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Personal Auto Policy (Package Policy made by combining 4 policies together…

- - - - Type of vehicle and usage
        
        Types of Vehicles
        
        Private Passenger cars
        
        They have 4-wheels
        
        Not a truck type
        
        Not used as a public or livery conveyance for passengers
        
        Not rented to others
        
        Pickup trucks and vans
        
        Gross Vehicle Weight is 10,000 lbs or less
        
        not used to deliver or transport goods or materials unless it is incidental to the insured's business of installing, maintaining or repairing furnishings or equipment OR used for farming or ranching.
        
        Note: A pickup or van with a Gross Vehicle Weight Rating that exceeds 10,000 pounds is eligible if it has a symbol assigned to it as shown in the Symbol and Identification Manual.
        
        Trailers #
        
        Miscellaneous Vehicles
        
        Motorcycles, golfcarts, go carts, dune buggies, all terrain vehicles or other similar type vehicles are eligible but only with the Miscellaneous Type Vehicle Endorsement (PP 03 23) attached to the policy.
        Motorhomes are eligible with the Miscellaneous Type Vehicle Endorsement (PP 03 23) and the Miscellaneous Type Vehicle Amendment (Motor Homes) (PP 03 28) endorsements attached to the policy.
        Snowmobiles are eligible with the Snowmobile Endorsement
        (PP 03 20) attached to the policy. https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03231O.pdf https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03286H.pdf https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03201O.pdf #
      - Ownership or who owns the vehicle Since the Personal Auto Policy is for personal exposures, the vehicle must be owned by one of the following. A vehicle leased under written contract for a period of at least 6 continuous months will be considered owned.
        
        Husband and wife in same household
        
        Many states amend this eligibility requirement to include vehicles owned by individuals in a domestic partnership, joined in a civil union, registered reciprocal beneficiaries, etc.
        
        Individuals who are not related and live in the same household
        
        Example: An unmarried couple who jointly own their car or cars. In this situation the Joint Ownership Coverage endorsement (PP 03 34) must be attached to the policy. https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03341O.pdf
        
        Individuals who are related and live in the same household
        
        For example, both the father's name and the son's name are on the vehicle title. The son lives with his father. They are eligible for a policy in the name of both the father and son with the Joint Ownership Coverage endorsement (PP 03 34) attached.
        Tip: A private passenger auto or eligible pickup or van as previously described that is owned by a Farm Family Copartnership or Farm Family Corporation shall be considered owned by two or more relatives who are residents of the same household as long as the vehicle is garaged on a farm or ranch. https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03341O.pdf
        
        Individuals who are related and live in different households
        
        A father and son live on opposite sides of town and jointly own a pickup truck that is used exclusively by the son. They are eligible for a policy in the name of both the father and son with the Joint Ownership Coverage endorsement (PP 03 34) attached. https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP03341O.pdf
        
        Owned by a trust
        
        The grantor of the trust must be an individual or husband and wife and the only named insured(s) shown on the Declarations. All vehicles insured on the policy must be owned by the trust and the Trust Endorsement (PP 13 03) must be attached.
        https://learn.scic.com/topclass/media/8cd8a43b-bc64-48c8-8932-5265a4f37327/resources/13175/PP13031O.pdf
- - - - Policy begins with the Agreement, which contains one short statement - as long as the premium is paid and the policy requirements are met, the insurance company agrees to provide the coverage.
    - - Following the Agreement you will find the Definitions. Definitions play an important role when determining coverage. The definition of a term or phrase impacts whether or not coverage is provided or excluded.
        
        You and Your
        This definition is most important to understand as any person who fits this definition receives the broadest coverage the policy provides. A "you" or "yours" is often referred to as the named insured.
        Every time either "you" or "your" appears in the policy, it refers to this specific definition.
        This is the most important definition because so much coverage is determined by whether or not an individual qualifies as a "you".
        
