Risk Management and Insurance- Chapter 22

  1. Temporary Substitute Vehicle
    a nonowned auto or trailer that you are temporarily using because of machanical breakdown, repair, servicing, loss, or destruction a covered vehicle
  2. Liability Coverage
    this protects a covered person against a suit or claim arising out the ownership or operation of a covered vehicle
  3. Split Limits
    the amounts of insurance for bodily injury liability an property damage liability are stated separately
  4. Single Limit
    this applies to both bodily injury and property damage liability: the total amount of insurance applies to the entire accident without a separate limit for each person
  5. Extended Nonowned Coverage Endorsement
    this covers the insured while operating a nonowned auto on a regular basis
  6. Medical Payments Coverage
    medical payments are paid without regard to fault
  7. Uninsured Motorists Coverage
    this pays for the bodily injury (and property damage in some states) caused by an uninsured motorist, by a hit-and-run drivers, or by a negligent driver whose insurance company is insolvent
  8. Underinsured Motorists Coverage
    this coverage applies when a negligent third-party driver carries liability insurance, but the limits carried are less than the insured's actual damages for bodily injury
  9. Coverage for Damage to your Auto
    this provides coverage for the damage or theft of an auto
  10. Collision
    the upset of your coverage auto or nonowned auto or it's impact with another vehicle or object
  11. Nonowned Auto
    a private passenger auto, pickup, van, or trailer not owned by a furnished or made available for the regular use of the named insured or family member, while it is in the custody of or is being operated by the named insured or family member
  12. Betterment
    if the value of the vehicle is increased after repairs are completed (such as repainting the entire car when only one fender and door are damaged), the insurer will not pay for this or increased value
  13. Diminution in Value
    the endorsement states that any loss in market or resale value from a direct and accidental physical damage loss to a covered auto is not covered
  14. Gap Insurance
    this pays the difference between the amount your insurer pays for a totaled car and the amount owed on the loan or lease
  15. Appraisal Provision
    handles disputes over the amount of a physical damage loss
  16. Miscellaneous-Type Vehicle Endorsement
    it insures motorcycles, mopeds, motorscooters, golf carts, motor homes, dune buggies, and similar vehicles
Card Set
Risk Management and Insurance- Chapter 22
Risk Management and Insurance- Chapter 22