Quick Index
Index Descriptions, AGREEMENT, DEFINITIONS, PART A, PART B1, PART B2, PART C, PART D, PART D3, PART D4, PART E, PART F, PART G, ENDORSEMENT 565, ENDORSEMENT 573A, ENDORSEMENT 560C, ENDORSEMENT 593, ENDORSEMENT TE 0040
MUTUAL CONDITIONS
AGREEMENT
In return for payment of the premium and subject to all the terms os
this policy we agree with you as follows:
DEFINITIONS
A. Throughout this policy, "you" and "your"
refer to:
agree
1. The "named insured" shown in the
Declarations, and
2. The spouse if a resident of the same household.
B. "We", "us" and "our" refer to the
company providing this insurance.
C. For purposes of this policy a private passenger type auto or pickup
or van shall be deemed to be owned by a person if leased:
1. Under a written agreement to that person;
and
2. For a continuous period of at least six
months. Other words and phrases are defined. They are boldfaced italics
when used.
D. Family member means a person who is a resident of
your household and related to you by blood, marriage or adoption. This
definition includes a ward or foster child who is a resident of your household,
and also includes your spouse even when not a resident of your household
during a period of separation in contemplation of divorce.
E. Occupying means in, upon, getting in, on, out or off
.
F. Trailer means a vehicle designed to be pulled by a:
1. Private passenger auto; or
2. Pickup or van.
It also means a farm wagon or farm implement while towed by a vehicle
listed in F.l. or F.2. above.
G. Your covered auto means:
1. Any vehicle shown in the Declarations;
2.
I. Any of the following
types of vehicles on the date you became the owner:
a.
a private passenger auto; or
b.
a pickup or van with a G.V.W. of 10,000 Ibs. or less not used for the delivery
or transportation of goods, materials or supplies other than samples; unless,
(1) the delivery of goods, materials or supplies is not the primary usage
of the vehicle, or (2) used for farming or ranching.
II. This provision
(G.2.) applies only if you:
a.
acquire the vehicle during the policy period; and
b.
notify us within 30 days after you become the owner. If the vehicle you
acquire replaces one shown in the Declarations, it will have the same coverage
as the vehicle it replaced. You must notify us of a replacement vehicle
within 30 days only if you wish to add or continue Coverage for Damage
to Your Auto.
If the vehicle you acquire is in addition to
any shown in the Declarations, it will have the broadest coverage we now
provide for any vehicle shown in the Declarations.
3. Any trailer you own.
4. Any auto or trailer you do
not own while used as a temporary substitute for any other vehicle described
in this definition which is out of normal use because of its:
a. breakdown;
b. repair;
c. servicing;
d. loss; or
e. destruction.
INSURING AGREEMENT
A. We will pay damages for bodily injury or property damage for which
any covered person becomes legally responsible because of
an auto accident. Property damage includes loss of use of the damaged property.
Damages include prejudgment interest awarded against the covered
person. We will settle or defend, as we consider appropriate, any
claim or suit asking for these damages. In addition to our limit of liability,
we will pay all defense costs we incur. Our duty to settle or defend ends
when our limit of liability for this coverage has been exhausted.
B. Covered person as used in this Part means:
1. You or any family member for
the ownership, maintenance or use of any auto or trailer.
2. Any person using your covered auto.
3. For your covered auto, any person or organization
but only with respect to legal responsibility for acts or omissions of
a person for whom coverage is afforded under this Part.
4. For any auto or trailer, other
than your covered auto, any person or organization but only
with respect to legal responsibility for acts or omissions of you or any
family member for whom coverage is afforded under this Part.
This provision (B.4.) applies only if the person or organization does not
own or hire the auto or trailer.
SUPPLEMENTARY PAYMENTS
In addition to our limit of liability, we will pay on behalf of
a covered person:
1. Up to $250 for the cost of bail bonds required because of an accident
including related traffic law violations. The accident must result in bodily
injury or property damagecovered under this policy.
2. Premiums on appeal bonds and bonds to release attachments in any
suit we defend.
3. Interest accruing after a judgment is entered in any suit we defend.
Our duty to pay interest ends when we offer to pay that part of the judgment
which does not exceed our limit of liability for this coverage.
4. Up to $50 a day for loss of earnings, but not other income, because
of attendance at hearings or trials at our request.
5. Other reasonable expenses incurred at our request.
EXCLUSIONS
A. We do not provide Liability Coverage for any person:
1. Who intentionally causes bodily injury or
property damage;
2. For damage to property owned or being transported
by that person;
3.
I. For damage to property:
a.
rented to;
b.
used by; or
c.
in the care of; that person.
II. This exclusion
(A.3. 1.) does not apply to damage to:
a.
residence or private garage; or
b.
any of the following type vehicles not owned by or furnished or available
for the regular use of you or any family member
(1)
private passenger autos;
(2)
trailers; or
(3)
pickups or vans.
However, the exclusion 3.I. does apply to a loss due to or as a consequence
of a seizure of an auto listed in 3.II.b. by federal or state law enforcement
officers as evidence in a case against you under the Texas Controlled Substances
Act or the federal Controlled Substances Act if you are convicted in such
case.
4. For bodily injury to an employee of that
person during the course of employment. This exclusion (A.4.) does not
apply to bodily injury to a domestic employee unless workers" compensation
benefits are required or available for that domestic employee.
5. For that person's liability arising out
of the ownership or operation of a vehicle while it is:
a. being used to carry
persons for a fee; this does not apply to a share-theexpense car pool.
b. being used to carry
property for a fee; this does not apply to you or any family member
unless the primary usage of the vehicle is to carry property for
a fee; or
c. rented or leased
to another; this does not apply if you or any family member
lends your covered auto to another for reimbursement of operating expenses
only.
6. While employed or otherwise engaged in the
business or occupation of:
a. selling;
b. repairing;
c. servicing;
d. storing; or
e. parking; vehicles
designed for use mainly on public highways. This includes road testing
and delivery. This exclusion (A.6.) does not apply to the ownership, maintenance
or use of your covered auto by: a. you; b. any family
member; or c. any partner, agent or employee of you or any family
member.
7. Maintaining or using any vehicle while that
person is employed or otherwise engaged in any business or occupation not
described in Exclusion A.6. This exclusion (A.7.) does not apply to the
maintenance or use of a:
a. private passenger
auto;
b. pickup or van that
is your covered auto; or
c. trailer used
with a vehicle described in 7.a. or 7.b. above.
8. Using a vehicle without a reasonable belief
that that person is entitled to do so. This exclusion (8.) does not apply
to you or any family member while using your covered
auto.
9.
I. For bodily injury
or property damage for which that person:
a.
is an insured under a nuclear energy liability policy; or
b.
would be an insured under a nuclear energy liability policy but for its
termination upon exhaustion of its limit of liability.
