LOUISIANA PERSONAL AUTOMOBILE POLICY

Transcription

1 LOUISIANA PERSONAL AUTOMOBILE POLICY

2 TABLE OF CONTENTS AGREEMENT Your Duties In Case Of An Accident Or Loss... 1 General Definitions... 3 PART I - LIABILITY TO OTHERS Insuring Agreement... 8 Additional Definition... 9 Additional Payments Exclusions Limits Of Liability Financial Responsibility Laws Out of State Coverage Other Insurance Two or More Policies Issued by Us PART II - EXCESS MEDICAL PAYMENTS COVERAGE Insuring Agreement Additional Definitions Exclusions Limit of Liability Other Insurance PART III - UNINSURED/UNDERINSURED MOTORIST COVER- AGE Insuring Agreement Uninsured/Underinsured Motorist Bodily Injury Coverage Insuring Agreement Economic Loss Only Uninsured/ Underinsured Motorist Bodily Injury Coverage Insuring Agreement Uninsured/Underinsured Motorist Property Damage Coverage Additional Definitions Exclusions Limits Of Liability Other Insurance PART IV - DAMAGE TO YOUR VEHICLE Insuring Agreement Collision Coverage Insuring Agreement Comprehensive Coverage Transportation Expenses Additional Definitions Exclusions Limit Of Liability Insuring Agreement Rental Reimbursement Payment Of Loss No Benefit To Bailee Loss Payee Agreement Other Insurance Appraisal Other Sources of Recovery PART V - TOWING AND LABOR Insuring Agreement Additional Definitions Exclusions... 42

3 PART VI - ACCIDENTAL DEATH BENEFIT Insuring Agreement Additional Definitions Exclusions Limit of Liability Payment of Benefits Other Insurance GENERAL PROVISIONS Business Use Coverage Policy Period And Territory Policy Changes Two or More Policies Issued by Us Terms Of Policy Conformed To Statutes Transfer of Your Interest Number Of Vehicles Listed Fraud Or Misrepresentation Payment Of Premium Late Payment Cancellation Nonrenewal Automatic Termination Proof Of Notice Coverage Changes Legal Action Against Us Our Rights To Recover Payment Bankruptcy Two or More Vehicles Insured Loss Payable Clause NAMED DRIVER EXCLUSION NAMED OPERATOR NON-OWNED VEHICLE COVERAGE... 55

4 LOUISIANA MOTOR VEHICLE POLICY If you pay your premium when due, we agree to provide the insurance described herein, subject to all the terms and provisions of this policy, and up to the Limits of Liability described in this policy and shown on the declarations page. Your application, the declarations page and all endorsements are part of this policy agreement. This agreement is based on our reliance upon the fact that the statements in your application, any change request, and the declarations page are your statements and are true. Unless otherwise shown on the declarations page, your statements are as follows: 1. Your covered vehicle is used only for pleasure or business use; 2. You are the only owner of the covered vehicle; and 3. Neither you nor any member of your household has had a license to drive or vehicle registration suspended, revoked, or refused in the thirty six (36) months immediately before the issuance of this policy. YOUR DUTIES IN CASE OF AN ACCIDENT OR LOSS You, or any person claiming coverage under this policy, must perform the following duties. Failure to perform any of these duties may result in no coverage: 1. Notify us promptly. You or an insured person must report each accident or loss by calling us at SAFE-AUTO ( ), even if an insured person is not at fault. The notice must give the time, place and circumstances of the accident or loss, including the names and addresses of injured persons and witnesses. 2. Cooperate with us and help us in any matter concerning a claim or suit. Do not assume obligations, incur expenses, volunteer payments, enter into an agreement with or admit liability to anyone, and do not waive any defenses. If you do, our obligation for coverage will be reduced in proportion to the 1

