Insuring the corporate car

Size: px
Start display at page:

Download "Insuring the corporate car"

Transcription

1 Insuring the corporate car Insuring the corporate car Resource kit By Dan Corbin, CIC, CPCU, LUTC The executive officer and owner of a corporation is trying to decide how to title and insure his autos. Should he title the autos individually and insure them on a personal auto policy (PAP), or title them individually and insure them on a business auto policy (BAP)? On the other hand, should he title them to the corporation and insure them on a BAP, or title them to the corporation and insure them on a PAP? There are issues of convenience, premium expense, tax deductions, personal liability and insurance gaps to consider when making the decision. Are you prepared to advise this corporate owner if you are approached to make recommendations? While I do not propose that you take on the role of legal or tax advisor (unless, of course, you are qualified to do so), you should be able to offer an explanation of the coverage ramifications inherent with each alternative and show some familiarity with the other issues that will impact the decision. After explaining how coverage will apply, you will direct your client to his or her accountant and/or attorney to weigh other perceived advantages or disadvantages against the insurance benefits or detriments that you have disclosed for each alternative. I realize, of course, in the real world, your client may talk to the accountant first, then come to you to implement the accountant's recommendation. Nevertheless, you still should be prepared to outline the coverage ramifications attendant with the accountant's recommendation. Taxation Titling an executive officer's auto to the corporation makes a lot of sense when looking at the overall tax strategy, particularly if use of the auto is principally for business purposes. Corporate money pays for the auto, or backs the loan, without directly affecting the financial condition of the executive officer. Further, the corporation derives the right to deduct expenses incurred for such items as depreciation, loan interest, oil and gas, insurance, repairs, tires, registration fees, tolls and parking fees. The (normally true) assumption made here is that the corporation is in a higher tax bracket than the executive officer, which amplifies the corporate tax savings over the savings achieved by opting for the executive officer to deduct the expenses. Also, when the executive officer files business auto expenses as miscellaneous itemized deductions, there is a 2 percent threshold to cross before benefits begin to accrue. Not only that, if income exceeds a specified cap, deductions are further limited. Deemed by the IRS to be a capital expense (business asset), only the depreciation, not the purchase price, of an auto is deductible. The corporation can take a multi-year Modified Accelerated Cost Recovery System (MACRS) deduction, but if business use of the auto does not exceed 50 percent, then only a straight-line

2 method of depreciation is permitted. For leased autos, the actual lease costs will be used to determine the deductible expense. Even though the deduction is offset by a credit to income based on IRS tables, leasing usually yields higher net deductions than does ownership. When the executive officer owns the auto and is reimbursed by the corporation, an optional standard mileage rate may be applied to business miles driven in order to compute the deductible expense for depreciation and other expenses associated with the auto's use. An administrative inconvenience that must be tolerated with all methods for deducting business auto expenses, whether on the corporate or personal tax return, is the requirement to keep adequate records showing the division between personal and business use of the auto. Only the business use is deductible. The personal use of a furnished auto must be credited to the executive officer as salary, and the personal use of an auto owned by the executive officer is not deductible. There is, however, a tax loophole that can reduce an employee's tax liability for the personal use of a furnished auto. Congress authorized a safe harbor limit that allows an employee to report the value of using a company auto for commuting to work at $1.50 each way. The employee need only keep records of the trips commuted in order to determine the income that must be reported. Assuming that an employee is required to use the company auto to commute to work, a very significant tax break is realized by the fact that the availability of the auto outside of working hours is excluded as a "working condition fringe benefit." Although the employee has full personal access to the furnished auto, taxes will be paid only on the $3 value of each round trip. Legal liability In most states, merely having ownership of an auto does not make the owner liable for its use. It would require an agency relationship (for example, employer/employee) or some theory of negligence (for example, poor maintenance of the auto) to bring the owner into a suit brought by someone injured due to the auto's use. Some states have adopted the family purpose doctrine, which imposes liability on the head of a household for torts committed by family members while using the family auto. And in a few other states, like New York, legislators have imposed liability by statute upon the owner of an auto. In New York, an illusion persists that there is a legal advantage to titling an auto in the name of the corporation in order to prevent the executive officer from incurring personal vicarious liability for the auto's use. Section 388 of the New York Vehicle & Traffic Law makes a vehicle's owner vicariously liable for unlimited losses resulting from the negligence of any person having permission from the owner to use the vehicle. First of all, this perceived advantage for the executive officer would have very narrow application, because the executive officer, as the customary operator of the auto, yet would be liable for his or her active negligence in causing the damages. And, second, an executive officer whose auto is furnished would be considered an owner according to the statutory definition. Section 128 of the New York Vehicle & Traffic Law defines "owner" to include "a person, other than a lienholder, having the property in or title to a vehicle or vessel" and "any lessee or bailee of a motor vehicle or vessel having the exclusive use thereof, under a lease or otherwise, for a period greater than 30 days." Suppose a corporation leases an auto and furnishes it to an executive officer. The lessor, the lessee corporation and the executive officer are all jointly and severally liable for the auto's use, regardless of their individual negligence. Insurance In most cases, the premium expense under a BAP is going to be higher than under a PAP. This premium differential is important, but should not be given more weight than is prudent, considering the coverage issues that may be involved. There are times when the amount of limits available to protect sizable assets is a