II. A nuclear energy
liability policy is a policy issued by any of the following or their successors:
a.
Nuclear Energy Insurers;
b.
Mutual Atomic Energy Liability Underwriters; or
c.
Nuclear Insurance Association of Canada.
B. We do not provide Liability Coverage for the ownership, maintenance
or use of:
1. Any motorized vehicle having fewer than
four wheels;
2. Any vehicle, other than your covered
auto, which is:
a. owned by you; or
b. furnished or available
for your regular use.
3.
I. Any vehicle, other
than your covered auto, which is:
a.
owned by any family member; or
b.
furnished or available for the regular use of any family member.
II. However, this exclusion
(B.3.) does not apply to your maintenance or use of any vehicle which is:
a.
owned by a family member, or
b.
furnished or available for the regular use of a family member.
C. We do not provide Liability Coverage for you or any family member
for bodily injury to you or any family member.
LIMIT OF LIABILITY
A. If separate limits of liability for bodily injury and property damage
liability are shown in the Declarations for this coverage the limit of
liability for "each person" for bodily injury liability is our
maximum limit of liability for all damages for bodily injury sustained
by any one person in any one auto accident. Subject to this limit for "each
person", the limit of liability shown in the Declarations for "each
accident" for bodily injury liability is our maximum limit of liability
for all damages for bodily injury resulting from any one auto accident.
The limit or liability shown in the Declarations for "each accident"
for property damage liability is our maximum limit of liability for all
damages to all property resulting from any one auto accident. If the limit
of liability shown in the Declarations for this coverage is for combined
bodily injury and property damage liability, it is our maximum limit of
liability for all damages resulting from any one auto accident. This is
the most we will pay regardless of the number of:
1. Covered persons;
2. Claims made;
3. Vehicles or premiums shown in the Declarations;
or
4. Vehicles involved in the auto accident.
We will apply the limit of liability to provide any separate limits required
by law for bodily injury and property damage liability. However, this provision
will not change our total limit of liability.
B. Any payment under the Uninsured/Underinsured Motorists Coverage
or the Personal Injury Protection Coverage of this policy to or for a covered
person will reduce any amount that person is entitled to recover under
this coverage.
OUT OF STATE COVERAGE
If an auto accident to which this policy applies occurs in any state
or province other than the one in which your covered auto
is principally garaged, we will interpret your policy for that accident
as follows:
A. If the state or province has:
1. A financial responsibility or similar law
specifying limits of liability for bodily injury or property damage higher
than the limit shown in the Declarations, your policy will provide the
higher specified limit.
2. A compulsory insurance or similar
law requiring a nonresident to maintain insurance whenever the nonresident
uses a vehicle in that state or province, your policy will provide at least
the required minimum amounts and types of coverage.
B. No one will be entitled to duplicate payments for the same elements
of loss.
FINANCIAL RESPONSIBILITY REQUIRED
When this policy is certified as future proof of financial responsibility,
this policy shall comply with the law to the extent required.
OTHER INSURANCE
If there is other applicable liability insurance we will pay only our
share of the loss. Our share is the proportion that our limit of liability
bears to the total of all applicable limits.
However, any liability insurance we provide to a covered person for the maintenance or use of a vehicle you do not own shall be excess over any other applicable liability insurance.
PART B1 - MEDICAL PAYMENTS COVERAGE
INSURING AGREEMENT
A. We will pay reasonable expenses incurred for necessary medical and
funeral services because of bodily injury:
1. Caused by accident; and
2. Sustained by a covered person.
We will pay only those expenses incurred within three years from the date
of the accident.
B. Covered person as used in this Part means:
1. You or any family member
a. while occupying;
or
b. when struck by;
a motor vehicle designed for use mainly on public roads or a trailer of
any type.
2. Any other person while occupying your covered
auto.
EXCLUSIONS
We do not provide Medical Payments Coverage for any person for bodily
injury:
1. Sustained while occupying any motorized vehicle having fewer than
four wheels.
2. Sustained while occupying your covered auto when it
is:
a. being used to carry persons for a fee; this
does not apply to a share-the-expense car pool; or
b. being used to carry property for a fee;
this does not apply to you or any family member unless the
primary usage of the vehicle is to carry property for a fee; or
c. rented or leased to another, this does not
apply if you or any family member lends your covered
auto to another for reimbursement or operating expenses only.
3. Sustained while occupying any vehicle located for
use as a residence or premises.
4. Occurring during the course of employment if workers' compensation
benefits are required or available for the bodily injury.
5. Sustained while occupying or, when struck by, any
vehicle (other than your covered auto) which is:
a. owned by you; or
b. furnished or available for your regular
use.
6. Sustained while occupying or, when struck by, any vehicle (other
than your covered auto) which is:
a. owned by any family member;
or
b. furnished or available for the regular use
of any family member. However, this exclusion (6.) does not
apply to you.
7. Sustained while occupying a vehicle without a reasonable
belief that that person is entitled to do so. This exclusion (7.) does
not apply to you or any family member while using your
covered auto.
8. Sustained while occupying a vehicle when it is being
used in the business or occupation of a coveredperson. This exclusion (8.)
does not apply to bodily injury sustained while occupying a:
a. private passenger auto;
b. pickup or van that you own; or
c. trailer used with a vehicle
described in 8.a. or 8.b. above.
9. Caused by or as a consequence of: a. discharge of a nuclear weapon
(even if accidentar); b. war (declared or undeclared); c. civil war, d.
insurrection; or e. rebellion or revolution.
10. From or as a consequence of the following whether controlled or
uncontrolled or however caused:
a. nuclear reaction;
b. radiation; or
c. radioactive contamination.
LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for this coverage
is our maximum limit of liability for each person injured in any one accident.
This is the most we will pay regardless of the number of:
1. Covered persons;
2. Claims made;
3. Vehicles or premiums shown in the Declarations;
or
4. Vehicles involved in the accident.
B. Any amounts otherwise payable for expenses under this coverage shall
be reduced by any amounts paid or payable for the same expenses under any
Auto Liability or Uninsured/Underinsured Motorists Coverage provided by
this policy.
C. No payment will be made unless the injured person or that person's
legal representative agrees in writing that any payment shall be applied
toward any settlement or judgment that person receives under any Auto Liability
or Uninsured/Underinsured Motorists Coverage provided by this policy.
OTHER INSURANCE
If there is other applicable auto medical payments insurance we will
pay only our share of the loss. Our share is the proportion that our limit
of liability bears to the total of all applicable limits . However, any
insurance we provide with respect to a vehicle you do not own shall be
excess over any other collectible auto insurance providing payments for
medical or funeral expenses.