        To qualify as a "you", a person must EITHER:
        Be named in the Declarations.
        OR:
        If the spouse is not named in the Declarations, the unnamed spouse is also a "you" as long as he or she is a resident of the same household as the person named in the Declarations. # # #
        
        Resident of the same household
        The phrase resident of the same household means that the person's legal residence is the household of the named insured, even though he or she may be temporarily living somewhere else.
        Example:
        The spouse that is not named in the Declarations could be living in another state or country on a temporary work assignment and still be a resident of the named spouse's household. #
        
        More about Resident of the Same Household
        The definition of "you" includes a provision for a spouse who is not named in the Declarations and is not a resident of the same household as the person named in the Declarations. Should the unnamed spouse cease to be a resident of the same household as the named insured, the unnamed spouse will continue to be a "you" for a period of time. The period of time is the earliest of the following three events:
        90 days days following the date the unnamed spouse no longer resides in the same household > the unnamed spouse purchases a Personal Auto Policy in his or her own name.>The end of the policy period
        It is often thought that the change in residency must occur during the policy period for this provision to apply. However, the policy language states that the change in residency can occur prior to the policy period.
        
        Example:
        If the change of residency occurred with only 10 days left in the policy period, it would appear that the unnamed spouse would only be a "you" for a maximum of 10 days, when in fact, the unnamed spouse could have up to the remaining 80 days under his/her spouse's renewal or new policy.
        
        We, Us, and Our
        The words "we", "us", and "our" all refer to the insurance company providing the coverage. The insurance company's name appears in the Declarations.
        
        Leased Vehicle
        A leased private passenger auto, pickup or van will be considered owned by a person if:
        The lease is in writing, and
        The term of the lease is at least 6 months.This allows us to treat and insure leased vehicles as though they were owned by the named insured.
        
        Bodily Injury
        Harm, sickness, disease and anything that results from that harm, sickness, disease, including resulting death.
        
        #
        
        Business
        "Business" has a very short definition - trade, profession or occupation. There are a lot of activities that could fall within this definition. The courts have typically required two characteristics for an activity to be considered a business:
        Habitually occupying time, effort, attention; and which are
        Engaged in with the expectation for gain, livelihood, or profit.
        When "business" is used in the policy, it will be important for you to remember the broadness of this definition as it has the potential to impact coverage.
        Tip: There does not need to be a profit for an activity to be considered a "business" activity.
        
        Family Member
        A "family member" receives the second best coverage under a Personal Auto Policy. If a person cannot be a "you", a "family member" is next best.
        To be a "family member" by definition, a person must meet both of two criteria. #
        
        Be related to a "you" by blood, marriage or adoption. This also includes a ward or foster child.
        There is no requirement that a "family member" be a member of the immediate family, of driving age or have a valid driver's license. There is also no age requirement - it includes a 2-year old or a 92-year old.
        
        Be a resident of the same household as the "you".
        The majority of the time, determining whether or not an individual is a resident of the named insured's household is easy. However, there are other times when it is not. These situations can involve children in the military, college students in another state, shared custody, etc. You must be careful not to provide a legal opinion. Courts take many factors into consideration when asked to decide whether or not an individual is a resident of a household, the discussion of which will not be included in this course.
        Some insurance companies specifically state in the policy language whether or not a child in the military or away at college is a "family member".
        
        Occupying
        Anyone who is in an auto; upon an auto; or getting in, on, out or off of an auto is considered to be "occupying" the auto. The defined word is used to determine coverage in Part A - Liability , Part B - Medical Payments Coverages (Personal Injury Protection if applicable), Part C - Uninsured/Underinsured Motorists Coverage and Part D - Coverage For Damage To Your Auto.
        Examples:
        Riding on a lowered tailgate
        Having a door shut on someone's fingers while the person was exiting a vehicle
        Driving the auto
        
        Property Damage
        This is injury to or destruction of someone else's tangible property. It includes loss of use of the damaged or destroyed tangible property.
        Examples:
        The insured negligently damages someone else's car. The "property damage" includes the cost to repair the damage and the cost of substitute transportation while the other person's car is being repaired or replaced.
        The insured accidentally drives into someone's house and damages it, requiring the people who live there to stay in a motel while repairs are being made. The cost of the motel and eating at restaurants is loss of use and also considered "property damage".
        
        "Bodily injury" and "property damage" are terms we defined in the previous lesson. If caused by an auto accident that is an insured's fault, the damages will be paid on behalf of an insured. While this insuring agreement is very broad, the policy will later use exclusions and definitions to remove coverage for exposures that insurance companies don't want to cover. By providing coverage for everything that is not excluded, the policy provides the broadest possible liability coverage.
        
