It is not feasible to describe or provide samples of all Endorsements because of the variety of state regulations and laws, and the number of insurance companies. For purposes of this text, examples of some of the most used Endorsements are described and illustrated. Most of them have been briefly discussed as to functions in the earlier text.
The Miscellaneous Type Vehicles is used to provide coverage for motor vehicles that are not covered under a PAP, including motor homes, motorcycles, all-terrain vehicles, golf carts or dune buggy. It can also extend coverage for a private passenger auto owned jointly by two or more relatives (other than husband and wife) or other individuals who reside in the household. Normally, the private passenger auto jointly owned would be insured under its own policy. The format of this Endorsement is much like a “mini-policy” inasmuch as it is comprised of several sections relating to the particular part of the PAP form.
In the discussion of “Part D – Coverage For Damage To Your Auto” it is mentioned that Transportation Expenses coverage is automatically available to a policyholder if they have “Other Than Collision Coverage” for the covered automobile, and such vehicle is stolen. Under the terms of the typical PAP, the insured would probably be able to purchase similar coverage for other types of losses, which is provided by this Endorsement.
Endorsement extends the Part D provisions to allow (as examples, amounts may vary by state or company) $15 per day, to a maximum of $450, to rent a substitute vehicle if the covered automobile, or a non-owned automobile cannot be used for more than 24 hours because of a loss covered under the PAP. Note that the insured auto must be covered under Part D and is not subject to exclusion (for example: an engine that has to be replaced because it has operated for 300,000 miles, would not be a covered loss).
Secondly, the loss must not be a total theft, however, if the car is stolen, the Transportation Expenses of Part D would apply and would pay for the rental car.
This particular Endorsement example allows for the coverage to be increased to $30 a day with a maximum of $900.
This Endorsement eliminate some of the previous - mentioned exclusions in “Part A – Liability Coverage”, and modifies some exclusions under “Part B – Medical Payments Coverage.” Under the PAP, liability is excluded if the vehicle were hired or used as a livery conveyance. This Endorsement eliminates that exclusion. This allows a taxi driver (as an example) that has a PAP, for the PAP to serve as secondary coverage. (Note: It does not provide the coverage needed by a Taxi Driver, as they must have a Commercial policy covering them while driving their taxi).
Exclusions in the PAP stated that liability will not be provided for vehicles owned by the named insured, a resident spouse or family member, furnished or available for the regular use of the named insured or any family member, if the vehicle is not listed on the policy. This Endorsement eliminates that restriction and extends the coverage. It is most frequently used to extend PAP provisions to a car furnished by an employer.
Under Medical Coverage there are similar exclusions that exclude payments if the insured or a family member were injured while occupying a covered vehicle, or struck by an owned or regularly available vehicle that is not on the policy. This Endorsement again extends this coverage.
This Endorsement has been mentioned previously in the text. The intent of this Endorsement is to compensate the insured if the other driver responsible for the accident has liability limits that are too low to pay for the entire claim. The insured’s Underinsured Motorist Coverage would pay the insured for their own bodily injuries up to the limit chosen. Frequently, the Underinsured Motorists limits selected are the same as the Uninsured Motorist limits in their state. The wording of the this Endorsement closely resembles that of the Uninsured Motorists coverage.
As an example, Joe has a PAP which has Medical Payments Coverage of $1,000 and $100,000 of Uninsured Motorists coverage. Joe feels safe as he believes that he has adequate coverage for any contingency. However, Joe was backing out of his driveway when his neighbor’s 17-year old son loses control of his car in the street and collides with Joe’s car causing serious injuries to Joe. Joe is entitled to receive $78,000 for his injuries. However, his neighbors policy only has the minimum required coverage - $15,000. Therefore, his neighbor is not “uninsured” but is “underinsured.” Joe can recover $15,000 from his neighbor’s policy, and $1,000 of medical payments from his own policy. Joe must come up with $62,000 and of course, he can sue his neighbor.