ASSIGNMENT OF BENEFITS
Payment for medical expenses will be paid directly to a physician or
other health care provider if we receive a written assignment signed by
the covered person to whom such benefits are payable.
PART B2 - PERSONAL INJURY PROTECTION COVERAGE
INSURING AGREEMENT
A. We will pay Personal Injury Protection benefits because of bodily
injury:
1. resulting from a motor vehicle accident;
and
2. sustained by a covered person.
Our payment will only be for losses or expenses incurred within three
years from the date of accident.
B. Personal Injury Protection benefits consist of:
1. Reasonable expenses incurred for necessary
medical and funeral services.
2.
I. Eighty percent of
a covered person's loss of income from employment. These
benefits apply only if, at the time of the accident, the covered person
a.
was an income producer; and
b.
was in an occupational status.
These benefits do not apply to any loss after the covered person
dies.
II. Loss of income
is the difference between
a.
income which would have been earned had the covered person not
been
b.
the amount of income actually received from employment during the disability.
III. If the income
being earned as of the date of accident is a salary or fixed remuneration,
it shall be used in determining the amount of income which would have been
earned. Otherwise, the average monthly income earned during the period
(not more than 12 months) preceding the accident shall be used.
3.
I. Reasonable expenses
incurred for obtaining services. These services must replace those a covered
person would normally have performed:
a.
without pay;
b.
during a period of disability; and
c.
for the care and maintenance of the family or household.
II. These benefits
apply only if, at the time of the accident, the covered person:
a.
was not an income producer, and
b.
was not in an occupational status. These benefits do not apply to any loss
after the covered person dies.
C. Covered person as used in this Part means:
1. You or any family member
a. while occupying;
or
b. when struck by;
a motor vehicle designed for use mainly on public roads or a trailer of
any type.
2. Any other person while occupying your
covered auto with your permission.
EXCLUSIONS
We do not provide Personal Injury Protection Coverage for any person
for bodily injury sustained:
1. In an accident caused intentionally by that person.
2. By that person while in the commission of a felony.
3. By that person while attempting to elude arrest by a law enforcement
official.
4. While occupying, or when struck by, any motor vehicle
(other than your covered auto) which is owned by you.
5. By a family member while occupying,
or when struck by any motor vehicle (other than your covered auto)
which is owned by a family member.
LIMIT OF LIABILITY
The limit of liability shown in the Declarations for this coverage
is our maximum limit of liability for each person injured in any one accident.
This is the most we will pay regardless of the number of:
1. Covered persons;
2. Claims made;
3. Vehicles or premiums shown in the Declarations; or
4. Vehicles involved in the accident.
OTHER INSURANCE
If there is other Personal Injury Protection Insurance, we will pay
only our share. Our share is the proportion that our limit of liability
bears to the total of all applicable limits. However, any insurance we
provide with respect to a vehicle you do not own shall be excess over any
other collectible Personal Injury Protection insurance.
OTHER PROVISIONS
A. Loss Payments. Benefits are payable:
1. Not more frequently than every two weeks;
and
2. Within 30 days after satisfactory proof
of claim is received.
B. Modification. The General Provision part of this policy entitled
"Our Right To Recover Payment" does not apply to this coverage.
ASSIGNMENT OF BENEFITS
Payments for medical expenses will be paid directly to a physician
or other health care provider if we receive a written assignment signed
by the covered person to whom such benefits are payable.
PART C - UNINSURED/UNDERINSURED MOTORISTS COVERAGE
INSURING AGREEMENT
A. We will pay damages which a covered person is legally
entitled to recover from the owner or operator of an uninsured motor
vehicle because of bodily injury sustained by a covered person,
or property damage, caused by an accident. The owner's or
operator's liability for these damages must arise out of the ownership,
maintenance or use of the uninsured motor vehicle.
Any judgment for damages arising out of a suit brought without our
consent is not binding on us. If we and you do not agree as to whether
or not a vehicle is actually uninsured, the burden of proof as to that
issue shall be on us.
B. Covered person as used in this Part means:
1. You or any family member,
2. Any other person occupying your covered
auto;
3. Any person for damages that person is entitled
to recover because of bodily injury to which this coverage applies sustained
by a person described in B . 1. or B .2. above.
C. Property damage as used in this Part means injury
to, destruction of or loss of use of:
1. Your covered auto, not including
a temporary substitute auto.
2. Any property owned by a person listed in
B. 1. or B.2. of covered person while contained in your
covered auto.
3. Any property owned by you or any family
member while contained in any auto not owned, but being operated,
by you or any family member.
D.
I. Uninsured motor vehicle means
a land motor vehicle or trailer of any type,
1. To which no liability
bond or policy applies at the time of the accident,
2. Which is a hit and
run vehicle whose operator or owner cannot be identified and which hits:
a.
you or any family member;
b.
a vehicle which you or any family member are occupying;
or
c.
your covered auto.
3. To which a liability
bond or policy applies at the time of the accident but the bonding or insuring
company:
a.
denies coverage; or
b.
is or becomes insolvent.
4. Which is an underinsured
motor vehicle. An underinsured motor vehicle is one to which a liability
bond or policy applies at the time of the accident but its limit of liability
either:
a.
is not enough to pay the full amount the covered person is
legally entitled to recover as damages; or
b.
has been reduced by payment of claims to an amount which is not enough
to pay the full amount the covered person is legally entitled
to recover as damages.
II. However, uninsured motor vehicle
does not include any vehicle or equipment:
1. Owned by or furnished
or available for the regular use of you or any family member.
2. Owned or operated
by a self-insurer under any applicable motor vehicle law.
3. Owned by any government
body unless:
a.
the operator of the vehicle is uninsured; and
b.
there is no statute imposing liability for damage because of bodily injury
or property damage on the governmental body for an amount
not less than the limit of liability for this coverage.
4. Operated on rails
or crawler treads.
5. Designed mainly
for use off public roads while not on public roads.
6. While located for
use as a residence or premises.
EXCLUSIONS
A. We do not provide Uninsured/Underinsured Motorists Coverage for
any person:
1. For bodily injury sustained while occupying,
or when struck by, any motor vehicle or trailer of any type owned by you
or any family member which is not insured for this coverage
under this policy.
2. If that person or the legal representative
settles the claim without our written consent.
3. When your covered auto is:
a. being used to carry
persons for a fee; this does not apply to a share-the expense car pool;
or
b. being used to carry
property for a fee; this does not apply to you or any family member
unless the primary usage of the vehicle is to carry property for a fee;
or
c. rented or leased
to another, this does not apply if you or any family member
lends your covered auto to another for reimbursement of operating
expenses only.
4. For the first $250 of the amount of damage
to the property of that person as the result of any one accident.
5. Using a vehicle without a reasonable belief
that the person is entitled to do so. This exclusion (A.5.) does not apply
to you or any family member while using your covered
auto.