        Trailer
        Any vehicle designed to be towed by a private passenger auto, pickup or van is a "trailer". The size of the "trailer" and the number of wheels do not affect whether the vehicle is a "trailer". It also means a farm wagon or farm implement while being towed by a private passenger auto, pickup or van.
        For example, the utility trailer containing his tools that the insured takes to construction job sites. # #
        
        Your covered auto #
        
        A vehicle show in Declarations
        
        Any vehicle shown in the Declarations is a "your covered auto". Even a vehicle that does not meet the eligibility requirements is a "your covered auto" if shown in the Declarations.
        
        A "newly acquired auto"
        
        Lesson 1 Topic C "Your Covered Auto" and "Newly Acquired Auto" p10 of 12
        Recap of Automatic Coverage for a "Newly Acquired Auto"
        The insured must report the new vehicle to the insurance company within the time period shown. Note: OTC is the abbreviation for Other Than "Collision".
        Replacement Vehicle
        Liability, Medical Payments/PIP and UM/UIM Until the End of the Policy Period
        Other Than "Collision" - 4 Days at $500 Deductible if No OTC in the Declarations or 14 Days with the Lowest OTC Deductible in the Declarations
        "Collision" - 4 Days at $500 Deductible if No Collision in the Declarations or 14 Days with the Lowest Collision Deductible in the Declarations
        
        Additional Vehicle
        Liability, Medical Payments/PIP and UM/UIM for 14 Days
        Other Than "Collision" - 4 Days at $500 Deductible if No OTC in the Declarations or 14 Days with the Lowest OTC Deductible in the Declarations
        "Collision" - 4 Days at $500 Deductible if No Collision in the Declarations or 14 Days with the Lowest Collision Deductible in the Declarations
        
        Any vehicle that fits the definition of "newly acquired auto", which is the next definition in the policy, is a "your covered auto".
        If an eligible vehicle is acquired by someone other than a "you", it is not a "newly acquired auto". For example, if Karen's son buys a new car, it is not a "newly acquired auto" under Karen's Personal Auto Policy. "Newly acquired auto" coverage does NOT extend to a "family member".
        Likewise, an ineligible vehicle acquired by Karen would not be a "newly acquired auto". For example, Karen buys a 35-foot motor home. A Personal Auto Policy with no endorsements does not include in the definition of "newly acquired auto" vehicles other than private passenger autos, or pickups or vans with GVWR and delivery restrictions.
        
        Acquired by a "you"
        
        Eligible vehicle (private passenger, auto, pickup, or van with GVWR and delivery restrictions)
        
        Acquired during the policy period
        
        The definition describes the coverage provided for a "newly acquired auto" in three separate provisions.
        
        Collision
        
        "Collision" coverage is automatically provided for a "newly acquired auto", whether an additional or a replacement auto. The difference between the coverage provided is whether or not there is currently a vehicle in the Declarations with "Collision" coverage.
        
        There IS "Collision" on a vehicle in the Declarations
        If any vehicle in the Declarations has "Collision" coverage, the "newly acquired auto" has "Collision" coverage.
        If more than one vehicle in the Declarations has "Collision" coverage, the lowest deductible applies to the "newly acquired auto".
        In order for this coverage to apply, the insured must notify the insurance company within 14 days of becoming the owner - 14 Days of Coverage
        
        There is NO "Collision" on any vehicle in the Declarations
        The "newly acquired auto" has "Collision" coverage for 4 days with a $500 deductible.
        In order for this coverage to apply, the insured must notify the insurance company within 4 days of becoming the owner - 4 days of coverage.
        
        Other than Collision
        
        Just as with "Collision", the difference between the coverage provided is whether or not there is currently a vehicle in the Declarations with Other Than "Collision" coverage.
        
        There IS Other Than "Collision" on a vehicle in the Declarations
        If any vehicle in the Declarations has Other Than "Collision" coverage, the "newly acquired auto" has "Other Than Collision" coverage.
        If more than one vehicle in the Declarations has Other Than "Collision" coverage, the lowest deductible applies to the "newly acquired auto".
        In order for this coverage to apply, the insured must notify the insurance company within 14 days of becoming the owner - 14 days of coverage
        
        There is NO Other Than "Collision" on any vehicle in the Declarations
        The "newly acquired auto" has Other Than "Collision" coverage for 4 days with a $500 deductible.
        In order for this coverage to apply, the insured must notify the insurance company within 4 days of becoming the owner - 4 Days of Coverage.
        
