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Old 04-23-2007, 11:23 AM
Beach Bum Beach Bum is offline
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Default Some Questions I had

Hey all, I had two questions that I jotted down yesterday during studying. I was hoping anyone could shed some light on the answers.

1: Dealing with Personal Auto Insurance - if you are driving and are involved in an accident that was your fault… for the people that get hurt in your car I know that your Medical Coverage will apply to them. However, can BI Liability also apply to people hurt in your car? Let’s say two people are hurt, one a family member and one a friend… since the family is considered an insured I doubt it but what about if the friend decides to go after you?

2: Dealing with Homeowners - With the 80% rule, the text states this is used for both Coverage A and Coverage B. Let’s say Coverage A’s limit is less than the 80% of replacement cost, I understand that the rule now states to take Max (ACV, or Ratio * Cost to Repair). My question is with Coverage B. Do you apply the test to B separately, or assume that the same ratio will apply to any damage to B whether or not it meets the criteria for below 80%...

That’s it for now, I will post more when I come across them. Thank you.
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Old 04-23-2007, 11:44 AM
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Quote:
Originally Posted by Beach Bum View Post
Hey all, I had two questions that I jotted down yesterday during studying. I was hoping anyone could shed some light on the answers.

1: Dealing with Personal Auto Insurance - if you are driving and are involved in an accident that was your fault… for the people that get hurt in your car I know that your Medical Coverage will apply to them. However, can BI Liability also apply to people hurt in your car? Let’s say two people are hurt, one a family member and one a friend… since the family is considered an insured I doubt it but what about if the friend decides to go after you?

2: Dealing with Homeowners - With the 80% rule, the text states this is used for both Coverage A and Coverage B. Let’s say Coverage A’s limit is less than the 80% of replacement cost, I understand that the rule now states to take Max (ACV, or Ratio * Cost to Repair). My question is with Coverage B. Do you apply the test to B separately, or assume that the same ratio will apply to any damage to B whether or not it meets the criteria for below 80%...

That’s it for now, I will post more when I come across them. Thank you.
I'll answer 1. As far as my understanding, when anyone is riding in your car, they are considered an "insured" as far as medical payments coverage goes. Therefore, they would be covered under the cov C limits, but not the BI or PD coverage. The passenger's OWN PAP could be used for XS over the drivers' medical if it doesn't cover the whole thing.
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Old 04-23-2007, 11:55 AM
ReserveRage ReserveRage is offline
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I agree a non-family passenger wouldn't be covered under "your" BI/PD if someone sued the passenger, but if the passenger sues "you" for being at fault and causing the injuries and they're not a family member/spouse, I would guess "you" would be covered. That's just based on what I've seen in real life. I don't know if the guy's insurance covered him but his passengers definitely sued him.
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Old 04-23-2007, 12:46 PM
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Quote:
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2: Dealing with Homeowners - With the 80% rule, the text states this is used for both Coverage A and Coverage B. Let’s say Coverage A’s limit is less than the 80% of replacement cost, I understand that the rule now states to take Max (ACV, or Ratio * Cost to Repair). My question is with Coverage B. Do you apply the test to B separately, or assume that the same ratio will apply to any damage to B whether or not it meets the criteria for below 80%...
For question 2, I think the 80% rule doesn't apply. Coverage is still 50% of coverage A amount. However, I read something in Kelley's article saying that if an insured doesn't get full coverage, he/she will be penalized in other coverages. Cov B,C,D amount decreases with cov A amount.
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Old 04-23-2007, 04:01 PM
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Also regarding 1. , note the Separations of Interest provision in Weining 12.10. Looks like one insured can make a liability claim against another insured unless it's specificalyl excluded as in HO's BI/property.
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Old 04-23-2007, 04:44 PM
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all i have to say about this subject is

OMG I'M GONNA FAIL THIS STUFF
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Old 04-23-2007, 04:46 PM
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The Weining Risk Mgmt book is a pain in the ass. It's chock full of stuff that seems so obvious that you don't need to look at it, but if they ask you specific technicalities, it's not stuff you can just reason out.
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Old 04-23-2007, 04:48 PM
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Well, I've covered the other 3 CPCU texts pretty extensively and left this one for last (I read it awhile ago, but didn't do the flashcard thing.) So I guess I should calm down.

or not

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Old 04-23-2007, 04:52 PM
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Yes, you should calm down because you're going to pass. Don't be like Avi.
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Old 04-23-2007, 05:08 PM
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I think the CPCU stuff is just so easy to get bogged down in the details. Just understand the main concepts, and if you miss a small detail, you miss a small detail. You'll get most of the credit for the question.
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