This endorsement covers such items as CB radios, mobile radios, televisions, VCRs, cell phones, etc., up to specified limits. In addition, coverage is provided for the various media used with the equipment, such as tapes, records or compact discs – up to $200.
GENERAL ENDORSEMENT
The basic Endorsement is called the General Endorsement, and may also be referred to as a “blank” or “manuscript” endorsement. It is used whenever no other pre-printed endorsement is appropriate for the kind of change desired.
Even the General Endorsement has preprinted lines for the key information concerning the policy (such as the policy period, name of insured, and effective date of the change). But the blank sections of the General Endorsement are used to describe the actual changes being made. Even correcting a name on a policy must be done by Endorsement, as a policy is a legal document and it states in the policy that all changes must be by Endorsement.
(Note: There are no “examples” or “Sample” General or Change Endorsement following this section as they are, actually, “Blank” forms.)
CHANGE ENDORSEMENT
Whenever any or these Endorsements are attached to the policy at the time the policy is issued, the Endorsement numbers will be printed on the Policy Declaration Page. Note statement at the end of the Sample Declaration Page earlier in this text.
When it is necessary to add an endorsement after a policy has been issued, generally the Change Endorsement must also be issued. Only the General Endorsement and Change Endorsement provide the effective date and effective date of the change.
This endorsement shows a particular limit of liability per disablement. This would indicate the maximum the company would pay each time the covered auto has to be towed and/or serviced on the road. It will not pay for repair work that is ultimately performed at a service station or automotive center.
MISCELLANEOUS TYPE VEHICLE ENDORSEMENT
This coverage is Subject to all the provisions of the policy with respect to the "miscellaneous type vehicles" and coverages described in the Schedule or in the Declarations except as modified as
SCHEDULE
Description and Type of Vehicle Passenger Hazard Excluded
1. Yes No
2. Yes No
3 Yes No
Coverage is provided where a premium and a limit of liability is shown for the coverage. Premium
Coverages Limit of Liability
Each Accident
Each Accident
Each Accident
$ Each Person
Medical Payments $ Each Person
$ Each Person
Each Accident
Uninsured Motorists Each Accident
Each Accident
$ Less $ Ded.
Collision Less $ Ded.
$ Less $ Ded.
Less $ Ded.
Other Than Less $ Ded.
Collision $ Less $ Ded.
Total Premium
1. DEFINITIONS
The Definitions Section is amended as follows:
A. For the purpose of this coverage provided by this endorsement "miscellaneous type vehicle" means:
1. A motor home, motorcycle or other similar type vehicle, all terrain vehicle, dune buggy or golf cart
2. A private passenger auto owned jointly by 2 or more:
a. relatives, other than husband and wife; or
b. resident individuals.
B. The definition of "your covered auto" is replaced by the following:
"Your covered auto" means:
1. Any "miscellaneous type vehicle" shown in the Schedule or in the Declarations.
2. Any of the following types of vehicles on the date you become the owner:
a. a private passenger auto;
b. a pickup or van that
(1) has a Gross Vehicle Weight of less than 10,000 lbs.; and
(a) incidental to your "business" of maintaining or repairing furnishings or equipment, or
(b) for farming or ranching,
c. any “ miscellaneous type vehicle" of the same type shown in the Schedule or in the Declarations.
These provisions applies only if:
a. you acquire the vehicle during the policy period.
b. you ask us to insure it within 30 days after you become the owner, and
c. with respect to a pickup or van, no other insurance policy provides coverage, for that vehicle.
If the vehicle you acquire replaces one of the same type shown in the Schedule or in the Declarations, it will have the same coverage as the vehicle it replaced. You must ask us to insure a replacement vehicle within 30 days only if you wish to add or continue Coverage for Damage to Your Auto.
If the vehicle you acquire is in addition to any of the same type shown in the Schedule or in the Declarations, it will have the broadest coverage we now provide for any vehicle of that type shown in the Schedule or in the Declarations.
3. Any "trailer."
4. Any "miscellaneous type vehicle" or auto you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its:
a. breakdown;
b. repair;
c. servicing;
d. loss; or
e. destruction.