5 prejudice we suffer because of your actions. 3. Promptly send us any legal papers received relating to a claim or suit. 4. Submit to physical examinations at our expense by doctors we choose as often as we may reasonably require. We will send a copy of the reports to you at your written request. 5. Authorize us to obtain medical, employment, and other records. If the insured person is dead or unable to act, his or her legal representative shall authorize us to obtain this information. 6. Provide any written proofs of loss we require. 7. Provide us with written sworn statements or affidavits regarding any element of your claim upon our request, as often as we may reasonably require. 8. Let us record your statements, submit to examinations under oath at times and places within the State of Louisiana as often as we may reasonably require, and sign copies of the statements and/or examinations. 9. Produce and authorize us to examine any records, receipts, and invoices, including financial records, needed to investigate the loss. Permit us to copy such documents. 10. Attend and participate in any and all hearings and trials arising out of any accident or loss at any time and place designated by the court. 11. Notify the police within 24 hours of any accident or loss, including, but not limited to any accident or loss involving a hit-and-run motorist. If you are claiming coverage under PART IV DAM- AGE TO YOUR VEHICLE, you must perform the following additional duties: 1. Take reasonable steps after the loss to protect your covered vehicle or the non-owned vehicle and its equipment from further damage or loss. We will pay reasonable expenses incurred in providing that protection. Further loss due to your failure to protect the vehicle will not be covered. 2. Promptly report theft, vandalism or an accident to the police or other civil authority within 24 hours of 2

6 the occurrence or as soon as practical. 3. Allow us to inspect and appraise the damage to your covered vehicle or a non-owned vehicle before its repair or disposal. GENERAL DEFINITIONS Except as otherwise defined in this policy, terms appearing in boldface will have the following meaning: "Accident" means a sudden, unexpected, and unintentional event that causes bodily injury or property damage and arises out of the ownership, maintenance or use of a vehicle. All bodily injury or property damage that arises out of the event, whether due to the proximate cause, uninterrupted cause or continuing cause of the event and regardless of the number of people, vehicles or claims involved in the event, shall be considered as a part of the same event. "Bodily injury" means physical bodily injury to a human being and sickness, disease, or death which results from it. Business use means your use of a covered vehicle to convey you: 1. from one location to another; 2. during and in the course and scope of your employment; and 3. at the direction of your employer. Business use includes only your use of a covered vehicle: 1. for consumer oriented sales, service or direct home sales; 2. to visit multiple locations without the transportation of clients or patients; 3. for rare business-related errands; or 4. to transport tools or other materials used in a trade or business if: a. no more than three (3) job sites are visited per day; or b. there is no hauling of explosives, chemicals or flammable materials. Business use does not include your use of a covered 3

7 vehicle for the following activities: 1. the pickup or delivery of goods. This includes, but is not limited to, delivery of magazines, newspapers, food, or any other products; 2. the transport of persons or property for a fee. This includes limousine, taxi, or livery services; 3. the transport of people. This includes, but is not limited to, nursery school children, medical patients, clients, migrant workers, or hotel/motel guests during and in the course of your employment; 4. snow removal; or 5. any other commercial purpose not expressly set forth in the definition of business use. This policy is intended to cover the following activities regardless of whether you purchase business use coverage: 1. shared-expense car pools; or 2. commuting to and from your place of employment. Mileage reimbursement shall not constitute pecuniary gain or commercial advantage. Business use shall not include any commercial use. "Commercial use" means the use of any vehicle for pecuniary gain or commercial advantage, including but not limited to: changing, distributing, transporting, or delivering of commercial tools, materials, supplies, or finished products, including but not limited to delivery of pizza, magazines, flowers, newspapers, mail, or other business types of delivery. Commercial use also means the use of any vehicle as a public or livery conveyance, including but not limited to nursery or school children, medical patients, migrant workers, or hotel/ motel guests, but does not apply to shared expense car pools or any business use. "Covered vehicle" means: 1. any vehicle shown on the declarations page; 2. any additional vehicle on the date you purchase the vehicle if: a. you acquire the vehicle during the policy period shown on the declarations page; 4

