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Personal auto
Transportation expenses
Does a personal auto policy provide expenses for airfare if our insured is on vacation and his vehicle is stolen?
Accident while friend driving
Our insured let someone else borrow his car. There was an accident, and our insured's friend was at fault. The insured's company paid for the damage to the car, which was more than $500. Can the company now charge our insured for the eligibility points arising from this incident, or do the points go against the at-fault driver?
Tort options
Which tort option applies to Personal Injury Protection claimants who are not insured under any family auto policy?
Untimely premium payment
One of our companies is nonrenewing our auto customers who do not pay their renewal premium on time without sending out a separate notice informing them that their coverage has been terminated. Is this legal?
PAIP/CAIP eligibility
Is a leased private-passenger auto eligible for the New Jersey Commercial Automobile Insurance Plan by virtue of the fact that it is registered by a corporation (the leasing company)?
PAIP change—signatures
In the Personal Automobile Insurance Plan, do we need to get our client’s signature on a change request form?
Age discrimination
We had a company turn down our applicant for personal auto coverage, because he is over 70. How can they do this?
Driver not “eligible”
We insure a household with three automobiles. The husband drives, but his wife does not. The wife's unmarried brother lives with them. He is employed as a New York City bus driver and is required by the bus company to hold a New York driver's license. He drives his brother-in-law's vehicles and does not own a car of his own.
We have run into a problem by listing this brother as an operator. The company claims he is not an “eligible person” and says it won't provide coverage for him. Is the company correct?
When do points accrue for an at-fault accident?
Our insured recently was involved in an auto accident for which the company set up a reserve. So far, the company has not paid any money out on this claim. But they are charging points for the accident at renewal. Can they do this?
Anti-theft discounts
What type of premium credits are available for etching Vehicle Identification Numbers (VINs) on windows? Are the credits mandatory or voluntary for the insurance company?
’Response to emergency’ surcharge exemption
What’s the rule exempting accidents involving emergency workers from surcharges?
PAIP application—witness of signature
My client needs to apply to the New Jersey Automobile Insurance Plan for coverage immediately. The problem is that she is currently in Florida with her critically ill mother. Can we send her the forms by overnight service, telling her to have her signature notarized and overnight them back?
Time frames for binding new auto policy
How much time do companies have to bind coverage for eligible auto applicants requesting private-passenger auto insurance. I know the Department of Banking and Insurance has said “five days,” so why do we hear about five, seven, eight or even more days?
Timely renewal payments
A personal auto policyholder received a renewal bill; the premium due date was Nov. 5. The insured mailed the renewal premium payment on Nov. 4 and the carrier received the check on Nov. 7. Is the insured entitled to continue coverage?
Personal auto quotes
When a person decides on coverage options based on the scenarios, do we need to provide quotes for all of the companies that we represent that are open to writing new business or just one?
Suspended drivers
We insure a couple who have two vehicles. The husband has recently had his license suspended, but the wife’s driving record is clean. The company has issued a midterm cancellation of the policy. Can the company do this?
Insurance scenarios—when to give
At what point in the process, do we need to offer the three scenarios?
Nonrenewals of personal auto policies
Could you review the limitations on nonrenewals of personal auto policies? Do these limits apply to terminated agents’ business as well?
Midterm cancellation—household driver
We insure a personal auto risk where there are three vehicles in a family consisting of a mother, father and two children. The company is cancelling the entire policy because the father has been convicted of driving while intoxicated (DWI). Can they do this?
Use separate PAIP log
Our agency uses a log for I.D. cards we issue on Personal Automobile Insurance Plan business. We also use the same log for the Commercial Automobile Insurance Plan. Should we have separate logs for each of these?
NJAIP applicants
In the New Jersey Personal Automobile Insurance Plan, does the name of the registration have to match the name on the policy?
Household driver not eligible
There are four drivers in a single household with two vehicles. Three are eligible persons, but the fourth, a daughter, has 10 eligibility points. Can the entire household be written on a single policy?
Personal auto policy coverage for hauling boats in connection with business
My client has a personal auto policy. He also owns a business. About two or three times a year, he hauls boats that are connected with his business. Would his personal auto policy exclude liability coverage if a claim occurs?
PAIP certification
How long do I have, as a certified producer, to notify the New Jersey Personal Automobile Insurance Plan of a change pertaining to an employee producer?
When do points accrue?
When are traffic citations and accidents chargeable to the experience period on an auto policy?
Nonstandard risks
If my voluntary insurer accepts an auto risk with seven or more eligibility points, is it violating the law?
