Chapter 11 - Automobile Insurance C14

Terms	Definitions
What is an endorsement?	they are attachments to a policy which vary the terms of the contract. It overrides policy provisions.
When might an endorsement that gives permission to drive other automobiles be required?	the endorsement Driver Other Automobiles (OPCF 2) is used to expand the definition of insured person for the purpose of third party liability when operating a non owned or other automobile.
What coverage is available to an individual who drives government-owned automobiles, and how is it effected?	the endorsement Government Owned Automobiles (OPCF 3). It provides a form of non-owned coverage for particular circumstances when the insured drives government automobiles.
Give an example of a situation that requires an endorsement that gives permission to use an automobile for a particular purpose.	situations where the carriage of explosives and radioactive material.
How can you insure a vehicle that is leased or rented to someone else?	the endorsement "rented or leased automobiles (OPCF 5 series). The lessee applies for an Owner's Policy. it amends the policy conditions granting permission for the auto to be leased on a long-term basis.
What coverage can be acquired for a loss resulting from conversion by someone in lawful possession of an automobile?	the conversion (OPCF 5D) covers lessee theft coverage.
When is a school bus endorsement necessary, and what functions does it perform?	Passenger Risks (OPCF 6 Series), it sets a liability limit on a per person basis rather than aggregate basis. it gives permission to use the auto to carry passengers for compensation or hire for school purposes only.
You wish to operate your automobile as a taxi. How do you ensure that you have proper coverage?	the endorsement Passenger Risks (OPCF 6 Series) allows for permission to carry passengers for compensation or hire.
How does the standard automobile policy deal with vehicles used for carrying explosives?	it is under the general exclusions of the auto policy which restricts carrying explosives.
As an underwriter, what exposure would you want to exclude when insuring an amphibious vehicle?	the water risk would be excluded and covered under another form of policy. only the automobile risk is insured.
What is the purpose of the Property Damage Reimbursement endorsement, and how does it operate?	it is used to minimize small property damage claims for which the named insured may be responsible. when attached to policy, insured agrees to reimburse the insurer the sum stated in the endorsement. mainly used when heavy vehicles such as trucks are insured.
When might you need to restrict glass coverage on your All Risk automobile policy?	when gravel roads are common, the incidence of glass claims is high. insurers offer reduced premiums with this endorsement.
How should you deal with the insurance on an automobile that you do not drive between October and May?	the suspension and reinstatement of coverage (OPCF 16 and 17) allows suspension of coverage for a given period of time.
How do you insure a 1930 Packard that you have restored and drive only in special parades?	the OPCF 19a Valued Automobile Endorsement to enhance value of vehicle.
What coverage does an owner's policy provide for damage to the property of passengers? How can this coverage be extended?	the endorsement OPCF 22 (Damage to Property of Passengers) is available with a specified limit of liability for property of passengers.
Compare the TWO (2) types of mortgage endorsements available for use with an automobile policy.	standard mortgage - lienholder protection endorsement protects the interest of the lienholder, mortgagee, or assignee broad form - additional premium is charged. protection for lienholder in breach of condition by insured.
What are the provisions of the Suspension of Coverage endorsement, and when is this endorsement used?	it maintains coverage in full force for liabilities arising from the "ownership" of a described automobile while auto is parked and struck by another insured auto and also maintains coverage for operations of other autos as well as accident benefits coverage.
How can the deductibles under an automobile policy be amended?	the OPCF 48 - added coverage to offset tort deductibles.
What are the provisions of the endorsement used to add coverage against liability for damage to a non-owned automobile in your care, custody, or control?	-the insured is legally liable or has agreed under a contract or agreement to be responsible - an insured peril cased the damage.
How can you restrict the amount of coverage that applies to your son when he drives your vehicle instead of his own?	the endorsement "excluding, reducing or increasing coverage for named persons" (OPCF 28 and OPCF 29)
What endorsement is necessary when insuring motorized recreational vehicles under an automobile policy?	OPCF 32 - motorized recreational vehicles.
What coverage does the Transportation Replacement endorsement provide?	loss of auto use by theft.
What endorsement would you want on a new automobile, and what coverage does it provide?	Removing depreciation deduction (OPCF 43). in the event of a partial insured loss, no depreciation is applied to the replacement cost of required parts.