3 determining factor in the placement of insurance. Consideration should be given to the accessibility of higher limits under a BAP and a commercial umbrella or excess policy. However, even if primary insurance is provided by a PAP, the corporate BAP could be endorsed to provide excess coverage for the executive officer's use of his auto for corporate business (see the ISO Employees As Insureds CA endorsement). Corporate titled, corporate insured This scenario offers the most favorable tax treatment, as well as a preferred source for funding the purchase or lease of an auto. On the downside, insurance costs under a BAP may be high compared to a PAP. When the executive officer has at least one other auto insured on a PAP, no unusual coverage issues will enter the discussion. But if the executive officer does not have a PAP, there is a nonowned auto exposure to fill which impacts his or her entire family. As long as the executive officer's family drives the furnished corporate autos, they will be insured as permissive operators. It is when the teenage son borrows a friend's uninsured or underinsured auto, or when a car is rented for the family vacation, that problems could arise. Without a PAP, there is no protection for the family when the auto involved has no relationship to the corporate business. Consider the financial hardship that could occur if the executive officer, while riding a bicycle, is severely injured by a hit-and-run driver. One solution would be for the executive officer to purchase a PAP endorsed with the ISO Named Nonowner Coverage (PP 03 22) form. Each member of the family will need to be named in order for coverage to apply to them. While liability, medical payments and uninsured/underinsured motorists coverages are available under this policy, it does not provide physical damage coverage on the nonowned autos. Another solution, probably less costly, is to add the ISO Drive Other Car Coverage Broadened Coverage For Named Individuals (CA 99 10) endorsement to the corporate BAP. Physical damage coverage (if the underwriter permits), as well as liability, medical payments and uninsured/underinsured motorists coverages, are available for personal nonowned autos operated by the executive officer and his family. The executive officer and each family member must be named in the schedule for coverage to apply to them. A resident spouse is automatically covered, but I suggest naming the spouse anyway, in the event of separation. Whether the executive officer chooses a named nonowner policy or a drive-other-car endorsement to cover personal nonowned autos, the ISO Named Individuals Broadened Personal Injury Protection Coverage (CA 22 01) endorsement should be added to the BAP of New York and New Jersey policyholders. By naming the executive officer on the schedule, he and his family will be afforded PIP coverage when injured in a vehicle that does not provide such coverage. An example would be a car rented in Connecticut for vacation purposes. Individually titled, individually insured This scenario offers the lower premium costs of a PAP, eliminates coverage problems for the family's personal use of nonowned autos and simplifies the management of insurance. Unfortunately, the executive officer can expect less favorable tax treatment for the business use of his or her autos due to a lower-than-corporate tax bracket and lower itemized deductions resulting from the 2 percent threshold requirement and upper caps on income. Individually titled, corporate insured In order to insure an individually owned auto on a corporate BAP, it will be necessary to either include the executive officer, along with the corporation, as named insured on the policy or lease the executive officer's auto to the corporation. This scenario is not preferred for tax treatment, nor is it likely to result in the lowest premium costs.

4 If the decision is to add the executive officer as a named insured (assuming the underwriter will do it), then the ISO Individual Named Insured (CA 99 17) endorsement should be added to the policy in order to provide the executive officer and her family with protection for the personal use of nonowned autos, including physical damage coverage. There is no additional premium charged for this endorsement. Nevertheless, it is redundant to add the endorsement if the executive officer has a PAP insuring other autos. In fact, it would complicate the settlement of claims that are insured by both policies. If the decision is for the executive officer to lease the auto to the corporation, then the ISO Employee As Lessor (CA 99 47) endorsement should be added to the BAP. The endorsement will insure the auto as though it were owned by the corporation and include the executive officer as an insured, in order to overcome ISO BAP exclusion b.(2) of Who Is An Insured under Section II Liability Coverage. Despite adding this endorsement, the executive officer and his or her family's personal use of nonowned autos yet must be taken care of by one of the methods previously discussed. Corporate titled, individually insured In order to insure a corporate-owned auto on a PAP, it will be necessary for the corporation to lease the auto to the executive officer. The PAP will be endorsed with the ISO Additional Insured Lessor (PP 03 19) and Loss Payable Clause (PP 03 05) forms in order to protect the corporation's interest in the auto. This scenario offers the lower premium costs of a PAP, eliminates coverage problems for the family's personal use of nonowned autos and permits corporate funding of the auto. On the other hand, complexity is injected into tax planning without any real gain in deductions for the corporation, shifting the tax burden to the executive officer. There also is some expense in drawing up the lease. An interesting variation on this scenario occurs in New York because the registrant of a motor vehicle can be someone different from the title holder. It is very common in New York to insure a corporate-owned auto on a PAP without the formality of a lease. This presents some coverage issues that need to be understood. You may recall that the ISO PAP insures for liability any person or organization that is legally responsible for an otherwise insured operator of the auto (Insuring Agreement B.3. of Part A Liability Coverage). Since by statute and under the right circumstances, by respondeat superior the corporation is liable for the use of the auto, it follows that the corporation is an insured under the PAP. It is not necessary to name the corporation as an additional insured, the corporation is insured by policy definition. The real problem with insuring a corporate-owned auto on a PAP emerges when the executive officer seeks recovery for physical damage to the auto. Many insurers will try to deny a claim based upon the executive officer's lack of an insurable interest, since he is not the owner or lessee. Technically, even adding the corporation as a loss payee on an ISO Loss Payable Clause (PP 03 05) endorsement, does not permit payment to the corporation if the executive officer has no insurable interest. This is because the PP form does not give the loss payee an independent right to make a claim, but only piggybacks its interest on the right of the named insured to receive payment for a covered claim. Nevertheless, I think insurers are wrong to deny an executive officer's claim based upon a lack of insurable interest. The New York statute (Section 3401 of the Insurance Law) defining insurable interest is quite broad. It has been liberally interpreted by the courts to encompass a pecuniary benefit or advantage that may be derived from the property's preservation, causing the insured to suffer pecuniary loss from its destruction. A good attorney could force the insurer to pay the claim, but therein lies the problem. Do you want your client to have this kind of difficulty with the insurance you sold her?