This provision (4.) does not apply to Coverage for Damage to Your Auto.
II. PART A ‑ LIABILITY COVERAGE
Part A is amended as follows:
A. The definition of "insured" is replaced by the following:
"Insured" means:
1. You or any "family member" for the ownership, maintenance or use of your covered auto.
2. Any person using your covered auto.
3. For your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part
B. The Exclusions Section is amended as follows:
1. Exclusion B.1. is replaced by the following:
We do not provide Liability Coverage for the ownership, maintenance or use of any motorized vehicle having fewer than four wheels. However, this exclusion (B. 1.) does not apply to a motorized vehicle having fewer than four wheels if it is insured for Liability Coverage under this endorsement
2. The following exclusion applies under Section A to any vehicle, for which the Schedule or Declarations indicates that this passenger hazard is excluded:
We do not provide Liability Coverage for any person for bodily injury person while occupying the described miscellaneous type vehicle.
III. PART B ‑ MEDICAL PAYMENTS COVERAGE
Exclusion I., of Part B is replaced by the following:
We do not provide Medical Payments coverage for any person for "bodily injury sustained while occupying" any motorized vehicle having fewer than four wheels. However, this exclusion (1.) does not apply to a motorized vehicle having fewer than four wheels if it is insured for Medical Payments Coverage under this endorsement
IV. PART D ‑ COVERAGE FOR DAMAGE TO YOUR AUTO
Part D is amended as follows:
A. The following is added to the definition of "non‑owned auto:"
3. Any motor home, motorcycle or other similar type vehicle, all terrain vehicle, dune buggy or golf cart you do not own while used as a temporary substitute for your covered auto which is out of normal use because of its:
a. breakdown; d. loss; or
b. repair; e. destruction.
c. servicing;
B. With respect to the Stated Amount Coverage(s) shown as applicable to a vehicle described in the Schedule or in the Declarations, the Limit of Liability provision is replaced by the following:
LIMIT OF LIABILITY
Our limit of liability for loss will be the lesser of the:
Our payment for loss will be reduced by any applicable deductible shown in the Schedule or in the Declarations.
An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of loss.
PP 03 02 EXTENDED TRANSPORTATION EXPENSES COVERAGE
The provisions and exclusions that apply to Part D . Coverage for Damage to Your Auto also apply to this endorsement except as changed by this endorsement
A. EXTENDED TRANSPORTATION EXPENSES COVERAGE
When there is a loss to a "your covered auto" described in the Schedule or in the Declarations for which a specific premium charge indicates that Extended Transportation Expenses Coverage is afforded, or to a "non owned auto,” we will pay, without application of a deductible, up to $15 per day to a maximum of $450 for:
1. Transportation expenses incurred by you.
2. Loss of use expenses for which you become legally responsible in the event of loss to a "non owned auto."
This coverage applies only if:
1. "Your covered auto" or the "non owned auto" is withdrawn from use for more than 24 hours; and
2. The loss is caused by "collision" or is otherwise covered under Part D of this policy.
Extended
Transportation Expenses
Coverage Premium
Increased Limits
Transportation Expenses
Coverage Premium
However, this coverage does not apply when there is a total theft of "your covered auto" or a "non owned auto." Such coverage is provided under Part D of this policy.
Our payment will be limited to that period of time reasonably required to repair or replace the "your covered auto" or the "non owned auto."
B. INCREASED LIMITS TRANSPORTATION
EXPENSES COVERAGE
When there is a loss to a "your covered auto" described in the Schedule or in the Declarations for which a specific premium charge indicates that Increased Limits Transportation, Expenses Coverage is afforded, or to a '’on owned auto:"
1. Coverage for Extended, Transportation Expenses Coverage provided under this endorsement is increased to $30 per day up to a maximum of $900. All other provisions of Extended Transportation Expenses Coverage apply.
2. Coverage for Transportation Expenses Coverage. provided under Part D of this policy is increased to $30 per day up to a maximum of $900.