Policies for minors
We see some auto dealers that refuse to sell vehicles to someone who is under 17. The dealer requires that the parents purchase the vehicle. Then, the family comes to our office and wants to purchase the insurance in the minor’s name, because the parents don’t want the young driver on their policy. Are we required to write the policy in the minor’s name as requested, or is there some legal provision the auto dealers are using which we could invoke as well?
Rental cars—‘loss of use’
Our insured has a personal auto policy and is renting a vehicle while the insured vehicle is being repaired due to loss. The insured does not want to opt for the rental car company’s collision damage waiver because he believes his own policy would provide coverage, but we are concerned. If the rental car were damaged, would the insured’s policy cover the “loss of use” by the rental car company? If not, where would this exposure be covered? Should we advise insureds to opt for the rental car company’s collision damage waiver or not?
Out-of-state registrations
Our client moved to New Jersey from out of state and I would like to insure their vehicles. The vehicles are leased and currently insured by a policy purchased at their prior residence. Before the vehicles can be registered in New Jersey, the Motor Vehicle Commission will need to receive a completed form from the lessor in order to transfer the title from the state of previous residence. Can an insurer deny writing a personal auto policy if the registration is not available due to the delay caused by these circumstances?
VRT declination
Do we have to wait for the insurance company to issue a declination in order to place a client in Voluntary Rating Tier (VRT) or can the agent complete the declination notice based on the underwriting guidelines of their carriers?
Medical payments
Our insured was in an auto accident. The family dog, riding in the car, was hurt. Are the veterinarian’s bills covered under the medical payments coverage?
Camper trailers
My client has an auto camper-trailer on blocks at a campsite with an attached, screened-in porch. Is the porch covered against damage or loss on his auto policy? What about liability for accidents occurring in the camper or on the porch?
Snowplowing—personal auto liability
My insured has a pickup truck as his personal vehicle. In the winter, he mounts a snowplow on it—for his personal use, he says. I am concerned in case he may be plowing others’ property for money. Would there be any exclusion of coverage if this were the case?
Golf cart liability
Our client accidentally injured his golf partner when he lost control of the golf cart. He has asked whether there is any coverage under his auto policy. He also has a condo policy.
Volunteer drivers
One of my insureds drives her own personal vehicle in volunteer work for the Red Cross. She transports people to doctors and hospitals for appointments. Is there an endorsement to cover this situation?
Named nonowned coverage
How does our agency provide coverage for people who do not insure owned autos on a personal automobile policy to protect them when they borrow a car for personal use? They are furnished a corporate car, but the insurer will not add drive-other-car coverage on the business automobile policy.
Federal employee exclusion
My insured took a job with the U.S. Post Office. She became alarmed when she was told by her employer that her personal auto policy would not cover her while on the job. Can this be true?
Noncooperation
My client’s car was hit by another auto. Now the other driver’s insurer has denied coverage due to lack of cooperation by its insured. Can they do this?
Physical damage
We have a client who is the named insured on a personal auto policy covering his owned vehicle. His wife and son have leased another vehicle. Is the leased automobile covered on the father’s policy for physical damage coverage?
Military service and youthful operators
We insure a family whose young son is away serving in the military. Do we need to rate him as a youthful operator on his family’s auto policy?
Horse trailers covered
We insure a husband and wife who own eight automobiles and three trailers. They use the trailers to haul horses. Are the trailers covered under their personal auto policy?
Damage by rodent
The lights went out on my client’s Thunderbird. The mechanic found a mouse that had been chewing on the wires. Can a claim be made under the comprehensive coverage?
Total loss—insurer’s option
Following a coastal storm, we had a loss involving a vehicle which had been subjected to immersion in salt water. The client had a $2,000 repair estimate. The company insisted on totaling the vehicle, at about $12,000. The company took the position that, if salt water had come up to the floorboard, it would only give the client the option of withdrawing the claim or accepting the total loss and surrendering the vehicle for salvage. The company said that corrosion would cause her additional problems down the road. The client was adamant about keeping her car; meanwhile, she was driving it! Was the company within its rights?
DWI—collision coverage
I have a personal auto insured that was involved in an accident and was cited for driving while intoxicated. The carrier is disclaiming collision coverage citing that DWI. Can carriers exclude this coverage under these circumstances?
Coverage for employer
My client’s employer wants to be covered while the client uses his personal auto for business-related activities. How can the employer be covered if the insurer refuses to add the employer as an additional insured?
Coverage for day-care transport
Our insured provides family day-care in her home. When she is driving the children in her car, would any accident be covered under her personal auto policy, or does she need a commercial policy?
Duty to defend when limits exhausted
Under the personal auto policy, are the liability limits reduced by the legal costs of defending the claim?