8 b. we insure all vehicles owned by you; and c. no other insurance policy provides coverage for that vehicle. Comprehensive, Collision and Uninsured/ Underinsured Motorist Property Damage Coverage do not apply to any additional vehicle unless specifically requested by the named insured in writing before a loss involving the additional vehicle. We will provide coverage, other than Comprehensive, Collision and Uninsured/Underinsured Motorist Property Damage Coverage, for a period of thirty (30) days after you become the owner. We will not provide coverage after this thirty (30) day period, unless within this period you ask us in writing to insure the vehicle; 3. any vehicle you permanently replace a covered vehicle with on the date you become the legal owner, if: a. you acquire the vehicle during the policy period shown on the declarations page; b. the vehicle that you acquire replaces a vehicle shown on the declarations page; and c. no other insurance policy provides coverage for that vehicle. If the vehicle that you acquire replaces one shown on the declarations page, it will have the same coverage as the vehicle it replaces. However, for coverage to apply, you must notify us in writing and pay the appropriate premium for a replacement vehicle within thirty (30) days of the time you acquire legal ownership of the vehicle. You may add or increase coverage for the replacement vehicle; however, such coverage will be in effect no earlier than the date and time of receipt of the written communication you used to ask us to add or increase the coverage; and 4. any temporary substitute motor vehicle or rental private passenger automobile. Comprehensive and Collision Coverages under PART IV DAM- AGE TO YOUR VEHICLE will only apply if you have paid a premium for Comprehensive and/or Collision Coverages for at least one (1) of the vehicles described in 1,2, or 3 above. 5

9 Custom parts or equipment means equipment, devices, accessories, enhancements, and changes, other than those which are original manufacturer installed, which: 1. are permanently installed or attached; and 2. alter the appearance or performance of a vehicle. This includes any electronic equipment, antennas, and other devices used exclusively to send or receive audio, visual, or data signals, or to play back recorded media, other than those which are original manufacturer installed, that are permanently installed in a covered vehicle using bolts or brackets, including slide-out brackets. "Declarations page" means the report from us listing: 1. the policy period; 2. the types of coverage you elected; 3. the limit for each coverage; 4. the cost for each coverage; 5. the specified vehicles covered by this policy; 6. the types of coverage for each such vehicle; and 7. other information applicable to this policy. Diminished value means the reduction in the resale value of a vehicle caused by a loss, and includes diminution caused by an inability to return the vehicle to its pre-loss condition, substandard repairs and the loss of antique or collector value. "Loss" means the sudden, direct, and accidental loss of, or damage to, your covered vehicle, including its factory installed equipment and special equipment added by endorsement. "Non-owned vehicle" means any vehicle that is not owned by, or available for regular use by, you, anyone listed as an additional driver on the declarations page, a relative, or the named insured's non-resident spouse. "Occupying" means in, upon, getting in, on, out of, or off. "Owned" means the person: 1. holds legal title to the vehicle; 6

10 2. has legal possession of the vehicle that is subject to a written security agreement with an original term of six (6) months or more; or 3. has legal possession of the vehicle that is leased to that person under a written agreement for a continuous period of six (6) months or more. "Owner" means any person who, with respect to a vehicle: 1. holds legal title to the vehicle; 2. has legal possession of the vehicle that is subject to a written security agreement with an original term of six (6) months or more; or 3. has legal possession of the vehicle that is leased to that person under a written agreement for a continuous period of six (6) months or more. "Property damage" means physical damage to, or destruction or loss of use of, tangible property. Relative means a person residing in the same household as you, and related to you by blood, marriage, or adoption, including a ward, stepchild, or foster child. It includes your unmarried or unemancipated child under the age of twenty-five (25) and away at school if they intend to continue to reside in your household.. "Resident" means any person who lives in the same household as you for longer than thirty (30) consecutive days. Spouse means your husband or wife by marriage who resides primarily with you. State means the District of Columbia, and any state, territory or possession of the United States of America. "Temporary substitute motor vehicle" means any vehicle not owned by you or a relative being temporarily used with the owner s express or implied permission as a substitute for a covered vehicle that is being serviced or repaired as the result of a covered loss. Trailer means a non-self-propelled, wheeled, mobile unit designed to be towed on public roads by a vehicle. It includes a farm wagon or farm implement while being towed by a vehicle. It does not include a mobile home or a trailer that: 1. is used for any business use; 7