This endorsement must be attached to the Change Endorsement when issued after the policy is written.
EXTENDED NON OWNED COVERAGE FOR NAMED INDIVIDUAL
SCHEDULE
Name of Individual
Liability
Medical Payments
Total Premium
Premium
I. LIABILITY COVERAGE
Part A is amended as follows with respect to the individual named in the Schedule:
Exclusions A.5.,A.7.,B.2. and B.3. do not apply.
II. MEDICAL PAYMENTS COVERAGE
Part B is amended as follows if a premium is shown in the Schedule for Medical Payments
with respect to the individual named in the Schedule:
A. Exclusions 5. and 6. do not apply.
B. The last sentence of Exclusion 8. is replaced by the following:
This exclusion (8.) does not apply to "bodily injury" sustained while "occupying" a
1. Private passenger auto, pickup or van; or
2. "Trailer" used with a vehicle described in 1. above.
III. This endorsement does not afford coverage under Part A or Part B of the policy for any accident involving a vehicle owned by the individual named in the Schedule or by a member of the same household, or any accident involving a temporary substitute vehicle for such owned vehicle.
This endorsement must be attached to the Change Endorsement when issued after the policy is written.
. UNDERINSURED. MOTORISTS COVERAGE
Limit of Liability
INSURING AGREEMENT
A. We will pay compensatory damages which an “insured" is legally entitled to recover from the owner or operator of an "underinsured motor vehicle" because of “bodily injury:"
1. Sustained by an "insured;" and
2. Caused by an accident
The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the, "underinsured motor vehicle,"
We will pay under this coverage only after the limits of liability under any applicable bodily injury liability bonds or policies have been exhausted, by payment of judgments or
settlements.
B. “Insured" as used in this endorsement means:
1. You or any “family member."
2. Any other person "occupying" "your
covered auto.”
3. Any person for damages that person is entitled to recover because of "bodily injury" to which this coverage applies sustained by a person described in 1. or 2. above.
C. "Underinsured motor vehicle" means a land motor vehicle or trailer of any type to which a bodily injury liability bond or policy applies at the time of the accident but its limit for bodily injury liability is less than the limit of liability for his coverage.
However, "underinsured motor vehicle" does not include any vehicle or equipment
1. To which a bodily injury liability bond or
policy applies at the time of the accident but its limit for bodily injury liability is less than the minimum limit for bodily injury liability specified by the financial responsibility law of the state in which "your covered auto" is principally garaged.
2. Owned by or furnished or available for the regular use of you or any "family member."
3. Owned by any governmental unit or
agency.
PP 03 11 12 89
SCHEDULE
Premium
Auto 1 Auto 2
each accident
Auto 3.
4. Operated on rails or crawler treads.
5. Designed mainly for use off public roads
while not upon public roads.
6. While located for use as a residence, or
premises.
7. Owned or operated by a person qualifying as a self insurer under, any applicable motor vehicle law.
8. To which a bodily injury liability bond or
policy applies at the time of the accident but the bonding or insuring company applies at the time of the accident but the bonding or insuring company:
a. denies coverage; or
b. is or becomes, insolvent
EXCLUSIONS
A. We do not provide Underinsured Motorists Coverage for "bodily injury" sustained by any person:
1. While "occupying," or when struck by,
any motor vehicle owned by you or any
family member" which is not insured for this
coverage under this policy. This includes a
trailer of any type used with that vehicle.
2. While "occupying" "your covered auto" when it is being used as a public or livery conveyance. This exclusion does not apply to a share the expense car pool.
3. Using a vehicle without a reasonable be-
lief that that person is entitled to do so.
B This coverage shall not apply directly or in-
directly to benefit any insurer or self insurer
under any of the following or similar law,
1. Workers' compensation law; or
2. Disability benefits law.
C. We do not provide Underinsured Motorists
Coverage for punitive or exemplary damages.