        Coverages except for damage to your auto
        
        Let's see what automatic coverage is provided, beginning with all Coverages except "Collision" and Other than "Collision".
        The "newly acquired auto" receives the broadest coverage of any vehicle shown in the Declarations. The length of time the insured has this automatic coverage will depend on whether it is a replacement or an additional vehicle.
        A replacement vehicle has these coverages until the end of the policy period. The insured does not have to report the replacement vehicle to the insurance company for these coverages to apply.
        An additional vehicle also has these coverages, but only for 14 days. The insured has to report the additional vehicle within 14 days.
        Tip: While the policy does not require the insured to notify the insurance company of a replacement vehicle until the end of the policy period, it is a good business practice to make the vehicle changes to the Personal Auto Policy as soon as possible.
        
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        Any "trailer" you own #
        
        Any vehicle that fits the definition of "trailer" and is owned by "you" is a "your covered auto".
        
        A temporary substitute
        Physical damage coverage for a temporary substitute vehicle will be discussed in Lesson 5.
        Tip: It is important to understand that the word auto is not defined in the ISO Personal Auto Policy. As a result, the temporary substitute is not limited to an eligible-type vehicle.
        
        Any auto or "trailer" not owned by "you" that is being used because a "your covered auto" as described previously is out of service due to any one of the following five reasons: #
        
        Broken Down
        
        Being repaired
        
        Being serviced
        
        It was destroyed
        
        A loss
    - - Insuring Agreement & Supplemental Plan
        Liability begins with the Insuring Agreement. It is in the first part of the Insuring Agreement where we see that the insurance company will pay damages for "bodily injury" or "property damage" for which an insured is legally responsible because of an auto accident. You should refer to the Insuring Agreement that is located on page 2 in the policy
        
        Coverage Provided
        
        The company will defend that insured in addition to paying up to the limit of liability shown in the Declarations to the injured party and/or to the owner of the damaged property.
        The insuring agreement states very clearly that the company has no duty or obligation to either defend a lawsuit or settle any claim that is not covered by this policy. But, if the basis for the lawsuit or claim is covered by the policy, the company has a duty to defend the insured, even if the lawsuit or claim is groundless or of no merit. Restated, even if there appears to be no negligence on the insured's part, the company is still required to defend the insured.
        
        Example:
        John's car is stopped at a red light when the car behind him doesn't stop and hits his car. Even though John is not negligent, Part A - Liability Coverage will still protect him. If any claims are made against John as a result of this accident, his Personal Auto Policy will defend him.
        
        Definition of Insured (second provision of Insuring Agreement
        You have to be an "insured" to receive liability
        
        All of the liability protection described in the Insuring Agreement and Supplementary Payments is only provided for a select few - only those who fall within the definition of insured.
        
        A person or an organization that falls within any one of the definition's four parts is an insured. This is an important definition, since these are the only people or organizations for whom liability coverage is provided.
        
        "You" - "Family Member"- "Your Covered Auto" - "Newly Acquired Auto"
        
        There are exclusions that may take coverage away from a person or organization that is an insured by definition. We will see that when we get to the exclusions section.
        
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        Supplementary Payments
        
        The insuring agreement also includes language regarding two expense items.
        
        One is prejudgment interest, which is the interest that accrues from the time of the accident until the judgment is rendered.
        As part of the insuring agreement, prejudgment interest is included in the limit of liability. So any payment made for prejudgment interest will decrease the amount available to pay for the rest of the claim.
        
        Limit of Liability Includes Prejudgment Interest + Defense Costs = Coverage
        
        There are five Supplementary Payments in Part A - Liability. They are called supplementary because any payment made under this provision is made in addition to the limit of liability shown in the Declarations. The limits for these Supplementary Payments cannot be reduced or increased. These supplementary payments are expenses resulting from covered accidents:
        
        5 more items...
        