11 2. is used as a primary residence; 3. is used as a premises for office, store, or display purposes; or 4. is used as a passenger conveyance. Vehicle means a self-propelled land motor vehicle: 1. which is a private passenger auto, pickup truck, or van; 2. designed for operation principally upon public roads; 3. with no more nor less than four (4) wheels; and 4. with a gross vehicle weight of 10,000 pounds or less. However, vehicle does not include any kit car, stepvan, parcel delivery van, cargo cutaway van, or other van with a cab separate from the cargo area. "We", "Us", and "Our" mean Safe Auto Insurance Company. You and your mean: 1. the person shown as the Named Insured on the declarations page; and 2. the spouse of the Named Insured if residing in the same household at the time of the loss. PART I - LIABILITY TO OTHERS INSURING AGREEMENT Subject to the terms, conditions and exclusions of this policy, and Limits of Liability, if you pay the premium for liability coverage, we will pay damages, other than punitive or exemplary damages, for bodily injury and property damage for which an insured person becomes legally responsible because of an accident arising out of the: 1. ownership, maintenance, or use of a vehicle; or 2. use of any trailer while attached to a: a. covered vehicle; or b. temporary substitute motor vehicle or nonowned vehicle operated by an insured person. 8

12 We will settle or defend, as we consider appropriate, any claim or suit for damages covered by this Part I. Our duty to settle or defend ends when our Limit of Liability for this coverage has been exhausted by the payment of a judgment or settlement. We will not be obligated to pay for the cost of any further investigation or arrangement for settlement or defend you further after the Limit of Liability has been exhausted by the payment of a judgment or settlement. We have no duty to defend any lawsuit, arrange any settlement or pay any claim for bodily injury or property damage which a court of law has determined is not covered under this policy. ADDITIONAL DEFINITION When used in this PART I LIABILITY TO OTHERS, "insured person" or "insured persons means: 1. with respect to an accident arising out of the ownership, maintenance or use of your covered vehicle: a. you or a relative; b. any person listed on the declarations page as an additional driver; c. a person using your covered vehicle with your express or implied permission unless that person is a resident who is not listed on the declarations page as an additional driver; and d. any person or organization which does not own or hire your covered vehicle but is liable for its use by an insured person under (1)(a) or (1)(b) above. 2. with respect to an accident arising out of the use of a non-owned vehicle: a. you, provided the use of a non-owned vehicle is with the express or implied permission of the owner; and b. a relative, provided the use of a non-owned vehicle is with your express or implied permission, and the express or implied permission of the owner of the vehicle; and 3. any person or organization with respect only to vicarious liability for an accident arising out of the use of a covered vehicle or non-owned vehicle 9

13 by a person described in 1 or 2 above. ADDITIONAL PAYMENTS These additional payments are only available under this PART I - LIABILITY TO OTHERS section of this policy. In addition to our Limit of Liability, we will pay for an insured person: 1. all expenses that we incur in the settlement of any claim or defense of any lawsuit; 2. any legal interest in connection with a final judgment awarded against an insured person, accruing from the date of judicial demand until the final judgment is paid. Payments hereunder are limited to the interest that accrues on the portion of the final judgment that falls within our Limit of Liability. Legal interest payments under this policy are not payable until a final judgment is rendered, thus we will not pay legal interest on any pre-judgment settlement; 3. the premium on any appeal bond or attachment bond required in any lawsuit we defend. We have no duty to purchase a bond in an amount exceeding our Limit of Liability, and we have no duty to apply for or furnish these bonds; 4. up to $250 for an insured person for a bail bond required due to an accident related traffic law violation resulting in bodily injury or property damage and arising out of the ownership, maintenance or use of a covered vehicle or non-owned vehicle. We have no duty to apply for or furnish this bond; and 5. reasonable expenses, including loss of earnings up to $50 a day, incurred at our request, EXCLUSIONS - READ THE FOLLOWING EXCLU- SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART I LIABILITY TO OTHERS. Coverage under this PART I - LIABILITY TO OTHERS does not apply to: 1. punitive or exemplary damages; 2. any liability assumed by an insured person under any bailment or agreement; 10