LIMIT OF LIABILITY
A. The limit of liability shown in the Schedule for this coverage is our maximum limit of liability for all damages resulting from any one accident This is the most we will pay regardless of the number of .
1. "Insureds;"
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Page 1 of 2
PP 03 11 12 89
2. Claims made;
3. Vehicles or premiums shown in the Dec-
larations; or
4. Vehicles involved in the accident
However, the limit of liability shall be reduced by all sums paid because of the "bodily injury" by or on behalf of persons or organizations who may be legally re¬sponsible. This includes all sums paid under Part A of this policy.
B. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid or payable because of the "bodily injury” under any of the following or similar law
1. Workers' compensation law; or
2. Disability benefits law.
C. Any payment under this coverage will reduce any amount that person is entitled to recover under Part A of this policy.
D. No one will be entitled to receive duplicate payments for the same elements of loss.
OTHER INSURANCE
If there is other applicable similar insurance we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limit. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectible insurance.
ARBITRATION
A. If, we and an "insured" do not agree:
1. Whether that person is legally entitled to recover damages under this endorsement; or
2. As to the amount of damages;
either party may make a written demand for
arbitration. In this event, each party will se-
lect an arbitrator. The two arbitrators will
select a third. If they cannot agree within
30 days, either may request that selection
be made by a judge of a court having ju-
risdiction.
B. Each party will:
1. Pay the expenses it incurs; and
2. Bear the expenses of the third arbitrator
equally.
C. Unless both parties agree otherwise, arbitration will take place in the court in which the "insured" lives. Local rules of law as to procedure and evidence will apply. A decision agreed to by two of the arbitrators will be binding as to:
1. Whether the "insured" is legally entitled
to recover damages; and
2. The amount of damages. This applies only if the amount does not exceed the minimum limit for bodily injury liability specified by the financial responsibility law of the state in which " our covered auto" is principally garaged . If the amount exceeds that limit, either party may demand the right to a trial. This demand must be made within 60 days of the arbitrators' decision. If this demand is not made, the amount of damages agreed to by the arbitrators will be binding.
ADDITIONAL DUTY
Any person seeking coverage under this endorsement must also promptly send us copies of the legal papers if a suit is brought
This endorsement must be attached to the Change Endorsement when issued after the policy is written.
PP 03 11 12 89
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COVERAGE FOR AUDIO, VISUAL AND DATA
ELECTRONIC EQUIPMENT AND TAPES, RECORDS,
DISCS AND OTHER MEDIA
PP 03 13 12 89
SCHEDULE
Description Limit of
of Vehicles Liability Premium
Coverage for Audio, Visual and Coverage for Tapes, Records,
Data Electronic Equipment Discs and Other Media ONLY
$ $200
$ $200
$200
The provisions and exclusions that apply to Part D Coverage for Damage to Your Auto, other than Exclusion 4., also apply to coverage provided by this endorsement except as modified herein.
INSURING AGREEMENT
We will pay, without application of a deductible, for direct and accidental loss to any electronic equipment that receives or transmits audio, visual or data signals and is not designed solely for the reproduction of sound. This coverage applies only if the equipment is permanently installed in "your covered auto" at the time of the loss.
We will also pay, without application of a deductible, for direct and accidental loss to:
1. Any accessories used with electronic equipment permanently installed in "your covered auto” and not designed solely for the reproduction of sound; and
2. tapes, records, discs or other media if they are:
a. your property or that of a "family member;" and
b. in "your covered auto" at the time of the
loss.
EXCLUSION
We will not pay, under this endorsement, for any electronic equipment that is:
1. Necessary for the normal operation of the auto or the monitoring of the auto's operating systems; or
2. Both:
a. an integral part of the same unit housing any sound reproducing equipment designed solely for the reproduction of sound if the sound reproducing equipment is permanently installed in "your covered auto;" and
b. permanently installed in the opening of
the dash or console of "your covered
auto." This opening must be normally used by
the manufacturer for the installation of a radio.
