PP 03 28—MISCELLANEOUS TYPE VEHICLE AMENDMENT (MOTOR HOMES)
(September, 2018)
Purpose
The PP 03 28 form was designed for use with a Personal Auto Policy that is already modified by the PP 03 23–Miscellaneous Type Vehicle form. The PP 03 28 opens with warning language. This is very important because this form is actually an exclusionary endorsement. The exclusions are unusual in that they apply only to the motor homes NOT listed on the schedule.
This endorsement has
been modified. It now contains a larger schedule with space for individual
vehicle descriptions; also, each coverage section has been revised to better
enumerate coverage and it applicable exclusion. (09 18 Change.)
Warning
Coverage for motor homes that are owned by the named insured are
subject to the following restrictions:
I. Liability, medical payments or physical damage coverage is not
provided when the motor home is rented or leased to any organization, or any
person other than you.
II. Physical damage loss to the motor home caused when it is fraudulently
acquired by any person or organization is not covered.
Coverage for
The Schedule
The form’s schedule has a heading titled “Motor Home Rental Coverage” and it includes space for selecting Liability, Medical Payments and Coverage for Damage to Your Auto (i.e., Collision, Other Than Collision and Covered Property) coverages for up to three vehicles.
Exclusion Analysis
I. The following exclusions apply to any motor home considered covered auto under the PAP. When the check box is selected, the exclusion does not apply for that particular vehicle and coverage.
Under Part A –
Liability
The form bars coverage for all motor homes rented to any one except the named insured. It makes an exception that permits the amended policy to respond to losses in order to comply with the financial responsibility law of the state where the vehicle is principally garaged.
Under Part B –
Medical Payments
The form bars coverage for persons occupying a motor home that is rented or leased to any entity other than the named insured.
Under Part D – Coverage
for Damage T Your Auto
The form bars coverage when the home is rented or leased to any entity other than the named insured.
II. The following exclusion applies to any motor home considered covered auto under the PAP. This exclusion applies even if the motor home is listed in the schedule.
If a covered motor home is acquired by another (person or organization) fraudulently and while it is rented, used or in the care of that other it is damaged, there is no coverage for that loss.
|
|
Example: The Blandersons own a motorhome because they frequently go on long weekend trips throughout the summer and it’s cheaper than renting one. However, during a two-week period when they don’t use the motor home, they rent it out to a person representing CityKid Charities. They are told that it will be used for that charity’s upcoming day camp activities. A couple of days after the date that the motor home was to be returned, the Blandersons discover that the rental check they received is no good and that the charity does not exist. Even though their PAP shows the motor home in its schedule, this loss is NOT covered. |
