PP 03 23–MISCELLANEOUS TYPE VEHICLE

(September, 2018)

The ISO Personal Auto Policy (PAP) is designed to cover private passenger automobiles, SUVs, hybrids, vans and pick-ups. When the PAP is modified by endorsement PP 03 23–Miscellaneous Type Vehicle, it expands the list of eligible vehicles. The modified form protects insureds against their liability involving the ownership and use of motorcycles, motor scooters, motor homes, golf carts, or other similar vehicles.

This endorsement has been modified. It now contains a larger schedule with space for individual vehicle descriptions. (09 18 Change.)

THE SCHEDULE

The form’s schedule contains spaces for selecting liability, medical payments, uninsured motorists, collision and other than collision coverage. It includes spaces for up to three miscellaneous vehicles. The schedule also has an area to indicate whether the insured has chosen to exclude the passenger hazard.

COVERAGE ANALYSIS

The insured can purchase liability, medical payments, uninsured motorist, collision and other than collision coverage for a wide variety of owned vehicles, including (but not limited to) motorcycles, motor scooters, golf carts, and motor homes. However, no coverage exists for non-owned vehicles except for temporary substitute vehicles. The endorsement transforms the PAP to provide the miscellaneous vehicle type protection by amending portions of the PAP definitions and exclusions.

Definitions

A. Miscellaneous Type Vehicle

The PP 03 23 adds the term, “Miscellaneous type vehicle” to the PAP's definition of “Your Covered Auto.” The defined term refers to motorcycles, motor scooters, golf carts, motor homes and similar vehicles. This vehicle definition also includes all terrain vehicles, golf carts and dune buggies.

Example: Chris was having a lot of fun riding her dune buggy on a friend’s wilderness property. The fun ended when she jumped a rise and landed with her wheels turned. The buggy flipped over and slid into a couple who were hiking.

Scenario 1: Chris was insured under an unendorsed PAP – this loss is not covered.

Scenario 2: Chris was insured under a PAP endorsed with a PP 03 23 – this loss is covered.

A vehicle MUST be shown in the form’s schedule or on the policy declarations or it is not considered a covered auto.

Related Court Case: ATV Not Subject to UIM Coverage

B. “Your covered auto”

Under this form, “your covered auto” means a “miscellaneous type vehicle,” “newly acquired vehicle,” “any “trailer,” and any non-owned miscellaneous vehicle (as defined) when it’s a temporary substitute. The substitution must be caused by an otherwise covered vehicle’s unavailability from breakdown, repairs, service, or loss (including destruction).

C. Newly Acquired Miscellaneous Type Vehicles

Newly acquired vehicles of the types described below are also protected as covered autos:

· Pickups or vans, as long as no other coverage exists for such vehicles but only if both of the following apply:

° Its Gross Vehicle Weight Rating (GVWR) is 10,000 lbs. or less

° It is not used to delivery or transport goods and material unless for farming, ranching or certain service type businesses

· Private passenger vehicles

· “Miscellaneous type vehicles” such as those that appear in the endorsement schedule or declarations (including temporary substitutes)

D. Fungi

Refers to all fungus forms and types. The term extends to mold, mildew, mycotoxins, spores, and scents. Byproducts and substances created or released by fungi are also considered fungi. (09 18 Change.)

Part A–Liability Coverage

Insureds

The definition of insured includes the named insured, resident spouse, family member and permissive users. Insureds also include other persons or organizations, but only to the extent that they bear liability for the actions of an insured.

Exclusions

The reason this endorsement is needed to provide liability coverage for miscellaneous type vehicles is Coverage A. exclusion B. 1. in the PAP. This endorsement changes that exclusion by stating that vehicles insured under this endorsement are not excluded.

A new exclusion is added but only if the passenger hazard excluded is checked on the schedule. If the exclusion is chosen, no coverage for bodily injury is provided to any person occupying a miscellaneous type vehicle. While this option can save on the cost of the endorsement, it comes at the danger that coverage will be unavailable for a passenger’s injury.

Part B–Medical Payments Coverage Exclusion

The reason this endorsement is needed to provide medical payments coverage for miscellaneous type vehicles is Coverage B. exclusion 1. in the PAP. This endorsement changes that exclusion by stating that vehicles insured under this endorsement are not excluded.

Part D–Coverage for Damage to Your Auto0

The PP 03 23 endorsement modifies Part D–Coverage for Damage to Your Auto in three different sections.

Insuring Agreement

The insuring agreement is expanded to include coverage for a scheduled motor home’s equipment. The equipment can be inside the vehicle or attached. Examples of the items are listed but the listing is not exclusive so any type of equipment or facilities is covered as long as they are actually designed for use with the motor home.

Motorcycles, motor scooters, golf carts, motor homes, all terrain vehicles, golf carts, dune buggies and similar vehicles used as substitute vehicles are added to the definition of “non-owned auto.” The vehicles for which they are be substituted must be unavailable due to being repaired, undergoing maintenance or having been stolen or destroyed.

Exclusion

The reason this endorsement is needed to provide physical damage coverage for miscellaneous type vehicles is due to Coverage D. exclusion 7. in the PAP. This endorsement changes that exclusion by stating that vehicles insured under this endorsement are not subject to the exclusion. The form newly references protection for non-owned motorhomes that are temporary substitutes, a clarification. (09 18 Change)

Three new exclusions are added. One excludes coverage for luggage, clothing along with business related items equipment, sales samples and exhibition articles. The second exclusion is a reminder that the base PAP’s Part D exclusions 4, 5, 9 and 10 continue to apply to furnishings and equipment. The third excludes any fungi or rot loss. (09 18 Change.)

Limit of Liability

This coverage part’s limit of insurance provision restricts maximum loss payments to the amount that appears in the schedule/declarations, the ACV of the stolen or damaged property or the cost to repair or replace the damaged property; whichever is the LEAST expensive option. All payments are subject to the deductible that appears in the schedule or in the declarations. The endorsement makes the same considerations as the unendorsed PAP concerning total losses and situations that involve a financial betterment. An interesting note is that the $1,000 capping of electronic equipment and the $1,500 capping of trailers is not included in this limit of liability.