5 It's always a good idea to consider these matters in advance. Your clients need your input in deciding how to insure the corporate car. Give it to them straight, and don't be intimidated by their accountant or attorney. Once you give your best advice, though, the client is responsible for the decision. PIA thanks Mary Ann Racicot, CPA, of the Charles L. Marvin & Co., PC, accounting firm in Schenectady, N.Y., for her contribution to this article. Includes copyrighted material of Insurance Services Office Inc., with its permission. Copyrighted, Insurance Service Office, 1986, 1987, 1994, /02 PIA your best source of information With respect to all information found in this communication, PIA of Florida and its directors, officers, members, or employees make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained therein. PIA of Florida does not warrant that the information or services will meet any specific requirements; nor will it be error-free or uninterrupted; nor shall PIA of Florida be liable for any indirect, incidental, or consequential damages sustained or incurred in connection with the use of information in this communication. Under no circumstances will PIA of Florida be liable for any loss or damage caused by anyone's reliance on information contained in this communication. 1-05

1998 ISO personal auto policy revisions

1998 ISO personal auto policy revisions 1998 ISO personal auto policy revisions 1998 ISO personal auto policy revisions Resource kit 90129 By Ted Kinney, CIC, CPCU, ARM, AU, AAM, AAI Nothing is certain in life but change. This is especially

More information

Who s Insured On What Auto? Determining Insured Status on Personal and Business Auto Policies:

Who s Insured On What Auto? Determining Insured Status on Personal and Business Auto Policies: Who s Insured On What Auto? Determining Insured Status on Personal and Business Auto Policies: Presented by: Ted A. Kinney, CIC CPCU ARM AU AAM AAI CPIA Alabama Independent Insurance Agents Birmingham,

More information

BUSINESS AUTO EXPOSURES AND COVERAGE

BUSINESS AUTO EXPOSURES AND COVERAGE BUSINESS AUTO EXPOSURES AND COVERAGE SANDI KRUISE INSURANCE TRAINING 1-800-517-7500 www.kruise.com Copyright Sandi Kruise Insurance Training, 2003-2015, all rights reserved TABLE OF CONTENTS BUSINESS AUTO...

More information

Other states' coverage in WC residual market policies Resource kit 31034

Other states' coverage in WC residual market policies Resource kit 31034 Other states' coverage Other states' coverage in WC residual market policies Resource kit 31034 By Dan Corbin, CPCU, CIC, LUTC The idea of a uniform solution to other states coverage in the workers' compensation

More information

LOUISIANA HIRED AUTO AND NON-OWNED AUTO LIABILITY/UNINSURED MOTORISTS INSURANCE (BODILY INJURY)

LOUISIANA HIRED AUTO AND NON-OWNED AUTO LIABILITY/UNINSURED MOTORISTS INSURANCE (BODILY INJURY) POLICY NUMBER: COMMERCIAL GENERAL LIABILITY CG 04 19 01 96 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOUISIANA HIRED AUTO AND NON-OWNED AUTO LIABILITY/UNINSURED MOTORISTS INSURANCE

More information

The Liability of Lessors and the Insurance Implications of Bill 35

The Liability of Lessors and the Insurance Implications of Bill 35 The Liability of Lessors and the Insurance Implications of Bill 35 The British Columbia Legislature recently took steps to cap the liability exposure of auto dealers and auto leasing companies. Included

More information

insurance auto insurance

insurance auto insurance insurance auto insurance our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety concerns and significant

More information

COMMERCIAL AUTOMOBILE EXPANSION ENDORSEMENT

COMMERCIAL AUTOMOBILE EXPANSION ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL AUTOMOBILE EXPANSION ENDORSEMENT This endorsement modifies insurance provided under the BUSINESS AUTO COVERAGE FORM The following

More information

BUSINESS INSURANCE FAQ

BUSINESS INSURANCE FAQ BUSINESS INSURANCE FAQ Q: What is Business Insurance? A: We strive to understand your risk tolerance and financial ability to withstand the spectrum of potential losses and develop insurance programs to

More information

Automobile Insurance in Pennsylvania a supplement to the Automobile Insurance Guide

Automobile Insurance in Pennsylvania a supplement to the Automobile Insurance Guide and answers about Automobile Insurance in Pennsylvania a supplement to the Automobile Insurance Guide My automobile policy was canceled because I did not pay my premium on time. Is this legal? Yes. If

More information

Your Quick Reference for Florida Auto Accident Law

Your Quick Reference for Florida Auto Accident Law Call Us Now (813) 269-7421 FREE Consultation Your Quick Reference for Florida Auto Accident Law At the Law Offices of Martin Schwartz, we are here to take care of your legal needs in the aftermath of an

More information

114CSR63 WEST VIRGINIA LEGISLATIVE RULE INSURANCE COMMISSIONER SERIES 63 STANDARD MOTOR VEHICLE POLICY PROVISIONS

114CSR63 WEST VIRGINIA LEGISLATIVE RULE INSURANCE COMMISSIONER SERIES 63 STANDARD MOTOR VEHICLE POLICY PROVISIONS 114CSR63 WEST VIRGINIA LEGISLATIVE RULE INSURANCE COMMISSIONER SERIES 63 STANDARD MOTOR VEHICLE POLICY PROVISIONS Section. '114-63-1. General. '114-63-2. Definitions. '114-63-3. Liability Insurance Provisions.

More information

Rental Car Coverage and the MAP - So Much Exposure & So Little Coverage!

Rental Car Coverage and the MAP - So Much Exposure & So Little Coverage! Rental Car Coverage and the MAP - So Much Exposure & So Little Coverage! RENTAL CAR COVERAGE & THE MAP- SO MUCH EXPOSURE & SO LITTLE COVERAGE Robin Federici, CPCU, AAI, ARM, AINS, AIS, CPIW PO BOX 781

More information

SASKATCHEWAN PRESTIGE AUTO INSURANCE

SASKATCHEWAN PRESTIGE AUTO INSURANCE Licence Plate Insurance... 2 Why Plate Insurance Isn t Enough... 3 Added Liability Protection... 4 Family Protection Coverage... 4 Vehicle Damage Deductible... 5 Accident Benefits... 5 Non-Owned Driver

More information

13.12.3.1 ISSUING AGENCY: New Mexico Public Regulation Commission Insurance Division. [7/1/97; 13.12.3.1 NMAC - Rn & A, 13 NMAC 12.3.

