04.06. PAP Uninsured Motorist Coverage

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04.06. PAP Uninsured Motorist Coverage
2013-04-06 10:13:08
Uninsured Motorist Coverage

Uninsured Motorist Coverage
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  1. Part C - Basic Coverage
    although PAP provides Part C details, many states have different rules about uninsured motorists, and therefore most policies replace or modify Part C
  2. Part C - Insuring Agreement
    • insurer agrees to pay compensatory damages after accident with uninsured motorist
    • includes medical expense, rehab, lost wages, other losses resulting from BI
    • punitive or exemplary damages are not covered
    • no need to sue uninsured motorist, but he has to be legally responsible for the accident
    • some states include property coverage subject to deductible (such as $200 or $300)
  3. Part C - Insured Persons
    • named insured and family members: covered in covered and nonowned vehicles, and as pedestrians
    • passengers in a covered auto
    • anybody legally entitled to recover damages for one of those categories above (survival spouse)
  4. Part C - Uninsured Motor Vehicle
    • no insurance
    • insurance below required limit
    • hit-and-run vehicle
    • coverage problem: if other insurer denies coverage or becomes insolvent
  5. Part C - Vehicles not covered
    • owned or available for regular use
    • owned or operated by self-insurer, unless insolvent
    • owned by governmental unit or agency
    • operated on rails or crawler treads
    • designed mainly for off public road while not on public road
    • used as residence
  6. Part C - Exclusions
    • owned but not insured
    • other policy
    • claim settled w/o insurer's consent (protect subrogation)
    • public livery conveyance of non-covered vehicle
    • reasonable belief of not being entitled
    • workers comp and disability benefits
    • punitive damages
  7. Part C - Other Insurance
    • maximum payable is highest limit of all policies
    • excess of other insurance on nonowned vehicles
    • if more than 1 primary coverage, pro-rata
    • if more than 1 excess coverage, pro-rata
  8. Part C - Arbiration
    • if insurer and insured can't agree on amount recoverable
    • not applicable to whether or not loss is covered
    • each select arbitrator, who in turns select a third
    • each party pays its own arbitrator and share cost of third
    • decision made by 2 is binding only if amount does not exceed minimum state BI limit. Otherwise either accept as binding or go to court