14 3. bodily injury to an employee of an insured person arising out of an accident while the employee is in the course of his or her employment. This does not apply to a household employee who is neither covered nor required to be covered under workers compensation insurance, disability benefits or similar laws; 4. bodily injury or property damage arising out of the ownership, maintenance or use of any vehicle, including your covered vehicle, while an insured person is employed or otherwise engaged in the course and scope of any employment or occupation unless you have paid a specific premium for business use coverage; 5. bodily injury or property damage caused by an intentional act of an insured person or at the direction of an insured person even if the actual injury or damage is different than that which was intended or expected; 6. bodily injury or property damage arising out of the maintenance or use of a vehicle, including your covered vehicle, by an insured person while it is being used as a public or livery conveyance. This exclusion does not apply to sharedexpense carpools; 7. bodily injury or property damage resulting from the ownership, maintenance or use of any vehicle, other than your covered vehicle, which is owned or hired by, furnished to or available for the regular use of any insured person; 8. bodily injury or property damage arising while the covered vehicle is being operated by a resident of your household or by a regular user of the covered vehicle, unless that person is listed as an additional driver on the declarations page; 9. bodily injury or property damage arising while the covered vehicle is being operated by a person who is listed as an excluded driver on the declarations page; 10. bodily injury or property damage resulting from, or sustained during practice or preparation for: a. any pre-arranged or organized racing, speed or demolition contest, stunting activity; or 11

15 b. any driving activity conducted on a permanent or temporary racetrack or racecourse; 11. bodily injury or property damage arising out of the ownership, maintenance or use of a vehicle or trailer while it is: a. being used to flee or elude law enforcement; b. being used in any illicit trade or transportation; c. used in the commission of any felony, including theft of your covered vehicle; d. seized by federal or state law enforcement officers as evidence in a case against an insured person under the federal Controlled Substances Act, 21 U.S.C. Chapter 13, Section 801 et seq. This exclusion applies regardless of whether that insured person is actually charged with, or convicted of, a crime; or 12. bodily injury or property damage arising out of the ownership, maintenance or use of your covered vehicle while it is being rented, leased or subleased to others; or 13. bodily injury or property damage arising out of, or due to the ownership, maintenance or use of a vehicle by an insured person for transporting any explosive substance, toxic material, flammable liquid or similarly hazardous material; 14. bodily injury or property damage occurring while a covered vehicle is being used as a residence or premises; 15. bodily injury or property damage which occurs while your covered vehicle is used to pull a mobile home or trailer which is used as an office, store, display or recreational vehicle; 16. bodily injury or property damage which occurs while your covered vehicle is being towed, or is towing another vehicle; 17. property damage to any property owned by, rented to, being transported by, used by, or in the charge of an insured person. However, this exclusion does not apply to a rented residence or a rented garage damaged by a covered vehicle; 12

16 18. bodily injury or property damage arising out of an auto business operation, including but not limited to the selling, repairing, servicing, testing, towing, storing or parking of vehicles; 19. bodily injury or property damage: a. caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination, or any consequence of any of these; b. for which insurance is afforded under an atomic or nuclear energy liability insurance contract or would be afforded under an atomic or nuclear energy liability insurance contract but for its termination upon exhaustion of its limit of liability. The reason for this is that by law such policies protect all persons involved in the accident, regardless of fault; c. for which the United States Government is liable under the Federal Tort Claims Act; or d. arising out of the use of farm machinery. LIMITS OF LIABILITY The Limit of Liability shown on the declarations page is the most we will pay regardless of the number of: 1. claims made; 2. covered vehicles; 3. insured persons; 4. lawsuits brought; 5. vehicles involved in the accident; 6. premiums paid; 7. claimants; or 8. policies. Your declarations page shows a split limit. This means: 1. the amount shown for "each person" is the most we will pay for all damages due to a bodily injury to one person resulting from any one accident; and 2. subject to the "each person" limit, the amount 13

