ch 3-2

"Named insured" listed in the Declarations, the spouse in residence, members of insured's household

• Spouse will be considered "you" and "your" under policy until the earlier of:
• 1) 90 days after residency change
• 2) Effective date of another policy where spouse is named insured
• 3) End of policy period

Physical injury to, destruction of or loss of use of tangible property

Covers any personal, 4-wheel vehicle less than 10,000 lbs used for personal use beginning the date you become the owner. Must ask for coverage within 14 days unless replacing a vehicle listed in Declarations

Newly aquired auto has broadest coverage provided by policy starting on the date you become the owner. Must ask insurer to insure new auto within 14 days unless it replaces a vehicle listed in the Declarations

Named insured must notify the insurer of newly aquired auto and ask for physical damage coverages. Insured has 14 days if there is one vehicle in the Declarations with physical damage coverages. If not, insured has 4 days of coverage with a $500 deductible.

Pays the sums the insured is legally liable to pay others for damages due to bodily injury and poperty damage caused by an auto accident. Insurer can investigate, settle and defend claims agains insured as it deems appropriate.

Additional coverages, if used, are paid by the insurer in addition to the limits of liability. This includes defense/investigation costs, bonds, up to $200 a day for loss of earnings from trials/hearings, etc. (reasonable expenses)

If you borrow someone's vehicle, their insurance would act as primary coverage for a loss. Your insurance would be considered excess and would only be needed if the primary limits were exhausted

Provides a max for any one accident for any one person, a max for all persons in any one accident, and a max for all property damage related to any one accident i.e. 25/50/10 = $25,000 for one person, $50,000 for all persons in the accident and $10,000 to cover physical damage

• Coverage will not cover:
• 1) Intentional loss
• 2) Property being transported
• 3) Non-owned property
• 4) Transport for a fee (taxi)
• 5) Bodily injury to an employee
• 6) When the car is being serviced
• 7) Used for business
• 8) Stolen
• 9) Nuclear energy losses

If the insured is involved in an accident out of state and carry liability coverage in accordance with their home state requirements, policy automatically provides whatever liability limits are required by that state

Covers medical expenses incurred within 3 years of an auto related accident and funeral expenses for the insured or any "family member". Limits of liability apply per person

• Available by endorsement and covers damaged caused by:
• 1) Uninsured motorists (duh!)
• 2) Insureds who don't have the coverage required by their home state
• 3) Hit and run drivers
• 4) Driver whose insurer can't pay

Divided into "collision" and "other thn collision (comprehensive)". Provides coverage for accidental direct damage to a covered auto and non-owned autos, including their equipment

Defined as the upset of a covered auto or its impact with another vehicle or object

• Provides coverage for pretty much everything else except:
• 1) Wear and tear
• 2) Freezing
• 3) Mechanical/electrical breakdown
• 4) Road damage to tires
• 5) Radioactive contamination
• 6) Discharge of nuclear weapons/war
• 7) No coverage for non-factory stereo/sound equipment
• 8) Vehicles not listed under Declarations
• 9) Losses from drag racing

• 1) Actual cash value of stolen/damaged property
• 2) Amount needed to repair/replace the property

If insurer and insured do not agree on loss amount, either may demand an appraisal

• 1) Theft of an auto
• 2) Hit and run accident

• 1) Protect property from further damage (reimbursed)
• 2) Notify police (hit and run or theft)
• 3) Insurance company inspects or appraises property before its repair or disposal

Policy changes/waivers by written endorsement only. All policy holders immediately benefit from broadened coverage with no additional charge on the date the change is implemented

Must be written notice. 10 days notice must be given if policy is being cancelled for nonpayment or within the first 60 days of a new policy term. Otherwise, at least 20 days notice must be given

Similar to "other insurance" except the insurer will pay only its share of the loss if any other source of recovery applies.

Bailee cannot benefit from the insurance policy if a loss occurs while property is in bailee's possession.

i.e. repair shop owners, parking garage employees

Provides broader coverage for driving a non-owned vehicle, such as company cars or commercial non-owned vehicles.

Endorsement used for people who don't own a vehicle but still wish to have their own protection while driving non-owned vehicles. Also applies for 30 days to a newly aquired auto. Each family member must be named in the endorsement schedule.

AKA - PIP (Personal Injury Protection)

Insurer's company pays him for certain expenses up to a specific limit. Afterwards, legal action must be taken against the person at fault for the rest of the recovery payments.

Policy can be issued to 2 or more people who live in the same household or are related in a way other than husband and wife

Coverage provided for vehicles such as pickup trucks or vans that have been customised or have had special equipment added.