6. For bodily injury or property damage
resulting from the intentional acts of that person.
B. This coverage shall not apply directly or indirectly to benefit:
1. Any insurer or self-insurer under any workers'
compensation, disability benefits or similar law;
2. Any insurer of property.
LIMIT OF LIABILITY
A.
I. If separate limits of liability for bodily
injury and property damage liability are shown in the Declarations for
this coverage the limit of liability for "each person" for bodily
injury liability is our maximum limit of liability for all damages for
bodily injury sustained by any one person in any one motor vehicle accident.
Subject to this limit for "each person", the limit of liability
shown in the Declarations for "each accident" for bodily injury
liability is our maximum limit of liability for all damages for bodily
injury resulting from any one motor vehicle accident. The limit of liability
shown in the Declarations for "each accident" for property
damage liability is our maximum limit of liability for all damages
to all property resulting from any one motor vehicle accident.
If the limit of liability shown in the Declarations for this coverage
is for combined bodily injury and property damage liability,
it is our maximum limit of liability for all damages resulting from any
one motor vehicle accident. This is the most we will pay regardless of
the number of:
a.
Covered persons;
b.
Claims made;
c.
Policies or bonds applicable;
d.
Vehicles or premiums shown in the declarations; or
e.
Vehicles involved in the accident.
II. Subject to this maximum, our limit of liability
will be the lesser of:
a.
The difference between the amount of a covered person's damages
for bodily injury or property damage and the amount paid
or payable to that covered person for such damages, by or
on behalf of persons or organizations who may be legally responsible; and
b.
The applicable limit of liability for this coverage.
B. In order to avoid insurance benefits payments in excess of actual
damages sustained, subject only to the limits set out in the Declarations
and other applicable provisions of this coverage, we will pay all covered
damages not paid or payable under any workers' compensation law, disability
benefits law, any similar law, auto medical expense coverage or Personal
Injury Protection Coverage.
C. Any payment under this coverage to or for a covered person
will reduce any amount that person is entitled to recover for the same
damages under the Liability Coverage of this policy.
OTHER INSURANCE
A. If there is other applicable similar insurance we will pay only
our share of the loss. Our share is the proportion that our limit of liability
bears to the total of all applicable limits. However, any insurance we
provide with respect to a vehicle you do not own shall be excess over any
other collectible insurance.
B. For any property damage to which the Coverage for Damage
to Your Auto of this policy (or similar coverage from another policy) and
this coverage both apply, you may choose the coverage from which damages
will be paid. You may recover under both coverages, but only if:
1. Neither one by itself is sufficient to cover
the loss;
2. You pay the higher deductible amount (but
you do not have to pay both deductibles); and
3. You will not recover more than the actual
damages.
PART D - COVERAGE FOR DAMAGE TO YOUR AUTO
INSURING AGREEMENT
A. We will pay for direct and accidental loss to your covered
auto, including its equipmeet, less any applicable deductible shown
in the Declarations. However, we will pay for loss caused by collision
only if the Declarations indicate that Collision Coverage (Coverage D2)
is provided.
B. Collision means the upset, or collision with another
object of your covered auto. However, loss caused by the
following are not considered collision and are covered only
if the Declarations indicate that Coverage Dl is provided:
1. Missiles or falling objects;
2. Fire;
3. Theft or larceny;
4. Explosion or earthquake;
5. Windstorm;
6. Hail, water, or flood;
7. Malicious mischief or vandalism;
8. Riot or civil commotion;
9. Contact with bird or animal; or
10. Breakage of glass.
If breakage of glass is caused by a collision or if loss
is caused by contact with a bird or animal, you may elect to have it considered
a loss caused by collision.
TRANSPORTATION EXPENSES
In addition, we will pay up to $20 per day, to a maximum of $600 for
transportation expenses incurred by you. This applies only in the event
of the total theft of your covered auto. We will pay only
transportation expenses incurred during the period:
1. Beginning 48 hours after the theft; and
2. Ending when your covered auto is returned to use or
we pay for its loss.
EXCLUSIONS
We will not pay for:
1. Loss to your covered auto while it is:
a. being used to carry persons for a fee; this
does not apply to a share-the-expense car pool; or
b. being used to carry property for a fee;
this does not apply to you or any family member unless the
primary usage of the vehicle is to carry property for a fee; or
c. rented or leased to another, this does not
apply if you or any family member lends your covered auto
to another for reimbursement of operating expenses only.
2. Damage due and confined to:
a. wear and tear;
b. freezing;
c. mechanical or electrical breakdown or failure;
or
d. road damage to tires.
This exclusion (2.) does not apply if the damage results from the total
theft of your covered auto.
3. Loss due to or as a consequence of:
a. radioactive contamination;
b. discharge of any nuclear weapon (even if
accidental);
c. war (declared or undeclared);
d. civil war,
e. insurrection; or
f. rebellion or revolution.
4. Loss to stereos, radios and other sound reproducing equipment. This
exclusion (4.) does not apply if the equipment is permanently installed
in your covered auto.
5. Loss to tapes, records or other devices for use with equipment designed
for the reproduction of sound.
6. Loss to a camper body or trailer not shown in the
Declarations. This exclusion (6.) does not apply to a camper body or trailer
you:
a. acquire during the policy period; and
b. notify us within thirty days after you become
the owner.
7. Loss to any vehicle while used as a temporary substitute for a vehicle
you own which is out of normal use because of its:
a. breakdown;
b. repair;
c. servicing;
d. loss; or
e. destruction.
8. When in or upon any trailer, loss to:
a. TV antennas;
b. awnings or cabanas; or
c. equipment designed to create additional
living facilities.
9. Loss to any of the following or their accessories:
a. citizens band radio;
b. two-way mobile radio;
c. telephone;
d. scanning monitor receiver; or
e. any device or instrument used for detection
of radar or other speed measuring equipment. This exclusion (9.) does not
apply if the equipment is permanently installed in the opening of the dash
or console of the auto.
This opening must be normally used by the auto manufacturer for the
installation of radio.
10. Loss to any custom furnishings or equipment in or upon any pickup
or van. Custom furnishings or equipment include, but are not limited to:
a. special carpeting and insulation, furniture,
bars or television receivers;
b. facilities for cooking and sleeping;
c. height-extending roofs; or
d. custom murals, paintings or other decals
or graphics.
This exclusion (10.) does not apply if the value of the custom furnishings
or equipment has been reported to us prior to a loss and included in the
premium for this coverage.
11. Loss due to or as a consequence of a seizure of your covered auto
by federal or state law enforcement officers as evidence in a case against
you by the Texas Controlled Substances Act or the federal Controlled Substances
Act if you are convicted in such case.
