ch 4 BAC

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ch 4 BAC
2011-09-15 21:43:54
business auto coverage

Chapter 4: Commercial Auto Insurance
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  1. Business Auto Coverage
    Insures all types of private passenger autos, pickups, vans and all sizes of trailers/trucks used on public roadways. Not designed to cover truckers for hire, garage risks or public livery conveyances such as taxis, limos and buses
  2. BAP Covered Autos
    A "covered auto" for each coverage in the policy is designated by a symbol, depending on the extent of coverage.
  3. BAP Liability Coverage
    Covers legal liability of the insured up to the liability limit plus unlimited defense costs and supplementary payments for "auto accidents". Pollution damage is covered if pollution is caused by an accident and involved a substance necessary for normal functioning of the auto
  4. "Insureds" under BAP
    • 1 - Named insureds while owning or operating a covered auto
    • 2 -Others while using a covered auto with permission
    • 3 - Others who be come liable for the conduct of an insured
    • 4 - Employees while moving property to or from a covered auto
  5. NOT covered under BAP:
    • 1 - Person working in an auto-type business
    • 2 - Non-employees loading/unloading covered auto
    • 3 - Owner of a hired or borrowed auto
  6. BAP Physical Damage
    Covers accidental direct damage to covered autos and their equipment
  7. Collision
    Overturn of the covered vehicle or collision with another object
  8. Comprehensive
    Any loss, other than collision, that is not otherwise excluded. (glass breakage, hitting an animal)
  9. Specified Cause of Loss
    More limited than comprehensive. Covers fire, lightning, explosion, theft, acts of nature, damage to auto while transported
  10. Transportation Expenses
    Not covered under Collision. $20/day; $600 max for temp transportation after theft. Payments start 48 hours after theft and ending when the covered auto is returned or reimbursed (regardless of policy's expiration)
  11. Loss of Use Expenses
    For hired Auto Physical Damage, insurer will pay expenses for which an insured becomes legally responsible to pay for loss of use of a vehicle rented or hired without a driver
  12. Physical Damage Exclusions
    • 1 - Nuclear hazards, war/military action
    • 2 - Racing/stunt driving
    • 3 - Wear and tear/road damage
    • 4 - Audio, visual or data electronics/laser detection
    • 5 - Electronic equipment not permanently installed in the covered auto
  13. Uninsured Motorist endorsement
    • Pays the insured and occupants of the insured vehicle against bodily injury and property damage from:
    • 1 - Uninsured motorist
    • 2 - Insureds carrying less than a financially responsible amount of coverage
    • 3 - Hit and Run drivers
    • 4 - Insureds who's company denies coverage or becomes insolvent
  14. Underinsured Motorist endorsement
    Provides coverages for the insured when they are involved in an accident with a driver who has auto liability insurance but the limit is not sufficient to pay for the insured's damage.
  15. Medical Payments and/or PIP endorsement
    Payment for reasonable and necessary expenses for medical expenses resulting from the accident and incurred within 3 years after the accident. Covers named insured and relatives who are members of their household.
  16. Drive Other Car Coverage endorsement
    Extends commercial auto coverage to insure the non-business exposures of named individuals who may not own an auto and may not have personal auto insurance. Covers insured and spouse to make any non-owned private passenger vehicle a covered auto when in use.
  17. Individual Named Insured endorsement
    May be used to add an individual and their family members to business auto insurance. Primarily for when an insured's business wants to add their owned auto to the business auto policy.
  18. Employees as Additional Insureds endorsement
    Protects employees under the Business Auto coverage to provide additional protection. Any employee is an insured while driving an auto the business doesn't own, hire or borrow for the use of business affairs
  19. Additional Insured-Lessor endorsement
    Leased vehicles can be considered owned vehicles for coverages purposes
  20. Specified Hired Auto endorsement
    Adds coverage for specified hired autos as if they were covered autos owned by the named insured.
  21. Mobile Equipment endorsement
    Mobile equpiment is considered a covered auto