PROP&CASUAL INS PROD
PROP&CASUAL INS PROD RMI 4224
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This 3 page Class Notes was uploaded by Jabari Wyman on Thursday September 17, 2015. The Class Notes belongs to RMI 4224 at Florida State University taught by Staff in Fall. Since its upload, it has received 26 views. For similar materials see /class/205399/rmi-4224-florida-state-university in Risk Management And Insurance at Florida State University.
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Date Created: 09/17/15
PROPERTY AND CASUALTY INSURANCE PRODUCTS RMI 4224 DR CARSON FALL SEMESTER 2002 Personal Auto Discuss the issues below I State which part of the Personal Auto Policy would provide coverage and how much Assume the following coverage for the questions below AJohn has liability limits of 255025 BiMedical Payments Coverage of 5000 per person CiUninsured Motorists Coverage of 10000030000050000 Collision 1000 deductible Comprehensiveino coverage 1 Jamie borrows John s car with permission and accidentally runs into a crowd of people Jamie causes injuries to a fellow named Jack resulting in 35000 of medical expenses to Jack 2 While working at McDonalds John calls Sue his girlfriend and says he wants to break up Sue in a fit of rage then uses her key to John s car and drives his car into the McDonalds causing 200000 of damage to the building 5000 ofmedical expenses to each of six people and totaling John s car 3 John decides to get back at Sue by scratching her car 4 John bought a new car to replace the car that was totaled He has not called his agent about the new car yet Alternative scenarios below A Replaced car five days ago someone else ran into John s car and caused 10000 damage to the car B1 Replaced car three days ago John ran into a tree and caused 5000 damage to the car B2 Replaced car 16 days ago C1 Replaced car three days ago John ran into someone else s car 6000 PD and 4000 B1 to one person C2 Replaced car 16 days ago D Replaced car five days ago John s car was stolen and was not recovered 5 John bought another car in addition to the original car on the declarations page of his auto policy Alternative scenarios below A1 Replaced car three days ago John ran into a tree and caused 5000 damage to the car A2 Replaced car 16 days ago B1 Replaced car three days ago John ran into someone else s car 6000 PD amp 4000 B1 to one person B2 Replaced car 16 days ago 6 John s car gets broken into CDs are stolen39 value of 300 onperm anently installed stereo is stolen39 value of 600 7 John drives to another state where their required liability limits 50 10050 are higher than in Florida 102010 John causes an accident in which the other driver incurs PD of 30000 and B1 of 40000 8 During the night John s car is hit by a bomb that was dropped by a country with whom the US is at war 9 John s cousin has liability limits of 153015 He drives John s car and causes an accident in which Bob incurs B1 of 35000 and PD of 45000 10 John rents a van to take some of his friends to an FSU game He also purchased medical expense coverage from the car rental company that provides medical expense coverage of 10000 per person John is involved in an accident in which he injured two people in another car in the amount of 15000 and 35000 respectively Continued on next page Additional Questions 11 John is driving down the road and hits a bird that causes 4000 damage to his car 12 John is driving down the road and encounters a hailstorm that causes 5000 damage to his car 13 John gets a job as a pizza delivery driver While delivering a pizza he causes an accident in which his car is totaled and another car is totaled 14 While driving you drop your cell phone out your car Window The cell phone is run over by another cariis the value of the phone covered 15 John hits three parked cars and causes damage of 20000 15000 and 5000 In addition John s car is totaled 16 John is put injail for a traffic violation and bail is 200 Several issues may be involved in each scenarioibelow are some of the more obvious answers that you will want to be able to identify with some practice Recall exams will cover other areas of the auto policy not just these scenarios 1 John s car so his insurance is primarywill pay 25000 of Bl Jamie s policy if any is excess 2 Issue of permission If permission is assumed then John s policy will cover 25000 of PD to McDonald s Also John s policy will pay 5000 for BI to each of the six injured people John s totaled car is covered less the deductible 3 Not coverediintentional loss exclusion 4 A covered has 14 days Bl covered has 14 days B2 not covered only has 14 days Cl covered has coverage for rest of policy term C2 covered has coverage for rest of policy term D not covered only has 4 days since he doesn t have comp coverage Al covered has 14 days A2 not covered only has 14 days Bl covered has 14 days B2 not covered only has 14 days 6 CDs not coveredithey are excluded property and it s a comp loss John didn t buy comp coverage stereo not coverediit is excluded property and it s a comp loss John didn t buy comp coverage 7 Bl of 40000 covered and PD of 30000 is covered 8 not coveredgcomp loss and war exclusion 9 John s policy on his own car is primaryiwill pay 25000 BI and 25000 PD If John s cousin has auto insurance the cousin s policy will be excess and pay 10000 BI and 20000 PD H O The liability portion of John s policy will pay 15000 BI and 25000 Bl to the two people respectively The medical expense coverage is for passengers of the van not liability to others Therefore the additional 10000 of Bl will need to come from somewhere else eg John s pocket If John or his passengers were hurt the van s med pay would pay first then John s med pay would cover more ll not coveredicomp loss 12 not coveredicomp loss 13 the livery exclusion could lead to denial of this claim 14 not covere 15 one accident40000 damage only 25000 will be covered by John s policy John s totaled car is covered minus the 1000 deductible 16 Cost of bail bond is covered only if there is an accident that caused Bl or PD
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