LIMIT OF LIABILITY
With respect to coverage under this endorsement, the Limit of Liability provision of Part D is replaced by the following:
1. Our limit of liability for the total of all losses to audio, visual or data electronic equipment and any accessories used with this equipment, as a result of any one occurrence shall be the lesser of the:
a. stated amount shown in the Schedule or
in the Declarations;
b. actual cash value of the stolen or dam-
aged property; or
c. amount necessary to repair or replace the
property.
2. Our limit of liability for the total of all losses to tapes, records, discs or other media, as a result of any one occurrence shall be the lesser of:
a. $200;
b. the actual cash value of the stolen or
damaged property; or
c. the amount necessary to repair or replace
the property.
If coverage for audio, visual or data electronic equipment and accessories used with the equipment is purchased, the limit of liability applicable for losses to tapes, records, discs or other media is in addition to the limit of liability applicable to audio, visual or data electronic equipment and any accessories used with the equipment
3. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of loss.
This endorsement must be attached to the Change Endorsement when issued after the policy is written,
Copyright, Insurance Services Office, Inc., PP 03 13 12 89
CUSTOMIZING EQUIPMENT COVERAGE
(Stated Amount insurance)
b. ask us to insure within 30 days
after you become the owner.
PP 03 IS 12 89
SCHEDULE
Limit of Liability Premium
Other Other
Description Than Than
of Vehicle Collision Collision Collision Collision
Less Less
Ded. Ded.
Less Less
Ded. Dad.
Less Less
Dad. Ded.
The provisions and exclusions that apply to Part D Coverage for Damage to Your Auto also apply to coverage provided by this endorsement except Exclusion 10. and the Limit of Liability provision.
A. With respect to the coverages and vehi 2. A camper body or "trailer" you:
cies shown in the Schedule or in the a. acquired during the policy period; and
Declarations as subject to this endorse-
ment, we will pay for direct and accidental loss to custom furnishings or equipment including, but not limited to:
1. Special carpeting and insulation, furni-
ture or bars;
2. Facilities for cooking and sleeping;
3. Height extending roofs;
4. Custom murals, paintings, or other
decals or graphics.
B.. We will not pay, under this endorsement, for:
1. Any electronic equipment that is:
a. necessary for the normal operation
for the auto or monitoring of the
auto's operating systems; or
C. With respect to the coverages and vehicles shown in the Schedule or in the Declarations, the Limit of Liability provision in Part D is replaced by the following:
LIMIT OF LIABILITY
Our limit of liability for loss to custom
equipment shall be the lesser of the:
1. Stated amount shown in the Schedule
or in the Declarations;
2. Actual cash value of the stolen or
damaged property; or
3. Amount necessary to repair or replace
b. both: the property.
(1) an integral part of the same unit Our payment for loss will be reduced by
housing any sound reproducing an applicable deductible shown in the
equipment designed solely for Schedule or in the Declarations. If a loss
the reproduction of sound if the results in damage to the described vehicle
sound reproducing equipment is and its customized equipment, the
permanently installed in "your deductible applies only once.
covered auto;" and The amount for depreciation and
(1) permanently installed in the physical condition will be made in deter
opening of the dash or console mining the actual cash value at the time of loss.
(4) The opening must be normally used
by the manufacturer for the in-
stallation of a radio.
This endorsement must be attached to the Change Endorsement when issued after the policy is written,
Copyright, Insurance Services Office, Inc.,
PP 03 18 12 89
PP 03 03 04 86
TOWING AND LABOR COSTS COVERAGE
SCHEDULE
Description Limit of Towing
Of and Labor Costs
Your covered auto Coverage Premium
We will pay towing and labor costs incurred towing and labor costs coverage applicable to
each time “your covered auto” or any non- any “your covered auto” shown in the Schedule or
owned auto is disabled, up to the amount in the Declarations. We will only pay for
shown in the Schedule or in the Declarations labor performed at the place of disablement
as applicable to that vehicle. If a “non-owned
auto” is disabled, we will provide the broadest
This endorsement must be attached to the Change Endorsement when issued after the policy is
Written.
