The Five Key Issues You Must Know
About Personal Auto Insurance
1
Insurance Community University
Welcome to your Insurance
Community University
Audio
• All of you are currently on mute
– Un-mute your own system
– Telephone Option
• Select Telephone on your screen
• Dial in the PIN number so that your number
becomes active
– Microphone and/or Speaker Option
• You can use this option if you have a headset
Insurance Community
University
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that you use
with your computer
Participation & Chat Window
• You will receive information from the monitor via
the ‘Chat’ window.
– Please locate window in the control panel
• Q & A is welcomed during the presentation and at
the end of the presentation
• You will find the question box on your control
panel
– Write your question in that box
and send it to the presenter/organizer
• The presenter will take those
• questions in the order submitted
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DOI Requirements
• When you see a slide with the hand up symbol, touch
the “hand” icon on your control panel
– Click ONCE only
• If you do not raise your hand, the monitor will be in
contact with you in the chat box
• If you are in a group, the designated proctor is
responsible to make certain you are all in attendance
at all times
= Hand is down
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Polling
• Throughout the class we will be
conducting periodic polls
• We need 100% participation on the polls
• The polls are intended to check
participation but also to create
discussion topics throughout the
presentation
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Forms To Complete for CE
• After class ends
– Return attendance form
– Proctors – return your form to email
address
• Email address is in chat window or in
email sent to you today
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DOI Requirements
• We will file your hours with the DOI
after the completion of this webinar and
we have received the attendance form.
• You have 48 hours to return the form
• You will be sent a Certificate of
Attendance/Completion by
email. Please retain this for your
records for five years.
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Internet Disruption
• If the presenter looses internet
connection STAY ON THE LINE
• The administrators will communicate
with you
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Internet Failure
• If the internet fails and all participants
are kicked off line by Go To Training or
other source then the seminar will be
terminated
• You will receive instructions by email as
to how we will proceed
• This is a precautionary notice, only
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This class is being recorded
• Available in the University
• Recorded webinars are do not qualify
for CE
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Disclaimer
Insurance forms and endorsements vary based on insurance
company; changes in edition dates; regulations; court
decisions; and state jurisdiction. This instructional
materials provided by Insight is intended as a general
guideline and any interpretations provided by the
instructor or the creator(s) of this material do not modify
or revise insurance policy language. In providing these
materials, the authors assume neither liability nor
responsibility to any person or business with respect to
any loss that is alleged to be caused directly or indirectly
as a result of the instructional materials provided.
Copyright 2010 – 2014 All Rights Reserved
www.insurancecommunitycenter.com
Insurance Community University
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Your Instructor Today
Casey Roberts, ACSR, AFIS, CIC
Laurus Insurance Consulting
707.477.0913
Casey@laurusinsuranceconsulting.com
www.laurusinsuranceconsulting.com
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Objectives
1. Named Insured and other automatic
insureds
2. Adding Living Trust
3. Automatic coverage for vehicles
4. Coverage provided for vehicles used in
business
5. Rental vehicles
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Coverage Parts
Part A – Liability
Duty to defend and pay damages
Part B – Medical Payments
Covers the insured and others within the insured auto
Part C – Uninsured Motorists
Follows state statute where garaged
Part D – Physical Damage
Covers the vehicle
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Who is an insured on the policy
Adding Living Trust
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Polling Question #1
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Polling Question #2
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Named Insured
Insured Couple – Name
One or Both?
One moves out
Does it make a difference
in coverage?
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Named Insured
Throughout this policy, "you" and "your" refer to:
1. The "named insured" shown in the Declarations;
and
2. The spouse if a resident of the same household.
If the spouse ceases to be a resident of the same
household during the policy period or prior to
the inception of this policy, the spouse will be
considered "you" and "your" under this policy
but only until the earlier of:
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Named Insured
1. The end of 90 days following the spouse's
change of residency;
2. The effective date of another policy listing
the spouse as a named insured; or
3. The end of the policy period.
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Other Insureds
Family Member
Permissive Driver
Insured’s Employer
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Family Member Defined
Resides in the
named insured’s
household and is
related by
• Blood
• Marriage
• Adoption
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Also Includes a
Ward or a Foster
Child
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Resident
• Since the family member is covered only
when a resident, that becomes the most
important point for coverage to apply
– Living at home
– Living away from home at school / in the
military
• Is there still a relationship to the family home?
• Is there an intent by both parties to view the
family home as their primary residence?