13.12.3.1 ISSUING AGENCY: New Mexico Public Regulation Commission Insurance Division. [7/1/97; 13.12.3.1 NMAC - Rn & A, 13 NMAC 12.3. TITLE 13 CHAPTER 12 PART 3 INSURANCE MOTOR VEHICLE INSURANCE UNINSURED AND UNKNOWN MOTORISTS COVERAGE 13.12.3.1 ISSUING AGENCY: New Mexico Public Regulation Commission Insurance Division. [7/1/97; 13.12.3.1

More information

WRONGFUL DISCLAIMERS OF UM and UIM COVERAGE UNDER BUSINESS AUTO POLICIES

WRONGFUL DISCLAIMERS OF UM and UIM COVERAGE UNDER BUSINESS AUTO POLICIES WRONGFUL DISCLAIMERS OF UM and UIM COVERAGE UNDER BUSINESS AUTO POLICIES BY: James C. Haggerty HAGGERTY, GOLDBERG, SCHLEIFER & KUPERSMITH, P.C. 1835 Market Street, Suite 2700 Philadelphia, PA 19103 (267)

More information

SASKATCHEWAN AUTO INSURANCE

SASKATCHEWAN AUTO INSURANCE Accident Benefits... 5 Added Liability Protection... 4 Affordable Premiums... 7 Coverage Summary Charts Commercial Vehicles... 9 Private Passenger Vehicles... 8 Family Protection Coverage... 4 Licence

More information

Presentation Slides. Lesson Nine. Cars and Loans 04/09

Presentation Slides. Lesson Nine. Cars and Loans 04/09 Presentation Slides $ Lesson Nine Cars and Loans 04/09 costs of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit)

More information

r Commercial Auto & The Dreaded Rental Car Issue!

r Commercial Auto & The Dreaded Rental Car Issue! Education ProgramS r Commercial Auto & The Dreaded Rental Car Issue! sponsored by COMMERCIAL AUTO & THE DREADED RENTAL CAR ISSUE Robin Federici, CPCU, AAI, ARM, AINS,AIS, CPIW PO BOX 781 NORTH KINGSTOWN,

More information

CONSUMER S GUIDE TO AUTO INSURANCE

CONSUMER S GUIDE TO AUTO INSURANCE CONSUMER S GUIDE TO AUTO INSURANCE The Colorado Division of Insurance prepares this booklet to assist you in shopping for auto insurance and to help you understand your Personal Auto Policy. When shopping

More information

A Consumer s Guide to Personal Auto Insurance

A Consumer s Guide to Personal Auto Insurance Maine Bureau of Insurance 34 State House Station Augusta, ME 04333-0034 A Consumer s Guide to Personal Auto Insurance A Publication of the Maine Bureau of Insurance June 2015 Paul R. LePage Governor Eric

More information

NAIC Consumer Shopping Tool for Auto Insurance

NAIC Consumer Shopping Tool for Auto Insurance NAIC Consumer Shopping Tool for Auto Insurance Need Auto Insurance? Here is What You Need to Know. Whether you are buying auto insurance for the first time, or shopping to be sure you are getting the best

More information

THE STATE OF FLORIDA...

THE STATE OF FLORIDA... TABLE OF CONTENTS I. THE STATE OF FLORIDA... 2 A. FREQUENTLY CITED FLORIDA STATUTES... 2 1. General Considerations in Insurance Claim Management... 2 2. Insurance Fraud... 5 3. Automobile Insurance...

More information

Does Automobile Insurance Follow the Car or the Driver?

Does Automobile Insurance Follow the Car or the Driver? Page 1 of 6 View this article online: http://www.claimsjournal.com/news/national/2014/06/05/249762.htm Does Automobile Insurance Follow the Car or the Driver? By Gary Wickert June 5, 2014 Article 2 Comments

More information

ONYX BUSINESS AUTO POLICY COVERAGE

ONYX BUSINESS AUTO POLICY COVERAGE ONYX BUSINESS AUTO POLICY COVERAGE Various provisions in this policy restrict overage Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy

More information

Automobile Insurance 1

Automobile Insurance 1 FCS7020 Automobile Insurance 1 Nayda I. Torres and Josephine Turner 2 An automobile is often the most expensive property that people own, next to a home. As a result, protection against loss of an automobile

More information

A Shopping Tool for. Automobile Insurance. Mississippi Insurance Department

A Shopping Tool for. Automobile Insurance. Mississippi Insurance Department Automobile Insurance Mississippi Insurance Department 1 2014 National Association of Insurance Commissioners All rights reserved. National Association of Insurance Commissioners Insurance Products & Services

More information

COVERAGES AND ENDORSEMENTS

COVERAGES AND ENDORSEMENTS 1 DESCRIPTION OF PERSONAL AUTO COVERAGE The following is a general description of the coverages provided by the Personal Auto coverage form. The policy deductible applies to coverages and endorsements

More information

Prepared by: Barton L. Slavin, Esq. 212-233-1010 Web site: www.nycattorneys.com

Prepared by: Barton L. Slavin, Esq. 212-233-1010 Web site: www.nycattorneys.com Prepared by: Barton L. Slavin, Esq. 1. Identify Insurance Company - On the Police Report there is a three digit code that identifies the insurance company for a vehicle. The following link will take you

More information

lesson nine cars and loans overheads

lesson nine cars and loans overheads lesson nine cars and loans overheads the cost of owning and operating a motor vehicle ownership (fixed) costs: Depreciation (based on purchase price) Interest on loan (if buying on credit) Insurance Registration

More information

TABLE OF CONTENTS Minimum Provisions for Automobile Liability Insurance Policies Covering Motor Vehicles

TABLE OF CONTENTS Minimum Provisions for Automobile Liability Insurance Policies Covering Motor Vehicles Insurance Department Sec. 38a-334 page 1 (10-00) TABLE OF CONTENTS Minimum Provisions for Automobile Liability Insurance Policies Covering Motor Vehicles Required areas of coverage.... 38a-334-1 Definitions....