STUDY QUESTIONS
1. The Miscellaneous Type Vehicles Endorsement is designed to
A. provide coverage for tractors and farm vehicles.
B. provide certain coverages for boats and airplanes.
C. provide coverage for vehicles not provided coverage under a PAP
D. provide coverage for foreign, show and antique cars.
2. If transportation expenses are provided by Endorsement,
A. the insured car must be totally stolen.
B. the insured car must be stolen, and can be a partial theft, in which case this Endorsement would pay for a rental car.
C. but the “per day” and “maximum” allowance for rental cars is not changed.
D. the insured auto does not have to be insured under Section D.
3. A taxi driver has a commercial auto policy. He wants to purchase secondary coverage that can give him more liability coverage.
A. He can purchase a PAP with an Extended Nonowner coverage.
B. He cannot increase his coverages from a Commercial policy.
C. If he bought a PAP, the policy would become primary.
D. He would have to purchase an Inland Marine coverage to provide secondary coverage.
4. Henry’s business auto is insured under a separate policy from his PAP. The PAP excludes payments if the insured or family member were injured while struck by an owned or regularly available vehicle. What can Henry do to get coverage in case his family car and business car were involved in the same accident.
A. There is nothing he can do.
B. He can purchase a “Non-Exclusive Endorsement” that eliminates all such exclusions.
C. He can purchase an “Extended Nonowner Endorsement” that takes care of that.
D. Transfer ownership of the company car to a family member.
5. Where Jim lives there are many newly arrived immigrants who are not used to American roads, cars or driving habits and many cannot read English. The majority of the drivers carry the absolute minimum of coverage as they cannot afford anything higher, and most of them are not used to having insurance anyway. Jim in concerned that if he were involved in an accident, there would not be sufficient insurance from the other driver’s insurance, to take care of his losses. What can he do?
A. Not much. The law cannot arbitrarily be changed to make immigrants buy higher limits.
B. He can purchase Uninsured Motorists Coverage, and that would take care of any of them who do not have insurance.
C. He can purchase Underinsured Motorists Coverage.
D. He can purchase Increasing Liability coverage.
6. Bert seems to be always carrying cell phones, cameras, miniature television sets, PALM computers, portable disc players, and other such equipment in his car. He goes to night school and often has to park in a high-crime area and he often is in a big hurry and forgets to lock these items in his trunk. What can he do?
A. Not much, other than remember to lock them in the trunk, or take them out of the car at home.
B. He can purchase an Endorsement that covers Audio, Visual and Data Electronic Equipment and Media.
C. If he puts in a sophisticated alarm system in his car, his insurance will cover these items.
D. He can install an electronics drawer under the dash, with a special lock that he can keep these items in when not in use. They would therefore be covered for theft.
7. Ronald has a PAP and after about 2 years, he notices that his name is wrong (it should be Donald). Because his brother is named Ronald, he wants it corrected. How does the insurer do that?
A. By Endorsement.
B. By letter.
C. By E-Mail.
D. By making a note in the file.
8. Only two endorsements provide the effective date and the effective date of the change.
A. The Date Endorsement and the Policy Period Endorsement.
B. The Change Endorsement and the General Endorsement.
C. The Miscellaneous Type Vehicles and the Extended Nonowner Coverage Endorsement.
D. The Extended Transportation Endorsement and the General Endorsement.
9. What Endorsement is used when there are no other pre-printed Endorsement forms available?
A. The Change Endorsement.
B. The General Endorsement.
C. The Empty Endorsement.
D. The Multi-Purpose Endorsement.
10. Jack has a PAP with Towing and Labor Costs Endorsement. This Endorsement covers
A. the charge for a tow truck only.
B. repair work performed at an auto repair shop while more than 50 miles from home.
C. towing, servicing on the spot, and any later repairs that have to be made.
D. towing and servicing “on the road.”
ANSWERS TO STUDY QUESTIONS
1C 2B 3A 4C 5C 6B 7A 8B 9B 10D