LIMIT OF LIABILITY
Our limit of liability for loss will be the lesser of the:
1. Actual cash value of the stolen or damage property;
2. Amount necessary to repair or replace the property with other of
like kind and quality; or
3. Amount stated in the Declarations of this policy. The most we will
pay for loss to equipment listed in Exclusion 4. is $1500. Our payment
for loss will be reduced by any applicable deductible shown in the Declarations.
PAYMENT OF LOSS
We may pay for loss in money or repair or replace the damaged or stolen
property. We may, at our expense, return any stolen property to:
1. You; or
2. The address shown in this policy. If we return stolen property we
will pay for any damage resulting from the theft. We may keep all or part
of the property at an agreed or appraised value.
NO BENEFIT TO BAILEE
This insurance shall not directly or indirectly benefit any carrier
or other bailee for hire.
OTHER INSURANCE
A. If other insurance also covers the loss we will pay only our share
of the loss. Our share is the proportion that our limit of liability bears
to the total of all applicable limits.
B. For any loss to which Uninsured/Underinsured Motorists Coverage
(from this or any other policy) and this coverage both apply, you may choose
the coverage from which damages will be paid. You may recover under both
coverages, but only if:
1. Neither one by itself is sufficient to cover the loss;
2. You pay the higher deductible amount (but you do not have to pay
both deductibles); and
3. You will not recover more than the actual damages.
APPRAISAL
If we and you do not agree on the amount of loss, either may demand
an appraisal of the loss. In this event, each party will select a competent
appraiser. The two appraisers will select an umpire. The appraisers will
state separately the actual cash value and the amount of loss. If they
fail to agree, they will submit their differences to the umpire. A decision
agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally. We do not
waive any of our rights under this policy by agreeing to an appraisal.
PART D3 - COVERAGE FOR DAMAGE TO YOUR AUTO
SPECIFIED CAUSES
OF LOSS
We will pay for direct and accidental loss to your covered
auto including its equipment, less any applicable deductible, caused
by the following specified causes of loss:
(a) fire, lightning or explosion;
(b) theft;
(c) the sinking, burning, collision or derailment
of any vessel or vehicle in or upon which your auto is being transported;
(d) windstorm, hail or earthquake;
(e) flood;
(f) mischief or vandalism;* or
(g) collision.
However, we will pay for loss caused by collision only if the declarations
indicate that Collision Coverage is provided.
The provisions and exclusions that apply to Coverage for Damage to
Your Auto also apply except as amended by this coverage.
PART D4 - COVERAGE FOR DAMAGE TO YOUR AUTO-
OPTIONAL AND LIMITED SPECIFIED CAUSES OF LOSS
(Fire, Theft, Wind)
The provisions and exclusions that apply to Coverage For Damage
To Your Auto also apply to this Coverage.
* $25 Deductible applies to mischief or vandalism
However, we will pay for loss caused by collision only if the declarations indicate that Collision Coverage is provided.
We will pay for direct and accidental loss to your covered auto including
its equipment, less any applicable deductible, caused by the following
specified causes of loss for which a premium charge is shown on the declarations:
(a) fire, lightning or explosion, the sinking, burning, collision or
derailment of any vessel or vehicle in or upon which your auto is being
transported;
(b) theft; or
(c) windstorm, hail or earthquake.
PART E - DUTIES AFTER AN ACCIDENT OR LOSS
GENERAL DUTIES
A. We must be notified promptly of how, when and where the accident
or loss happened. Notice should also include the names and addresses of
any injured persons and of any witnesses. If we show that your failure
to provide notice prejudices our defense, there is no liability coverage
under the policy.
B. A person seeking any coverage must:
1. Cooperate with us in the investigation,
settlement or defense of any claim or suit.
2. Promptly send us copies of any notices or
legal papers received in connection with the accident or loss.
3. Submit, as often as we reasonably require,
to physical exams by physicians we select. We will pay for these exams.
4. Authorize us to obtain:
a. medical reports;
and
b. other pertinent
records.
5. When required by us:
a. submit a sworn proof
of loss;
b. submit to examination
under oath.
ADDITIONAL DUTIES FOR UNINSURED/UNDERINSURED MOTORISTS COVERAGE
A person seeking Uninsured/Underinsured Motorists Coverage must
also:
1. Promptly notify the police if a hit-and-run driver is involved;
2. Promptly send us copies of the legal papers if a suit is brought;
3. Take reasonable steps after loss, at our expense, to protect damaged
property from further loss; and
4. Permit us to inspect and appraise the damaged property before its
repair or disposal.
ADDITIONAL DUTIES FOR COVERAGE FOR DAMAGE TO YOUR AUTO
A person seeking Coverage for Damage to Your Auto must also:
1. Take reasonable steps after loss, to protect your covered
auto and its equipment from further loss. We will pay reasonable
expenses incurred to do this;
2. Promptly notify the police if your covered auto is
stolen; and
3. Permit us to inspect and appraise the damaged property before its
repair or disposal.
BANKRUPTCY
Bankruptcy or insolvency of the covered person shall
not relieve us of any obligations under this policy.
CHANGES
A. This policy contains all the agreements between you and us. Its
terms may not be changed or waived except by endorsement issued by us.
B. If a change requires a premium adjustment, we will adjust the premium
as of the effective date of change in accordance with rules prescribed
by the Texas Department of Insurance or its successor Changes during the
policy term that may result in a premium increase or decrease include,
but are not limited to, changes in:
1. The number, type or use classification of
the insured autos;
2. Operators using insured autos;
3. The place of principal garaging of insured
autos;
4. Coverage, deductible or limits.
C. If this policy form is revised to provide more coverage without
additional premium charge, we will automatically provide the additional
coverage as of the date the revision is effective.
D. We will compute the premium at the rates in effect on each anniversary
date of the policy's inception date for a policy written for more than
a full year.
LEGAL ACTION AGAINST US
A. No legal action may be brought against us until there has been
full compliance with all the terms of this policy. In addition, under Liability
Coverage, no legal action may be brought against us until:
1. We agree in writing that the covered
person has an obligation to pay; or
2. The amount of that obligation has been finally
determined by judgment after trial.
B. No person or organization has any right under this policy to bring
us into any action to determine the liability of a covered person.
OUR RIGHT TO RECOVER PAYMENT
A. If we make a payment under this policy and the person to or for
whom payment was made has a right to recover damages from another we shall
be subrogated to that right. That person shall do:
1. Whatever is necessary to enable us to exercise
our rights; and
2. Nothing after loss to prejudice them.
(A release of the insurer of an underinsured motor vehicle does not
prejudice our rights.) However, our rights in this paragraph do not apply
under Part D, against any person using your covered auto with
a reasonable belief that person is entitled to do so.
