Unit 8 Casualty ⭐

Which part is Liability Coverage

Part A

Which part is Medical Payments Coverage

Part B

Which part is Uninsured/Underinsured Motorists Coverage

Part C

Which part is Damage to Your Auto (Physical Damage)

Part D

Named insured and resident spouse living in the same household

You / Your

_____ _____ are considered Resident relative, including adopted children, foster children, and wards

Family Member

Bodily harm, sickness, disease, or death. These are examples of:

Bodily Injury (BI)

Damage to, destruction of, or loss of use of property. These are examples of:

Property Damage (PD)

_____ means In, on, getting in, getting out, getting onto, or getting off a vehicle

Occupying

_______ ______ include Listed auto, newly acquired auto, trailer, or temporary substitute auto

Covered Auto

High-risk drivers who cannot obtain insurance in the normal market

Assigned Risk Plan

Pays damages an insured is legally liable for because of BI or PD

Part A Liability Coverage

Named insured, resident family members, and anyone using a covered auto with permission

Who Is Insured Under Part A

Bonds, Aid, Interest, Loss of Earnings, Expenses, Defense Costs

BAILED

Intentional acts, employee injuries, livery use, racing, and use without permission

Major Part A Liability Exclusions

Separate BI per person, BI per accident, and PD per accident limits

Split Limits

One combined limit for all BI and PD losses

Combined Single Limit (CSL)

Proof a driver can pay for bodily injury and property damage losses

Financial Responsibility

Higher of the policy limits or the state's required minimums

Out-of-State Coverage Rule

Vehicle owner's policy pays first when driving a borrowed vehicle

Primary Insurance on a Borrowed Auto

Medical and funeral expenses regardless of fault

Part B Medical Payments

Medical Payments coverage pays regardless of fault

No-Fault Coverage

Time limit for Medical Payments coverage

3 Years

Named insured, family members, guest passengers, and insureds struck as pedestrians

Who Is Covered Under Part B

Single limit applying per injured person

Medical Payments Limit

Cannot collect the same medical expense under both Part A and Part B

No Duplicate Payments

Pays when the at-fault driver has no insurance, a hit-and-run occurs, coverage is denied, or limits are below state minimums

Uninsured Motorists (UM)

Named insured, family members, and guest passengers

Who Is Covered Under UM

Adding multiple UM limits together

Stacking

Rule that prevents combining multiple UM limits

Anti-Stacking

Pays when the at-fault driver has insurance but not enough to cover damages

Underinsured Motorists (UIM)

Process used when claim amount is disputed but coverage exists

Appraisal

Process used when coverage itself is disputed

Arbitration

Automatic coverage given to a newly acquired auto

Newly Acquired Auto

Time allowed to notify insurer about a newly acquired auto

14 Days

Time allowed to request physical damage coverage when none currently exists

4 Days

Coverage for impact with another object or overturn

Collision

Coverage for fire, theft, vandalism, hail, flood, falling objects, animal contact, and glass breakage

Other Than Collision (OTC)

Type of loss that applies when hitting a deer

Other Than Collision (OTC)

Rental car and transportation expense coverage

Transportation Expenses

Transportation expense limit

$30 Per Day / $900 Maximum

Waiting period for transportation expenses after theft

48 Hours

Waiting period for transportation expenses after other covered losses

24 Hours

Temporary substitute auto

Nonowned Auto

Taxi use, wear and tear, mechanical breakdown, racing, and government confiscation

Major Part D Exclusions

Lesser of ACV, repair cost, or replacement cost

Settlement Basis

Maximum coverage for a nonowned trailer

$1,500

Condition requiring police notification after a theft loss

Theft Condition

Coverage form for unrelated co-owners of a vehicle

Joint Ownership Endorsement

Endorsement covering towing costs

Towing and Labor Endorsement

Endorsement used for motorcycles, mopeds, golf carts, and motor homes

Miscellaneous Vehicle Endorsement

Endorsement covering regularly used nonowned vehicles such as company cars

Extended Nonowned Coverage

Endorsement for someone who owns no vehicle but regularly drives borrowed or rented vehicles

Named Nonowner Coverage