commercial garage liability policy purchased by the repair shop. |
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Definition
| there is no coverage for any vehicle used commercially, except farming or ranching which is covered. |
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Definition
| may be the activities of a real-estate agent using his or her own car to transport clients, but not a floral delivery service. |
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Term
| using a vehicle without permission |
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Definition
| the PAP will not cover any person using a vehicle without a reasonable belief that he is entitled to do so. |
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Term
| non-owned vehicle furnished for your regular use |
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Definition
| the theory here is that if you are using the vehicle on a regular basis, the insurer ought to be getting the premium for covering you. Thus, if you are driving a company car that you have not declared on your policy, it is up to the company to insure the car and you as its driver. |
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Term
| uninsured accident, major traffic violation,violated the state mandatory insurance law |
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Definition
| evidence of liability as proof of financial responsibility is often required after a person is involved in an _, has been convicted of a _, or has been found to have _ |
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Term
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Definition
| a form indicating the name of the insurance company, the insured's policy limits, and a promise to notify the sate if his or her insurance policy is canceled for any reason during the time proof of financial responsibility is required. |
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Term
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Definition
| an optional coverage. It is not a liability coverage, but provides coverage for reasonable expenses incurred, |
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Term
| within 3 years from the date of the accident |
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Definition
| provides coverage for reasonable expenses incurred, over this time _, for necessary medical and funeral services because of BI caused by accident, sustained by an insured. |
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Term
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Definition
| even if the accident is your fault, auto medical will pay up to your policy limits for injuries sustained by you or your passengers. |
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Term
| uninsured motorist coverage |
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Definition
| a liability coverage that is purchased on your own policy in case you or your passengers are injured by another motorist who is negligent and has no auto liability insurance. -also helps in a hit-and-run |
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Term
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Definition
a land motor vehicle of any type;
to which no BI liability policy applies at the time of the accident
to which a BI liability policy does apply but is written for lower limits than those specified by the financial responsibility law of the state
that is a hit and run vehicle whose operator or owner cannot be identified
to which a BI liability policy applies, but the insurer either denies coverage or is insolvent. |
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Term
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Definition
| if the company and the insured or other passenger do not agree on the amount of claim payments due. |
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Term
-you you have collision coverage they will pay
-no collision coverage then you will have to sue on your own |
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Definition
| what happens if an uninsured motorist causes property damage to your insured auto? |
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Term
| underinsured motorists coverage |
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Definition
| only applies when the other party who negligently injures you has insurance but not enough |
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Term
| full coverage/ comprehensive and collision |
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Definition
purchased to protect your own car. premiums are based primarily on the value of the car you are insuring.
age, gender, driving record, and territory are still important rating factors, as well. |
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Definition
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Term
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| means the upset of your covered auto or its impact with another vehicle or object. |
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Definition
missiles, falling objects, fire, theft, explosions, earthquakes, windstorm, hail/water/flood, vandalism, riot, contact with bird or animal, breakage of glass
acts of god |
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Term
| collision , property damage |
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Definition
| you fall asleep at the wheel, run off the road, and hit a light pole. damage to your car is covered by your _ insurance. damage to the pole is covered by your _ coverage |
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Term
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Definition
in the event of total theft of your covered auto. Coverage does not begin until 48 hrs after the theft and it ends a maximum of 30 days later, by which time your car will either be recovered or presumed permanently missing.
-pay your claim by the time this coverage runs out.
-transportation limits are 20 per day and max of 600. |
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Term
| no extra premium charge, no deductible |
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Definition
| transportation expense coverage is _ in the policy at _ when your purchase physical damage coverage. there is _ for it, and it pays in addition to limits |
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Term
| wear and tear types of loss, items not permanently installed, freezing of the engine block, mechanical or electrical breakdown and road damage to tires |
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Definition
| list of exclusions for part D |
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Term
| pay ACV or repairing/ replacing the car. Whichever is cheaper |
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Definition
| Two options for paying the claim under Part D |
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Term
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Definition
used when the insured and the insurance company do not agree on the ACV of the loss.
-each party selects a person to select as an umpire. A decision is reached by any two of these 3 binding on all parties |
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Term
| duties of the insured after a loss |
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Definition
| part of the PAP specifies |
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Term
| general provisions, such as the policy territory, which is specified as the US, its territories and possessions, puerto rico, and canada. |
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Definition
| Part F of the PAP contains |
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Term
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Definition
| if the cancellation is for nonpayment of premium, the insured must be given at least _ |
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Term
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Definition
| creates a modified contract that covers non-owned vehicles only. its coverage applies only to the one specific person listed on the dec. page, and it provides coverage for BI and PD, UM, and medical only. |
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Term
| miscellaneous-type vehicles |
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Definition
| those seeking to cover a motor home, a motorcycle, dune buggy, or golf cart need to add this special endorsement to modify the definition of a covered auto. |
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