April 2010, Volume 40
You can’t say no!

Judah had an automobile accident that was covered by his employer’s insurer, Nationwide. The accident took place in Florida, a PIP benefits state, and Judah was paid from those benefits.

Nationwide knew that Judah’s PIP benefits were exhausted and was preparing themselves for the Uninsured Motorists benefits Judah could claim under its policy. For this reason, Nationwide requested that he be examined under oath. He said No!

Nationwide continued its requests and Judah continued to say no. He then asked the courts to have Nationwide cease and desist, and to stop harassing him about submitting to such examination, especially since he had not even asked Nationwide for such benefits. Under the circumstances, he simply did not understand why he should submit to examination under oath.

The appeals court agreed with Nationwide.

Click here for more detail on this court case.

What rights does an insured have?

Why did Nationwide demand an examination when the injured party had not even requested benefits? The answer is in the insurance policy's loss conditions. Every policy has very specific loss conditions that can place a heavy burden on the insured.

Click here to review the commercial automobile loss conditions.

Are the limits sufficient?

Uninsured and underinsured motorists coverages are important and needed now more than ever, especially in today’s turbulent and uncertain economic climate. An increasing number of drivers are reducing their liability limits in order to save premium, the result of which is that responsible insureds face the possibility of significant personal loss when struck by one of them. Providing uninsured and underinsured motorists coverages in the primary policy should be a given. However, have you talked with your clients about adding these coverages to the umbrella?

Click here for an emarketing article on this subject you might consider posting to your website or sending to your clients as part of a newsletter.

Do your employees understand uninsured and
underinsured motorists coverages?

These coverages can be difficult to understand and even harder to explain. Many who understand them find it difficult to explain them to others. Rough Notes magazine has an excellent easy-to-understand article you might consider sharing with your staff.

Click here to review a Rough Notes Article
written by Roy C. McCormick.

Recent Agency Online updates

We've updated Insurance Words and Their Meanings! This update includes a new, supplemental glossary on wine-making, as well as additional terms relating to risk management, alternative risk transfer, and relevant insurance group acronyms.

Here are just a few of the new words and terms that are added:

Asset-backed security Market conduct regulation
Crash manual Originator firm
Eviction destruction Predictive modeling
Grey fleet
Special purpose vehicle

Feedback

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

 
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