1 / 12

Chapter 11: The Personal Auto Policy (PAP)

Chapter 11: The Personal Auto Policy (PAP). ISO FORM. Policy Layout. Part A : Liability. Pays if you are sued. Part B : Medical Payments. Pays you if injured. Pays if you are hit by negligent driver. Part C : Uninsured Motorists. Part D : Physical Damage. Pays for damage to your car.

Roberta
Download Presentation

Chapter 11: The Personal Auto Policy (PAP)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 11:The Personal Auto Policy(PAP) ISO FORM

  2. Policy Layout Part A: Liability Pays if you are sued Part B: Medical Payments Pays you if injured Pays if you are hit by negligent driver Part C: Uninsured Motorists Part D: Physical Damage Pays for damage to your car Collision Other Than Collision

  3. PAP Is Different From HO Contract • A policy owner may generally pick and choose the coverage wanted • Coverage applies only if declaration page indicates the coverage has been purchased • Each insuring agreement can generally stand by itself • Some definitions change depending on the insuring agreement

  4. Definitions • “You” = named insured & spouse if resident • Family member must be a resident • “Your Covered Auto” • Shown in declarations • Private passenger auto, small pickup, or van • Newly acquired autos • Trailer

  5. Part A -- Liability • Pays legal judgments on your behalf resulting from an auto accident • Includes owned and non-owned vehicles • Coverage on the car is primary • Single versus split-limits • Any person using your covered auto • Any organization whose liability arises from your negligence while using auto

  6. Part A -- Exclusions • Intentional injury • Damage to own property • Damage caused while using your car as a taxi or delivery vehicle • Using vehicles without belief you had permission • Damage caused if driver is using the care while in the automobile business

  7. Part A -- Exclusions • Damage caused while using a motorcycle (less than 4 wheels) • Other owned vehicles not listed in Declarations

  8. Part B -- Medical Payments • Caused by an accident & sustained by an insured • Additionally you are covered if struck as a “pedestrian” • Includes occupants of car, but not people you hit • Exclusions are similar to Part A

  9. Part C -- Uninsured Motorists • Pays damages insured is legally entitled to recover from a negligent driver • Uninsured motor vehicle means • No policy applies at the time of the accident • Hit-and-Run vehicle • Tort-feasor insured by insolvent insurer • Exclusions similar to Part A • Arbitration clause applies

  10. Part D -- Physical Damage • Pays for direct and accidental loss to covered auto if premium shown on the declaration page showing coverage for: • Collision • Other than collision • Specified losses NOT collision • Some indirect loss coverage

  11. Part D -- Physical Damage • Exclusions similar to Part A, plus • Wear and tear • Electronic equipment • Recovery is based on actual cash value

  12. Loss Settlement • When cost of repair generally exceeds the market value of the auto before the loss, the vehicle is “totaled” and the insurer pays the ACV of the loss. • The limit of the amount payable is the amount not to exceed what it would repair or replace with “like kind and quality” allowing the repair facility to use after-market parts that meet or exceed OEM standards.

More Related