| Personal Auto Policy Endorsements | |||
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Endorsements - Part III Exclusion - Coverage for Damage to Your Auto PP 13 01 12 99 This endorsement adds an exclusion to the physical damage coverage section (part D) of the PAP; the endorsement is not approved in all jurisdictions. PP 13 01 states that the insurer will not pay for loss to the covered auto or any non-owned auto due to diminution in value. The reasoning behind this endorsement is this: an insured, after being involved in auto accident, claims that his auto is not worth what it was prior to the accident even if repaired promptly and professionally. The auto has suffered a loss in value because of the accident and that is a "loss" that is covered under the insuring agreement; besides, such coverage would put the insured in the position he was prior to the loss and that is the purpose of the insurance policy. The insurer is using this endorsement to make the point that part D coverage is for "direct and accidental loss" and that means only actual physical damage to the covered auto and not a loss in value. Since some courts may agree with the insured's interpretation of the meaning of "loss", and since the PAP had no exclusion that addressed the issue, PP 13 01 was written; a diminution in value loss is now specifically excluded. The endorsement defines "diminution in value" as "the actual or perceived loss in market or resale value which results from a direct and accidental loss". Therefore, whether the insured merely believes his car has lost value or has a licensed body shop make a written statement that the covered auto has suffered a certain loss in value due to an accident, PP 13 01 excludes such a loss from coverage. Trip Interruption Coverage PP 13 02 01 05 This endorsement is new with the 2005 PAP. It provides coverage for extra expenses incurred by the insured when a covered physical damage loss, or mechanical or electrical breakdown, occurs more than 100 miles away from the insured's home, and the covered vehicle is withdrawn from use at least twenty-four hours. The endorsement provides up to $600 for transportation expenses (not defined) and lodging and meals. Endorsement PP 03 02 Optional Limits Transportation Expenses Coverage adds higher limits of transportation expenses coverage to the $20 per day/$600 maximum policy limit; PP 03 03 Towing and Labor Costs provides limits of $25, $50, or $75; endorsement PP 13 02 gives an extra layer of protection by including lodging and meals expenses when a covered loss occurs away from home. If the insured has PP 03 03 and PP 13 02, towing to a garage and the overnight expenses as well as rental reimbursement will be covered. Trust Endorsement PP 13 03 01 05 This endorsement is new with the 2005 PAP. Previously, PP 03 33 Certificate of Insurance - Trusts was issued, which stated that vehicles owned jointly by the named insured and spouse and a trust were covered under Part A - Liability Coverage. However, in most instances vehicles are not jointly owned because title has been transferred to the trust. This endorsement amends the definitions so that a "private passenger type auto, pickup or van shall be deemed to be owned by a person if title is transferred to the trust shown in the Schedule or in the Declarations." If the trustee is other than the named insured, that individual must be shown in the endorsement schedule. Should the policy terminate, the trustee will receive notice. Extended Non-owned Coverage Vehicles Furnished or Available for Use as Public or Livery Conveyances PP 13 05 01 05 This endorsement, new with the 2005 edition of the PAP, provides coverage for a regularly furnished vehicle that is used as a livery or public conveyance. Current endorsement PP 03 06 01 05 does not delete the exclusion of coverage under the PAP for a regularly furnished auto while it is being used as a livery or public conveyance; the PP 13 05 01 05 fills this gap. |
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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and LunchTimeCE and Sandi Kruise Training Inc, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.
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