B. If we make a payment under this policy and the person to or for
whom payment is made recovers damages from another, that person shall:
1. Hold in trust for us the proceeds of the
recovery; and
2. Reimburse us to the extent of our payment.
(However, we may not claim the amount recovered from an insurer of any
underinsured motor vehicle.)
POLICY PERIOD AND TERRITORY
A. This policy applies only to accidents and losses which occur:
1. During the policy period as shown in the
Declarations; and
2. Within the policy territory.
B. The policy territory is:
1. The United States of America, its territories
or possessions;
2. Puerto Rico; or
3. Canada. This policy also applies to loss
to, or accidents involving, your covered auto while being transported between
their ports.
TERMINATION
A. Cancellation. This policy may be canceled during the policy
periods as follows:
1. The named insured shown in the Declarations may cancel by:
a. returning this policy to us; or
b. giving us advance written notice of the
date cancellation is to take effect.
2. We may cancel by mailing at least 10 days notice to the named insured
shown in the Declarations at the address shown in this policy.
3. After this policy is in effect for 60 days
or if this is a renewal or continuation policy, we will cancel only:
a. if you submit a
fraudulent claim; or
b. for nonpayment of
premium; or
c. if your driver'
s license or motor vehicle registration or that of:
(1)
any driver who lives with you; or
(2)
any driver who customarily uses your covered auto has been suspended or
revoked. However, we will not cancel if you consent to the attachment of
an endorsement eliminating coverage when your covered auto is being operated
by the driver whose license has been suspended or revoked.
4. We may not cancel this policy based solely on the fact that you
are an elected official.
B. Nonrenewal. If we decide not to renew or continue this policy,
we will mail notice to the named insured shown in the Declarations at the
address shown in this policy. Notice will be mailed at least 30 days before
the end of the policy period. If the policy period is other than one year,
we will have the right not to renew or continue it only at each anniversary
of its original effective date. We will not refuse to renew because of
a covered person ' s age. We may not refuse to renew this policy based
solely on the fact that you are an elected official.
C. Automatic Termination. If, at any time, you obtain other
insurance on your covered auto, any similar insurance provided
by this policy will terminate as to that auto on the effective date of
the other insurance. If we offer to renew or continue and you or your representative
do not accept, this policy will automatically terminate at the end of the
current policy period. Failure to pay the required renewal or continuation
premium when due shall mean that you have not accepted our offer.
D. Other Termination Provisions.
1. We may deliver any notice instead of mailing it. Proof of mailing
of any notice shall be sufficient proof of notice.
2. If this policy is canceled, you may be entitled to a premium refund.
If so, we will send you the refund promptly. The premium refund, if any,
will be computed pro rata, subject to the policy minimum premium. However,
making or offering to make the refund is not a condition of cancellation.
3. The effective date of cancellation stated in the notice shall become
the end of the policy period.
4. Any cancellation or restriction of coverage made without your consent
will be of no effect, except as
a. provided for in this Termination provision
under:
(1) Cancellation;
(2) Non-renewal; or
(3) Automatic Termination;
or
b. required by the Texas Department of Insurance.
TRANSFER OF YOUR INTEREST IN THIS POLICY
A. Your rights and duties under this policy may not be assigned without
our written consent. However, if a named insured shown in the Declarations
dies, coverage will be provided for:
(1) The surviving spouse if resident in the
same household at the time of death. Coverage applies to the spouse as
if a named insured shown in the Declarations.
(2) The legal representative of the deceased
person as if a named insured shown in the Declarations. This applies only
with respect to the representative's legal responsibility to maintain or
use your covered auto.
B. Coverage will be provided until the end of the policy period.
NOTE: Refer to Medical Payments and/or Personal Injury Protection Coverages for Assignment of Benefits.
TWO OR MORE AUTO POLICIES
If this policy and any other auto insurance policy issued to you
by us apply to the same accident, the maximum limit of our liability under
all the policies shall not exceed the highest applicable limit of liability
under one policy.
PART G - ADDITIONAL COVERAGES AND PROVISIONS
COVERAGE H - TOWING AND LABOR COSTS COVERAGE
We will pay towing and labor costs incurred each time your covered auto is disabled, up to the amount shown in the schedule as applicable to that vehicle. We will only pay for labor performed at the place of disablement.
This coverage applies only to your covered auto for which a premium charge is shown in the Declarations for Towing and Labor Costs Coverage. Check your coverage symbol shown in the declarations with the following schedule for the choice of coverage you made.
Schedule
Coverage Symbol Limit of Coverage
H40 $40
H80 $80
H120 $120
COVERAGE R- RENTAL REIMBURSEMENT COVERAGE
The provisions and exclusions that apply to Coverage for Damage
To Your Auto also apply to this coverage except as changed by this coverage.
No deductible applies to this coverage.
When there is a loss to your covered auto described in the Declarations for which a specific premium charge indicates that Rental Reimbursement Coverage is afforded:
We will reimburse you for expenses you incur to rent a substitute auto.
We will pay up to $20 per day to a maximum of $60.0. This coverage applies
only if:
1. Your covered auto is withdrawn from use for more than
24 hours, and
2. The loss to your covered auto is covered under Coverage
For Damage To Your Auto of this policy.
However, this coverage does not apply when there is a total theft of
the auto.
Our payment will be limited to that period of time reasonably required to repair or replace the auto.
LOSS PAYABLE CLAUSE - MODIFIED
Loss or damage under Coverage for Damage to Your Auto shall be paid
as interest may appear to you and the loss payee shown in the declarations.
This insurance covering the interest of the loss payee shall not become
invalid because of your fraudulent acts or omissions, unless the loss results
from your conversion, secretion or embezzlement of your covered auto. However,
we reserve the right to cancel the policy as permitted by policy terms.
Notice of the cancellation mailed to the loss payee at least ten days prior
to the date the coverage for the loss payee will end terminates this agreement.
The insurance covering the loss payee' s interest as specified in this
loss payable clause will continue for subsequent policy periods regardless
of any policy expiration date shown on the declarations until we mail notice
to the loss payee at least ten days prior to the date the coverage for
the loss payee will end.
If you cancel the policy as permitted by policy terms we agree to mail
notice of the cancellation to the loss payee at least ten days prior to
the date the coverage for the loss payee will end. In any event, your coverage
ends on the date of your cancellation.
When we pay the loss payee we shall, to the extent of payment, be subrogated to the loss payee's rights of recovery.
MEXICO COVERAGE - LIMITED
WARNING
READ THIS PROVISION CAREFULLY!
Auto accidents in Mexico are subject to the laws of Mexico only - NOT the laws of the United States of America. Unlike the United States, the Republic of Mexico considers an auto accident a CRIMINAL OFFENSE as well as a civil matter.
