SECTION V-DEFINITIONS

A. Accident

The term accident, when used in this coverage form, includes continuous or repeated exposure to the same condition which results in bodily injury or property damage.

Note: The word accident is never actually defined. Therefore, the definition of accident is that which is found in a commonly used dictionary. That agreed upon definition is then expanded to include continuous and repeated exposure to the same condition causing the injury or damage.

B. Auto

An auto is a land motor vehicle, trailer, or semitrailer that is designed to be used on public roads. While it does not include mobile equipment (review its definitions later in this section) it does include land vehicles that are subject to a state's financial responsibility or vehicle registration laws. The applicable state law is based on the state in which the vehicle is either licensed or most commonly garaged.

C. Bodily injury

The term bodily injury, when used in this coverage form, is expanded to be not only injury to the body but also sickness or disease that a person sustains. Death that results from bodily injury, sickness, or disease is also considered bodily injury.

Note: The term bodily injury is not actually defined but instead is expanded.

D. Covered pollution cost or expense

This short phrase covers all costs or expenses that result from the following:

1. A response to or assessment of the effects of pollutants by the insured or others. It must be done because of a request, demand, order or statutory or regulatory requirements. Examples of such responses and assessments are testing for, monitoring, cleaning up, removal, containing, treating, detoxifying, or neutralizing.

2. A claim or suit that is brought by or for a government entity relating to damages from a response to or assessment of the effects of pollutants. Examples of such responses and assessments are testing for, monitoring, cleaning up, removal, containing, treating, detoxifying, or neutralizing.

This term then reproduces the entire Pollution Exclusion but substitutes the words "cost or expense" for "bodily injury or property damage." In this way, the covered cost or expense tracks with the type of limited pollution coverage provided.

Refer to the Covered Auto Liability Section II Pollution exclusion for the wording.

E. Diminution in value

This is the loss of market value that is solely due to an accident. This loss of value can be actual or perceived.

Related Court Case: Value of Automobile Disputed In Court

F. Employee

The term employee is not actually defined but it is expanded. When the term employee is used in this coverage form it means not just individuals who are employed directly but also includes those workers under a leasing contract. The term employee is not expanded to include temporary workers.