More information

Insuring Business Vehicles

Insuring Business Vehicles Insuring Business Vehicles WHAT IS BUSINESS VEHICLE INSURANCE? As a businessowner, you need some of the same insurance coverages for the cars, trucks, vans or other vehicles you use in your business as

More information

AMENDATORY ENDORSEMENT NORTH CAROLINA PERSONAL AUTO POLICY

AMENDATORY ENDORSEMENT NORTH CAROLINA PERSONAL AUTO POLICY AMENDATORY ENDORSEMENT NORTH CAROLINA PERSONAL AUTO POLICY This Endorsement amends the Policy as follows: I. DEFINITIONS The Definitions Section is amended as follows: A. The third paragraph is replaced

More information

How to Maximize Your Tax Write- Offs For Car and Truck Expenses

How to Maximize Your Tax Write- Offs For Car and Truck Expenses How to Maximize Your Tax Write- Offs For Car and Truck Expenses By Phil Eubank, MBA, EA [For IRS Code 179A, visit www.irs.gov/publications/p946/ch02.html] For many self-employed contractors, salespersons

More information

General Insurance Definitions:

General Insurance Definitions: General Insurance Definitions: Accidental Death Coverage Accidental death coverage is sometimes a part of your auto insurance policy's Personal Injury Protection (PIP) or may be offered as a separate Accidental

More information

Auto Insurance Buyers Guide

Auto Insurance Buyers Guide Auto Insurance Buyers Guide Table of Contents Understand Your Rights as a Consumer...1 Introduction...... 2 Why You Need Auto Insurance...... 3 When to Shop for a New Auto Insurance Policy.. 4 How to Shop

More information

SUBJECT: Effective October 15, 2005 for new and renewal business OMI is making a number of changes to our Commercial Auto Program.

SUBJECT: Effective October 15, 2005 for new and renewal business OMI is making a number of changes to our Commercial Auto Program. OREGON MUTUAL INSURANCE COMPANY DEPT: SUBJECT: DATE: BULLETIN NO: 1966 September 14, 2005 California Regional Office TO: All OMI California Agents Commercial Auto Changes Effective October 15, 2005 for

More information

Coverage for Other People Using Your Car. Today s Lecture State Farm Car Policy. Other People s Use of Your Car - Example

Coverage for Other People Using Your Car. Today s Lecture State Farm Car Policy. Other People s Use of Your Car - Example Today s Lecture State Farm Car Policy Other people using your car Your using other cars Other people using other cars Coverage for Other People Using Your Car Anybody using your car with permission is

More information

Car Costs ASSESSMENT ONE: Assessment #1

Car Costs ASSESSMENT ONE: Assessment #1 Assessment #1 ASSESSMENT ONE: Knowledge ο T / F You must register your car with the Department of Motor Vehicles (DMV) once every two years. ο T / F Being able to afford a car involves more than being

More information

The Impact of the Graves Amendment on Independent Driver Cases

The Impact of the Graves Amendment on Independent Driver Cases The Impact of the Graves Amendment on Independent Driver Cases California state law provides an owner of a motor vehicle is vicariously liable up to a maximum of $15,000 for injury to persons and property

More information

The Michigan Auto Insurance Report

The Michigan Auto Insurance Report The Michigan Auto Insurance Report The Inside Secrets To Buying Auto Insurance" By: Daniel L. Buckfire Michigan s No-Fault Insurance Lawyer Call Toll Free: (800) 606-1717 www.buckfirelaw.com www.freeautoinsurancereport.com

More information

ARIZONA AUTO INSURANCE APPLICATION. Nevada General Insurance Company UNDERWRITTEN BY NEVADA GENERAL INSURANCE COMPANY Transmittal Date/Time:

ARIZONA AUTO INSURANCE APPLICATION. Nevada General Insurance Company UNDERWRITTEN BY NEVADA GENERAL INSURANCE COMPANY Transmittal Date/Time: ARIZONA AUTO INSURANCE APPLICATION Nevada General Insurance Company Transmittal Date/Time: Policy Number: Program: Valu APPLICATION INFORMATION Named Insured and Mailing Address PRODUCER Producer Code

More information

Quick Preview PROPERTY DAMAGE

Quick Preview PROPERTY DAMAGE Quick Preview PROPERTY DAMAGE You are you first priority, take care of you first Understand rental insurance, towing and storage costs Figure out what kind of insurance coverage you have Choose a reputable

More information

Motorcyclists and the Michigan No-Fault Law

Motorcyclists and the Michigan No-Fault Law Motorcyclists and the Michigan No-Fault Law (2nd Edition) Important Questions and Answers By George T. Sinas SINAS, DRAMIS, BRAKE, BOUGHTON & MCINTYRE, P.C. ATTORNEYS AT LAW 3380 Pine Tree Road, Lansing,

More information

COVERAGES & ENDORSEMENTS

COVERAGES & ENDORSEMENTS ACCIDENTAL DEATH OR DISMEMBERMENT Endorsement PPT100 applies to Personal Autos. This optional endorsement provides coverage for your death, dismemberment or loss of sight. If within ninety (90) days from

More information

A Shopping Tool for. Automobile Insurance. Mississippi Insurance Department

A Shopping Tool for. Automobile Insurance. Mississippi Insurance Department A Shopping Tool for Automobile Insurance Mississippi Insurance Department 1 A Shopping Tool for 2014 National Association of Insurance Commissioners All rights reserved. National Association of Insurance

More information

State Office of Risk Management Auto Symposium 2015 Commercial Statewide Auto Program Basics

State Office of Risk Management Auto Symposium 2015 Commercial Statewide Auto Program Basics State Office of Risk Management Auto Symposium 2015 Commercial Statewide Auto Program Basics 1. Business Auto Conditions 2. Business Auto Coverages 3. Business Auto Coverage Expansions 4. Endorsements

More information

FLORIDA PERSONAL INJURY PROTECTION

FLORIDA PERSONAL INJURY PROTECTION POLICY NUMBER: COMMERCIAL AUTO CA 22 10 01 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA PERSONAL INJURY PROTECTION For a covered "auto" licensed or principally garaged in,

More information

CERTIFICATE OF INSURANCE: WHAT YOU SHOULD KNOW

CERTIFICATE OF INSURANCE: WHAT YOU SHOULD KNOW INTERGOVERNMENTAL RISK MANAGEMENT AGENCY CERTIFICATE OF INSURANCE: WHAT YOU SHOULD KNOW PURPOSE: To assist individuals with reviewing and evaluation a Certificate of Insurance provided by outside entities

More information

GARAGE INSURANCE: The Basics How to make garage risks a part of your agency portfolio.