In some cases, the coverage under this provision may NOT be recognized by Mexican authorities and the company may not be allowed to implement this coverage at all in Mexico. You should consider purchasing auto coverage from a licensed Mexican Insurance Company before driving into Mexico.
This provision does not apply to trips into Mexico that exceed 25 miles from the boundary of the United States of America.
The coverages for your covered auto provided by this policy are extended to accidents occurring in Mexico within 25 miles of the United States border. This extension only applies for infrequent trips into Mexico that do not exceed ten days at any one time.
Additional Exclusions We do not provide any coverage:
1. if your covered auto is not principally garaged and
used in the United States; and
2. to any covered person who does not live in the United
States.
Special Conditions
1. Other Insurance. The insurance we provide by this provision will
be excess over any other collectible insurance.
2. Losses Payable Under Coverage for Damage to Your Auto. We will pay
losses under Coverage For Damage to Your Auto in the United States, not
in Mexico. If your covered auto must be repaired in Mexico
in order to be driven, we will not pay more than the actual cash value
of such loss at the nearest United States point where the repairs can be
made.
Note: This endorsement applies to the policy when an entry of name, limit and premium is made under 565-A or 565-B in the declarations.
565. AUTO DEATH INDEMNITY AND TOTAL DISABILITY COVERAGES
We agree with you, subject to all the provisions of this endorsement
and to all of the provisions of the policy except as modified herein, as
follows:
The insurance afforded is only for the coverage for which a specific
premium charge is shown in the Schedule, and only for the person or persons
named.
SCHEDULE
Coverages Person Named
Coverage Limit Premium
A. Death See
declaration Principal Sum per
Person
Indemnity See
declarations $See
declarations
$See
declarations
B. Total See
declarations Weekly Indemnity
Disability
Maximum $60
$ See declarations
200 Weeks Total
Premiums $See
declarations
Coverage A- Death Indemnity
We will pay the principal sum stated in the Schedule in the event
of the death of the person which shall result directly and
independently of all other causes from bodily injury caused by accident
and sustained by the insured while occupying, or through
being struck by, an auto, provided the death shall occur
(1) within ninety days after the date of the accident, or (2) within fifty-two
weeks after the date of the accident and during a period of continuous
total disability of the person for which weekly indemnity is payable under
the Total Disability Coverage.
Coverage B - Total Disability - Maximum 200
Weeks We will pay $60 per week for the period of continuous total disability
of theperson which shall result directly and independently of all other
causes from bodily injury caused by accident and sustained by the person
while occupying, or through being struck by, an auto,
provided:
1. Such disability shall commence within, and extend beyond, twenty
days from the date of the accident.
2. Any disability shall be deemed total disability only if it shall
continuously prevent the person from performing the usual
duties of his or her regular occupation.
3. The weekly indemnity for total disability shall not extend beyond
a period of 200 consecutive weeks from the date of commencement of disability
as provided above.
4. If the person who is totally disabled is not gainfully
employed at the time of the accident, the rate of indemnity payable shall
only be $30 per week.
5. Weekly indemnity for total disability is payable to the person
who is disabled and accrued weekly indemnity is payable every four
weeks and any balance at termination of the disability period.
Definitions - With respect to this insurance:
auto means a land motor vehicle or trailer not operated
on rails or crawler-treads, but does not mean: (1) a farm type tractor
or other equipment designed for use principally off public roads, except
while actually upon public roads, or (2) a land motor vehicle or trailer
while located for use as a residence or premises and not as a vehicle.
person or person named means the person
named in the schedule.
Exclusions This insurance does not apply:
a. to bodily injury or death sustained by a person in the course of
his or her occupation while engaged (1) in duties incident to the operation,
loading or unloading of, or as an assistant on, a public or livery conveyance
or commercial auto, or (2) in duties incident to the repair or servicing
of autos;
b. to loss caused by or resulting from disease except pus forming infection
which shall occur through bodily injury to which this insurance applies;
c. to suicide, sane or insane, or to any attempt thereat;
d. to injury or death due to war, whether or not declared civil war,
insurrection, rebellion or revolution, or to any act or condition incident
to any of the foregoing.
Conditions
1. Policy Provisions: None of the Insuring Agreement, Exclusions
or Conditions of the policy shall apply to the insurance afforded by this
endorsement except General Duties under "Duties After an Accident
or Loss" and the General Provisions entitled "Policy Period and
Territory" "Changes", "Legal Action Against Us"
and "Termination".
2. Death of Person Named: If the person dies, an insurance afforded
by this endorsement for an surviving person continues while the policy
is in effect.
3. Payment of Death Indemnity; Autopsy - Coverage A: If the
decedent person is survived by a spouse who was a resident of the same
household at the time of the accident, Death Indemnity is payable to such
spouse; otherwise, if the decedent person was a minor, indemnity for death
is payable to any parent thereof who was a resident of the same household
at the time of the accident, otherwise Death Indemnity is payable to the
estate of the decedent person. We shall have the right and opportunity
to make an autopsy where it is not forbidden by law.
4. Beneficiary - Coverage A: Consent of beneficiary is not requisite
to cancellation, assignment, change of beneficiary, or any other change
in the policy or in this endorsement.
Note: The following endorsement applies if the endorsement number is shown on the declarations page.
573A. SUPPLEMENTARY DEATH BENEFIT
Coverage under this endorsement is provided and payable only when other
benefits are paid or payable under: Personal Injury Protection Coverage,
Medical Payments Coverage, and/or Auto Death Indemnity as afforded by this
policy. This coverage is subject to the provisions of Personal Injury Protection
Coverage, Medical Payments Coverage and/or Auto Death Indemnity except
as limited by this endorsement.
It is agreed that Medical Payments Coverage, Personal Injury Protection
Coverage and/ or Auto Death Indemnity are extended to add the following:
INSURING AGREEMENT AND LIMIT OF LIABILITY
We will pay a supplementary death benefit equal to the limit shown
for the applicable coverages but not more than $10,000) per person because
of death:
1. Caused by an automobile accident; and
2. Sustained by a covered person while wearing a seat
belt or protected by an airbag. We will pay benefits
only if an auto accident was the proximate cause of death occurring within
three years of the date of such accident. However, under Auto Death Indemnity,
death must occur within one year of the date of such accident.
PROOF OF CLAIM
We will pay benefits under this endorsement if the beneficiary
gives us proof of death of the covered person along
with a police report or proof, that the covered person at
the time of the auto accident, was wearing a seat belt or
protected by an airbag.
OTHER COVERAGE PROVIDED BY THIS POLICY
Any amounts payable under this endorsement shall not be reduced by
any other amounts paid or payable under this policy.
DEFINITIONS
Covered Person as used in this endorsement means the
same as Covered Person as defined in the applicable Medical
Payments Coverage and/or Personal Injury Protection Coverage. It also means
the person or persons designated in Auto Death Indemnity if afforded.
