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INSURANCE 101 - AUTOMOBILE DEFINITIONS
Liability: This is
a mandatory coverage. This coverage will pay for bodily injury
or death or property damage that you or someone driving your
vehicle may cause another person and for which you are legally
liable for.
Accident Benefits:
This is a mandatory coverage. This coverage pays medical, rehabilitation,
death, funeral or total disability benefits for injuries or
death sustained by you or your passenger(s) in a vehicle collision,
regardless of who was at fault.
All Perils: Broadest
form of coverage. It combines and broadens the protection provided
by Collision and Comprehensive coverage. It is all risks coverage
defined by the exclusions.
Collision: This coverage
protects you against physical damage you may do to your vehicle
from a collision with another vehicle or object.
Comprehensive:
This coverage protects your vehicle against any damage other
than collision or upset. The main coverage’s are Fire,
Theft, Vandalism and Impact with Animal.
Specified Perils:
This coverage states the specific perils insured against. These
are: Fire, Lightning, Theft or Attempted Theft, Windstorm, Earthquake,
Hail, Explosion, Rising Water, Riot or Civil Commotion, Falling
or forced landing of aircraft or of parts thereof, Stranding,
sinking, burning, derailment or collision of any conveyance
in or upon which the automobile is being transported on land
or water.
SEF 44: Family Protection
Endorsement. When the insured cannot fully recover his damages
for bodily injury or death, this endorsement covers the difference
between the value of the insured’s claims and the third
party’s limit of insurance. When a third party is at fault,
it covers the shortfall when the third party is inadequately
insured to cover the insured’s claims or when the third
party is uninsured.
SEF 2: Drive Other Automobiles.
This endorsement provides coverage for specifically named persons
who drive automobiles other than that described in the policy,
with coverage being subject to conditions set out in the endorsement
of the respective company. This coverage is primarily used for
coverage of a dependent relative.
SEF 5: Rented or Leased
Automobiles. This endorsement grants permission to the lessor
to rent or lease the automobile to a named person, and to extend
the coverage under the policy to the lessee and those who personally
drive the automobile with the lessee’s consent. Even though
the car is owned by the lessor, it allows the insurance company
to rate for the lessee as they are the principle driver.
SEF 6a: Carry Passengers
for Compensation. Your insurance policy excludes carrying passengers
for compensation or hire. The SEF 6a endorsement counter’s
that exclusion and allows for the insured to carry passengers.
SEF 8: Property Damage
Deductible. When this endorsement is attached to the policy,
the insured agrees to reimburse the insurer the sum stated in
the endorsement or the amount of the loss, whichever is less.
The insurance company will investigate, settle and pay the loss
in the usual way. The insured will then reimburse the insurer
for the sum stated on the endorsement.
SEF 9: Amphibious Vehicles.
This endorsement excludes coverage for the marine use of the
vehicle.
SEF 13D: Limitation
of Glass. This coverage excludes glass coverage only to the
windshield, all remaining glass has full coverage. This helps
reduce the insured’s premium.
SEF 13H: Deletion of
Hail. Some insured’s who suffer hail damage to their vehicles
may opt for a cash settlement instead of repairs. The insurance
companies add this endorsement to ensure further hail damage
coverage is excluded. This endorsement can be deleted upon proof
of repair of the prior hail damage.
SEF 19: Antique, Classic
and Restored Automobiles. When an insurance company is asked
to insure a very old vehicle which has been restored and is
considered an antique, they will add a SEF 19. This limit’s
the insurance company’s liability to the actual cash value
or a stated amount, whichever is less. This is because these
automobiles may appreciate considerable in a short period of
time.
SEF 19A: Valued Automobiles.
This endorsement will insure antique automobiles to a stated
value and amount of insurance based on an appraisal. This amount
is agreed upon in advance of a possible loss.
SEF 20: Loss of Use.
This endorsement proves you with the rental of a vehicle or
the use of taxicabs and public transportation to a specified
daily dollar limit in the event that your vehicle is inoperable
and being repaired due to a loss covered under either All Perils,
Collision, Comprehensive or Specified Perils coverage.
SEF 23A: Standard Mortgage
Endorsement. This endorsement is designed to protect the interest
of the lien holder, mortgagee or assignee. The lien holder is
provided with a copy of this endorsement and your policy, as
required, as evidence of insurance coverage.
SEF 27: Legal Liability
for Damage to Non-owned Vehicles. This endorsement when added
to your auto policy, extends the physical damage coverage and
deductible that you have on your personal vehicle to a rental
vehicle. It provides physical damage coverage only, there is
no liability coverage attached.
SEF 28: Restricting or
Adding Coverage for Certain Drivers. This endorsement restricts
the amount of coverage when certain individuals are operating
the vehicle, perhaps in the case of a poor driver. The person
subject to the restricted coverage is named in the endorsement,
as are the coverage restrictions.
SEF 36: Commercial Vehicles
Used for Pleasure Only. Certain people may own light commercial
vehicles such as vans or pickup trucks but use them for pleasure
purposes only. As your personal automobile policy is for personal
use only, this endorsement must be attached to the vehicle to
show it is personal use only.
SEF 37: Limitation of
Limit for Automobile Sound and Electronic Communication Equipment.
This endorsement limit’s the amount of coverage provided
for items such as stereos, radios or telephones installed in
the insured automobile.
SEF 38: Increased Limit
for Automobile Sound and Electronic Communication Equipment.
This endorsement increases the limit of coverage for such items
mentioned specifically in the endorsement.
SEF 43R: Limited Waiver
of Depreciation. This endorsement waives the depreciation on
a new vehicle in the event of a total loss for a specified period
of time from the date of purchase. Full physical damage coverage
must be carried on the vehicle and the insured must be the original
owner.
Endorsement: These
are attachments to a policy which vary the terms of the contract.
These can broaden, restrict or alter coverage, or generally,
it can make almost any change agreed upon between the insured
and the insurance company, subject to the provisions of the
Insurance Act. These are referred to as SEF or Standard Endorsement
Forms.
Deductible: This
is the amount you, the insured, will pay in the event of a claim
prior to the insurance company paying.
Driver Training:
Successful completion of an approved driver-training course
which offers certified training and instruction both in the
classroom and on the road.
Continuous: The
length of time you have been covered by one or more insurance
companies without a break (lapse) in insurance coverage.
Minor Convictions:
Minor moving traffic violations other than those described in
Major Convictions and Serious Convictions.
Major Convictions:
These are as follows, but not limited too:
- Failure to report an accident
- Failure to provide information to police
- Improper passing of a school bus and/or Fail to stop for
school bus
Serious Convictions:
Theses are as follows, but not limited too:
- Criminal negligence in use of a motor vehicle
- Vehicular manslaughter
- Racing
- Careless driving
- Driving with out due care and attention
- Dangerous driving
- Impaired driving
- Failure/refusal to submit to a breath/blood test
- Failure to remain at the scene of an accident
- Failure to stop for a police office
- Driving while disqualified or suspended
- Make false statement
- Produce false evidence
Uninsured Motorist:
Each Canadian province or territory, and the majority of the
American states, has a fund available to compensate victims
of uninsured and unidentified motorists. This coverage allows
you to recover a loss for bodily injury under the Uninsured
Motorist coverage of your policy if an uninsured/unidentified
motorist was at-fault and no Highway Victims Indemnity Fund
exists where the accident happened.
PLEASE REVIEW YOUR PERSONAL POLICY DIRECTLY FOR EXACT
WORDING, COVERAGE’S, DEFINITIONS, EXCLUSIONS AND LIMITS.
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