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Auto
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?
Defensive-driver course credits
Will a policyholder lose the credit for completing a defensive-driver course if a chargeable accident occurs within the three years allowed for the credit?
Defensive-driver courses must be DMV-approved
My insured’s discount for taking the defensive-driving course expires next month. However, she resides out-of-state for part of the year and won’t be home in time to take the course before the credit expires. Can she take a similar course out-of-state and receive credit?
No registration, no coverage in NYAIP
We were asked to insure three household vehicles, and the risk must be placed in the New York Automobile Insurance Plan. One of the vehicles is not registered and we requested comprehensive coverage only. The company says the vehicle is not eligible for coverage in the Plan. Are they right?
DMV registrations: ’passenger’ vs. ’commercial’
I get confused by New York’s system of registering vehicles with either “commercial” or “passenger” plates. Is there a connection between the registration categories and our insurance distinction between commercial vs. personal automobile policies; or do these registration categories come into play in determining “business use” for rating purposes?
NYAIP: Refunds for company rating errors
My insured is in the New York Automobile Insurance Plan. The company incorrectly surcharged both the prior year’s policy and the current policy. We got that straightened out, but now the company wants to apply the refund as a credit on the insured’s unpaid installments. The insured wants a check. Who is right?
Timely investigation of auto claim
Our client is involved in a personal auto claim that has been going on for more than 45 days. The police report states that the other driver left the scene of the accident. The carrier is stating that it hasn’t determined the amount of fault. We thought that when drivers leave the scene, it is assumed that they were at fault. What is the rule?
After-market parts
An adjuster called my insured offering to repair his car using after-market parts. Can the company do this?
Defensive-driver course
I have an insured in the New York Automobile Insurance Plan who has taken an approved defensive-driving course. The course allowed him to reduce his motor vehicle violation points from six to two. But is he also eligible for a 10% premium credit?
Get brothers separate auto policies
I have New York Automobile Insurance Plan clients who are two brothers living together. Each owns and operates his own car. For the previous three-year assignment with Company A, the brothers and their vehicles were written on a single policy. The newly assigned Company B is refusing to do this. Which company is right?
Auto total loss—valuations
Our insured recently purchased a used vehicle, which then was totaled in a crash. The company is offering less than the book value of the car, based on the amount shown on the bill of sale. Can they do this?
Auto theft claims—what’s covered?
On a theft settlement, is it legal for a company to deduct amounts for the extended warranty, alarm and anti-theft jack? Shouldn’t these items be covered as “equipment”?
Total loss salvage arrangements
Our insured’s car was totaled. The insurer is saying it will deduct $500, the salvage value of the car, from the insured’s settlement; and our insured will have the responsibility of getting rid of the car. Is this legal?
Prohibited vehicles
Our auto insurance companies have lists of vehicles they refuse to insure. Suppose one of our existing clients buys one of these vehicles?
SUM consent-to-settle provision
A company has denied a claim for supplementary uninsured motorists coverage benefits because our insured accepted a settlement from the at-fault driver’s insurer without getting the SUM carrier’s consent. Can the company deny this claim?
Time frames for auto theft claims
What is the required time frame for paying an auto theft claim when the vehicle is not recovered?
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?
Uninsured operation—nonowned vehicles
An employee of a trucking firm was arrested because he was driving a truck on which the coverage had lapsed. Can the employee be held responsible for the company not keeping insurance in force?
Vicarious liability—leased vehicles
Under New York’s vicarious liability statute covering motor vehicle accidents, are people who lease vehicles considered “owners”? We have a situation in which a parent is leasing a vehicle, but the registration will be in the son’s name.
Wrongful death limits
What are the minimum limits for wrongful death in New York state under a personal auto policy?
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?
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?
Named-driver exclusion
Our insured’s car was parked and hit by someone from Indiana. The Indiana insurer is denying, saying the driver was an excluded individual on the policy. Unfortunately, our client does not have collision coverage on the policy. We thought if someone drives in New York, then New York rules apply.
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?
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?
New York law against steering for auto repairs
I have been told that our agency can never recommend a specific repair shop when a customer needs repairs to a vehicle following a collision. Is this true?
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?
Loss-of-use costs in auto accident surcharge threshold
Should insurers include loss-of-use costs in the auto accident surcharge threshold?
Photo inspection regulations
Are automobile insurance carriers in New York allowed to suspend physical damage coverage when a policy is moved from one carrier to another and the automobile had been continuously insured for automobile physical damage insurance and previously inspected within the last two years?
Diminished value
Is diminished value on auto claims applicable in New York?
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?
Changes to supplementary uninsured/underinsured motorists coverage
What changed effective June 16, 2018, with regard to supplementary uninsured/underinsured motorists coverage?
Bait-and-switch activities
I lost a client to a direct writer who offered them a lower rate on their auto policy then I could. However, shortly after the policy was bound, the client called me up complaining that the direct writer increased the premium. The direct writer did not run the motor vehicle report on the client until after the policy was bound. They discovered an accident that had not been disclosed by the client. Can the direct writer actual do this?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.