風險管理與保險 齊瑞宗課件13

RiskManagementforAutoOwners—PartI

Chapter13?2005,Thomson/South-Western?2005SouthwesternChapterObjectivesDefinethekeytermsinthepersonalautomobilepolicyIdentifythemajorpartsofthepersonalautomobilepolicyStatefourmajorexclusionsofthepersonalautomobilepolicyDistinguishbetweencollisionandlossotherthancollisionStatelimitationsontheinsurancecompany’srighttocancelanautoinsurancepolicyDescribethevariousapproachestodealingwiththeproblemofuninsureddriversDescribethekeyfactorsthatdeterminevariationinautoinsurancepremiumsacrossindividuals2TheHighCostofAutomobileLossesAutomobilelossesrepresentexposurestoriskthatnearlyallindividualsandriskmanagersmustconsiderOfthe$377billionspentbyindividualsandbusinessonproperty-casualtyinsurancepremiumsin2002About43%wasforautoinsuranceThehumantollofautolossesisveryhighOver40,000AmericansdieeveryyearinautoaccidentsHoweversubstantialprogresshasbeenmadeovertheyearsinimprovingthesituationTable13-1showsfatalityratesforrecentyearsAdisproportionatenumberofautomobileaccidentsinvolveyoungdriversOverthelastseveralyearsfallingaccidentratesindicateasignificantimprovementindrivingrecordsMaybeexplainedbysociety’sgreateremphasisonlosspreventionandsafercarsAndthereductioninthenumberofyouthfuldrivers3Table13-1:DeathRateper10,000Cars4InsuranceClaimsInsurershavebeenfacedwithrisingclaimsformosttypesofautomobileinsuranceprotectionTable13-2showsstatisticsillustratingtheleveltowhichclaimshaverisenNoticethattheaverageproperty-relatedlosseshaverisensteadilyovertheyearsWhileaveragebodilyinjurylosseshavefluctuatedAveragecollisionandpropertydamageliabilityclaimsrosedramaticallyfasterthaninflationfrom1992-2002Whileaveragebodilyinjuryliabilitylossesfellslightlyoverthesametimeperiod5Table13-2:AverageInsuranceClaims6InsuranceClaimsThefederalgovernmenthasadoptedsomeminimumvehiclesafetyandantipollutionstandardsAimedatimprovingtheenvironmentinwhichautomobilesoperateTable13-3listssome2000-2002passengerautoswithrespecttoinjuryclaimsfrequencyThesefrequenciesdonotreflectonlytheactualsafetyofthevehicles—theyalsoreflectwhoisdrivingthevehicleTable13-4showstherelativeaveragecollisionlosspaymentperinsuredvehicleThisnumbervarieswidelyacrossdifferentvehicles7Table13-3:RelativeInjuryClaimsFrequencyperInsuredVehicle…8Table13-4:RelativeAverageCollisionLossPaymentsperInsuredVehicle…9TheNeedforInsuranceWhatshouldtheaveragedriverdotoprotectagainstthefinancialconsequencesofthehighcostofautomobileaccidentsandthesubstantialprobabilityofbeinginvolvedinone?RiskmanagersoflargecorporationsthatownmanyautomobilesoftenretaintheriskofphysicaldamagetothevehiclesHowever,fornearlyallindividuals,theanswerhasbeeninsuranceDespiteitshighcostInmanystatesautoliabilityinsuranceisalegalrequirementSelf-insuranceisnotusuallyanoptionasfewindividualsownmorethantwoorthreeautomobiles10PersonalAutomobilePolicy(PAP)Introducedin1977aspartoftheconsumermovementdesignedtoproduceeasier-to-readinsurancepoliciesReplacedthemoredifficulttoreadFamilyAutomobilePolicyEligibilityAcarmustbeownedorleasedbyanindividualorjointlyownedbyahusbandandwifePAPisprimarilydesignedforprivatepassengercarsusedforpleasureorbusinessButapickuptruckorvanusedinfarmingmaybeinsuredasmayapickuptruckorvanthatisusedtodeliverortransportgoods11DefinitionsYouandyourareusedtorefertothenamedinsuredandspouse,ifaresidentofthesamehouseholdWe,us,andourrefertotheinsurancecompanyNofaultmeansthattheinsureddoesnothavetoproveanotherpersonnegligentbeforecompensationcanbereceivedfromaninsurer12DefinitionsThetermcoveredautoincludesthesecategoriesAnyvehicleshownonthedeclarationspageofthepolicyAnyofthefollowingtypesofvehiclesthatyouacquireownershipofduringthepolicyperiodAprivatepassengerautoApickuptruckorvanmeetingcertainrequirementsAnytraileryouownAnyautoortraileryoudonotownWhileusedasatemporarysubstituteforanyothervehicledescribedinthisdefinitionthatisoutofnormalusebecauseofitsbreakdown,repair,servicing,loss,ordestruction13DefinitionsWithrespecttoreplacementvehiclesOnemustonlynotifytheinsurerinordertoobtaincoverageforphysicaldamagetotheautoLiabilityprotectionisautomaticallyprovidedforthepolicytermTheinsurermustbenotifiedtoobtainphysicaldamagecoveragebecausethereisahighprobabilitythatagreaterexposureexistsAtrailerisdefinedasAvehicledesignedtobepulledbyaprivatepassenger-typeauto,pickuporpaneltrack,orvanItalsoincludesafarmwagonorfarmimplementtowedbyoneofthesevehicles14DefinitionsAfamilymemberisdefinedbythePAPasApersonrelatedtoyoubyblood,marriage,oradoptionwhoisaresidentofyourhouseholdOccupyingisdefinedasIn,upon,gettingin,on,out,oroffInthePAP,bodilyinjurymeansbodilyharm,sickness,ordisease,includinganydeaththatresultsBusinessmeanstrade,profession,oroccupationPropertydamageisdefinedasphysicalinjuryto,destructionof,orlossofuseoftangibleproperty15PersonalAutoPolicyComponentsPAPhassixmajorcomponentsLiabilityMedicalpaymentsUninsuredmotoristPhysicaldamagetoyourautoThefirstfoursectionsprovidefourdifferentcoveragesThedefinitionsoftermsmayvarybetweensectionsDutiesafteranaccidentorlossGeneralprovisionsInsurancepoliciesmustbereadverycarefullyinordertobeproperlyunderstood16LiabilityTheinsurerpromisestopaybodilyinjuryandpropertydamageclaimsforwhichanyinsuredbecomeslegallyresponsibleduetoanautoaccidentTheinsurerwilleithersettleordefend,atitsowndiscretion,anycoveredclaimorsuitTheinsureragreestopayforalldefensecosts,andthesearepaidinadditiontothepolicylimitsThereisnodutytodefendtheinsuredinsituationswherethecoverageisexcludedOrafterthelimitsofliabilityfordirectdamageshavebeenreachedManycourtshaveheldtheinsurancecompany’sdutytodefendisgreaterthanthedutytopaydamages17LiabilityThepolicydefinestheinsuredasfollowsFortheownership,maintenance,oruseofanyautoortrailer,youoranyfamilymemberAnypersonusingyourcoveredautoForyourcoveredauto,anypersonororganizationButonlywithrespecttolegalresponsibilityforactsoromissionsofapersonforwhomcoverageisaffordedunderliabilitycoverageWouldapplywhenafellowemployeedrivesyourcaroncompanybusinessYouremployeriscoveredunderyourpolicyifanaccidentoccursandyouremployerissuedForanyautoortrailer,otherthanyourcoveredauto,anypersonororganization,butonlywithrespecttolegalresponsibilityforactsandomissionsofyouoranyfamilymemberforwhomcoverageisaffordedunderliabilitycoverageThisprovisionappliesonlyifthepersonororganizationdoesnotownorhiretheautoortrailerWouldapplywhenyoudriveafellowemployee’scarandhaveanaccidentTheemployeriscoveredunderyourpolicyifalawsuitresults18SupplementaryBenefitsInadditiontothepolicylimitsBailbondsupto$250arecoveredforanaccidentresultinginbodilyinjuryorpropertydamageAbailbondpostedforaspeedingviolationordrivingwhileintoxicatedisnotcoveredunlessbodilyinjuryorpropertydamageoccursPremiumsonappealbondsandbondstoreleaseattachmentsareinsuredInterestthataccruesafterajudgmentandreasonableexpensesincurredattheinsurer’srequestarealsoincludedUpto$200perdayisavailableforlossofearningsresultingfromattendingtrialsorhearingsattheinsurer’srequest19LimitofLiabilityDefinedusingthe“splitlimits”approachThelimitisdescribedbythreenumbersSuchas$100,000/$300,000/$50,000ThefirstnumberisthemaximumlimitofliabilityforalldamagesarisingoutofbodilyinjurytoanyonepersonThesecondnumberisthemaximumlimitforalldamagesforbodilyinjuryresultingfromanyoneaccidentRegardlessofthenumberofpersonsinvolvedThethirdnumberisthelimitofliabilityforallpropertydamageresultingfromanyoneaccident20ExclusionsNocoverageexistsforpersonswhointentionallycausealossDamagetopropertyownedorbeingtransportedbyaninsuredisexcludedAsispropertyrentedto,usedby,orinthecareofaninsuredExceptfordamagetoaresidenceorprivategarageVehiclesoperatedasapublicorliveryconveyancearenotcoveredHowevershare-the-expensecarpoolsarenotaffectedbythisexclusion21ExclusionsIfanemployeeoftheinsuredisinjured,theinsured’sPAPdoesnotprovideliabilitycoverageUnlesstheinjuryistoadomesticemployeeforwhomworkers’compensationisnotrequiredNoprotectionisgiventosomeoneintheautomobilebusinessunlesstheinsured’scoveredautoisbeingdrivenbyTheinsuredAfamilymemberAnypartner,agent,oremployeeoftheinsuredoranyfamilymember22ExclusionsForthoseinanyothertypeofbusiness,liabilitycoverageisprovidedforthebusinessuseofprivatepassengercarsandpickuptrucksandvansNorequirementismadeinthePAPthattheinsuredhavepermissiontooperatethevehicleinvolvedinanaccidentHowever,thepolicyexcludesliabilitycoverageforanyoneusingavehiclewithoutreasonablebeliefthatheorsheisentitledtodosoAnotherexclusionexcludescoverageforinjuryordamageforwhichtheinsuredhascoverageunderanuclearenergyliabilitypolicy23ExclusionsNocoverageisprovidedfortheuseofanyvehiclewithfewerthanfourwheelsThus,motorcyclesarenotcoveredAnauto(otherthanthecoveredauto)thatisownedbyyouorfurnishedormadeavailableforyourregularuseisexcludedAnyvehicle,otherthanthecoveredvehicle,thatisownedby,furnishedto,oravailablefortheregularuseofanyfamilymemberisexcludedAnexceptiontothisexclusionexistswhensuchavehicleisdrivenbythenamedinsuredorspouseLiabilitycoverageisexcludedforanyvehicleparticipatinginanorganizedracingorspeedcontestwhilelocatedinsidearacingfacility24OtherLiabilityConditionsAnotherprovisioninthePAPisout-of-statecoverageIncludingcoverageinaCanadianprovinceIfyouhaveanaccidentinastatehavinghigherrequiredliabilitylimitsthanyourstateThepolicywillpayuptothehigherlimitsPAPliabilitycoveragecanbeprimaryorexcessWhenyourownedautoisinvolvedyourpolicyisprimaryWhenyourpolicyappliestoanonownedvehicle,itisexcessIftwopoliciesareapplicabletothesameownedautoThePAPwillpayitspro-ratashareoftheloss25MedicalPaymentsPAPwillmakemedicalpaymentsonano-faultbasisforreasonableandnecessarymedicalexpensescausedbyanautoaccidentandsustainedbyaninsuredSuchexpensesmustbeincurredandpaidwithinthreeyearsoftheaccidentIfmoretreatmentisneededbuthasnotyetbeenpaid,thepolicywillnotcoveritFormedicalpayments,insuredmeansYouoranyfamilymemberwhenoccupying,orasapedestrianwhenstruckby,amotorvehicledesignedforusemainlyonpublicroadsorbyatrailerofanytypeAnyotherpersonwhileoccupyingyourcoveredauto26ExclusionsThemedicalpaymentscoveragedoesnotapplytoanyinjuriessustainedwhenridingamotorcycleButifamotorcyclecollideswithyouoryourvehicle,youareinsuredNoprotectionisavailablewhileyourvehicleisusedtocarrypeopleorpropertyforafeeShare-the-expensecarpoolsareexemptedfromthisrestrictionAnybodilyinjuryreceivedwhileoccupyingavehiclelocatedforuseasaresidenceorpremisesisalsoexcluded27ExclusionsNocoverageisavailableforinjuriesoccurringinthecourseofemploymentifworkers’compensationissupposedtoprovidebenefitsNoprotectionexistswhileoccupyinganownedauto(otherthanyourcoveredauto)oronefurnishedoravailableforyourregularuseNocoverageexistswhileoccupyingavehiclewithoutareasonablebeliefthatyouareentitledtodosoInjuriessustainedbyoccupyingavehiclewhileitisbeingusedforbusinessisexcludedunlessthevehicleisAprivatepassengerautoAnownedpickuporpaneltruckorvanAtrailerusedwithavehicledescribedinthefirsttwoOtherexclusionsarelossesduetowar,radiation,andracing28OtherConditionsThemedicalpaymentslimitsareonaper-personbasisPAPspecificallystatesthatthemaximumamountreceivableistheper-personlimitstatedonthedeclarationspageThislimitisthemaximum,regardlessofthenumberofautosinsuredThepolicystatesthatnoonecancollectunderthemedicalpaymentsportionofthepolicyaswellasundertheliabilityoruninsuredmotoristsportionPAPpaysonapro-ratabasisincaseswhereotherinsuranceappliesonanequalbasisHowever,withrespecttononownedautomobiles,itisalwaysexcess29UninsuredMotoristPaysforyourbodilyinjuriesthatresultfromanaccidentwithanothervehicleiftheotherdriverisnegligentanddoesnothaveanyinsuranceOrhasinsurancelessthanthatrequiredbylawPunitivedamagesarenotcoveredInsuredpersonsincludeThenamedinsuredandfamilymembersAnypersonoccupyingyourcoveredautoOtherpersonswhoareentitledtorecoverybecauseofinjuryinthefirsttwocategoriesInsuredspurchaseuninsuredmotoristinsurancetoprotectthemselvesagainstotherdriverswhoareuninsuredWhilemanystatesrequireorstronglyencourageliabilityinsurance,manypeopledonotpurchaseitTable13-5givestheuninsuredmotoristratesfortheninehighest-ratestates30Table13-5:StateUninsuredMotoristRates(in%)31UninsuredMotorVehiclesAlandmotorvehicleortrailerofanytypewiththefollowingspecificationsOnetowhichnobodilyinjuryliabilitybondorpolicyappliesatthetimeoftheaccidentOnetowhichabodilyinjuryliabilitybondorpolicyappliesatthetimeoftheaccidentButwithalimitforliabilitylessthantheminimumlimitspecifiedbythefinancialresponsibilitylawofthestateinwhichyourcoveredautoisprincipallygaragedOnethatisahit-and-runvehiclewhoseoperatororownercannotbeidentifiedandthathitsyouoranyfamilymember,avehicleoccupiedbyyouoranyfamilymember,oryourcoveredautoOnetowhichabodilyinjuryliabilitybondorpolicyappliesatthetimeoftheaccidentButthatiscoveredbyabondingorinsuringcompanythatdeniescoverageorbecomesinsolvent32UninsuredMotorVehiclesNoneofthefollowingisconsideredanuninsuredmotorvehicleOneownedby,furnishedto,oravailablefortheregularuseofyouoranyfamilymemberOneownedoroperatedbyaself-insurerunderanyapplicablemotorvehiclelawunlesstheself-insurerbecomesinsolventOneownedbyanygovernmentunitoragencyOneoperatedonrailsorcrawlertreadsOnedesignedmainlyforuseoffpublicroadswhilenotonpublicroadsOnelocatedforuseasaresidenceorpremises33ExclusionsInadditiontotheexclusionsunderthedefinitionofanuninsuredmotorvehicleTheuninsuredmotoristcoveragehasfiveexclusionsforbodilyinjuryIftheinjuryissustainedwhileoccupying,orwhenstruckby,amotorvehicleortrailerofanytypeownedbyyouoranyfamilymemberthatisnotinsuredforthiscoverageIftheclaimissettledbytheinsuredortheinsured’slegalrepresentativewithoutconsentoftheinsurerIftheinjuryissustainedwhileoccupyingyourcoveredautowhenitisbeingusedtocarrypeopleorpropertyforafeeIftheinjuryissustainedwhileusingavehiclewithoutreasonablebeliefthatyouareentitledtodosoIfthecoveragedirectlyorindirectlybenefitsanyinsurerorself-insurerunderanyworkers’compensation,disabilitybenefits,orsimilarlaw34OtherConditionsThemaximumlimitofliabilityistheamountshownonthedeclarationspageSplitlimitsareusedThenumberofpersonsorvehiclesinsureddoesnotaffectthislimitNostackingisallowedCoverageisexcessonnonownedvehiclesWhenadisputedevelopsbetweentheinsuredandtheinsureronaclaimThepolicygiveseitherpartytherighttoaskforbindingarbitration35PhysicalDamagetoAutosTheinsurerprovidesprotectionfordirectaccidentallosstothecoveredautoortoanonownedautoAnonownedautoisdefinedasanyprivatepassengerauto,pickuptruck,van,ortrailernotownedorfurnishedfortheregularuseofyouoranyfamilymemberwhileinthecustodyoforbeingoperatedbyyouoranyfamilymemberAswellasanyautoortrailerwhileusedasatemporarysubstituteforyourcoveredautowhileitisoutofnormaluseCoverageforanonownedautoisequaltothebroadestprotectionprovidedforanycoveredauto36PhysicalDamagetoAutosCoverageisseparatedintotwosectionsCollisionDefinedasupsetofyourcoveredautoornonownedautooritsimpactwithanothervehicleorobjectDefinitionisnewtoPAPItclarifieswhatsomepersonsthoughtwasawkwardintheolddefinitionWhichusedthewordcollidetodefinethetermcollisionOtherthancollisionLossestoanautocausedbymissiles,fallingobjects,fire,theftorlarceny,explosion,earthquake,windstorm,hail,water,flood,maliciousmischieforvandalism,riotorcivilcommotion,contactwithabirdorotheranimal,orbreakageofglass37PhysicalDamagetoAutosIfbreakageofglassiscausedbyacollisionYoumayelecttohaveitconsideredalosscausedbycollisionWithoutthisalternativeapproachonglassAdeductiblecouldberequiredforthecollisionlossandanotherdeductibleonotherthancollisionfortheglassTheadvantagetotheinsuredfornothavingtheprecedingperilsconsideredcollisionsisCoverageforotherthancollisionusuallyhasalowerdeductiblethancollisioncoverageAdditionally,other-than-collisionclaimsoftenwillnotraiseaninsured’srates