Corey bought a Chevrolet Caprice on October 12th to replace his Chevrolet Monte Carlo. He had insurance coverage on the Monte Carlo. On October 13th, before Corey had a chance to tell his insurance carrier about the vehicle change, the Caprice was totaled in an accident with an uninsured motorist. Corey and his passenger were both injured.

Corey filed an uninsured motorists claim with his carrier.

American Freedom denied coverage for two reasons. The first was that the Caprice was not automatically covered as a replacement vehicle because Corey still owned the Monte Carlo. The second was that Corey was not covered under the 30-day grace period because he neglected to report the vehicle to the carrier.

Click here to find out how the court ruled.

The PAP has a 14-day grace period for additional vehicles and appears to be unlimited for replacement vehicles. However, this very important coverage is not in the policy's coverage section. It is in the Definitions Section.

Click here to review the PF&M analysis of the PAP's Definitions section.

The BAP's grace period is based on the symbols on the Declarations. When symbols 1, 2, 3, 4, 5, 6, or 19 are used, all vehicles acquired after the policy inception date are covered, and there is no reporting requirement. When symbol 7 is used, coverage automatically applies for replacement vehicles but is limited to 30 days for additional vehicles. This important coverage information is in Section I–Covered Autos.

Click here to review the PF&M analysis of the BAP's Section I–Covered Autos.

Almost every commercial account needs business auto coverage. Your knowledge of the difference between symbols 1 and 7 could help you write an account.

Consider reviewing the PF&M analysis of the business auto policy, and then send the following letter to some potential commercial customers. It could be the ticket to opening the door with them and building a relationship!

Thanks to your requests, we have added these new classifications to the Producer's Commercial Lines Risk Evaluation System:

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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