PP 03 22–NAMED NON-OWNER COVERAGE

(September 2024)

Endorsement PP 03 22 may be used with a Personal Auto Policy to provide coverage for an individual who does not own an auto but faces loss exposures due to regularly operating vehicles owned by other entities.

The Schedule

The endorsement includes a schedule for listing the individual insured under the endorsement as well as spaces for electing coverage for the named insured’s resident relatives and spouse and for coverage to apply to regularly furnished or available vehicles.

The schedule also includes space to indicate elected coverages, limits and premiums for bodily injury, property damage, medical payments, uninsured motorists (BI and/or PD) and Underinsured Motorists (BI and/or PD). The inclusion of a premium indicates that a given coverage applies.

Beginning with the form’s 09 18 edition, it now contains a section for physical damage coverage.

Coverage Analysis

The endorsement provides Liability, Medical Payments and Uninsured Motorists coverages for named individuals who do not own a vehicle by modifying a Personal Auto Policy’s Definitions and various Coverage Parts.

I. Definitions

A. “You” and “your” specifically refers to the individual listed in the endorsement schedule (or declarations).

B. “Family member” refers to legal relatives, wards or foster children but only when such persons are part of the named individual’s household and the form shows the election was made to extend coverage to these persons.

C. “Your covered auto” is changed to refer to only the vehicles that are defined as a “newly acquired auto.” Coverage is limited to a maximum of 14 days after such an auto is acquired. No coverage is extended if another source protects the auto.

Example: Kendra Woozy does not own a car and is insured under a PAP modified by the PP 03 22–Named Non-Owner Endorsement. Her favorite uncle just turned 82 and, because of severe health issues, is no longer able to drive. He gives his car to Kendra. That car is considered a covered vehicle under Kendra’s policy for up to 14 days. However, any coverage is contingent on whether her uncle still carries separate coverage for it.

II. Part A–Liability Coverage

The form amends Part A of the PAP as follows:

A. Any reference to family member is deleted if no election is made under the endorsement to include protection for the named individual’s relatives.

B. The policy is amended so that coverage applies to vehicles that qualify under the endorsement’s definition of “your covered auto” as well as to vehicles that are regularly provided or available to the form’s named insured WHEN coverage for the latter vehicles is elected under the form.

C. Part A’s Limit of liability section is replaced.

The maximum amounts of Bodily Injury coverage that apply under the endorsement are the amounts that appear either on the form’s schedule or on the Declarations. The each person amount applies to a given injured person during an applicable, covered occurrence. Eligible injuries include claims for care, death or loss of services as long as they are related to bodily injury. The each accident amount is the total amount of coverage available for all injuries that occur under a single, eligible accident. The form’s (or declarations’) Property Damage limit is the maximum available for all claims for property that is damaged or destroyed in a single, eligible loss. The limits are unaffected by the number of persons, vehicles or claims that are filed in a given loss.

D. The PAP’s Out of State Coverage is modified to provide coverage that complies with the laws of the state where an accident occurs. For such a loss, the policy will conform to that state’s requirements regarding financial responsibility and/or compulsory insurance. However, no duplicate payments will be made under this provision.

Note: Conformance only applies when another state’s laws require coverage amounts that are HIGHER than the limits listed under the form or declarations.

III. Part B–Medical Payments Coverage

The form amends Part B of the PAP as follows:

A. Any reference to family member is deleted if no election is made under the endorsement to include protection for the named individual’s relatives.

B. Coverage applies when struck by, or while occupying vehicles that qualify under the endorsement’s definition of “your covered auto” as well as to vehicles that are regularly provided or available to the form’s named insured WHEN coverage for the latter vehicles is elected under the form.

C. Part B’s Limit of Liability section is replaced.

The maximum amounts of coverage that apply under the endorsement are the amounts that appear either on the form’s schedule or on the Declarations. The each person amount applies to a given injured person during an applicable, covered occurrence. The limits are unaffected by the number of persons, vehicles or claims that are filed in a given loss.

