CISR Personal Auto flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

PAP Part A

Liability coverage that pays damages for bodily injury and property damage for which an insured is legally responsible because of an auto accident, up to the policy limits.

Newly acquired auto

A vehicle acquired during the policy period; liability coverage applies automatically for 14 days if the insured has physical damage coverage on another auto, otherwise 4 days.

Coverage territory

The geographic area where the policy provides coverage: the United States, its territories and possessions, Puerto Rico, and Canada. Mexico requires a separate endorsement.

Family member

A person related to the named insured by blood, marriage, or adoption who is a resident of the named insured's household, including a ward or foster child.

Split liability limits

Liability limits expressed as three numbers, such as 100/300/50, meaning $100,000 per person for bodily injury, $300,000 per accident, and $50,000 for property damage.

Supplementary payments

Amounts paid in addition to liability limits, including up to $250 for bail bonds, premiums on appeal bonds, and post-judgment interest.

Covered auto

Any auto shown in the declarations, a newly acquired auto, a trailer owned by the insured, or a temporary substitute auto while a covered auto is out of service.

Reasonable belief of permission

A person using a covered auto is an insured only if they have a reasonable belief they are entitled to use it; use without permission is excluded.

Medical payments coverage

Part B coverage that pays reasonable and necessary medical and funeral expenses for covered persons injured in an auto accident, regardless of fault, within three years.

Personal injury protection

No-fault coverage required in some states that pays medical expenses, lost wages, and essential services for the insured and passengers, often subject to a deductible.

PIP coordination

A policy provision that determines whether PIP benefits are primary, excess, or coordinated with health insurance, affecting the amount payable under the auto policy.

Medical payments exclusion

Part B does not pay for injuries sustained while occupying a vehicle used as a public or livery conveyance, or while working in the business of selling or repairing autos.

Uninsured motorist coverage

Coverage for bodily injury caused by a driver who has no liability insurance, a hit-and-run driver, or a driver whose insurer becomes insolvent.

Underinsured motorist coverage

Coverage that pays the difference between the at-fault driver's liability limit and the insured's UIM limit when the at-fault limit is insufficient to cover damages.

UM/UIM stacking

Combining UM/UIM limits from multiple vehicles or policies to increase available coverage; permitted in some states but prohibited or restricted in others.

UM/UIM arbitration

A dispute resolution process used when the insurer and insured disagree on fault or damages under uninsured or underinsured motorist coverage.

Collision coverage

Part D coverage for direct and accidental loss to a covered auto caused by impact with another vehicle or object, subject to a deductible.

Other-than-collision coverage

Part D coverage for losses such as theft, fire, vandalism, hail, flood, and glass breakage, subject to a separate deductible.

Actual cash value

The settlement amount for a total loss equal to replacement cost minus depreciation; the policy pays the lesser of ACV or repair cost.

Loss of use coverage

Supplementary coverage that pays for rental car expenses or transportation while a covered auto is being repaired or replaced after a covered loss.

Temporary substitute auto

A vehicle used temporarily while a covered auto is out of service due to breakdown, repair, or loss; it is treated as a covered auto under the PAP.

Rental car physical damage

Coverage for damage to a rented vehicle applies only if the insured carries collision or other-than-collision coverage on at least one owned auto.

Loss damage waiver

An optional rental company product that waives the renter's responsibility for damage to the rental car; it may duplicate PAP coverage.

Rental car business use

The PAP does not cover a rented vehicle used for business purposes unless the policy is endorsed for business use.

Rental car diminished value

A charge by the rental company for the reduction in the vehicle's value after damage; the PAP may not cover it unless specifically endorsed.

Rental car loss of use

A fee charged by the rental company for lost rental income while the vehicle is being repaired; the PAP may not cover it without an endorsement.

Rental car coverage territory

A rented vehicle is covered only within the policy's coverage territory; use in Mexico requires a separate endorsement.

PAP declarations page

The page that identifies the named insured, policy period, covered autos, limits, deductibles, and endorsements; it controls over general policy language.

Livery conveyance exclusion

The PAP excludes coverage for vehicles used as a public or livery conveyance, such as taxis or ride-hailing, unless specifically endorsed.

Workers' compensation offset

Medical payments and PIP benefits are reduced by amounts payable under workers' compensation or similar laws for the same injury.

UMPD endorsement

An optional coverage in some states that pays for property damage caused by an uninsured motorist, subject to a deductible and limit.

Betterment exclusion

The policy does not pay for improvements that increase the value of the vehicle beyond its pre-loss condition; only like kind and quality repairs are covered.