Examfx Ch 6 - Personal Lines Regulation

What is the Indiana Motor Vehicle Financial Resp Law

anyone who owns vehicle in Indiana

What is the Financial responsibility of Indiana Motor Vehicle Financial resp law

• motor vehicle liability policy within limits

• bond issued on behalf of the state

• certificate of self insurance

  • which satisfies auto policy liability limits

    • 25/50/25

Automobile Insurance Plan

• those entitled to auto cov w/ trouble in norm market

• equal distribution of liabilty afforded & reasonable rate modifications

• if policy cancel (not no pay) insurer will suggest AIP in notice of cancel/not to renew

Under/Uninsured motorist coverage BI

1. Under: med pay, loss of wages, general damages. driver w/ insuffieicent covg.

   Pay difference = insured under cov - other covg

2. Uninsured: med, loss wages, general. covg set at purchase of policy

Under/Uninsured motorist Property damages

Under: insured underinsured covg - other limit

Uninsured: limits set at buying of policy. some states require deductible each time auto filed.

Um and UIM rejection

• named insured rejects uninsured & under motorist covg on bahalf of all policy in writting.

What are the required limits of unisured and underinsured motorist coverages?

• either seperate or single premiums

• at least equal to limits of liability on bodily injury 25,000/50,000

  • underinsured no less than 50,000 (BI might req equal)

• Uninsured motorist property damage coverage w/o deductible amount

  • less than 300 (waved if legally parked and unoccupied)

What is the maximum amount payable for bodily injury for uninsured or underinsured motorist coverage?

the Lesser Between

1. amount paid in damages to insured & per person limit of uninsured/under motorist coverage provided by policy

2. total amount damages incured by insured & amt paid for insureds BI

What are the reasons for cancellation if policy has been in effect for 60 days?

• non payment of premium\

• license or regestration suspended or revoked

• name or other insured treatment of epilespy, heart, alchol, drugs

• insured commits fraud, misrepresentation, concealment in policy

• insured or vehicle state of regestration moves to where insurer is not regestered

policy in effect less than 60 days may be canceled for any reason

Timing on notice

• 10 days for non payment

• 20 days any other reason

• if notice does not provide reason, may requirest within 15 and insurer answer within 5

What is Notice of ELigibility in Assigned risk plan

when an automobile liability policy is cancelled for a reason other than non payment of premium insurer must notify of insured of eligibility for coverage with other carrier or automobile liability assigned risk plan

What does state law protect auto claims from

the use of after market products in the repaid of vehicles

What notice does insurer have to proved to insured for auto claim?

• when insurer is obligated to pay at least part of the cost of repairing external may not direct parts until

  1. informs the insured of their legal right to approve the parts used in repaid of vehicle

  2. new parts by/for manufacturer of vehicle

  3. parts not manufactured by/for vehicle (after market parts)

  4. used parts

  insured must acknowledge selection in writting. only applicable if vehicle is within 5 years of model

What is a TNC network?

company that uses network to connect drivers to riders for the purpose of providing transportation

Is there a division of the TNC Group?

The NAIC divides TNC into three exposure periods

1. waiting (pre match)

2. matched accepted (driver on way)

3. passenger in the vehicle and until passenger exits the vehicle

What is the state of Indianas TNC restirctions

• not operating without a licenses & must comply with automobile financial responsibility insurance requirements established by state statues

  TNC not engaged in prearranged

  • 50,000 BI 1 person

  • 100,000 BI 2 +

  • 25,000 Prop damage

  TNC engaged in prearranged

  • 1,000,000 BI 1 + people/ property

  TNC zero tolerance drug and lachohol use

What is Indianas TNC record maintenance guidelines

• records must be maintained for at least 2 years follwing date in which TNC rider reports policy violation

• individual trips at least 1 year

• records to no longer TNC driver 1 Year