UNIT_11_AUTO_INSURANCE_09 - UNIVERSITY OF TECHNOLOGY JAMAICA FACULTY OF BUSINESS AND MANAGEMENT SCHOOL OF BUSINESS ADMINISTRATION INSURANCE UNIT 11 AUTO

UNIVERSITY OF TECHNOLOGY, JAMAICA FACULTY OF BUSINESS AND MANAGEMENT SCHOOL OF BUSINESS ADMINISTRATION INSURANCE UNIT 11 – AUTO INSURANCE AUTO INSURANCE OBJECTIVES 1. Identify the parties that are insured for liability coverage under the Personal Auto Policy (PAP). 2. Identify the liability coverage in the PAP 3. Explain the medical payments coverage in the PAP 4. Describe the uninsured motorists coverage in the PAP 5. Explain the coverage for damage to your auto in PAP 6. Explain the duties imposed on the insured after an accident or loss. Agenda Personal Auto Policy – Part A: Liability Coverage – Part B: Medical Payments Coverage – Part C: Uninsured Motorists Coverage – Part D: Coverage for Damage to Your Auto – Part E: Duties After an Accident or Loss – Part F: General Provisions Insuring Motorcycles and Other Vehicles Personal Auto Policy Basics • The 2005 Personal Auto Policy (PAP) is widely used throughout the US – Drafted by the ISO, it replaces the 1998 form 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

• Eligible vehicles include: – A four-wheeled motor vehicle owned or leased by the insured for at least six consecutive months – A pick-up or van with a gross vehicle weight rating of 10,000 pounds or less • Cannot be used for deliveries, with some exceptions Autos covered by the policy include: – Any auto shown in the declarations – A newly acquired auto Coverage depends on whether it is an additional vehicle or a replacement vehicle and whether the declarations indicates at least one auto for collision coverage – A trailer owned by the named insured – A temporary substitute vehicle , which is a nonowned auto or trailer used temporarily because of mechanical breakdown, repair, servicing, loss, or destruction of a covered vehicle Part A: Liability Coverage Liability coverage (Part A) is the most important part of the PAP – It protects a covered person against a suit or claim arising out of the ownership or operation of a covered vehicle – The coverage is usually written in split limits , where the amounts of insurance for bodily injury liability and property damage liability are stated separately – For example, split limits of 250/500/100 mean that you have bodily injury coverage of $250,000 for each person, a maximum of $500,000 of bodily injury coverage per accident, and a maximum of $100,000 for property damage liability – The insurer also agrees to provide defense and pay all legal defense costs for claims covered by the policy Defense costs are covered in addition to the policy limits Liability coverage applies to:  The named insured and any resident family member  Any person using the named insured’s covered auto  Any person or organization legally responsible for any insured’s use of a covered auto on behalf of that person or organization 2