        #
        
        The other expense is defense costs. Defense costs can be very high and the policy language specifically says they will be paid in addition to the limit of liability. In other words, payments for defense costs do not decrease the amount of money available for the payment of claims. However, the insurance company's duty to defend ends when the limit of liability has been exhausted either by a judgment or settlement. This is reason enough for your clients to purchase high limits of liability. #
        
        There are three additional policy provisions that apply to this Insuring Agreement. #
        
        Limits of Liability #
        
        which is listed in the Declarations and limit how much the company will pay to an injured person or persons and limits how much the company will pay to the owner of damaged property. #
        
        Policy Period
        
        which is listed in the Declarations. The Personal Auto Policy covers accidents that occur during the policy period. The end of the policy period, however, does not end the insurance company's obligation to pay defense costs for an accident that occurred during the policy period.
        
        Policy Territory
        
        which is listed in the Declarations. The Personal Auto Policy covers accidents that occur during the policy period. The end of the policy period, however, does not end the insurance company's obligation to pay defense costs for an accident that occurred during the policy period.
      - Part A - Liability has two groups of exclusions:
        
        Group B Exclusions
        
        Group B consisting of four exclusions
        
        Miscellaneous Type Vehicles
        
        This is two exclusions in one sentence.
        
        First, there is no coverage for any vehicle with fewer than four wheels, so there is no coverage for motorcycles under a Personal Auto Policy, unless the motorcycle is added by a Miscellaneous Type Vehicle Endorsement (PP 03 23).
        
        Second, there is no coverage for any vehicle designed to be used mainly off public roads. This excludes recreational vehicles such as all-terrain vehicles (ATV) and dirt bikes, unless added by a Miscellaneous Type Vehicle Endorsement (PP 03 23). This also excludes snowmobiles, unless added by a Snowmobile Endorsement (PP 03 20).
        
        3 Exceptions to the Exclusion Miscellaneous Vehicles Exclusion
        
        Vehicles being used by an insured in a medical emergency
        
        1 more item...
        
        "Trailers"
        
        1 more item...
        
        Non-owned golf carts
        
        1 more item...
        
        Autos Owned by or Furnished or Available for "Your" Regular Use
        
        This exclusion is also two exclusions in one. As you read through the discussion of this exclusion remember that it only applies to autos other than "your covered auto," so if the auto in question is a "your covered auto," the exclusion does not apply and there is coverage.
        First, there is no coverage for a vehicle that is owned by a "you" that is not a "your covered auto". This would include a vehicle that the insured owns and chose not to insure or a new vehicle that was not reported to the insurance company within the required time frame.
        The intent of the first part of this exclusion is to take away liability coverage for a vehicle owned by the named insured, but for which coverage was not obtained.
        
        Example:
        The insured has a 1965 pickup that he never drives. He decides to take it off his Personal Auto Policy to save money. A month later, while driving the truck he never drives, he has an accident. This loss would not be covered as it involved a vehicle owned but not insured.
        
        Example:
        The insured has a "newly acquired auto" that he failed to report to the insurance company within the required time frame. He bought an additional vehicle and had an accident 22 days later, before he reported the new car to the insurance company.
        
        Second, there is no coverage for a vehicle that is furnished or available for "your" regular use. This is not just a company car exclusion. There are many possible situations that this part of the exclusion would apply to.
        
        John and Elsa regularly borrow a car owned by Elsa's Aunt Jean. In fact, Aunt Jean is tired of giving them the keys and then getting the keys back at odd hours, so she had an additional set of keys made so that John and Elsa can take her car any time they wish. Should John or Elsa have an accident while driving Aunt Jean's car, they would not have coverage under their own Personal Auto Policy as Aunt Jean's car is furnished or available for their regular use. The only source of coverage they would have is the coverage provided by Aunt Jean's Personal Auto Policy.
        
        Dusty has a company car supplied to him by his employer. The car is in Dusty's custody seven days a week. Should Dusty have an accident while driving his company car, he would not have coverage under his Personal Auto Policy as the company car is furnished or available for his regular use. The only source of coverage Dusty would have is the coverage provided by his employer's Business Auto Policy.
        
