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Is a legal contract between the Insured and the Insurer which applies for the policy period.
Is a legal contract between the Insured and the Insurer which applies for the policy period.
Insurance policy
Which are the two primary duties of insurance companies?
Which are the two primary duties of insurance companies?
These are examples of first-party policies, EXCEPT:
These are examples of first-party policies, EXCEPT:
Which of the following statements about the scope of Bodily Injury within an insurance policy is true?
Which of the following statements about the scope of Bodily Injury within an insurance policy is true?
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What is the definition of 'Accident' within the policy language?
What is the definition of 'Accident' within the policy language?
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Under California Law, Uber drivers are not considered employees while driving a vehicle, so if they suffer an injury during this activity it will be covered under the driver's UM/UIM policy.
Under California Law, Uber drivers are not considered employees while driving a vehicle, so if they suffer an injury during this activity it will be covered under the driver's UM/UIM policy.
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The following are exclusions of insurance coverage, EXCEPT:
The following are exclusions of insurance coverage, EXCEPT:
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What is the difference between Excess Liability Coverage and Umbrella Coverage?
What is the difference between Excess Liability Coverage and Umbrella Coverage?
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Most policies have a Medpay reimbursement provision that would require them to pay back the covered amount if there is a recovery from a Third Party as a result of the Third Party's negligence. This can be negotiable with most insurances under California Law.
Most policies have a Medpay reimbursement provision that would require them to pay back the covered amount if there is a recovery from a Third Party as a result of the Third Party's negligence. This can be negotiable with most insurances under California Law.
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Is the amount that the Insured is responsible for paying on the claim.
Is the amount that the Insured is responsible for paying on the claim.
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Study Notes
Legal Contracts in Insurance
- A legal contract exists between the Insured and Insurer, binding for the policy duration.
- Insurers have two primary duties: to pay valid claims and to defend insureds against lawsuits.
First-Party Policies
- First-party policies provide coverage for losses suffered by the Insured.
- Examples of first-party policies include Property Insurance, not including liability coverage.
Scope of Bodily Injury
- Bodily Injury coverage in an insurance policy typically includes physical harm, including illness and disease.
- True statements about bodily injury must clarify the intentional actions versus accidents leading to injury.
Definition of Accident
- An 'Accident' in policy language is defined as an unforeseen event causing damage or injury, generally sudden and unexpected.
Liability Coverage for Uber Drivers
- Under California Law, Uber drivers are classified as independent contractors, not employees.
- In the event of an injury while driving, coverage falls under the driver’s Uninsured Motorist/Underinsured Motorist (UM/UIM) policy.
Exclusions of Insurance Coverage
- Specific conditions or risks may be excluded from coverage, which includes activities that do not coincide with policy terms.
- Common exclusions involve intentional damage, wear and tear, or specific non-covered areas.
Excess Liability vs. Umbrella Coverage
- Excess Liability Coverage offers additional limits beyond the primary policy.
- Umbrella Coverage provides broader coverage and can fill gaps not covered by the underlying policies.
Medpay Reimbursement Provision
- Most insurance policies include a Medical Payments (Medpay) reimbursement clause.
- Insureds may need to repay covered medical expenses if they recover from a Third Party's negligence.
- The negotiation of these terms can be conducted under California Law.
Insured’s Responsibility for Claims
- The Insured typically has a set amount of the claim they must personally pay, known as the deductible.
- This out-of-pocket expense is detailed in the policy agreement.
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