Seat Belt means manual or automatic safety belts or seat
and shoulder restraints or a child restraint device.
Airbag is a functioning airbag designed to protect the
occupant of a seat in an auto.
Beneficiary means (in order of priority of payment):
1. the surviving spouse if a resident in the same household as the
deceased at the time of the accident, or
2. if the deceased is an unmarried minor, either of the surviving parents
who had legal custody at the time of the accident, or
3. the estate of the deceased.
Note: The following endorsement applies when the endorsement number is shown on the Declarations Page.
560C. RECREATIONAL TRAILERS, MOBILE HOMES OR MOTORHOMES
We will pay for direct and accidental loss to your recreational trailer,
mobile home or motorhome less any applicable deductible shown in the schedule
subject to the following:
(1) The insurance provided is limited to the coverages shown in the
schedule for which a premium is charged;
(2) Transportation Expenses under Coverage for Damage to Your Auto
does not apply to this coverage. All other provisions and exclusions that
apply to Coverage for Damage to Your Auto also apply to this coverage except
as amended by this endorsement.
DESCRIPTION OF RECREATIONAL TRAILER, MOBILE HOME OR MOTORHOME
I.D.
Year of Model Trade Name Serial
Number Cost New
Motor
Number
*
*
I *
S
* $
*
M
*
SCHEDULE
Coverages Limit
of Liability Deductible
Premium
Collision *
Actual Cash
Value
or $ * $
* $
*
Other Than Collision * $
* $
* $
*
Fire, Lightning or Explosion * $
* $
* $
*
Theft* $
*
$ * $
*
Limited Specified Causes of Loss*
(fire, lightning, or explosion; sinking, burning
collision or derailment of any vessel or vehicle
in or upon which your auto is being transported;
theft; windstorm; hail; earthquake; flood; or
mischief or vandalism.)
$
* $
* $
*
Specific Causes of Loss *
(fire, lightning or explosion; sinking, burning,
collision or derailment of any vessel or vehicle
in or upon which your auto is being transported;
theta; windstorm; hail; earthquake; flood; or
mischief or vandalism.)
$
* $
* $
*
*See Declarations Page
Note: The following endorsement applies when the endorsement number is shown of the declarations page.
593. TEXAS PERSONAL AUTO POLICY - AMENDATORY ENDORSEMENT
1. DEFINITIONS is amended to add the following:
Business day means a day other than a Saturday, Sunday
or holiday recognized by the state of Texas.
2. PART E- DUTIES AFTER AN ACCIDENT OR LOSS- GENERAL
DUTIES- is amended as follows:
A. We must be notified promptly of how, when and where the accident
or loss happened. Notice should also include the names and addresses of
any injured persons and of any witnesses. If we show that your failure
to provide notice prejudices our defense, there is no liability coverage
under the policy.
B. A person seeking any coverage must:
1. Cooperate with us in the investigation,
settlement or defense of any claim or suit.
2. Promptly send us copies of any notices or
legal papers received in connection with the accident or loss.
3. Submit, as often as we reasonably require,
to physical exams by physicians we select. We will pay for these exams.
4. Authorize us to obtain: a. medical reports;
and b. other pertinent records.
5. Submit a proof of loss when required by
us.
C. Within 15 days after we receive your written notice of claim, we
must
1. acknowledge receipt of the claim, If our
acknowledgment of the claim is not in writing, we will keep a record of
the date, method and content of our acknowledgment.
2. begin any investigation of the claim,
3. specify the information you must provide
in accordance with paragraph B. above. We may request more information,
if during the investigation of the claim such additional information is
necessary.
D. After we receive the information we request, we must notify you
in writing whether the claim will be paid or has been denied or whether
more information is needed:
1. within 15 business days; or
2. within 30 days if we have reason to believe
the loss resulted from arson.
E. If we do not approve payment of your claim or require more time
for processing your claim, we must:
1. give the reasons for denying your claim,
or
2. give the reasons we require more time to
process your claim. But, we must either approve or deny your claim within
45 days after our requesting more time.
F. In the event of a weather-related catastrophe or major natural disaster,
as defined by the Texas Department of Insurance, the claim-handling deadlines
as stated above are extended for an additional 15 days.
G. Loss Payment
1. If we notify you that we will pay your claim,
or part of your claim, we must pay within 5 business days after we notify
you.
2. If payment of your claim or part of your
claim requires the performance of an act by you, we must pay within 5 business
days after the date you perform the act.
H. Notice of Settlement of Liability Claim
1. We will notify you in writing of any initial
offer to compromise or settle a claim against you under the liability section
of this policy. We will give you notice within 10 days after the date of
the offer is made.
2. We will notify you in writing of any settlement
of a claim against you under the liability section of this policy. We will
give you notice within 30 days after the date of the settlement.
Declarations Continued
The Auto(s) or Trailer(s) described in this policy is principally garaged
at the insured's address unless otherwise stated in the Exceptions and
Endorsements.
Coverage is provided where a premium and a limit of liability are shown for the coverage.
Any loss payable under Uninsured/Underinsured Motorists Coverage, is subject to a $250 Deductible applicable to Property Damage Liability.
The limit of liability for Part Dl, D2, D3 and D4 is the Actual Cash Value unless otherwise stated in the exceptions less any deductible amount indicated. If a deductible applies the amount is shown by the number beside "D".
Any loss payable under Coverage for Damage to Your Auto (Other Than Collision Coverage/Collision Coverage/Specified Causes of Loss Coverage), is payable as interest may appear to the Named Insured and the Lienholder as shown by the designation "FINANCED" in the Exceptions and Endorsements.
Your policy consists of the Declarations page, any endorsements listed therein, and the policy booklet specified under the Policy Form Number shown.
If Collision Coverage is carried, it is indicated in the Declarations as Coverage D2. If Comprehensive Coverage is carried it is indicated in the Declarations as Coverage Dl.
TE 00 40 AMENDATORY ENDORSEMENT
CHANGES IN COMMON POLICY CONDITIONS
A. CANCELLATION OR NONRENEWAL
Paragraph 2a, (2) and (3) are changed to read:
(2) If this is not a renewal or continuation policy, and if it has been
in effect for 60 or fewer days, we may cancel for any reason.
(3) If this is a renewal or continuation policy, or if it has been
if effect for more than 60 days in the initial policy period, we may cancel
only for one or more of the following reasons:
(a) Fraud in obtaining coverage;
(b) Failure to pay premiums when due;
(c) An increase in hazard within the control
of the insured which would produce an increase in rate;
(d) Loss of our reinsurance covering all or
part of the risk covered by the policy; or
(e) If we have been placed in supervision,
conservatorship or receivership and the cancellation or non-renewal is
approved or directed by the supervisor, conservator or receiver.
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