Often employees are furnished automobiles by their employer. Under the Business Auto Policy, the employee is covered only when using the vehicle within the scope of the employer’s permission. If this permission extends to personal use of the vehicle (such as a family vacation) the employee is only covered in that vehicle and not in any vehicle not owned, borrowed, or rented. Further, the employee must share the limits of the policy with the insured. Often permission of the employee to use the car for pleasure does not extend to members of the employee’s family.For example, suppose an employee has permission to use a company vehicle for personal use. The employee takes his family on vacation in the employer’s car. He is covered, subject to sharing limits with the employer, while on vacation. Suppose also that he decides to rent a four wheel drive vehicle to explore some scenery difficult to access with the company car. There is no coverage for the rented vehicle under the employer’s policy. Four ways to solve this problem are listed below. Aswith other insurance decisions, insureds should consult with a recognized insurance professional for their particular situation.
Endorse the Personal Automobile Policy
The personal automobile policy normally excludes any vehicle furnished for the insured’s regular use. The key term here is “regular use.” A temporary loaner while a car is being repaired, borrowing of a neighbor’s car to run an errand, and renting a car on vacation are not furnished for regular use. Vehicles furnished by employers are often for regular use. The extended non-ownership endorsement can be added to the personal auto policy to cover such vehicles.
Named Non-Owner Coverage
If the employee does not own another vehicle and, therefore, has no personal automobile insurance, he or she may buy a Named Non-Owner policy. This covers the insured and listed family members for operation of a non-owned vehicle.
Individual Named Insured Endorsement to the Business Auto Policy
Commonly used by sole proprietors, this endorsement covers the individual named insured and family members for both owned and non-owned vehicles.
Drive Other Car Coverage
This endorsement is also added to the business auto policy and includes listed individuals and their spouses as insureds for non-owned vehicles. This endorsement is more likely to be used when the company vehicle is furnished to an employee by a corporation. (See Business Auto Policy).
A company without share capital the liability of members for its debts being limited to a sum specified in its constitution.
See: Directors’ And Officers’ Liability Insurance.
System of comparing costs of several types of life insurance policies such as the present value of premiums, cash values, and dividends. It is calculated by weighing each item each year by the probability that it will be paid. See also cost comparison methods.
In the Medicaid program, this term means that each state provides the same (comparable) benefits for those eligible except for those benefits in Medicaid waiver programs and benefits for children through Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) programs.
Medicare guideline stating that reasonable charges for medical services cannot be greater than similar services billed to non-Medicare patients covered by private insurance or managed care plans.
Patient’s situation that is documented as “either/or” in the medical record. Conditions include illness, disease, injury, pregnancy, bodily defect or abnormality, mental illness, alcoholism, or drug or chemical dependence.
Two individuals are involved in an act that caused injury or damage. The situation is reviewed to determine the percent of damage caused by the actions of each party. For example, if the injured party was 30 percent at fault the other party would be responsible for only 70 percent of the damages.
A modification of the principle of contributory negligence. In those jurisdictions that follow the principle of comparative negligence, negligence on the part of the injured party will not necessarily defeat the claim, but will be considered in determining the amount of damages.
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A variation of contributory negligence, in which the comparative degree of negligence for each party to an accident is taken into account when awarding damages.
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In some states, when a plaintiff sues for alleged damages, the plaintiff’s degree of negligence in the incident is considered in awarding damages. If the plaintiff’s degree of negligence is greater than the defendant’s the plaintiff does not collect anything.This can be illustrated as follows. Josh runs a stop sign and has a wreck with Marilyn. Marilyn sues Josh for damages to her vehicle and her medical bills. During the investigation of the accident it is found that Marilyn was speeding, which added to the severity of her damages. She is found 20% at fault for the accident and Josh is found to be 80% at fault. In this case, Marilyn would receive only 80% of her requested damages. (See Contributory Negligence).
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US: Under this concept a plaintiff (the person bringing suit) may recover damages even though guilty of some negligence. His or her recovery, however, is reduced by the amount or percent of that negligence.
A concept within tort law that applies in some states. The concept states that the negligence of both people involved in an accident is proportional to their contribution to the accident.