        Tom and Tristen live together. They each have their own car insured on a Personal Auto Policy. They often drive one another's car; in fact, they each have a set of keys to both cars. Should Tristen have an accident while driving Tom's car, she would not have coverage under her own Personal Auto Policy as Tom's car is furnished or available for her regular use. The only source of coverage Tristen would have is the coverage provided by Tom's Personal Auto Policy.
        
        The Extended Non-Owned Coverage - Vehicles Furnished or Available For Regular Use (PP 03 06) endorsement can be used to provide liability coverage (and Medical Payments) for the insured with a vehicle furnished or available for his or her regular use.
        The individual must be named in the schedule. If coverage for the spouse of that individual or "family members", the appropriate box must be marked. When marked, this endorsement will provide coverage for their use of the vehicle furnished or available to the individual named in the schedule.
        This endorsement provides coverage for this exposure by removing the Exclusion B.2.b. we just looked at.
        This endorsement excludes coverage for a vehicle owned by the individual named in the schedule, a vehicle owned by a "family member" or a temporary substitute for either. #
        
        Example:
        Mason has a Personal Auto Policy that has liability limits of 100/300/50 liability. He regularly drives his girlfriend's car. Unfortunately, one day he has an accident while driving his girlfriend's car. His girlfriend's Personal Auto Policy only provides liability limits of 25/50/10. The injuries to the other driver exceed the $25,000 available under his girlfriend's Personal Auto Policy.
        If the Extended Non-Owned Coverage - Vehicles Furnished or Available For Regular Use endorsement had been attached to Mason's Personal Auto Policy, he would have been able to use his 100/300/50 liability coverage to protect him for this loss.
        
        Autos Owned by or Furnished or Available for Regular Use by a "Family Member"
        
        This exclusion is also two exclusions in one, and it also applies only if the vehicle in question is not a "your covered auto".
        
        There is no coverage for a vehicle owned by a "family member".
        
        1 more item...
        
        There is no coverage for a vehicle that is furnished or available for the regular use of a "family member".
        
        1 more item...
        
        There is an exception in this exclusion for a "you" maintaining or "occupying" any vehicle owned by a "family member" or furnished or available for the regular use of a "family member".
        Tip: The exception to this exclusion is only for a "you" and not another "family member".
        
        Rowan, the resident son of Mark and Karli, owns a car and insures it under a Personal Auto Policy in his name. While driving Rowan's car to the grocery store, Karli has an at-fault accident. This exclusion takes away liability coverage for Rowan, but does not take away liability coverage for Karli as she is a "you". The only liability coverage Rowan has is the coverage provided by Rowan's Personal Auto Policy. Karli would have liability coverage under both her own and Rowan's Personal Auto Policy.
        
        Mark and Karli's 16-year old son Ethan is driving his brother Rowan's car to a football game when he has an at-fault accident. This exclusion takes away coverage for Rowan. It also takes away coverage for Ethan. The only liability coverage Rowan and Ethan have is the coverage provided by Rowan's Personal Auto Policy.
        
        The Extended Non-Owned Coverage-Vehicles Furnished or Available for Regular Use Endorsement (PP 03 06) we looked at previously will not work for the "family member" with a vehicle furnished or available for his or her regular use.
        The rules for the use of this endorsement require the individual named in the Schedule to be someone who owns a vehicle and also has a vehicle furnished or available for his or her regular use. As a vehicle on the policy should not be owned by a "family member, a "family member" is not eligible for this endorsement. In addition, this endorsement does not remove Exclusion B.3.b, which is the exclusion for a vehicle furnished or available for the regular use of a "family member".
        The only coverage for a "family member" provided by this endorsement is coverage while driving a vehicle furnished or available for the regular use of the "you" named in the Schedule.
        
        Example:
        Bert and Carrie have a Personal Auto Policy which includes the Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use PP 03 06. The Named Individual and "Family Members" (including Named Individual's Spouse) box is X'd. They have this endorsement because Bert has a company car provided by his employer. The employer allows Bert's spouse and children to drive the car. Since the box is X'd on this endorsement, any "family member" is also covered by this endorsement while driving the company car.
        
        Racing
        
        There is no coverage for any vehicle that is inside a racing facility for the purpose of practicing, preparing for, or competing in an organized race or speed contest.
        
