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EVENT/CLIENT NAME or Confidentiality statement 6/23/2013 7:04 AM New Brand FMT-P2 1

3. Personal Auto Policy

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PAP

PAP:

o To insure Passenger Autos

o Cars, Vans, Station Wagons, and Sport Utility Vehicles

o Designed primarily for use on Public Roads as well as pick up

Vans

o Can also be used If allowed by state and Insurer

Motor Cycles

Golf Carts

Snow Mobiles

Motor Homes by adding appropriate Endorsement

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Personal Auto Policy Provisions

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PAP Policy

Policy Declarations

An Agreement and Definitions

Six Parts

o Part A - Liability Coverage

o Part B - Medical Payments Coverage

o Part C - Uninsured Motorists Coverageo Part D - Coverage for Damage to your Auto ( Physical Damage or PD)

o Part E - Duties after an Accident or Loss

o Part F - General Provisions

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PAP Declarations

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PAP Agreement and Definitions

Agreement

Legally enforceable offerand acceptance contract between competent Parties(insured and insurer) with consideration

Definitions

o Provides definitions of important terms in the contract

o Removes the ambiguity in the policy language

o Helps both the insured and insurer

o Contains words and phrases that are later referred in the policy

o You and Your, We, us and our, Leased, Bodily Injury,

Business,Family Member, Occupying, Property Damage,

Trailer, Your Covered Auto

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PAP Agreement and Definitions

Your Covered Auto

o Any vehicle shown in the declaration

o A newly acquired auto

o Any trailer you own

o A temporary substitute auto or trailer

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PAP - Part A Liability Coverage

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PAP Liability coverage

Insuring Agreement

Supplementary Payments

Exclusions

Limit of Liability

Out-of-State Coverage

Financial Responsibility

Other Insurance

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Insuring Agreement

Damages and Defense Costs

o Bodily Injury( BI), Property Damage ( PD)

o Compensatory Damages

Special Damages

General Damages

o Punitive Damages

o Defense Costs Pre Judgement Interest.

o Limits:

Split Limits

Single Limit

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Insuring Agreement

Persons and Organizations Insured

Named Insured and Family Members

Any person using the named insureds covered auto

Any person or organization legally responsible for the acts of a covered

person while using a covered auto

Any person or organization legally responsible for the named insureds orfamily members use of any auto mobile or trailer

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Supplementary Payments

Cost of bail bonds ($250)

Premiums on appeal bonds and bonds to release attachment

Interest accruing after a judgement

Loss or earnings because of attandance at trails Other reasonable expenses incurred at insurers request

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Exclusions

Intentional BI or PD

Damage to Property owned or transported by insured

Property rented to, used by, or in the care of the insured (Exemption RentedHouse)

Bodily Injury to an employee of insured during the course of employment(Exemption Domestic worker)

Garage Business use

Other Business Use City bus or large commercial truck

Public or Livery Conveyance ( except the share-the-expense Car Pools)

Vehicle with fewer than 4 wheels

Vehicle arranged for Regular use

Vehicle used in Racing

Vehicles used in automobile Business

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Limit of Liability

Split Limits

BI to each person

BI to all persons in each accident

PD in each accident

Single Limit

Out of state coverage

Financial Responsibility

Other Insurance

More than one insurance

Borrowed Vehicle

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PAP- Part B Medical Payments Coverage

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PAP Medical Payments coverage

Insuring Agreement

Insured Persons

o Named Insured and Family Members

o Any Other Person while Occupying Covered Auto

Medical Payments Exclusions

Limit of Liability

o No Duplicate Payments under Coverages A, C

Other Insurance

o On Pro-rata if more than one insurance

o In case of Non-Owned, excess over any Other Collectible Insurance

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Medical Payments Loss of Exposures & Coverage Exclusions

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Medical Payments coverageLoss of Exposures excluded

Fewer than 4 wheels

Public or Livery Conveyance ( but Share-the-expense Car Pools)

Vehicles used as residence or premises

Injury during the course of employment

Regular use

Occupation without Reasonable belief

Vehicles used in Business

Nuclear weapons, war

Racing

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PAP- Part C UI Coverage

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PAP Policy UI coverage

Insuring Agreement

Insured Persons Named Insured and Family, Any other person occupying acovered auto, any person legally entitled to recover damages

Uninsured Motorists Vehicles

No insurance, less insurance, Hit and Run, Insurer Insolvent

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PAP- Part C UI Exclusions

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PAP UI Exclusions

Owned but not insured

Owned vehicle with primary UM coverage in other policy

Claim settlement that prejudices Insurers right of recovery

Public or Livery Conveyance

Vehicle used without reasonable belief of being entitled

Punitive Damages

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PAP UI Exclusions

Limits of Liability (No Stacking and No Overlapping)

Other Insurance (Three examples in page 3.44 and 3.45)

Arbitration

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PAP- Part D Coverage for Damage to your Auto

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Insuring Agreement

Collision coverage

Other than collision coverage

Non Owned Vehicle

Transportation Expenses ( $ 20 per day and total $600)

Collision 24 waiting period

OTC 48 hours waiting period

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Exclusions

Public or livery conveyance

Wear and Tear, Freezing. Breakdown and road damage to tyres

Radioactive contamination or war

Electronic Equipment

Media and Accessories

Government Destruction or Confiscation

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PAP- Part E and F Policy Conditions

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PAP Conditions

Part E- Duties after an Accident

o General Dutieso Additional Duties for UIM

o Additional Duties for Physical Damage Coverage

General Duties

oPrompt Notice

o CooperationoSubmission of legal Papers

o Physical Examination

o Examination under Oath

o Authorization of medical Records

o Proof of Loss

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General Duties after an Accident

Duties under UIM

o Notify Policeo Submit Legal Papers

Duties for Physical Damage

o Prevent further Loss

o Notify Police

o Permit inspection or Appraisal

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PAP General Policy Provisions

Part F General Provisionso Bankruptcy Of Insured

o Changes in the policy (Endorsement, Liberalization Clause)

o Fraud

o Legal action against the Insurer

o Insurers right to recover payment

o Policy Period and Territory

o Termination

o Cancellation

o Non-Renewal

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Personal Auto Policy- Endorsements

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PAP Endorsements

Other Endorsements affecting Multiple Coverageso Named Non-Owner Coverage Endorsement

o Extended Non-Owner Coverage for Named Individual Endorsement

o Limited Mexico Coverage Endorsement

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PAP Endorsements

Endorsements Covering Motor Cycles, Recreation, and Customizingo Miscellaneous Type Vehicle Endorsement

Optional Passenger hazard exclusion

o Trailer/Camper body Coverage Endorsement

o Customizing Equipment Coverage Endorsement

o Snowmobile Endorsement

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PAP Endorsements

UIM Endorsement

Endorsements affecting PD Coverage

o Towing and Labor Costs

o Coverage for excess sound reproducing equipment, audio visual and data

o Electronic Equipment, and tapes, records, disks, and Other Media Endorsement

o Coverage for Damage to your Auto(Maximum Limit of Liability) endorsement

o Auto/Lease Coverage

Documents

INS 22 Chapter 03 and 04