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Including The Family Trust
Named
Insured
Additional
Insured
• Individual
• Husband and
Wife
• H & W Family
Trust
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Automatic coverage for vehicles
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Covered Vehicles?
Owned
Hired
Borrowed
• Loan
• Loan-free
• Newly
Acquired
• Leased
• Rented
• Temporary
Substitute
• Friend,
Relative,
Co-Worker
• Temporary
Substitute
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Limited Types of Situations
Newly
Acquired
When
purchased
What
Coverage Do
They Want
Leased /
Rented
6 Months
Written
Sub-lease
Rental
Contract
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Borrowed
Nobody cares
until there is
damage
How often?
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Newly Acquired Vehicles
Replacement Vehicle
• Same coverage as vehicle replaced
• Additional obligations apply for Physical
Damage coverage
Additional Vehicle
• Must notify within 14 days for any of the
coverages currently carries to apply
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Newly Acquired Vehicles
Newly Acquired
Vehicle
Notify within 14
days
Additional
Broadest
coverage
applies
Replacement
Business Use
Truck 10,000
GVW or less
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Notify within 4
days for Physical
Damage
If no current
Collision and
Other Than
Collision
$500 deductible
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Newly Acquired Vehicles
Named Insured Acquires
• Coverage Applies
Family Member Acquires
• Coverage Does Not Apply
• Coverage Does Apply for the Named
Insured While Operating the Vehicle
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Temporary Substitute Vehicle
Non-Owned Vehicle
• Broadest coverage applicable to
any scheduled auto
• Applies when scheduled auto is
out of service due to its:
• Breakdown, repair, servicing, loss
or destruction
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Out-of-State Coverage
Coverage follows vehicle
Automatic coverage if requirements are
higher than carried
Automatic coverage if requirements are
different
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Polling Question #3
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Coverage provided for vehicles
used in business
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Polling Question #4
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Business Use Vehicle
Business exclusion does NOT apply to:
• Private passenger vehicle
• Pick up or van
• Trailer used with either of the above
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Rental Vehicles
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Rental Vehicles
Liability / Medical
Payments / UM
• Coverage applies to
ANY auto (unless
excluded)
• The owner is not an
insured
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Physical Damage
• Broadest coverage
that applies to any
covered auto also
applies to the rental
vehicle
• Loss of use charges
are paid up to
$20/day maximum
$600
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Polling Question #5
39
Insurance Community University
Valuation
Actual Cash Value
At time of
loss
No dollar
restriction
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No replacement
cost coverage or
diminution of
value
Deductible
Applies
40
Transportation Expenses
$20 / day
$600
Maximum
48 Hrs.
Deductible
Theft
24 Hrs.
Other than
Theft
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Auto Endorsements
• Trust Endorsement PP 13 03
• Extended Non-Owned Coverage Vehicles Furnished Or Available For
Regular Use PP 03 06
• Miscellaneous Type Vehicle
– Motor home PP 03 28
– Motorcycle or similar type of vehicle
– Dune buggy – ATV - Golf Cart PP 03 23
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Physical Damage Endorsements
• Auto Loan/Lease Coverage PP 03 35
• Coverage for Damage to Your Auto
(Maximum Limit of Liability) PP 03 08
– Watch out for this one – E & O waiting to
happen
• Trailer/Camper Body Coverage PP 03 07
• Customizing Equipment Coverage - Two
forms: PP 13 06 and PP 03 18
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NEW Endorsement
• Personal Vehicle Sharing Program
Exclusion Endorsement PP 23 16 10 13
– Excludes Liability coverage of “your covered
auto” when enrolled in a personal vehicle
sharing program under the terms of a
written agreement; and Being used in
connection with such personal vehicle
sharing program by anyone other than you
or any “family member.”
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New Endorsement
• Personal Vehicle Sharing Program
Exclusion Endorsement PP 23 16 10 13
– Excludes coverage for:
– Medical Payments
– Uninsured Motorist Coverage
– Coverage For Damage To Your Auto
– Underinsured Motorist Coverage
When being used as described in the
preceding slide.
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Summary
• Writing coverage correctly for your
personal lines client is fairly complex
• It requires persistence and a lot of
information
• Renewing year after year without
speaking to the insured could result in
an E & O claim
• Reduce that potential and build a
relationship with your clients
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Upcoming Classes
3/11
Winery
3/13
3/18
Installation and Contractors
Equipment
Brokers Fees
3/19
Crop
3/26
Business Income 5 key issues
4/1
Business Income 5 key issues in Limit
Setting
Insurance Community University
