1. Personal Auto – Understanding the Definitions and Endorsements

2. Part 1 – Understanding the Definitions

3. Topics In this section we will cover three main topics: 1.Definitions related to coverage 2.Definitions related to who is insured 3.Definitions related to the auto

4. Definitions Related to Coverage

5. Policy Agreement Opens with agreements and definitions Insurer side Insured pays Definitions section

6. Insuring Agreement – Liability Coverage Pay damages for bodily injury and/or property damage related to auto accidents Bodily injury Property damage Insured must be legally responsible

7. Insuring Agreement – Liability Coverage Insurer must be legally responsible Damage must be caused by accident

8. Insuring Agreement – Liability Coverage Duty to defend Right to settle as appropriate Defense costs

9. Minimum Limits Defined at state level Example

10. Definitions Related to Who is Insured

11. “You” and “Your” Person named in declarations and resident spouse Who is a spouse? Changes in Insured Status

12. Family Member How are they related? Stepchildren and place of residence

13. Class Discussion Point Impact of step-children

14. Any Person Using Covered Auto Defining “your covered auto” “Just about anyone” Examples

15. Businesses and Organizations Business Organization Any person or organization Example

16. Definitions Related to the Auto

17. Defining “Auto” Your covered auto Four types of autos Trailer and newly acquired auto vs. temporary substitute

18. Types of Autos Owned vs. leased Trailers Pulled by ‘private’ auto Not self propelled

19. Types of Autos Temporary substitutes PAP description

20. Types of Autos Newly acquired auto Automatic coverage GVWR Incidental to insured’s business

21. Use of Auto Not defined Paragraph B exclusions

22. Class Discussion Point Use of auto

23. Occupying Coverage can hinge on whether person was “occupying” the vehicle

24. Class Discussion Point “Occupying” the vehicle

25. We will now take a short break before proceeding to Part 2 on Endorsements.

26. Part 2: Understanding the PAP Endorsements

27. Topics In this section we will review endorsements as they relate to: 1.Coverage 2.Who is insured 3.The “Auto”

28. Endorsements Related to Coverage

29. Single Liability Limit Split limit Single limit of liability

30. Underinsured Motorists Coverage Mandate to offer coverage Automatic definition of uninsured

31. Liability Coverage Exclusion Endorsement Intra-family exclusion Added back

32. Auto Loan/Lease Coverage Upside-down lease What vehicles are covered? Five things not covered 1.Overdue payments 2.Penalties 3.Security deposits 4.Costs for extended warranties, insurance 5.Carry-over loan balances

33. Damage to your Auto Loss Settlement Amendment Insured doesn’t get damage repaired

34. Trip Interruption Coverage Vehicle damage away from home Other expenses Coverage limitations

35. Optional Limits Transportation Expenses Transportation expenses Ability to purchase extra coverage Insurer agreements

36. Loss Payable Clause Rights gained by the loss payee when a loss occurs

37. Towing and Labor Costs Coverage Pays an amount for a tow Base limit $25 Viewed as nuisance coverage Alternatives

38. Endorsements Related to the Insured

39. Additional Insured-Lessor Auto leasing Lessor as an additional insured Who owns the vehicle? Who is liable? Damage caused by others Limits of liability and deductibles

40. Named Non-owner Coverage Who uses Named Non-owner Coverage? Other uses Insured’s child Coverage for insured without a car ISO rules

41. Named Non-owner Coverage Named Non-owner Coverage vs. Extended Non-owned Coverage for Vehicles furnished or Available for Regular Use

42. Endorsements Related to the “Auto”

43. Miscellaneous Type Vehicle Endorsement Endorsement form Warning to the insured Re-definition of PAP terms Expansion of “your covered auto”

44. Miscellaneous Type Vehicle Endorsement Expanded definition of “newly acquired auto” Temporary substitute coverage

45. Miscellaneous Type Vehicle Endorsement Liability coverage Intra-family liability exclusion Section D of the PAP

46. Miscellaneous Type Vehicle Endorsement Other exclusions PP 03 23 under the standard PAP Motor home Added third provision

47. Motor Homes ISO rules manual Business related motor home ISO symbol manual PP 03 23 and PP 03 28 Premium increases

48. Trailer/Camper Body Coverage When to utilize this endorsement Physical damage coverage Covers facilities and equipment Endorsement’s exclusions Loss settlement is based on smallest of three amounts Not a substitute for homeowners or mobile home insurance

49. Snowmobile Endorsement Specific snowmobile endorsement How snowmobile is defined Items meeting the definition

50. Snowmobile Endorsement: Who is covered Covers the following as insureds: named insured and family members Any person using covered snowmobile Anyone responsible for the acts of an insured Anyone legally responsible for acts of the named insured

51. Snowmobile Endorsement: Liability & Medical Liability coverage & medical payments Who has coverage?

52. Non-Owned Coverage: Available for Regular Use Covered Persons Excluded Autos Liability Coverage Medical Payments Coverage Rating

53. PP 03 06: Business Use Business Use Employee negligence

54. Customizing Equipment Coverage Customized equipment PP 03 18 compared to PP 13 06 Amount for each item

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