Ask PIA

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?

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?

’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?

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?

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?

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?

Use separate PAIP log

Our agency uses a log for I.D. cards we issue on Personal Automobile Insurance Plan business. We use the same log for the Commercial Automobile Insurance Plan. Should we have separate logs for each of these? Are there any other requirements? 

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?

NJAIP applicants

In the New Jersey Personal Automobile Insurance Plan, does the name on the registration have to match the name on the policy?

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?

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?

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?

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?

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?

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?

Utility trailer coverage

A Boy Scout Troop “owns” a dual axle, $3,000 utility trailer used to store and haul its camping equipment. Since the troop is not a separate legal entity, it does not have a New Jersey corporation code for New Jersey Motor Vehicle Commission registration purposes; therefore, the trailer is registered in the name of the church.

Would this non-owned, non-motorized, utility trailer when attached to 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?

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?

Zipcars and nonstandard policies

Because my client was not an authorized driver of a Zipcar at the time of an accident, the Zipcar insurer is denying liability coverage. My client’s personal auto policy insurer also is denying coverage, asserting that the vehicle was being used for business purposes. Is there anything I can do to obtain 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?

Removing a vehicle

What exactly should we do to remove a vehicle from an automobile policy in New Jersey? Do we need anything from the New Jersey Motor Vehicle Commission?

Personal auto—undisclosed operator

On an ISO Personal Auto Policy, if an insurer discovers that there is an 18-year-old living in the household who has not been rated on the policy, can the insurer go back and re-rate prior policy term(s) and charge the insured additional premium? If the insured does not pay, can the policy be canceled for nonpayment?

Deliveries—step-down provision

I just noticed in one of my carrier’s policies that there is a provision stating 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?

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?

Transportation expenses

Does a personal auto policy provide expenses for airfare if our insured is on vacation and his vehicle is stolen?

Medical payment for pets

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’ properties 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 non-owned 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?

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?

Stolen auto scenarios

We recently had two situations involving stolen vehicles. In the first case, a stolen vehicle hit our insured’s vehicle. Can our insured collect from the policy of the vehicle stolen?

In the second case, it was our insured whose vehicle was stolen. He has acquired a replacement and wants to delete the stolen vehicle and add the new one. What happens if the stolen is recovered?

Trailer 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 and he has several coverage questions. First, does he have coverage for this use of the trailer under his personal auto policy? Second, if the tractor falls off the trailer while being transported and hits another vehicle, is damage to the other vehicle covered? Also, 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?

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?

Other state registrations

Does a Connecticut personal auto policy cover autos that are registered in other states?

Motor home not covered if rented to a 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 whether 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 automatically added a 16-year-old to the  parents’ auto policy, even though the teenager does not have a license or a permit. The company stated that many insureds fail to report youthful drivers when they begin operating vehicles, so it has implemented a practice of adding them automatically at age 16.. I thought a company could add unlicensed drivers only if they are proven to have been driving (e.g., had an accident or received a ticket). Who is right?

Non-owned 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.

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?

‘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?

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?

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?

Borrowing a friend’s truck to pick up supplies

I borrowed my friend’s pickup truck to go to Home Depot and get supplies. While driving the vehicle, I was involved in an accident. I don’t want my friend’s insurance rates to increase because of this. Could you confirm if my insurance will cover the damages?

Insuring the lessor on a personal auto policy

My client insures a leased vehicle on a personal auto policy. The leasing company requires 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?

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?

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?

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?

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?

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?

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?