Insurance Continuing Education – Auto Insurance Injuries

This section applies to Loss Situations in­volving vehicles that are furnished or made available for the regular use of the named insured or a family member.

Loss – Marie drives a state car daily to visit her clients.  She is involved in an accident with another motorist, who is seriously in­jured.  Investigation of the accident reveals that Marie’s negligent driving caused the accident.  The Bodily Injury to the other motorist is $50,000.  The damage to the mo­torist’s car is $3,000.

Comment – The entire loss is excluded.  Although the PAP covers the named insured or family members while driv­ing a Non-Owned Auto on an occasional basis, the coverage does not apply to vehicle furnished or made available for the regular use of the insured.  Since Marie drives a state car on a daily ba­sis, her PAP coverage does not apply.  This important Loss Exposure can be covered by adding Extended Non-Owned Coverage to the PAP and nam­ing Marie in the Endorse­ment, which covers Non-Owned Vehicles driven on a regular basis.

Loss – Karen obtains a summer job as a sales person.  She is furnished with a company car.  While driving the com­pany car on company business, she is involved in an accident with another motorist.  The motorist claims that Karen caused the accident.  The motor­ist suffers injuries in the amount of $10,­000.  The cost of repairing the company car is $2,500.

Comment – The loss is excluded, since the company car is furnished and made available for Karen’s use on a regular basis.  The regular use of the company car can be covered by Adding Extended Non-Owned Coverage to the PAP in which Karen is specifically named as an insured.

Loss – Ken’s car is being repaired in the auto­mobile repair shop.  He bor­rows a friend’s car and uses it until his car is repaired.  While driving the company car on company business, she is involved in an accident with another motorist.  The motorist claims that Karen caused the accident.  The motor­ist suffers injuries at a value of $10,­000.  The cost of repairing the company car is $2,500.

Comment – The loss is excluded, since the company car is furnished and made available for Karen’s use on a regular basis.  The regular use of the company car can be covered by adding Extended Non-owned Coverage to the PAP in which Karen is specifically named as an insured.

Loss – Ken’s car is being repaired in the auto­mobile repair shop.  He bor­rows a friend’s car and uses it until his car is repaired.  While driving the vehicle, Ken is involved in an accident with a motorist who claims that Ken did not have the right of way.  Investigation of the accident reveals that Ken is at fault.  The injured motorist sues Ken for $15,000.

Comment – Since Ken’s car is being repaired, the borrowed vehicle is con­sidered a temporary substitute vehicle.  Therefore, all PAP coverages on Ken’s car apply to the temporary substitute vehicle.  The injured motorist’s suit is a Covered Liability Loss, however, any insurance on the borrowed car is prima­ry and Ken’s insurance is excess.

Insurance Continuing Education

 

Continuing Education Insurance

 

Continuing Insurance Education