Insurance Community University The 5 Key Issues You Need To Know About Personal Auto Insurance 1  The webinar will begin shortly.  There is no audio at this time.  This presentation is being recorded for your viewing pleasure at a future date.  The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.  The PowerPoint presentation is also available under ‘Materials’.  You will receive the course number for your state near the end of class.  Use the ‘chat’ window for questions on the content.  100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

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 materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes 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 – 2011 All Rights Reserved Laurie: Marjorie:

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 4

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 5

Insurance Community University Who is an insured on the policy Adding Living Trust 6

Insurance Community University Named Insured Insured Couple – Name One or Both? One moves out Does it make a difference in coverage? 7

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: 8

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. 9

Insurance Community University Other Insureds Insured’s Employer Permissive Driver Family Member 10

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 11

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? 12

Insurance Community University Including The Family Trust Named Insured Individual Husband and Wife Additional Insured H & W Family Trust 13

Insurance Community University Automatic coverage for vehicles 14

Insurance Community University Covered Vehicles? Owned Loan Loan-free Newly Acquired Hired Leased Rented Temporary Substitute Borrowed Friend, Relative, Co-Worker Temporary Substitute 15

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? 16

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 17

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 18

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 19

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 20

Insurance Community University Out-of-State Coverage Automatic coverage if requirements are different Automatic coverage if requirements are higher than carried Coverage follows vehicle 21

Insurance Community University Coverage provided for vehicles used in business 22

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 23

Insurance Community University Rental Vehicles 24

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 25

Insurance Community University Valuation Actual Cash Value At time of loss No dollar restriction No replacement cost coverage or diminution of value 26 Deductible Applies

Insurance Community University Transportation Expenses $20 / day $600 Maximum 48 Hrs. Deductible Theft 24 Hrs. Other than Theft 27

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 28

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 29

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 30