17 shown for "each accident" is the most we will pay for all damages due to bodily injury sustained by two or more persons in any one accident; and 3. the amount shown for property damage is the most we will pay for the total of all property damage for which you become legally liable as a result of any one accident. The each person Limit of Liability includes the total of all claims made for bodily injury to a person and all claims of others derived from such bodily injury, including but not limited to, emotional injury or mental anguish resulting from the bodily injury of another or from witnessing the bodily injury of another, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. No one will be entitled to duplicate payments for the same elements of damages. Any payment to a person under this PART I LIABIL- ITY TO OTHERS shall be reduced by any payment to that person under PART II EXCESS MEDICAL PAY- MENTS COVERAGE or PART III UNINSURED/ UNDERINSURED MOTORIST COVERAGE for the same element of damages. A vehicle and attached trailer are considered one (1) vehicle. Therefore, the Limits of Liability will not be increased for an accident involving a vehicle which has an attached trailer, even if both are covered under this PART I LIABILITY TO OTHERS. FINANCIAL RESPONSIBILITY LAWS When we certify this policy as proof under a state financial responsibility law, this policy will comply with that law to the extent of the coverage and limits of liability required by that law. You must reimburse us if we make a payment that we would not have made if this policy was not certified as proof of financial responsibility. OUT-OF-STATE COVERAGE If an accident to which this Part I applies occurs in any state, territory, or possession of the United States of America or any province or territory of Canada, in which we are licensed to write the type of insurance provided by this policy, other than the one in which a covered vehicle is principally garaged, and the state, 14

18 province, territory or possession has: 1. a financial responsibility or similar law requiring minimum limits of liability for bodily injury or property damage higher than the limits shown on the declarations page, this policy will provide the higher limit; or 2. a compulsory insurance or similar law requiring a non-resident to maintain insurance whenever the non-resident uses a vehicle in that state, province, territory or possession, this policy will provide the greater of: a. the required minimum amounts and types of coverage; or b. the Limits of Liability under this policy. OTHER INSURANCE If there is other applicable liability insurance or bond for an accident covered by this PART I LIABILITY TO OTHERS and resulting from the ownership, maintenance or use of a covered vehicle, temporary substitute motor vehicle, or rental private passenger automobile, we will pay only our proportionate share as our limits of liability bear on the total of all applicable liability limits. However, if other automobile insurance coverage is purchased by you or an insured person for a temporary substitute motor vehicle or rental private passenger automobile, that coverage shall become primary and coverage hereunder shall be excess to that coverage. Any insurance we provide for a vehicle, other than a covered vehicle, temporary substitute motor vehicle, or rental private passenger automobile, will be excess over any other collectible insurance, selfinsurance, or bond. TWO OR MORE POLICIES ISSUED BY US If this policy and any other policies that are issued by us, or any company affiliated with us, insure you or any other insured person as a Named Insured or an additional insured, and provide liability coverage, and apply to the same accident, then the aggregate limit of liability under all such policies shall not exceed the highest applicable limit of liability under any one policy. 15

19 PART II- EXCESS MEDICAL PAYMENTS COVER- AGE INSURING AGREEMENT Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability shown on the declarations page, if you pay a premium for Excess Medical Payments Coverage, we will pay the usual and customary charge for reasonable medical expenses incurred for medical and funeral services because of bodily injury: 1. caused by accident; 2. sustained by an insured person; and 3. arising out of the ownership, maintenance, or use of a covered vehicle. provided the bodily injury is diagnosed within one (1) year of the date of the accident and reported to us within three (3) years of the date of the accident. If the bodily injury is not diagnosed within one (1) year of the accident and reported to us within three (3) years of the date of the accident, we will pay for only such expenses incurred within three (3) years of the date of the accident. Any dispute as to the usual and customary charge will be resolved between us and the service provider. This Part II does not cover expenses for bodily injury arising out of the ownership, maintenance or use of a trailer. This Part II does not apply to that amount paid or payable under any health or accident insurance available to you regardless of whether the other coverage is primary, excess, or contingent. ADDITIONAL DEFINITIONS When used in this PART II EXCESS MEDICAL PAY- MENTS COVERAGE: "Insured person" and "insured persons" mean: 1. you while occupying any vehicle, other than a vehicle owned by you which is not a covered vehicle; 2. a relative and any other person listed on the dec- 16