        Example:
        The insured is racing down the highway when he hits another vehicle. The racing exclusion does not apply as the racing was not in a racing facility.
        
        Group A Exclusions
        That Apply To People
        
        Group A consisting of nine exclusions
        Group A exclusions take away coverage for either "bodily injury" or "property damage" caused by a person even if that person was previously defined as an insured. When applying these exclusions, the intent is to either cover or exclude a loss resulting from an accident. However, when there is more than one insured involved in a claim, the policy may provide coverage for one insured and exclude coverage for the other(s).
        
        Intentional Damages
        
        There is no coverage for any insured who causes intentional damage. This is different than excluding intentional acts. It is possible to cause unintentional damage by an intentional act.
        
        Example 1:
        John and Ethel's son Ralph intentionally drives into the rear of a friend's car, intending to startle the friend as a joke. Ralph is going a little faster than he thinks and instead of only tapping his friend's car, he causes $700 "property damage" to the friend's car. This is an example of unintentional damage that would be covered and not excluded.
        
        Example 2:
        Bobby is upset with his girlfriend who just broke up with him. Bobby drives to her house and decides to show her a thing or two by driving his truck through the front door of her home. There is $10,000 damage to her house. This is an example of intentional damage and would be excluded.
        
        Property Owned or Transported by that Insured
        
        There are actually two exclusions in this one sentence. First, there is no coverage for damage to property owned by that insured. Liability is a third party coverage, so there is no coverage for property belonging to that insured.
        
        Example:
        Mary is driving into the garage of the house she owns when she accidentally steps on the accelerator instead of the brake. The car crashes through the back wall of her garage. There is no coverage for the damage to the garage as it is property she owns.
        
        The second part of this exclusion takes away coverage for property that insured is transporting. The Personal Auto Policy is not a cargo policy.
        
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        Property Rented To, Used By or in the Care of that Insured
        
        Care, Custody, or Control
        
        This is a conventional care, custody or control exclusion found in almost all liability policies. There is no coverage for damage to property of others that an insured rents, is using, or has in his or her care. An exception to the exclusion gives back coverage for damage to a rented residence or private garage.
        
        Example:
        Mary is driving into the garage of the house she rents when she accidentally steps on the accelerator instead of the brake. The car crashes through the back wall of her garage. There is coverage for the damage to the garage as it is the exception - damage to a rented residence or private garage.
        Tip: This does not give back coverage for damage to a residence or garage owned by an insured. Damage to property owned by the insured is excluded in Exclusion 2 that we just reviewed.
        
        Example:
        The insured rents a car while on vacation. He has an accident and the rental car is damaged. The damage to the rental car is excluded as it is property rented to the insured.
        (Note: the damage caused to other property BY the rental car is not excluded here.)
        
        Bodily Injury to an Employee of the Insured
        
        Employee
        
        This exclusion takes away coverage for "bodily injury" to an employee of that insured. Note this is someone who is employed by and paid by that insured. It does not exclude co-employees of any insured or people who work with the insured for the same employer.
        The reason for this exclusion is that injuries to employees are covered, or should be covered, by Workers Compensation insurance. There is an exception to this exclusion that gives back coverage for domestic employees who are not required to be covered by Workers Compensation and are not voluntarily provided Workers Compensation by an insured.
        
        Example:
        Bob has a Personal Auto Policy. He owns a landscaping business, and Joe is one of his employees. Bob is driving his car to meet a client and takes Joe with him. Bob has an accident and Joe is injured. Joe sues Bob for his injuries, since it was Bob's fault. There is no coverage for this loss as "bodily injury" to an employee of the insured is excluded.
        
        Example:
        Mandy and Paula work together. Mandy drives her car to take both of them to meet with a client. Mandy has an at-fault accident and Paula is injured. Paula makes a claim against Mandy. This loss is not excluded as Paula is not Mandy's employee.
        
        Public or Livery Conveyance #
        
        This exclusion takes away coverage for either the ownership or the operation of a vehicle while the vehicle is used as a public or livery conveyance. Public conveyances are those that are used to carry persons or property for public hire.
        Public or livery conveyances are commercial exposures and it is not the intent to cover anything other than personal exposures with this policy. The intent in this exclusion is to take away coverage for an insured using a vehicle as a taxi cab or limo. This exclusion does not apply to a share-the-expense car pool.
        
