Ask PIA

Resident family member

My clients insure a vehicle, used by their son at college, on a personal auto policy. The parents are planning to leave the country for two years. They have made arrangements to have the policy billed at the grandparent’s address.

Is it alright to leave the parents as the named insureds on this policy?

Damage to vehicle from shifting load

My insured was driving his pickup when he was forced to stop quickly. Equipment in the bed of the truck shifted forward, damaging the cab. Under a business auto policy, would this damage be covered under comprehensive or collision coverage?

Joint ownership coverage endorsement

Could you clarify what the Joint Ownership Coverage (PP 03 34) endorsement to the ISO Personal Auto Policy is designed to do?

Betterment clause

In an auto physical damage claim, the insurer wants to use nonoriginal equipment manufacturer parts and the claimant does not want them. So, the company states that if the client insists on the original equipment manufacturer parts, it will invoke the policy’s “betterment” clause. Can they do this?

Coverage not terminated by plate surrender

Our insured’s vehicle was hit while parked. We reported the loss to the negligent party’s carrier to collect on a third-party basis. The company confirmed that coverage was in place.

Then, three weeks later, the company told us their insured had surrendered his plates the day before the accident. (He had borrowed somebody’s plates and put them on the vehicle to move it from one place to another.) It looks like the carrier may try to deny the claim based on the surrender of the plates. Would they be able to do this?

BAP Symbol 7 newly acquired auto coverage

Our insured has an automobile policy written with Symbol 7 for comprehensive coverage in the ISO Business Auto Coverage Form. If a comprehensive loss occurs to a newly acquired auto within 30 days after acquisition, but before the insured notifies us that the auto has been acquired, would this loss be covered?

Renters with no auto policy

I recently read about a Florida law (Section 627.7263), that allows the rental company to make a renter’s personal auto policy primary with respect to liability coverage for accidents involving vehicles rented in Florida.

What about the renter who does not have a personal auto policy? Many people who live in the New York metro area do not own cars. Also, there are others who normally drive corporate vehicles furnished for their regular use and thus have no personal auto policy.

Do such renters need a named nonowner policy (or drive-other-car coverage under the business auto policy) in order to have coverage if they rent cars in Florida?

Aftermarket (non-OEM) parts

We have an insured who was in an auto accident. The carrier wants to make the repair with aftermarket parts. Our client is very upset with this and wants to know whether there is any requirement that the insurer repair this Chrysler with Chrysler OEM parts.

Arbitration procedure for vehicle damage claims

We’ve run into a situation in which the claimant and the insurer just can’t agree on a settlement for a collision loss. Where can we turn?

DUI records

Is it true that a driving under the influence conviction stays on a driver’s record for 10 years?

Financial security enforcement

We know that certain changes were made in the way Connecticut enforces its auto insurance requirements last year, but we’re not sure what the changes are. Could you summarize how the enforcement system works?

Learner’s permit

Can an auto insurer increase the premium when a child obtains a learner’s permit?

Quebec coverage requirements

We have been asked to issue a certificate of insurance for a trucker who sometimes operates in Quebec, regarding coverage that the province requires. Does our policy provide coverage as required in Quebec? How can I obtain Quebec’s exact requirements?

 ‘Service bus’ operator’s license

We insure a social-service agency. Their employees transport children who reside at their facility. They drive regular private-passenger-type minivans (i.e., Plymouth Voyagers and Dodge Caravans).

Recently, our insured said that another operation similar to their own had an employee who was stopped by the police and cited for not having a public service license. We checked with our insurance carrier and they are unaware of any such license. Can you advise us whether such a special license exists in Connecticut?

Coverage for bike—car accident

While my insured was out riding his bike, he hit and damaged a car. Which policy pays—his auto or his homeowners?

Title with salvage brand

My client’s auto was totaled in an accident. The insurer is discounting the value of the auto because its title has been “salvage branded.” Is the insurer permitted to do this?

Repair shop as payee

We have a client with a collision claim. The company wrote out the check to the insured and the auto repair shop. They told us they do this for all collision claims now. Is this legal?

Extended rental period

My client has two cars insured on a personal automobile policy. His son is away at college, so the two vehicles have been adequate for him and his wife. His son is coming home for the summer, and my client wants to rent a third car for two-and-a-half months. He would drive the rental car, and his son would drive one of their own vehicles. Will he have coverage for the rental car under the personal automobile policy? 

Midterm imposition of surcharge

In Connecticut, can a personal auto insurer impose a surcharge midterm? In this case, the insurer discovered a Driving While Intoxicated charge against the daughter, whose vehicle is insured on the household policy. The personal auto policy, written on an annual basis, renewed in April. In July, the DWI was discovered by the carrier because it was renewing the household umbrella. In September, we removed the daughter’s vehicle from the policy, as she no longer lives in the household. However, the company is trying to impose a surcharge for the period from July, when they discovered the DWI, to the date the vehicle was deleted. Is this proper?

Nonowned auto coverage—employee’s auto

Is there an exclusion on a commercial auto policy for the business owner/employee who uses his own vehicle to travel between offices, or uses his vehicle for other office errands, and then has an accident that causes a liability suit naming the business entity?

Rental for business use

My insured is renting a van for a business trip. Does he have liability and physical damage coverage under his personal auto policy?

Falling object

As a car is driving down the highway behind a truck, something flies off the truck. The car can’t avoid the object and runs over it, causing a puncture in the gas tank. Is this comprehensive (falling object) or collision? Also, does this constitute a chargeable accident?

Choice of repair facility

Can an insured choose where to have repairs made for auto physical damage?

Lawful auto rate discrimination

How can auto insurance companies discriminate and charge different rates for credit, age, gender, etc.? Is that really legal?

Travel trailers

I have two insureds that have pickup trucks insured under a business auto policy in their business name. They also use these trucks to pull their fifth-wheel travel trailers. We have been advised by the business auto carrier that they cannot provide liability coverage for these travel trailers and the companies that insure the physical damage coverage for the travel trailers are unable to add liability to their policy. Any suggestions?

Rental for business use

My insured is renting a van for a business trip. Does he have liability and physical damage coverage under his personal auto policy?

Zipcars and employees

My client’s law firm directs its employees to use Zipcars when attending meetings. How is this covered on the commercial automobile policy?

Bait and switch

Transgender operators

How does a producer address transgender operators when placing auto insurance?

Physical damage coverage for valet parking

I saw Ask PIA 900241—Coverage for valet parking on your website, which discussed only liability coverage for a rented vehicle. What about physical damage coverage in that scenario? Unless you have a New York policy, I personally would not valet park a rental car when physical damage is involved. Coverage is too uncertain.