20 larations page as an additional driver while occupying a covered vehicle or non-owned vehicle; and 3. you, a relative or and any other person listed on the declarations page as an additional driver when struck by a motor vehicle or trailer while not occupying a motor vehicle. Reasonable medical expenses means expenses for necessary medical, surgical, x-ray, dental, ambulance, hospital, professional nursing and funeral services, eyeglasses, hearing aids and prosthetic devices. The following do not qualify as reasonable medical expenses: 1. expenses for treatment, services, products or procedures that are experimental in nature, for research, or not primarily designed to serve a medical purpose; 2. expenses for treatment, services, products or procedures that are not commonly or customarily recognized throughout the medical profession and within the United States as appropriate for the treatment of the bodily injury; 3. expenses incurred for the use of thermography or other related procedures of a similar nature; or 4. expenses incurred for the purchase or rental of equipment not primarily designed to serve a medical purpose. "Usual and customary charge" means an amount which we determine represents a customary charge for services in the geographical area in which the service is rendered. We shall determine this customary charge through the use of independent sources of our choice. EXCLUSIONS - READ THE FOLLOWING EXCLU- SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART II EXCESS MEDICAL PAYMENTS COVERAGE. Coverage under this PART II EXCESS MEDICAL PAYMENTS COVERAGE does not apply to bodily injury: 1. sustained while occupying a vehicle while being used as a public or livery conveyance; 17

21 2. if workers compensation or disability benefits are available for the bodily injury; 3. sustained by any person while occupying a covered vehicle without the express or implied permission of you or a relative; 4. sustained by you, a relative, or a person listed on the declarations page as an additional driver, while occupying a non-owned vehicle without the express or implied permission of the owner; 5. caused intentionally by the insured person or at the insured person s direction, even if the actual injury or damage is different than that which was intended or expected; 6. sustained while occupying any vehicle or trailer while being used as a residence or premises; 7. arising out of an accident involving a vehicle or trailer while being used by a person while employed or engaged in the business of selling, leasing, repairing, parking, storing, servicing, delivering, or testing vehicles. However, this exclusion does not apply to you, a relative, any person listed on the declarations page as an additional driver, or an agent or employee of you or a relative, when using a covered vehicle; 8. resulting from any pre-arranged or organized racing, speed or demolition contest, stunting activity, or in practice or preparation for any such contest or activity; 9. resulting from the operation or use of a vehicle, other than a covered vehicle, owned or leased by you, a relative, a person who resides with you, or any person listed on the declarations page as an additional driver or available for your, a resident s, or an insured person s regular use; 10. resulting from an insured person s operation or use of a vehicle that is not listed on the declarations page that is available for the insured person s regular use; 11. to any person while occupying any covered vehicle while rented or leased to another. This exclusion does not apply to the operation of a covered vehicle by an insured person; 18

22 12. caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, or any consequence of any of these; 13. for which insurance is afforded under an atomic or nuclear energy liability insurance contract or would be afforded under an atomic or nuclear energy liability insurance contract but for its termination upon exhaustion of its limit of liability. The reason for this is that by law such policies protect all persons involved in the accident, regardless of fault; 14. caused directly or indirectly by: a. any accidental or intentional discharge, dispersal, or release of radioactive, nuclear, pathenogenic, or poisonous material; or b. any intentional discharge, dispersal, or release of chemical or hazardous material for any purpose other than its safe and useful purpose; 15. for which the United States Government is liable under the Federal Tort Claims Act; 16. arising out of the ownership, maintenance or use of a vehicle or trailer while it is: a. being used to flee or elude law enforcement; b. being used in any illicit trade or transportation; c. used in the commission of any felony, including theft of your covered vehicle; d. seized by federal or state law enforcement officers as evidence in a case against an insured person under the federal Controlled Substances Act, 21 U.S.C. Chapter 13, Section 801 et seq; This exclusion applies regardless of whether that insured person is actually charged with, or convicted of, a crime; or 17. sustained in the course of any business or employment, unless you have paid a specific premium for business use coverage. LIMIT OF LIABILITY The Medical Payments Limit of Liability shown on the declarations page is the most we will pay for each insured person injured in any one (1) accident, re- 19

