One of the most often overlooked (and potentially catastrophic) coverage gaps in the Personal Auto Policy involves autos owned and separately insured by resident family members. This exposure most likely exists in MANY of your personal lines accounts. Here’s the problem and what to do about it.
Your 20-year-old daughter is away at college. She does not have a car on campus, but her roommate does and she drives the auto occasionally. Would your unendorsed personal auto policy respond if she has an accident driving the car? If not, is there anything you can do about it? You might be surprised…
Your insured was told by his attorney to title and insure a car in his 16-year-old son’s name to minimize the family’s liability exposure. According to the attorney, if his son kills somebody, they can’t touch the parents’ assets. (Editor Question: Why can’t we practice law without a license, but an attorney can provide risk…
The 18 year old resident son of our insureds enlisted in the Army, went to boot camp for 14 weeks, and took 3 days leave. While riding in a pickup bed that overturned due to the driver’s negligence, he was killed. A UIM claim has been filed, but the adjuster says he is no longer…
In another article, we discuss the potential coverage gaps if a resident child buys a car and it is insured under a separate policy, as opposed to the parent’s policy. Recently this issue came up again in one of our “Ask an Expert” questions. In this follow-up, we’d like to stress again how important it…
The purpose of most endorsements is to amend policy forms by either broadening or restricting coverage. Other endorsements simply clarify the intent or scope of coverage. Finally, some endorsements are provided as supplementary information pertaining to rating or coverage procedures. In this section, we list the major countrywide endorsements numerically.
Getting a new car is usually fun and exciting. But having a total loss on a new car causes a double-whammy: the extreme disappointment of the loss of a new car, plus the shocking realization that the loan or lease balance can be greater than the amount of the claim payment. According to one article…
Your insured owns a company that has no auto coverage. For tax (or other) reasons, the company buys a car then leases it to the owner, your insured. He wants to cover the car on his PAP and include his business as an additional insured, thus saving on his company having to buy a BAP.…
Some employers of people who use their personal autos for business want to be named as additional insureds on their personal auto policies (PAPs). However, many companies refuse to do this on the basis that they don’t want the broader exposure or that the business owner has no insurable interest. Actually, there’s no need to…