IV. Part C–Uninsured Motorists Coverage

The form amends Part C of the PAP as follows:

A. Any reference to family member is deleted if no election is made under the endorsement to include protection for the named individual’s relatives.

B. The policy definition of uninsured motor vehicle is amended so that:

· Any reference to principal garaging is changed to the state where the named individual resides

· The section on hit-and-run excludes family member if no election is made under the endorsement to include protection for the named individual’s relatives.

C. Part C’s Limit of liability section is amended. The maximum amount of coverage for incidents involving uninsured motorists is the limit that appears either on the form’s schedule or on the Declarations. The each person amount applies to a given injured person during an applicable, covered occurrence. Eligible injuries include claims for care, death or loss of services as long as they are related to bodily injury. The each accident amount is the total amount of coverage available for all injuries that occur under a single, eligible accident. If applicable, the form (or declarations’) Property Damage limit is the maximum available for all claims for property that is damaged or destroyed in a single, eligible loss. The limits are unaffected by the number of persons, vehicles or claims that are filed in a given loss. Nor are they affected by the number of vehicles or premiums appearing in the schedule or declarations.

V. Part D-Coverage for Damage To Your Auto

This part amends Part D of the PAP as follows:

A. Any reference to family member is deleted if no election is made under the endorsement to include protection for the named individual’s relatives.

B. Insuring Agreement

When these coverage options of the form are selected, physical damage (collision and other than collision as defined) applies for accidental, direct loss to a non-owned auto (also as defined). Coverage extends to equipment within a covered non-owned auto but subject to the deductible on the form’s schedule.

C. Transportation Expenses

The PAP offers (without a deductible) up to a maximum of $900 to help cover liability for expenses caused by the unavailability (loss or destruction) of a non-owned auto. Such liability must be due to an eligible, accidental loss and is subject to a $30 daily maximum.

The PAP also will cover additional transportation expenses if a non-owned auto is stolen. However, coverage won’t begin until 48 hours after the theft. Coverage ends when the covered car is back for the insured’s use or a settlement has been made.

In all other cases, coverage begins after 24 hours (that a covered vehicle is unavailable for use) and stops based on the time it should reasonably be expected to repair or replace the applicable auto.

D. Exclusion

Makes PAP Coverage D Exclusion 7. Inapplicable

E. Limit of Liability

Replaces Coverage D’s Limit of Liability provisions, where maximum coverage paid is the lesser amount of the schedule’s limit, the damaged/lost property’s actual cash value or the value of near quality property when acquired as a substitute or that is used in repairs.

Regarding two other classes of property, $1,500 and $1,000 are the maximums the form will pay respectively for any non-owned trailer and electronic equipment. The latter term refers to permanently installed property that handles data, signals (audio or visual), or that reproduces sound. However, the $1,000 limit only affects equipment located in areas not used by automakers.

F. Other Sources

If other non-owned auto coverage exists, this endorsement will respond on an excess basis. Protection from a non-owned auto’s owner, other physical damage coverage, or other viable recovery options are examples of primary sources that would be required to respond to a loss first.

VI. Underinsured Motorists Coverage

The form amends the PAP as follows:

A. If coverage for Underinsured Motorists is selected, any reference to family member is deleted if no election is made under the endorsement to include protection for the named individual’s relatives.

B. The policy definition of uninsured motor vehicle is amended so that any reference to principal garaging is changed to state where the named individual resides.

C. If the option of Underinsured Motorists Property Damage is selected, the maximum amount of coverage for all property that is damaged or destroyed during a given incident involving this protection is the limit that appears either on the form’s schedule or on the Declarations. The limit is unaffected by the number of persons, vehicles or claims that are filed in a given loss. Nor is it affected by the number of vehicles or premiums appearing in the schedule or declarations.