Key facts p&c

Liability

Covers bodily injury (BI) and property damage (PD) to others for which the insured is proven to be negligent.

Auto Assigned Risk Plan

A method for individuals rejected in the normal market to obtain auto insurance coverage.

Authorized Insurers

Insurers that must participate in the Auto Assigned Risk Plan.

Supplementary Payments

Additional coverages under a PAP that do not cover the insured's loss of earnings except for court hearings.

PAP

Personal Automobile Policy that provides coverage for specific losses and damages.

Coverage D

Coverage for damage to an insured’s car under a PAP, divided into collision and other than collision.

Collision Coverage

Covers damage from colliding with another object, rollover, and upset.

Comprehensive Coverage

Also known as other than collision coverage, covering damages not due to collision.

Auto Medical Coverage

Covers necessary medical and funeral expenses for an insured and passengers in the car.

Towing and Labor Coverage

Optional PAP coverage that pays on a per-event basis for towing and labor costs.

Uninsured Motorists Coverage

Coverage purchased due to concern about being injured by an at-fault driver without insurance.

Underinsured Motorists Coverage

Coverage for accidents with drivers who have inadequate liability limits.

Exclusions in PAP

Situations not covered by the PAP, such as driving in Mexico and wear and tear.

Business Auto Coverage Form

Policy that does not cover employee injuries while driving a company car.

Garage Coverage Form

Created for auto dealers and repair shops providing specific insurance coverages.

Businessowners Policy (BOP)

Covers BI, PD, and personal injury liability, but excludes employer’s liability.

BOP Vacant Building Clause

Excludes vandalism and theft coverage if the building has been vacant for more than 60 days.

Protective Safeguards Warranty

Allows insurer to deny claims if fire protective systems are not maintained.

Commercial Package Policy (CPP)

Combination of various insurance coverages under a single policy.

Replacement Cost Coverage

Coverage on commercial property that reimburses on a replacement cost basis.

Commercial Property Causes of Loss Forms

Basic, broad, and special forms that outline covered losses.

Time Element Coverage

Coverage type that includes loss of business income insurance.

Inland Marine Insurance

Covers property in transit or specific movable property.

CGL (Commercial General Liability)

Policy with liability coverage that includes personal injury and advertising injury.

Occurrence Limit

Amount paid for each claim under a CGL, distinct from the aggregate limit.

Aggregate Limit

The maximum amount an insurer will pay for all occurrences during the policy period.

Value Reporting Forms

Endorsements for commercial property insurance that report property values periodically.

Medical Payments Coverage

Coverage provided by the CGL for medical expenses without a deductible for others.

Legal Actions Clause

Clause that limits the time to file lawsuits against the insurer to 2 years.

Automobile Medical Payments

Covers medical expenses for the insured and passengers but not for pedestrians.

Optional Endorsements in BOP

Additional coverages that may be added to a BOP, such as employee property.

80% Coinsurance Clause

The requirement in a BOP stating the insured should carry insurance equal to 80% of the property's value.

Advertising Injury Liability

CGL coverage for claims involving advertising offenses against another party.

Falling Object Coverage

Under a business auto policy, covers damage to an insured vehicle caused by falling objects.

Leasehold Interest Coverage Form

Insures the value of a lease when a property is damaged by a covered loss.

Stand-Alone Fine Arts Floater

Special coverage providing 90 days of automatic coverage for newly acquired fine art.

Data Processing Floater

Insures computer equipment specifically under inland marine policies.

Coverage Territory in Commercial Property

The area where coverage applies, including the U.S., Puerto Rico, and Canada.

Automatic Coverage for Tenant Improvements

BOP provision that automatically covers improvements made by tenants.

ACV Basis for Scheduled Personal Property Floater

Provides coverage on an Actual Cash Value basis.

Repair or Replace Clause for Sets

Insurer’s option to repair or replace damaged property within a set.

No Coverage for Taxis in PAP

Excludes coverage for automobiles used as taxis or rideshare under a PAP.

Comprehensive Coverage Definition

Coverage for losses other than collision under a personal auto policy.

Hitting a Deer

An example of a loss covered under other than collision in a PAP.

Towing Limit under PAP

Optional coverage limit for towing and labor costs pays per event.

Claims Period for CGL

Each claim is subject to an occurrence limit, yet aggregated for the overall policy limit.

Employee Coverage Requirement on Business Auto

Employers need to add hired and non-owned auto coverage for employees using their own vehicles.

Manufacturer Ineligibility for BOP

Manufacturing companies cannot purchase a standard businessowners policy.

BOP Claims Processing

BOP claims are paid on an all-risk basis unless otherwise stated.

Business Personal Property

Covers signs not attached to a building under a commercial property policy.

Windshield Damage Coverage

If a bird hits the insured's windshield, it's considered comprehensive coverage.

Complete Vehicle Coverage Under PAP

Covers physical damage expenses related to insured's vehicle under policy.

Common Conditions for CPP Cancellation

Either insured or insurer can cancel the Common Package Policy under these terms.

Vacancy as a Coverage Exemption

BOP lacks coverage for certain damages if a property is vacant over specified days.

Criminal Acts Exclusion

A clause in a PAP that does not cover damages resulting from criminal acts.

Loss Condition for Valuation

In a commercial policy, sets the standard for property valuation upon loss.

Premium Audits for CPP

Commercial Package Policies undergo premium audits for 3 years post-expiration.

Coverage during Policy Period

CGL limitations apply to claims occurring during the specific policy time frame.

Employer’s Liability Coverage Exemption

BOP does not cover employee-related liability claims.

Special Coverages for Auto Dealers

Garage coverage specifically adapted for car dealers and auto service facilities.

Claims for Personal Injury under CGL

CGL includes coverage for personal injuries arising from business operations.

Injury Definition for Auto Policies

Includes bodily harm and property damage in personal auto policy terms.

Limits on Medical Payments Coverage

Applies to the medical payments part of business and commercial liability policies.

Minimal Coverage for Ordinary Wear and Tear

PAP does not include losses incurred due to normal wear and tear.

Claims Adjustments and Fraud Investigations

Insurers conduct investigations on claims to mitigate fraud risks.

Collision vs. Other Than Collision

Two separate coverages under personal auto policies for a vehicle's damages.

General Liability Limits in CGL

The overall maximum amounts that can be paid for multiple claims within a policy.

Insured's Property in Transit

Not covered under a typical personal auto policy during transportation.

Businessowners Policy and Inflation Guard

Endorsement that adjusts coverage limits annually for inflation.

Historical Value for Jewelry Underwriting

Scheduled property floater ensures historical values are covered in claims.

Personal Car Coverage on Company Business

Requires specific added coverages under business auto policies.

Theft Exclusion in Employee Property Coverage

BOP endorsement that does not include theft for employee's property.

Employer Coverage Obligations for Employees’ Vehicles

Must provide added coverage when employees drive personal vehicles for work.

Premium Audit Duration for Commercial Policies

Time frame within premium audits must be completed after policy expiration.

Personal Injury vs. Bodily Injury in CGL

Differentiates between types of liability claims covered under CGL.

Coverage for Garagekeepers

Special endowment for those entrusted with others' property in garage operations.