Professional Documents
Culture Documents
Lecture 7 Auto 1
Lecture 7 Auto 1
Chapter 22
Auto Insurance
(part 1)
Outline
Background
Personal Automobile Policy
(PAP)
Eligibility
Definitions
Speeding
Drunk Driving
Drunk Driving and Speeding
Red Light Running
Fatigue
Distracted Driving
Cellphone Use
5
Insurance Claims
Collision
Average=100
7
Average=100
8
Eligibility of PAP
Eligible Vehicles
Definitions-Covered Auto
(ISO, p.1, J)
Additional vehicle
Replacement vehicles
Whose
Car
Your
insured car
Other
people
(your
friends,
your
colleague)
Temporary
substitute
vehicle
(borrowed
car , rental
car)
You as a
pedestri
an
Other passengers
in your car
Property in your
car
Third Party
Other cars (person and property);
pedestrian; telephone pole, tree,
traffic light signal box, other
objects
Other cars who are at
fault
collision
I. (Part A) Liability
(ISO, p.2. Insuring agreement
A)
Insurer will
Liability
(ISO, p.2. Insuring agreement
B)
Limit of Liability
(ISO, p.4)
17
$50,000: limit of liability for all property
Exclusions (1)
(ISO, p.3)
Exclusions (2)
Out-of-state coverage
Other Insurance
20
Liability CoverageExample
Answer: It is Karens car, so Karens insurance is primary, paying $100,000; Kens insurance is excess and pays $25,000.
23
Exclusions
(ISO, p.5)
Other Conditions
(ISO, p.5)
The insurer pays its pro rata share of the loss for an
owned vehicle
The insurance coverage is excess over any other
25
insurance for a nonowned vehicle
An uninsured motorist
A hit-and-run driver
A negligent driver whose insurance company is
insolvent
Exclusions
(ISO, p.6)
Collision coverage
Other-than-collision coverage
Collision coverage
29
Example
Exclusions
(ISO, p.9)
A long list, read the textbook and ISO p.9 for detail.
Pays the difference between the amount paid by your insurer and the
amount owed on the lease or loan
All state
Other Provisions
(ISO, p.10)
34
http://www2.iii.org/video/podcast-f
iling-an-auto-insurance-claim.html
http://www2.iii.org/video/informed-c
itizen-rental-car.html
http://www2.iii.org/video/auto-acciden
t.html
http://www2.iii.org/video/rental-car-i
nsurance-podcast.html
http://www2.iii.org/video/saving-mo
ney-on-auto-insurance-five-tips.htm
35
Territory
Policy Cancellation
Policy Cancellation
Territory
Age, gender, and marital status
Use of the auto
Driver education
Number and types of cars
Problem set
(chapter 22)
40
Supplementary question
41