Whereascollisionclaimsusuallywill38ExclusionsThephysicaldamagesectionexcludeslossresultingfromtheoperationofavehicleusedtocarrypersonsorpropertyforafeeDamageresultingfromwar,radioactivecontamination,anddischargeofanynuclearweaponisexcludedLosstoequipmentdesignedforthereproductionofsoundUnlesstheequipmentispermanentlyinstalledinordesignedtobesolelypoweredbytheelectricalsystemofyourcoveredautoLosstoanyofthefollowingortheiraccessoriesCitizens-bandradioTwo-waymobileradioTelephoneScanningmonitorreceiverTelevisionmonitorreceiversVideocassetterecordersAudiocassetterecordersPersonalcomputers39ExclusionsLosstotapes,records,discsorothermediausedwiththeequipmentdescribedpreviouslyLosstolaserorradardetectionequipmentLosstoacamperbody,trailer,ormotorhomenotshowninthedeclarations,aswellasassociatedequipmentLosstocustomfurnishingsorequipmentinoruponapickuporvan40ExclusionsNocoverageisgivenforanonownedortemporarysubstitutevehicleusedbyyouorafamilymemberwithoutareasonablebeliefthatthepersonisentitledtodosoRentalcarcompaniesarenotcoveredforcoverageonacaryourentfromthemunlessyoucanbeheldliableundertherentalagreementorastatestatuteDamagefromwearandtear,freezing,mechanicalorelectricalbreakdownorfailures,androaddamagetotires41TransportationandTowingPAPwillpayupto$20adayfortemporarytransportationexpensesincurredbyyouintheeventofacoveredlosstoyourautoInthecaseoftheft,youmustwait48hoursinordertorecoverForanadditionalpremium,towingandlaborcostcoveragemaybeaddedTheinsurer’slimitofliabilityisgenerallyabout$50AlllabormustbeperformedatthesiteofthedisablementGiventheroadsideassistanceplansthataccompanymanycarpurchasesMostpersonsprobablydonotneedthiscoverageButbecausethepremiumissolowmanypurchaseit42OtherProvisionsTheinsurerlimitsitsliabilitiestotheactualcashvalueofthelossOrtheamountnecessarytorepairorreplacetheproperty,whicheverislessActualcashvalueincludesanadjustmentfordepreciationandthephysicalconditionoftheautoInthecaseofantiqueorcustomizedautomobilesAstated-amountendorsementmaybeusedTheinsurerreservestherighttopayforthelossinmoney,repair,orreplacementofthedamagedorstolenpropertyIfthecarisstolen,theinsurerwillpayforthecostofreturningthevehicletotheownerIfthecostofrepairorreplacementisgreaterthanthevalueofthepropertyTheinsurermaydeclarethelossatotallossandpaytheactualcashvalueofthevehicle43OtherProvisionsNewwordinginthepolicystatesthatiftherepairorreplacementresultsinbettermentofthepropertyTheinsurerwillnotpayfortheamountofthebettermentThebettermentprovisionandtheusedof“aftermarket”partshascausedsignificantconcerntoconsumersandinsurancecompaniesInsurershavearguedthataftermarketpartsarejustasgoodasthosemadebytheautomanufacturerTheycostlesssoeveryonewinsbecauseoflowerpremiumstoinsuredsandlowercoststoinsurersAnotherprovisionstatesthattheinsuranceshallnotdirectlyorindirectlybenefitanycarrierorbaileeSuchpersonsincludearailroadorshippinglinethattransportsyourvehicleaswellasaparkinglotoperationThisallowstheinsurertosubrogateagainstthebaileewhenthebaileeisnegligentindamagingyourautoAllcoveragefornonownedautosisexcessoveranyothercollectibleinsurance44DutiesafteranAccidentorLossTheinsuredmustpromplynotifytheinsurancecompanyofhow,when,andwheretheaccidentorlossoccurredTypically,reportingsuchinformationtoyouragentisconsideredreportingittothecompanyAnypersonseekingcoverageunderthePAPmustbewillingtoCooperatewiththecompanyintheinvestigation,settlement,ordefenseofanyclaimorsuitPromptlysendthecompanycopiesofanynoticesorlegalpapersreceivedinconnectionwiththeaccidentorlossSubmit,atthecompany’sexpenseandasoftenasreasonablyrequired,tophysicalexaminationsbyphysiciansselectedbythecompanyandtoexaminationunderoathAuthorizethecompanytoobtainmedicalreportsandotherpertinentrecordsSubmitaproofoflosswhenrequiredbythecompany45DutiesafteranAccidentorLossApersonseekinguninsuredmotoristcoveragemustalsobewillingtoNotifythepolicepromptlyifahit-and-rundriverisinvolvedSendcopiesofthelegalpaperstothecompanyifasuitisbroughtWhenaclaimismadeunderthecoveragefordamagetoyourauto,youmustTakereasonablestepsafteraloss,atcompanyexpense,toprotectyourcoveredautoanditsequipmentfromfurtherdamageNotifythepolicepromptlyifyourcoveredautoisstolenPermitthecompanytoinspectandappraisethedamagedpropertybeforeitsrepairordisposal46DutiesafteranAccidentorLossIfyouhaveanaccident,theinsurerwillpaytowingexpensesIfthedisabledvehiclewasleftatthesceneoftheaccidentThereisachancethatsomeonewillstripitofitssalablepartsPromptlynotifyingthepolicewhentheftoccursincreasestheprobabilityofrecoveryItalsoreducesthemoralhazardofaninsured’ssellingorhidingthevehicleandreportingitasstolentotheinsurer47GeneralProvisionsThepolicystatesthatitsterritoriallimitsaretheU.S.andCanadaTransportationoftheautobetweenanyofthesepointsisalsocoveredNotethatMexicoisnotacoveredterritoryAllpolicymodificationsmustbeinwritingWhenapolicyischangedtogivegreatercoveragewithoutadditionalchargeTheinsured’spolicyisautomaticallymodifiedTheinsuredcannotstartlegalproceedingsuntilfullcompliancewithallpolicytermshasbeenmetThepolicycannotbeassignedwithoutthewrittenpermissionoftheinsurerBankruptcyoftheinsureddoesnotrelievetheinsurerofitsobligation48PolicyCancellationProvisionsThePAPpolicyhasaratherlengthyterminationprovisionTheinsuredcancancelatanytimebyreturningthepolicyorgivingwrittennoticeofthetimewhentheinsuredintendstocancelTerminationbythecompanyismorecomplexDuringthefirst60daysofthepolicytheinsurermaycancelforanyreasonItmaycancelfornonpaymentofpremiumatanytime49PolicyCancellationProvisionsTheinsurerhas60daystoinvestigatetheinsuredandmakeitsunderwritingdecisionDuringthefirst60days,theinsurermustgivetendaysnoticebeforecancelingAfterthepolicyhasbeenineffectfor60daystheinsurercancancelonlyFornonpaymentofpremiumIftheinsuredoraresidentofthehousehold,orsomeonewhoregularlyusestheauto,hashisorherlicensesuspendedorrevokedIfthepolicywasobtainedthroughmaterialmisrepresentationIfyourstaterequireslongernoticethanthePAPgivesYourstatelawwilldeterminethenotificationperiodTheinsurancecompanyisobligatedtogiveyouarefundofthepremiumifoneisdueHowever,itisnotrequiredtotendertherefundwhenitcancelsYoumayhavetoaskforit50EndorsementstothePAPThePAPmaybeendorsedtogivephysicaldamagecoveragetoownedtrailersMadeonaschedulebasisWhennonownedautosarefurnishedforyourregularuseTheextendednonownedliabilityendorsementisneededInthecaseofacustomvanTheinsuredneedstoaddacoveredpropertyendorsementTheunderinsuredmotoristsendorsementprovidestheinsuredprotectionwhenanotherpersonwhoisinadequatelyinsuredcausestheinsuredtobeinjuredInsomestatesunderinsuredmotoristinsuranceisincludedinuninsuredmotoristcoverageTheseprovisionsapplyonlyiftheotherdriverisatfault51MotorcyclesandOtherVehiclesThroughtheuseofthe“MiscellaneousTypeofVehicleEndorsement”UnderthePAPapersoncaninsuremotorcycles,motorhomes,golfcarts,orothersimilartypesofvehiclesInaddition,aprivatepassenge