Parts E and F of the personal auto policy list conditions

PARTS E AND F—CONDITIONS

Parts E and F of the personal auto policy list conditions that apply to the policy as a whole. Part E—duties after an accident or loss details the duties of insureds following a loss. 

They are similar to the duties required under other property and liability policies.

Note that under uninsured motorists coverage, the insured is required to notify the police promptly if a hit-and-run driver is involved.

 Under physical damage coverage, the insured must take reasonable steps after a loss to protect a covered auto and its equipment from further damage.

 Reasonable expenses required to do so will be reimbursed.

 In addition, the police must be notified if the car is stolen.

 Finally, the insurance company must be permitted to inspect or appraise the property before its repair or disposal following a loss.

Part F—general provisions establishes conditions for the coverage and describes the duties and obligations of the insured and insurer.

The policy applies only to accidents and losses that occur during the policy period shown in the declarations and within the policy territory. 

The coverage territory includes the United States, its territories and possessions, Puerto Rico, and Canada. Covered autos are also insured while being transported between territorial ports.

Legal action against the insurer may not be taken by an insured until all policy terms have been complied with. 

Under Part A, legal action may not be taken against the insurer until it agrees in writing that an insured has an obligation to pay, or unless the amount of such an obligation has been established by judgment after a trial. 

No person or organization may take action against the insurer to determine whether an insured is liable for a loss.

Policy terms may not be changed or waived except by written endorsement. Any premium adjustment due to a change will take effect as of the date of change.

 If the policy form is revised to provide broader coverage without additional charge, all policyholders will automatically and immediately benefit from the broader coverage on the date the change is implemented in their state of residence.

The insurer has subrogation rights under all coverages except physical damage coverage against a person using a covered auto with a reasonable belief of being entitled to do so.

The termination provision describes conditions for cancellation and nonrenewal.

 The insured may cancel the policy at any time by returning the policy or providing advance written notice of the desired cancellation date.

 The insurer must provide advance written notice of cancellation or nonrenewal. At least 10 days’ notice must be given if the policy is being canceled for nonpayment of premium or if cancellation occurs during the first 60 days of an initial policy term (a new policy that has not been renewed or continued). 

At least 20 days’ notice must be given in all other cases.

Once a policy has been in effect for 60 days, or after it has been renewed or continued, the insurer may only cancel for the following reasons:

■Nonpayment of premium

■Material misrepresentation in obtaining the policy

■A regular operator of the vehicle has had his driver’s license suspended ■or revoked

■Nonrenewal requires at least 20 days’ advance notice.