Motor home not covered if rented to friend
Our client owns a motor home, insured under a personal auto policy. He wants to rent it to a friend and wants to know if it will still be covered while rented.
Damage to plow
We’ve run into a claim dispute over a snowplow attached to a pickup truck. The insurer is denying the claim for damage to the plow, based on the exclusion applying to “any custom furnishings or equipment in or upon any pickup or van.” Are they correct? If so, other PIA members should know about this potential problem!
No license, no permit
We have a company that went ahead and added a 16-year-old to his parents’ auto policy, even though this teenager doesn’t have a license or a permit and has no accidents or tickets. The company says that so many people neglect to add their children when the children start driving that they have decided to do so automatically when the children turn 16. I thought a company could add unlicensed drivers only if they are proven to have been driving (e.g., had an accident or ticket). Who is right?
Stolen auto scenarios
We recently had two situations involving stolen vehicles. In the first case, a stolen car hit our insured’s car. Can he collect from the policy of the people who owns the car?
In the second case, it was our insured whose car was stolen. He has acquired a replacement and wants to delete the stolen car and add the new one. What if the stolen car shows up?
Trailer has coverage under personal auto policy
We have an insured with a tractor that he transports on a trailer pulled by his personal vehicle. He may be starting a lawn-mowing business. He has some coverage questions. First, does he have coverage for this use of the trailer under his personal auto policy? Second, what if the tractor falls off the trailer while it is being transported and hits another vehicle; is damage to the other vehicle covered? Can he get coverage for use of the tractor?
Comprehensive coverage applies to contact with deer
Would a collision with a deer be considered a “collision” under the personal auto policy and, therefore, covered under the collision coverage portion of the policy?
PAIP voluntary rating tier
Can business that would have been placed in the UZAR be submitted to the Voluntary Rating Tier of PAIP?
PAIP Voluntary Rating Tier
Can we submit business to the Voluntary Rating Tier (VRT) if we are closed for “new” business with some, but not all of our voluntary markets. What if the premium in the VRT is less than the premium in the standard market for that client, can we place the client in the VRT?
Insurance scenarios—territory
Does an insurance scenario have to be based on the territory in which the insured lives?
Insurance scenarios—method of providing
Are the insurance scenarios supposed to be mailed?
Insurance scenarios—quotes for every carrier
After we give the scenarios to the applicant, if the applicant chooses to receive the scenarios from each company we obtained quotes from, do we have to provide them?
Insurance scenarios—rates to use
I have several different companies I represent. Which company’s rates do I use when completing the scenarios?
Insurance scenarios—changing auto carriers
If you are moving a current client to another company, and they want or need the same coverages, do we have to give them three scenarios?
Insurance scenarios—number of scenarios
Are there a specific number of examples that have to be given within each scenario. For example, does there have to be three examples within each of the three scenarios?
Insurance scenarios—PAIP rates
Can I use PAIP rates when doing the scenarios?
Insurance scenarios—adding/deleting personal vehicles
If a customer is making changes to an existing policy, like adding or deleting a vehicle, do I have to give them the scenarios document?
Insurance scenarios—renewals
Do agents have to give scenarios at renewal?
Approval—alternate underwriting rules
Will the department be reviewing and approving company’s alternate underwriting rules before they can be used?
Alternate underwriting guidelines
Can a company use its alternate guidelines to nonrenew an existing policy?
Insurance scenarios—producers legal exposure
On the insurance scenarios, what protections do producers have with this document if an applicant chooses a particular coverage listed and then sues the producer?
Insurance scenarios—DOBI insurance planner
The department has an insurance planner on its Web site. Could this be used to satisfy the requirement to provide insurance scenarios?
Insurance scenarios—customer refusal
Can a proposed customer opt not to receive the three scenarios?
Insurance scenarios—producer compliance
How does an agent document that the scenarios are being offered to their clients?
Insurance scenarios—coverage option
For insurance scenario No. 3 regarding the option not to buy physical damage—can this be presented to a customer who is leasing or financing the vehicle?
Insurance scenarios—rule
If we complete the suggested Department of Banking and Insurance scenario using one of our voluntary company’s rates and pass it on to all of our customers, regardless of their specific circumstance and territory, then have we fulfilled the requirements of the scenario rule?
Insurance scenarios—requirements
I would like to clarify my understanding of the insurance scenarios requirements: An agent would be satisfying the requirement by using the DOBI “Cost Saving Options for Auto Insurance” form complete with premiums from any of our carriers.
Voluntary Rating Tier vs. voluntary carrier
Voluntary Company A declines an auto applicant using alternate underwriting rules. Voluntary Company B offers coverage at a higher cost than Voluntary Rating Tier (VRT). May customer decline Company B in favor of VRT?
