Today's Lecture - State Farm Car PolicyDefinitionsWhen and Where Coverage AppliesSection I - LiabilityLiability - Additional CoveragesLiability ExclusionsProperty Damage Liability – ExampleProperty Damage Liability – ExampleBodily Injury Liability – ExampleSlide 10Medical PaymentsMedical Payments - ExampleSlide 13DefinitionMedical Payments – Example 2Slide 16Aggregate Coverages - ExampleSlide 18Today's Lecture - State Farm Car Policy•Your use of your carDefinitions•You or Your - means the named insured shown on the declarations page•Your Car - means the car or the vehicle described on the declarations pageWhen and Where Coverage Applies•Wh en - Policy Period shown on the declarations page•Wh ere - in the U.S., its territories and possessions or Canada and (for liability, medical payments and physical damage coverage only) in Mexico within 50 miles of the U.S borderSection I - LiabilityPays damages which an insured becomes legally liable to pay because of bodily injury to others and damage to property and defends any suit against an insuredLiability - Additional Coverages•Court costs•Interest on damages•Premiums or costs of bonds•Expenses incurred by an insured–Wages up to $100 per day–First aid at the accident–At their requestLiability Exclusions•While charging persons for a ride•For bodily injury to a family member•For damage to property owned by, rented to or in the charge of or transported by an insured•For liability assumed by the insured under any contract or agreementProperty Damage Liability – Example While driving your car, you run into another car. The accident is your fault and it costs $7,500 to repair the other car. How much would your policy pay?Property Damage Liability – ExampleA 0B 7400C 7500D None of the aboveBodily Injury Liability – ExampleWhile driving your car, you run into another car. The accident is your fault. You injure the driver of the other car. He incurs $30,000 in medical bills. He sues you and is awarded $120,000 for bodily injury. How much would your policy pay?Bodily Injury Liability – ExampleA 0B 30,000C 120,000D 150,000E None of the aboveMedical PaymentsPays reasonable medical expenses for accidental bodily injury that occurs to you while occupying a vehicle covered under the liability section or as a pedestrian if struck by a motor vehicle or trailerMedical Payments - ExampleWhile driving your car, you run into a tree. The accident is your fault. You are injured and incur $28,000 in medical bills. How much does your policy pay?Medical Payments - ExampleA 0B 10,000C 25,000D 28,000E None of the aboveDefinition•Occupying - means in, on, entering or alighting fromMedical Payments – Example 2While getting out of your car, you trip on the curb and break your ankle. Your medical bills are $4,000.Medical Payments – Example 2A 0B 4,000C 25,000D None of the aboveAggregate Coverages - ExampleWhile driving your car in Panama, you run into a van containing six people. Each person is injured and each wins a bodily injury liability award of $60,000. The van is damaged and costs $10,000 to repair. You are also injured and incur $5,000 in medical bills. How much will your insurance policy pay?Aggregate Coverages - ExampleA 0B 75,000C 315,000D 375,000E None of the
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