        The Fast Food Delivery Question
        Delivery of fast food for one employer for an hourly wage and tips is neither public nor livery use and is not excluded by a policy using the standard ISO wording. There are, however, policies that specifically exclude the delivery of fast food and other similar delivery.
        Tip: Check with the company or companies with whom you do business for their interpretation of this exclusion. Even if a company interprets this exclusion as not applying to fast food delivery, it may not insure the vehicle based on its underwriting guidelines.
        
        Person in the Auto Business
        
        This is an automobile business exclusion that excludes anyone who is working in the automobile "business". The policy defines auto "business" in the exclusion as selling, servicing, repairing, storing, or parking automobiles.
        
        Examples: Marty has his car insured on a Personal Auto Policy.
        *A garage mechanic test driving the Marty's car is excluded, since the mechanic is in the "business" of repairing vehicles.
        *The auto dealer employee who test drives an Marty's car to help determine a trade-in value is excluded because that person is in the "business" of selling vehicles.
        *A parking lot attendant is not covered while driving Marty's car, because the attendant is in the "business" of parking or storing vehicles.
        Tip: In each of these examples, this exclusion applies to the person in the auto "business" and not Marty. Marty is still covered. #
        
        Exception to the Auto Business Exclusion
        There is an exception to the exclusion that gives back coverage for the use of "your covered auto" by "you", a "family member" or a partner, agent or employee of "you" or any "family member".
        
        2 more items...
        
        Business Use of Other than a Private Passenger Auto, Pickup, Van or Trailer
        
        This is a very broad exclusion that excludes all "business" use as an owner or operator that wasn't previously excluded in Exclusion 6. for an automobile "business". If the exclusion ended here no one would have coverage for any "business" use of any vehicle under a Personal Auto Policy.
        There is, however, an exception that gives back coverage for "business" use of private passenger cars, pickups and vans, and trailers used with private passenger cars, pickups, and vans. So, the insured has coverage for "business" use of private passenger cars, pickups and vans and trailers used with private passenger cars, pickups, and vans. There is no coverage for "business" use of any other type of vehicle. # #
        
        If Gordy uses his own car in his business as a salesperson, this exclusion does not apply since the vehicle is a private passenger car.
        
        If Gordy rents the largest one-piece moving van that Ryder Truck Rental has and uses it to move household goods, his Personal Auto Policy covers him. If he rents the same truck to move his office furniture, he is not covered as the vehicle is not a private passenger car, pickup or van and he is using it in "business".
        
        If Gordy uses his pickup to call on customers of his design and layout business, this exclusion does not apply because the vehicle is a pickup.
        
        Person Using a Vehicle With No Reasonable Belief of Entitlement
        
        This exclusion takes away coverage to anyone who is using a vehicle without a reasonable belief that he or she is entitled to use the vehicle. As long as an operator of a vehicle believes that he or she is entitled to use a vehicle, this exclusion would not apply and that person would have liability coverage under the policy covering that vehicle. This exclusion is designed to take away liability coverage for a thief.
        Note: The insured is still covered while the thief is using it.
        There is an exception that provides coverage to a "family member" using a "your covered auto" that is owned by "you", which means that a "family member" has coverage driving "your covered auto" whether or not the "family member" has reasonable belief it is okay to drive the auto.
        
        Hope's car is stolen. While driving her car, the thief runs a red light and injures another person. If that injured person makes a claim against the thief for her injuries, the thief is excluded so Hope's policy would not provide liability coverage for the car thief. If the injured person makes a claim against Hope, Hope would have liability coverage as this exclusion only applies to the thief.
        
        While 15-year old Peyton's parents are out for the night, he decides to drive one of their cars across town to visit a friend. He had an accident on the way home. If the owner of the damaged property should make a claim against Peyton for the damages, he would have liability as this exclusion does not apply to a "family member" (which he is as he lives with his parents) driving a "your covered auto" (which it is as it is in the Declarations).
        
        Person Insured under a Nuclear Energy Policy
        
        There is no coverage under the Personal Auto Policy for anyone who is an insured under a Nuclear Energy Liability Policy.
      - Limit of Liability, Out of State Coverage, Financial Responsibility and Other Insurance