Insurance scenarios—choosing scenario options
Can an agency pick which bodily injury, PIP and physical damage coverages to do for each insurance scenario (i.e., can Scenario 1 be only the comparison of savings for the different liability limits from $35,000 CSL to $500,000) or do we also have to discuss the thresholds?
Insurance scenarios—producer’s liability
I would like some additional information regarding a producer’s liability for presenting the scenario information. If a producer used one of the scenarios and filled in the blanks with an incorrect percentage or premium amount; and the customer after a claim discovers the cost would have been much less than the scenario illustrated, and that the client relied on that information to make their decision, would the producer be liable despite the hold harmless in the Coverage Selection Form?
Servicing SAIP-qualified applicants
If I am a New Jersey Automobile Insurance Plan-certified producer must I assist Special Automobile Insurance Policy-qualified applicants with obtaining a standard automobile insurance policy?
Other state registrations
Does a Connecticut personal auto policy cover autos that are registered in other states?
School bus passenger
If a child is injured on a school bus, what policy pays their medical expenses? It is my understanding that the school bus is not required to maintain personal injury protection coverage. I have been told that the injured child would present a PIP claim against their parent’s personal automobile policy; however, wouldn’t we run into a problem meeting the definition of a private-passenger-type vehicle under the personal automobile policy?
Nonowned motorcycle dilemma
We have been asked the following question but need to confirm the answer. Alexander, 21, took a short ride (about a half mile) on his friend’s new motorcycle. He skidded out, fell off the bike (with only minor injuries) and the bike was damaged. The friend with the new bike did not have collision insurance, and the estimate is $8,000 for repairs. Of course, Alexander is responsible to return the motorcycle to its new condition. Is there any coverage for this cost in an auto or homeowners policy?
Third-party uninsured vehicle
Can an insurer deny payment for damages to a claimant’s vehicle if the claimant’s vehicle was uninsured at the time? The claimant’s vehicle was parked and the neighbor backed into it and the neighbor’s insurance carrier is denying payment.
Rental vehicle for family member
Our clients have a personal auto policy. A 24-year-old daughter is listed as a driver and resides in the household, but is not a named insured. Is there coverage on the PAP if the 24-year-old daughter rents a vehicle while on vacation?
’Active duty’ clarification
We were told by one company that if a son/daughter is in “boot camp” or basic training that this is not considered active duty, so they will charge until he/she has passed basic training and becomes “active.” Is this correct?
Renting a moving truck
My client is renting a moving truck to move from one house to another. The rental company is telling him that his auto policy will not cover him because the vehicle he is renting has a gross vehicle weight of 25,500 lbs. and is commercially registered. I believe he is covered since there is no weight restriction on a van or truck and there is no specific definition of a van on the policy. Is he covered or not?
PIP coverage territory
Does personal injury protection coverage follow the policy territory (typically, the United States, its territories, Puerto Rico and Canada) or is it different for this coverage? For example, would an insured be covered for PIP while renting a car in Spain?
Uninsured motorist property damage
Car A is rear-ended by Car B after Car B was rear-ended by Car C. Car A suffered property damage only, but Car B’s insurer is denying coverage (stating no negligence) and Car C is insured with a Special Automobile Insurance Policy. Car A has no collision coverage, so how does the owner get paid for the property damage?
Connecticut minimum limits
Connecticut’s increased liability limits for personal auto policies went into effect on Jan. 1, 2018. Does that automatically increase the limits on all personal auto policies regardless of whether or not the policyholder has increased the limits on their own policy?
Insurance penalty points
According to New Jersey Insurance Law, a person whose license has been suspended for failure to comply with a time-payment order or for failure to respond to or pay a parking judgment is not subject to the same penalties as a person whose license has been suspended for a driving-related offense. Does the insurance penalty of nine points still apply in offenses not related to driving?
Personal auto—undisclosed operator
On a personal auto policy, if a carrier discovers there is an 18-year old living in the household who has not been rated on their policy, can they go back and re-rate the previous policies and charge the insured additional premium? If the insured does not pay, can they be canceled for nonpayment?
PAIP certification—principals
We have a principal who is still on the agency’s New Jersey Personal Automobile Insurance Plan certification, but he has retired. Do we need to remove him entirely now or wait until he’s totally out of the picture? He’s still an owner, just no longer involved in the insurance business. Also, I am a new principal, but not Plan certified. Do I have to be?
