1. Auto Insurance - Personal
DEMO
© American Marketing Management and Motivations Services, Inc.
2012

2. The Personal Auto Policy
Geared to the private family exposure
NO corporations
NO Partnerships or combined interest
Private Passenger Autos , pick ups, vans that have a GVW of less than 10,000 pounds
Long term leases of 6 months or more

3. The Personal Auto Policy
Parts of the Personal Auto Policy
Part A – Liability – this coverages will give you a “shield of defense” and a bag of money to pay for any injury for BI or PD to others that you become legally liable to pay
Part B – Medical Payments – Co ordinates with PIP
Part C – Uninsured Motorist – Will pay for YOUR injuries if the person at fault in the accident has no insurance or low limits of liability.
Part D – Damage to YOUR auto (and any non owned auto
ALL of the above are Primary in an Owned vehicle Excess in a Non owned vehicle
Part E – Duties after the accident
Part F – General Provisions

4. The Personal Auto Policy
The declarations – gives life to the policy makes it your policy
Identifies the named insured,
Address
Policy periods
Coverage
Limits
Premium
Autos covered
Identifies a “loss Payee”

5. The Personal Auto Policy
Part A Liability
Protects those who have the status of “insured”
Payment is only for “Legal Liability”
Payment trigger is the legal liability must be for BI or PD
When a claim is made against someone who has the status of insurED the insurER becomes the insurED’s defense attorney

6. The Personal Auto Policy Part A – Liability
Supplementary payments, are paid over and above the policy limits for:
Defense and legal expenses
Pre and/or post judgment interest
Premium on bonds including bail bonds up to $250 because of related traffic violations
Loss if earnings of $200 for attendance at trail hearings etc.

7. The Personal Auto Policy Part A – Liability
Who is the insured
The named insured
Anyone who becomes vicariously liable for your actions while driving
Any one using your covered auto
Anyone who becomes vicariously liable for the permissive users actions

8. The Personal Auto Policy Part A – Liability Exclusions
Intentional injury or damage
Damage to property owned by the insured
Except for damaged to a residence or private garage, damage to property rented to, used by or in the car of that insured
Injury to employee
Liability arising our of the vehicle use as a public livery conveyance
While employed or engaged in a business of selling, repairing , servicing, storing or parking vehicles

9. The Personal Auto Policy Part A – Limits and how they work
Single Limits a/k/a Combines Single Limits CSL apply to all claims for BI and PD arising from a single accident
Split Limits, three limits apply one for each person injured in the accident another for ALL BI claims arising out of each accident and a limit for PD only!

10. The Personal Auto Policy Part A – Limits and how they work
100/300/100
100,000 a limit for one person in an accident
300,000 limit paid for BI in any one accident
100,000 limit for PD and only PD
Problems available in workbook

11. The Personal Auto Policy Part B – Medical Payments
Coverage that pays expenses incurred for the necessary medical funeral services to persons injured by accidents. Payments are without regard or fault or legal liabilities.
Pays for expenses incurred for services rendered within three years from the date of the accident

12. The Personal Auto Policy Part C – Uninsured motorist
Sometimes the most Misunderstood coverage!
Uninsured motorist aka “under”insured motorist pay YOU if you are injured by a motorist who is AT FAULT in the accident and has NO Liability coverage or limits lower than an amount to cover YOUR injuries
NOTE! Uninsured motorist covers only Bodily Injury it does NOT cover Property Damage

13. The Personal Auto Policy Part C – Uninsured motorist “UM”
Said another way “UM” is a way for YOU to recover your “Tort rights” when the AT FAULT driver has no ability to pay.
Let’s see how this works

14. The Personal Auto Policy Part C – Uninsured motorist “UM”
Your Coverage
Liability 25/50/25
UM 25/50/
PIP – Basic
Your injuries 35,000
35,000 – 10,000 YOUR PIP
25,000 left.
25,000 is paid you’re your injury under YOUR UM
The AT FAULT driver’s Coverage:
PIP and 10 PD ONLY

15. The Personal Auto Policy Part C – Uninsured motorist “UM”
Your Coverage:
Liability 25/50/25
UN 25/50
Basic PIP
Your injuries 50,000 – YOUR PIP 10,000 = $40,000 – 25,000 form the other drivers liability 25,000 still leaves $15,000 (since to have 25,000 UM , you can use $15,000 to cover your injuries
The AT FAULT driver’s Coverage:
Liability 25/50/25
Basic PIP

16. End Personal Auto Demo