GARAGE INSURANCE: The Basics How to make garage risks a part of your agency portfolio. GARAGE INSURANCE: The Basics How to make garage risks a part of your agency portfolio. By Jim Krotki, CPCU An often overlooked source of commercial insurance prospects is garage business. Some agents are

More information

Protecting Your Business and Reducing Your Risk With Automobile Insurance Coverage

Protecting Your Business and Reducing Your Risk With Automobile Insurance Coverage Protecting Your Business and Reducing Your Risk With Automobile Insurance Coverage As attorneys who represent catastrophically injured people in Missouri and Kansas, we see far too many people with inadequate

More information

Your Guide to Auto Insurance Premiums

Your Guide to Auto Insurance Premiums INSURANCE FACTS for Pennsylvania Consumers Your Guide to Auto Insurance Premiums 1-877-881-6388 Toll-free Automated Consumer Line www.insurance.state.pa.us Pennsylvnaia Insurance Department Website Required

More information

DIVISION OF INSURANCE

DIVISION OF INSURANCE Alaska Consumer Guide to Auto Insurance State of Alaska Department of Commerce, Community, and Economic Development DIVISION OF INSURANCE About the Alaska Division of Insurance The Alaska Division of Insurance

More information

2013 COMMERCIAL LINES OOPS!

2013 COMMERCIAL LINES OOPS! 2013 COMMERCIAL LINES OOPS! (OFTEN OVERLOOKED POLICY SECTIONS) SPONSORED BY The policy says WHAT???!!! The OOPS!!! Commercial Lines OOPS Often Overlooked Policy Sections Michael C. D Orlando, CIC, LIA,

More information

Business Auto Policy

Business Auto Policy Business Auto Policy American Family s Business Auto Policy With more than thirty years of commercial lines policy experience and $15 billion in assets*, American Family offers businesses the stability,

More information

Section 60-1.1 Mandatory provisions.

Section 60-1.1 Mandatory provisions. 11 NYCRR 60-1.1 OFFICIAL COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK TITLE 11. INSURANCE DEPARTMENT CHAPTER III. POLICY AND CERTIFICATE PROVISIONS SUBCHAPTER B. PROPERTY AND CASUALTY

More information

Student Activities. Lesson Nine. Cars and Loans 04/09

Student Activities. Lesson Nine. Cars and Loans 04/09 Student Activities $ Lesson Nine Cars and Loans 04/09 operating costs of a motor vehicle model year make, size, model fixed costs Depreciation: Purchase price $ divided by estimated life years $ Annual

More information

3420. Liability insurance; standard provisions; right of injured person

3420. Liability insurance; standard provisions; right of injured person 3420. Liability insurance; standard provisions; right of injured person (a) No policy or contract insuring against liability for injury to person, except as provided in subsection (g) of this section,

More information

Automobile Insurance Guide

Automobile Insurance Guide Automobile Insurance Guide Page 1 Simply stated, automobile insurance is a contract between you and your insurance company that protects you against financial loss if you are in an accident. Auto policies

More information

Frequently Asked Questions Auto Insurance

Frequently Asked Questions Auto Insurance STATE OF WISCONSIN Frequently Asked Questions Auto Insurance OFFICE OF THE COMMISSIONER OF INSURANCE PI-233 (C 03/2015) The Automobile Insurance Policy (page 1) Wisconsin's Financial Responsibility Law

More information

What you. need to know. Auto Insurance. A consumer information publication

What you. need to know. Auto Insurance. A consumer information publication What you Auto Insurance need to know A consumer information publication The Minnesota Department of Commerce has prepared this guide to help you better understand auto insurance. It gives you information

More information

Personal and Business Auto Table of Contents p. 1 of 5 Unit 1 - Introducing Auto Insurance pp. 7-41

Personal and Business Auto Table of Contents p. 1 of 5 Unit 1 - Introducing Auto Insurance pp. 7-41 Personal and Business Auto Table of Contents p. 1 of 5 Unit 1 - Introducing Auto Insurance pp. 7-41 Problems associated with auto accidents and insurance The large number of auto incidents High Cost of

More information

COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT

COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT COMMERCIAL GENERAL LIABILITY UI GL 39 04 14 COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT The Commercial General Liability Enhancement Endorsement is an optional endorsement that provides coverage

More information

BUSINESS AUTO DECLARATIONS

BUSINESS AUTO DECLARATIONS COMMERCIAL AUTO B CA DS 03 01 12 Issuing Company: Tri-State Insurance Company of Minnesota Policy No.: Previous Policy No.: BUSINESS AUTO DECLARATIONS ITEM ONE NAMED INSURED AND ADDRESS AGENCY NAME AND

More information

Millennium Policy. Report Claims To: Alliance United Insurance Company P.O. Box 6042 Camarillo, CA 93011-6042 Phone (800) 508-5833

Millennium Policy. Report Claims To: Alliance United Insurance Company P.O. Box 6042 Camarillo, CA 93011-6042 Phone (800) 508-5833 Millennium Policy Report Claims To: Alliance United Insurance Company P.O. Box 6042 Camarillo, CA 93011-6042 Phone (800) 508-5833 Fraud Warning Pursuant to California Insurance Code Section 1879.2, you

More information

Blog by Tommy Ruke, The King Pin Leading Expert in Truck Insurance

Blog by Tommy Ruke, The King Pin Leading Expert in Truck Insurance Blog by Tommy Ruke, The King Pin Leading Expert in Truck Insurance Non-Owned Trailers Additional Discussion The previous blog received a lot of comments. Here is a more in depth discussion: Denny Beecher

More information

NEW JERSEY AUTO INSURANCE BUYER S GUIDE. Jon S. Corzine Governor. Steven M. Goldman Commissioner

