Insurance Community University 1 The Five Key Issues You Must Know About Personal Auto Insurance

Insurance Community University Welcome to your Insurance Community University All of you are currently on mute – Un-mute your own system – Telephone Option Select Telephone on your screen Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option You can use this option if you have a headset that you use with your computer 2 Audio

Insurance Community University Participation & Chat Window You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel Q & A is welcomed during the presentation and at the end of the presentation You will find the question box on your control panel – Write your question in that box and send it to the presenter/organizer The presenter will take those questions in the order submitted 3

Insurance Community University DOI Requirements When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only If you do not raise your hand, the monitor will be in contact with you in the chat box If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

Insurance Community University Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5

Insurance Community University Forms To Complete for CE After class ends – Return attendance form – Proctors – return your form to address address is in chat window or in sent to you today 6

Insurance Community University DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by . Please retain this for your records for five years. 7

Insurance Community University Internet Disruption If the presenter looses internet connection STAY ON THE LINE The administrators will communicate with you

Insurance Community University Internet Failure If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated You will receive instructions by as to how we will proceed This is a precautionary notice, only 9

Insurance Community University Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional material provided by Insight Insurance Consulting and the Insurance Community Center is intended as a general guideline and any interpretations provided by Insight, Insurance Community or presenters do not modify or revise insurance policy language. When ISO language is included in the materials, all ISO content is protected by the ISO copyright. All parties to this presentation and creation of materials assume neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2013 All Rights Reserved 10

Insurance Community University Your Instructor Today Casey Roberts, ACSR, AFIS, CIC Laurus Insurance Consulting

Insurance Community University Objectives 1.Named Insured and other automatic insureds 2.Adding Living Trust 3.Automatic coverage for vehicles 4.Coverage provided for vehicles used in business 5.Rental vehicles 12

Insurance Community University Coverage Parts Part D – Physical Damage Covers the vehicle Part C – Uninsured Motorists Follows state statute where garaged Part B – Medical Payments Covers the insured and others within the insured auto Part A – Liability Duty to defend and pay damages 13

Insurance Community University Who is an insured on the policy Adding Living Trust 14

Insurance Community University Polling Question #1 15

Insurance Community University Polling Question #2 16

Insurance Community University Named Insured Insured Couple – Name One or Both? One moves out Does it make a difference in coverage? 17

Insurance Community University Named Insured Throughout this policy, "you" and "your" refer to: 1.The "named insured" shown in the Declarations; and 2.The spouse if a resident of the same household. If the spouse ceases to be a resident of the same household during the policy period or prior to the inception of this policy, the spouse will be considered "you" and "your" under this policy but only until the earlier of: 18

Insurance Community University Named Insured 1.The end of 90 days following the spouse's change of residency; 2.The effective date of another policy listing the spouse as a named insured; or 3.The end of the policy period. 19

Insurance Community University Other Insureds Insured’s Employer Permissive Driver Family Member 20

Insurance Community University Family Member Defined Resides in the named insured’s household and is related by Blood Marriage Adoption Also Includes a Ward or a Foster Child 21

Insurance Community University Resident Since the family member is covered only when a resident, that becomes the most important point for coverage to apply – Living at home – Living away from home at school / in the military Is there still a relationship to the family home? Is there an intent by both parties to view the family home as their primary residence? 22

Insurance Community University Including The Family Trust Named Insured Individual Husband and Wife Additional Insured H & W Family Trust 23

Insurance Community University Automatic coverage for vehicles 24

Insurance Community University Covered Vehicles? Owned Loan Loan-free Newly Acquired Hired Leased Rented Temporary Substitute Borrowed Friend, Relative, Co-Worker Temporary Substitute 25

Insurance Community University Limited Types of Situations Newly Acquired When purchased What Coverage Do They Want Leased / Rented 6 Months Written Sub-lease Rental Contract Borrowed Nobody cares until there is damage How often? 26

Insurance Community University Newly Acquired Vehicles Replacement Vehicle Same coverage as vehicle replaced Additional obligations apply for Physical Damage coverage Additional Vehicle Must notify within 14 days for any of the coverages currently carries to apply 27

Insurance Community University Newly Acquired Vehicles Newly Acquired Vehicle AdditionalReplacement Business Use Truck 10,000 GVW or less Notify within 14 days Broadest coverage applies Notify within 4 days for Physical Damage If no current Collision and Other Than Collision $500 deductible 28

Insurance Community University Newly Acquired Vehicles Named Insured Acquires Coverage Applies Family Member Acquires Coverage Does Not Apply Coverage Does Apply for the Named Insured While Operating the Vehicle 29

Insurance Community University Temporary Substitute Vehicle Non-Owned Vehicle Broadest coverage applicable to any scheduled auto Applies when scheduled auto is out of service due to: Breakdown, repair, servicing, loss or destruction 30

Insurance Community University Out-of-State Coverage Automatic coverage if requirements are different Automatic coverage if requirements are higher than carried Coverage follows vehicle 31

Insurance Community University Polling Question #3 32

Insurance Community University Coverage provided for vehicles used in business 33

Insurance Community University Polling Question #4 34

Insurance Community University Business Use Vehicle Business exclusion does NOT apply to: Private passenger vehicle Pick up or van Trailer used with either of the above 35

Insurance Community University Rental Vehicles 36

Insurance Community University Rental Vehicles Liability / Medical Payments / UM Coverage applies to ANY auto (unless excluded) The owner is not an insured Physical Damage Broadest coverage that applies to any covered auto also applies to the rental vehicle Loss of use charges are paid up to $20/day maximum $600 37

Insurance Community University Polling Question #5 38

Insurance Community University Valuation Actual Cash Value At time of loss No dollar restriction No replacement cost coverage or diminution of value 39 Deductible Applies

Insurance Community University Transportation Expenses $20 / day $600 Maximum 48 Hrs. Deductible Theft 24 Hrs. Other than Theft 40

Insurance Community University Auto Endorsements Trust Endorsement Extended Non-owned Coverage - Vehicles Furnished Or Available For Regular Use Miscellaneous Type Vehicle – Motor home – Motorcycle or similar type of vehicle – Dune buggy – Golf cart 41

Insurance Community University Physical Damage Endorsements Auto Loan/Lease Coverage Coverage for Damage to Your Auto (Maximum Limit of Liability) – Watch out for this one – E & O waiting to happen Trailer/Camper Body Coverage Customizing Equipment Coverage 42

Insurance Community University Summary Writing coverage correctly for your personal lines client is fairly complex It requires persistence and a lot of information Renewing year after year without speaking to the insured could result in an E & O claim Reduce that potential and build a relationship with your clients 43

Insurance Community University Upcoming Classes Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 4/23Personal Auto 4/25 & 26Insight on Errors & Omissions 5/2Commercial Crime 5 key issues 44 Upcoming Community ClassesFREE to University Members $25.00/charge for non university members 4/30 (Separate Fee)The Ten Most common Mistakes Producers Made in /9Update on Terrorism Join the University TODAY. Click Join University at the top of the bar