Photo by Clay Shonkwiler
In parts one and two of my analysis of the New York changes to the ISO Personal Auto Policy endorsement, I looked at changes to the Liability Coverage insuring agreement, supplementary payments, and exclusions. Part three is about changes to the Limit of Liability section.
The endorsement completely replaces the Limit of Liability section in the unendorsed policy, but it has two different versions -- one if the limits are equal to or greater than $100,000 per person, $200,000 per accident; the other if they are less.
If the limits are $100/$200 or greater, the endorsement states that the limit shown in the declarations for Bodily Injury Liability for each person is the insurer's maximum limit of liability for all damages (including damages for care, loss of services or death) resulting from one auto accident for bodily injury to one person, whether or not the injury results in that person's death. Similarly, it states that the limit shown for each accident is the insurer's maximum limit for all damages resulting from one accident for bodily injury, whether or not resulting in death, subject to the "per person" limit.
The insurer will apply the limit of Bodily Injury Liability to first provide the separate limits required by New York State Law.
When the limits are less than $100/$200, the endorsement establishes separate limits for injuries that result in death and those that do not. An automatic per person limit of $50,000 applies in cases of death; a $100,000 limit applies to the deaths of two or more people, subject to the per-person limit. The stated policy limits apply in cases where the injuries do not result in death.
The provisions for the limit of liability that applies to Property Damage Liability is identical to that in the unendorsed policy. The limit shown in the Declarations is the insurer's maximum limit for all property damage resulting from any one auto accident, regardless of the number of insureds, claims made, vehicles or premiums shown in the Declarations, or vehicles involved in the accident.
The provision stating that no one is entitled to receive duplicate payment for the same elements of loss under the Liabilty, Medical Payments and Uninsured Motorist Coverages is changed by taking out the reference to Uninsured Motorist Coverage, meaning that theoretically a claimant could receive duplicate payments under Liability and UM.
The Other Insurance condition is changed to refer to "other valid and collectible insurance," not "other applicable liability insurance." The Liability Coverage for a non-owned auto is excess over any other "valid and collectible insurance, including physical damage insurance provided under this or any other policy." This makes the Liability Coverage applicable to damage to non-owned autos the insured is using, but only on an excess basis.
Special provisions apply to U.S. government employees using their vehicles in government business. It explicitly states that the U.S. government and its agencies are not insureds (meaning it has no additional insured coverage.) Neither is a person for injury or damage resulting from the operation of the vehicle by that person as a federal government employee. The loss of insured status applies only to the extent that the person has coverage and protection under federal law.
Next time: Medical Payments Coverage, Uninsured Motorists Coverage, Comp and Collision, and New York's mandatory photo inspection requirement.