PAP coverage for vehicle contents
Our insured transported on his trailer a tool box belonging to his future son-in-law. The box was loaded negligently, flipping the trailer damaging the box. The personal auto policy insurer is denying coverage based upon Exclusion A.2. applicable to property being transported by the insured and Exclusion A.3. applicable to property in the care of the insured. On the face, it appears the insurer is correct. However, I am disturbed when I reflect on these exclusions. If I offer my friend a ride to the airport and have an accident, the personal auto policy will cover him for bodily injury and personal injury protection, but will not cover his suitcase and its contents. Depending on the valuables in the suitcase, I could have a significant property damage exposure for which I have no coverage. How can this be covered?
Be careful when replacing vehicles
An insured contacted us to let us know of the purchase of a new vehicle and that he was trading in the old one shortly. Our insured also informed us that while on the way to pick up the new vehicle, they were coming by our agency to pick up the identification cards. If we issue the I.D. card would our insured be protected if he or she is involved in an accident on the way to the dealership?
Borrowing a friend’s truck to pick up supplies
I borrowed my friend’s pick-up truck so I could go to Home Depot and get some supplies. While I was borrowing it, I got into an accident. I don’t want my neighbor to have his rates raised because of this. I just want to confirm that my insurance will cover the damages?
Utility trailer coverage
A Boy Scout Troop “owns” a dual axle, $3,000 utility trailer used to store and haul their camping equipment around. Since the troop is not a separate legal entity, they do not have a New Jersey corporation code for New Jersey Motor Vehicle Commission registration purposes, so they registered the trailer in the name of the church.
Would this nonowned, nonmotorized, utility trailer being attached and hauled by a troop member’s personal automobile policy be afforded liability coverage by the standard personal auto policy?
Vehicle liability of co-signer on a lease
Our client co-signed a lease for a vehicle acquired by his nanny. The dealer says our client is only backing the lease, but I am concerned that he has incurred liability for the use of this vehicle. What does PIA think?
Also, would the answer be different if the vehicle was acquired by the co-signer’s: 1) son living in his household, or 2) his son living in a separate household?
Insuring the lessor on a personal auto policy
My client insures a leased vehicle on a personal auto policy. The leasing company is requiring that it be added to the policy as an additional insured and loss payee. The insurer issued an additional interest endorsement and will not issue an additional insured endorsement. Will the additional interest endorsement satisfy the needs of the lessor?
Removing a vehicle
What exactly do we need to do to remove a vehicle from an automobile policy in New Jersey? Do we need anything from the New Jersey Motor Vehicle Commission?
Deceased auto policyholder
We have an auto policyholder who recently died and her children are wondering if they can drive the car. If they are insured while driving the car, is coverage under the policy the same as it was for the deceased named insured?
Zipcars and nonstandard policies
Because my client was not an authorized driver of a Zipcar when he had an accident, the insurer of the Zipcar is denying liability coverage. My client’s personal auto policy insurer also is denying coverage because it was being used for business purposes at the time of the accident. Is there anything I can do to get coverage for my client?
Photo inspection deferral on an additional vehicle
How long does a policyholder have to complete a physical damage inspection when adding a vehicle to a policy that already has physical damage coverage applicable to a scheduled vehicle?
Lending a vehicle to a friend
Our daughter has a vehicle, with her own insurance policy, away at school with her. She called me the other day to tell me the car was in an accident. She had let her friend drive it and her friend caused an accident. The accident will be reported on her friend’s insurance, right?
Pizza delivery
Our insured’s son just started working for a pizza shop. They are having him use his own car for the deliveries. I am worried there would be no coverage in the event of an accident. Does he have coverage, while using his car to deliver pizza, in the event of an accident?
Personal auto owned by trust
When a trust owns a vehicle insured on a personal automobile policy written in the name of the grantor, how do you reconcile coverage as primary if the Other Insurance provision states coverage is excess for a vehicle not owned by the named insured?
Thinking of pizza delivery while laid off from work
Our insured’s son just started working for a pizza shop because he has been temporarily laid off from work. They are having him use his own car for the deliveries. I am worried there would be no coverage in the event of an accident. Does he have coverage, while using his car to deliver pizza, in the event of an accident?
Automobile recall
Recently, an auto manufacturer had a recall on the air bags in some of their vehicles and they are advising consumers not to drive their vehicles until repaired. The manufacturer is offering loaner vehicles, available from the dealership, since they are expecting it will take several months until the vehicles will be properly repaired. Will our insureds have proper coverage from their auto policy for the entire duration they have access to the loaner vehicle?
Deliveries—step-down provision
I just noticed in one of my carrier’s policies that there is a provision that if my client does any deliveries with their personal auto, and they were involved in an accident, the carrier will only pay them the state minimum limits, regardless of the limits on their policy. Is this legal?