NEW JERSEY AUTO INSURANCE BUYER S GUIDE. Jon S. Corzine Governor. Steven M. Goldman Commissioner NEW JERSEY AUTO INSURANCE BUYER S GUIDE Jon S. Corzine Governor Steven M. Goldman Commissioner WHERE DO I START?... 1 UNDERSTANDING YOUR POLICY... 2-6 Types of Coverages Standard and Basic Policies What

More information

NORTH DAKOTA PERSONAL INJURY PROTECTION ENDORSEMENT

NORTH DAKOTA PERSONAL INJURY PROTECTION ENDORSEMENT COMMERCIAL AUTO CA 22 34 10 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NORTH DAKOTA PERSONAL INJURY PROTECTION ENDORSEMENT For a covered "auto" licensed or principally garaged in,

More information

Guide to Knowing Your Auto

Guide to Knowing Your Auto Guide to Knowing Your Auto & Homeowners Insurance Options Presented by: 1 When it comes to insurance, you can never know too much. What type of insurance is available and how much coverage you need? And

More information

FINDING LIABILITY COVERAGE By Jennifer H. Seate I. THE BASICS

FINDING LIABILITY COVERAGE By Jennifer H. Seate I. THE BASICS FINDING LIABILITY COVERAGE By Jennifer H. Seate I. THE BASICS A. PURPOSE We represent injured clients. We find the tortfeasor negligent and prove our clients were injured by the tortfeasor s negligence.

More information

No-Fault Automobile Insurance

No-Fault Automobile Insurance No-Fault Automobile Insurance By Margaret C. Jasper, Esq. Prior to the enactment of state no-fault insurance legislation, recovery for personal injuries sustained in an automobile accident were subject

More information

ZacharLawFirm.com (602) 494-4800 Page 1

ZacharLawFirm.com (602) 494-4800 Page 1 There are countless drivers across the state of Arizona that are uninsured or underinsured. In fact, it is estimated that one (1) out of every five (5) drivers on the road is driving without insurance.

More information

Home and Automobile Insurance Guide

Home and Automobile Insurance Guide Home and Automobile Insurance Guide General Information Finding the best insurance policies to suit your needs can be a complex and confusing business. To help you, we have addressed questions and defined

More information

Automobile Negligence Lawsuits

Automobile Negligence Lawsuits SOG/DGL, CH, JB Page 1 of 6 Automobile Negligence Lawsuits Who Is Sued? Driver the driver is the person whose negligence gives rise to the liability. The person suing must prove that the driver negligently

More information

MARYLAND PERSONAL AUTO SUPPLEMENT

MARYLAND PERSONAL AUTO SUPPLEMENT MARYLAND PERSONAL AUTO SUPPLEMENT AGENCY NAMED INSURED(S) POLICY NUMBER EFFECTIVE DATE CARRIER NAIC CODE Mandatory Offer of Increased Liability Coverage for Claims of Family Members at an Additional Premium

More information

INSURING GARAGE RISKS

INSURING GARAGE RISKS INSURING GARAGE RISKS SANDI KRUISE INSURANCE TRAINING 1-800-517-7500 www.kruise.com GARAGE COVERAGE FORM... 4 Auto Dealers... 4 Non-dealers... 5 Both Dealers and Non-dealers... 5 COMPONENTS OF THE ISO

More information

MENDAKOTA CASUALTY COMPANY (Serviced by KAI Advantage Auto, Inc.) PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS

MENDAKOTA CASUALTY COMPANY (Serviced by KAI Advantage Auto, Inc.) PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS MENDAKOTA CASUALTY COMPANY (Serviced by KAI Advantage Auto, Inc.) PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS IMPORTANT Notify the Company s claim office in Itasca, Illinois by telephone, of every accident

More information

The Hold Harmless Agreement and the CGL

The Hold Harmless Agreement and the CGL The Hold Harmless Agreement and the CGL Since most insurance agents are not attorneys, dealing with the contractual liability exposure and coverage is a bewildering and intimidating prospect. To make matters

More information

COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT

COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT COMMERCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEMENT The Commercial General Liability Enhancement Endorsement is an optional endorsement that provides coverage enhancements. The following is a summary

More information

STATE OF OKLAHOMA. 2nd Session of the 47th Legislature (2000) AS INTRODUCED

STATE OF OKLAHOMA. 2nd Session of the 47th Legislature (2000) AS INTRODUCED STATE OF OKLAHOMA 2nd Session of the 47th Legislature (2000) SENATE BILL 1555 By: Helton AS INTRODUCED An Act relating to insurance; amending 36 O.S. 1991, Section 3636, as amended by Section 5, Chapter

More information

NEW YORK STATE BAR ASSOCIATION. LEGALEase. If You Have An Auto Accident SAMPLE

NEW YORK STATE BAR ASSOCIATION. LEGALEase. If You Have An Auto Accident SAMPLE NEW YORK STATE BAR ASSOCIATION LEGALEase If You Have An Auto Accident If You Have An Auto Accident What should you do if you re involved in an automobile accident in New York? STOP! By law, you are required

More information

By Donald L. Brown. Commercial Auto Policy

By Donald L. Brown. Commercial Auto Policy By Donald L. Brown Every company owner should protect business operations with adequate insurance coverage. Yet the automobile liability requirements can be confusing because of seemingly overlapping coverages,

More information

Arkansas. Insurance Department AUTOMOBILE INSURANCE. Mike Beebe Governor. Jay Bradford Commissioner

Arkansas. Insurance Department AUTOMOBILE INSURANCE. Mike Beebe Governor. Jay Bradford Commissioner Arkansas Insurance Department AUTOMOBILE INSURANCE Mike Beebe Governor Jay Bradford Commissioner A Message From The Commissioner The Arkansas Insurance Department takes very seriously its mission of consumer

More information

PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS IMPORTANT

PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS IMPORTANT PERSONAL AUTOMOBILE INSURANCE POLICY ILLINOIS IMPORTANT Notify the Company at 7400 N. Caldwell, Niles, IL 60714, (773) 299-7500, of EVERY accident, however slight, immediately upon its occurrence. Delay

More information

RESPONDENT'S ANSWER BRIEF JAMES H. WHITE, JR. STAATS, WHITE & CLARKE. Florida Bar No.: 309303. 229 McKenzie Avenue. Panama City, Florida 32401

RESPONDENT'S ANSWER BRIEF JAMES H. WHITE, JR. STAATS, WHITE & CLARKE. Florida Bar No.: 309303. 229 McKenzie Avenue. Panama City, Florida 32401 IN THE SUPREME COURT OF FLORIDA FILED THE TRAVELERS INSURANCE COMPANY and THE PHOENIX INSURANCE COMPANY, vs. Petitioners, CASE NO.: 85,337 BRETT ALLAN WARREN, Personal DISTRICT COURT OF APPEAL Representative

More information

ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIMEN. This endorsement, effective at 12:01 A.M.

ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIMEN. This endorsement, effective at 12:01 A.M. ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement, effective at 12:01 A.M. Policy No. By: Issued to: forms a part of BUSINESS AUTO BROAD FORM ENDORSEMENT FORM

More information

Public Act No. 14-20

Public Act No. 14-20 Public Act No. 14-20 AN ACT CONCERNING UNINSURED AND UNDERINSURED MOTORIST COVERAGE OFFSETS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 38a-336

More information

Benefits Handbook Date November 1, 2011. Group Umbrella Liability Insurance Plan Marsh & McLennan Companies

Benefits Handbook Date November 1, 2011. Group Umbrella Liability Insurance Plan Marsh & McLennan Companies Date November 1, 2011 Group Umbrella Liability Insurance Plan Marsh & McLennan Companies Group Umbrella Liability Insurance Plan This optional insurance provides additional liability coverage above the

More information

INSURANCE. Automobile GUIDE

INSURANCE. Automobile GUIDE Automobile INSURANCE GUIDE The Pennsylvania Insurance Department is here to help you understand automobile insurance. In the next few pages you will learn about auto insurance, types of coverage available,

More information

Student Activities. Lesson Nine. Cars and Loans. Practical_Money Skills for Life 04/09

Student Activities. Lesson Nine. Cars and Loans. Practical_Money Skills for Life 04/09 Student Activities Lesson Nine Cars and Loans Practical_Money Skills for Life 04/09 name: operating costs of a motor vehicle model year make, size, model fixed costs Depreciation: Purchase price $ divided

More information

SUMMARY OF PENNSYLVANIA AUTO INSURANCE LAW

SUMMARY OF PENNSYLVANIA AUTO INSURANCE LAW SUMMARY OF PENNSYLVANIA AUTO INSURANCE LAW The laws relating to automobile insurance coverage are compiled in 75 Pa.C.S.A. 1701 et seq., known as the Act 6 Amendments to the PA Motor Vehicle Financial

More information

of exception to calendar requirement.

of exception to calendar requirement. INSURANCE DEPARTMENT OF BANKING AND INSURANCE DIVISION OF INSURANCE Insurance Scenarios Proposed New Rules: N.J.A.C. 11:3-47 Authority: N.J.S.A. 17:1-8.1, 17:1-15e, and 17:29A-52 Calendar Reference: See

More information

10 Commercial Automobile

10 Commercial Automobile 10 Commercial Automobile Learning Objectives When you finish this study, you should be able to meet the following objectives: Explain the need for forms, endorsements, and agreements in addition to the

More information

1. What s the difference between Limited Tort and Full Tort Auto Insurance Policies?

1. What s the difference between Limited Tort and Full Tort Auto Insurance Policies? Auto 1. What s the difference between Limited Tort and Full Tort Auto Insurance Policies? Limited Tort and Full Tort refer to different types of coverage under a auto insurance policy and what compensation

More information

COMMERCIAL AUTOMOBILE APPLICATION

COMMERCIAL AUTOMOBILE APPLICATION Home Office: One Nationwide Plaza Columbus, Ohio 43215 Administrative Office: 8877 North Gainey Center Drive Scottsdale, Arizona 85258 1-800-423-7675 Fax (480) 483-6752 A STOCK COMPANY COMMERCIAL AUTOMOBILE

More information

THE TOP 10 QUESTIONS YOU SHOULD ASK YOUR CAR ACCIDENT LAWYER

THE TOP 10 QUESTIONS YOU SHOULD ASK YOUR CAR ACCIDENT LAWYER THE TOP 10 QUESTIONS YOU SHOULD ASK YOUR CAR ACCIDENT LAWYER? Introduction After six straight years of decline, the National Highway Traffic Administration (NHTSA) reports that auto accidents, injuries

More information

Presentation Slides. Lesson Eight. Cars and Loans 04/09

Presentation Slides. Lesson Eight. Cars and Loans 04/09 Presentation Slides $ Lesson Eight Cars and Loans 04/09 the costs of owning and operating a car Ownership (fixed) costs: Purchase price Sales tax Registration fee, title, and license Financing costs Insurance

More information

Changing Tort Reform In Kentucky Christel Siglock. By changing its current No-Fault and Tort law options, Kentucky could; 1) Reduce the

Changing Tort Reform In Kentucky Christel Siglock. By changing its current No-Fault and Tort law options, Kentucky could; 1) Reduce the Changing Tort Reform In Kentucky Christel Siglock By changing its current No-Fault and Tort law options, Kentucky could; 1) Reduce the number of lawsuits filed, 2) Thus reducing insurance company payouts

More information

A Consumer s Guide to: Auto Insurance. Choosing and using your auto insurance coverage. Washington State Office of the Insurance Commissioner

A Consumer s Guide to: Auto Insurance. Choosing and using your auto insurance coverage. Washington State Office of the Insurance Commissioner A Consumer s Guide to: Auto Insurance Choosing and using your auto insurance coverage Washington State Office of the Insurance Commissioner Washington State www.insurance.wa.gov Office of the Insurance

More information

INSURANCE auto insurance

INSURANCE auto insurance INSURANCE auto insurance our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety concerns and significant

More information