23 gardless of the number of: 1. claims made; 2. covered vehicles; 3. insured persons; 4. lawsuits brought; 5. vehicles involved in the accident; or 6. premiums paid. Any amounts payable to an insured person under this PART II EXCESS MEDICAL PAYMENTS COVER- AGE will be reduced by any amounts paid or payable under PART I LIABILITY TO OTHERS or PART III UNINSURED/UNDERINSURED MOTORISTS COV- ERAGE. OTHER INSURANCE If there is other applicable vehicle medical payments insurance, we will pay only our share of the damages. Our share is the proportion that our Limit of Liability bears to the total of all applicable limits. Any insurance we provide for a vehicle, other than a covered vehicle or temporary substitute motor vehicle, will be excess over any other vehicle insurance providing payments for medical or funeral expenses. However, if other automobile insurance coverage is purchased by you or an insured person for a temporary substitute motor vehicle or a rental private passenger automobile, that coverage shall become primary and coverage under this PART II EXCESS MEDICAL PAYMENTS COVERAGE shall be excess. Coverage under this PART II EXCESS MEDICAL PAYMENTS COVERAGE shall be excess to all available liability and uninsured/underinsured motorist coverage available for an accident. THIS COVERAGE DOES NOT APPLY TO THAT AMOUNT PAID OR PAYABLE UNDER ANY HEALTH OR ACCIDENT INSURANCE AVAILABLE TO YOU REGARDLESS OF WHETHER THE OTHER COVER- AGE IS PRIMARY, EXCESS, OR CONTINGENT. THIS COVERAGE DOES NOT APPLY TO CARE WHICH THE UNITED STATES GOVERNMENT OR ITS MILI- TARY SERVICES ARE REQUIRED TO PROVIDE TO EMPLOYEES, MEMBERS, OR DEPENDENTS. 20

24 PART III - UNINSURED/UNDERINSURED MOTORIST COVERAGE INSURING AGREEMENT - UNINSURED/ UNDERINSURED MOTORIST BODILY INJURY COV- ERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Uninsured/Underinsured Motorist Bodily Injury Coverage, we will pay for damages, other than punitive and exemplary damages, which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury: 1. sustained by an insured person; 2. caused by accident; and 3. arising out of the ownership, maintenance, or use of an uninsured motor vehicle. Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity determining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us. Determination as to whether an insured person is legally entitled to recover damages and as to the amount of damages will be made by agreement between the insured person and us. INSURING AGREEMENT - ECONOMIC LOSS ONLY UNINSUREDIUNDERINSURED MOTORIST BODILY INJURY COVERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Economic Loss Only Uninsured/Underinsured Motorist Bodily Injury Coverage, we will pay for damages, other than punitive and exemplary damages, which an insured person is entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury: 1. sustained by an insured person; 2. caused by accident; and 3. arising out of the ownership, maintenance, or use 21

25 of an uninsured motor vehicle; which may be measured in specific monetary terms, including, but not limited to: 1. medical costs; 2. funeral expenses; 3. lost wages; and 4. out of pocket expenses. Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity determining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us. Determination as to whether an insured person is legally entitled to recover damages and as to the amount of damages will be made by agreement between the insured person and us. INSURING AGREEMENT - UNINSURED/ UNDERINSURED MOTORIST PROPERTY DAMAGE COVERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Uninsured/Underinsured Motorist Property Damage Coverage, we will pay for damages, other than punitive and exemplary damages, which an insured person becomes entitled to recover from the owner or operator of an uninsured motor vehicle due to property damage: 1. caused by accident; and 2. arising out of the ownership, maintenance, or use of an uninsured motor vehicle. Uninsured/Underinsured Motorist Property Damage Coverage is subject to a $ deductible per accident. Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity determining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us. 22

26 Determination as to whether an insured person is legally entitled to recover damages and as to the amount of damages will be made by agreement between the insured person and us. ADDITIONAL DEFINITIONS When used in this PART III UNINSURED/ UNDERINSURED MOTORIST COVERAGE: "Insured person" and "insured persons" mean: 1. you or a relative; 2. any person listed on the declarations page as an additional driver; 3. any person occupying a covered vehicle; and 4. any person occupying a private passenger automobile not owned by you which is: a. rented to you; or b. a temporary substitute vehicle. "Property damage" means physical damage to or destruction of a covered vehicle. It does not include loss of use of the covered vehicle. "Uninsured motor vehicle" means a land motor vehicle or trailer of any type: 1. to which no liability bond or policy applies at the time of the accident; 2. to which a liability bond or policy applies at the time of the accident, but the bonding or insuring company: a. denies coverage; or b. is or becomes insolvent; 3. that is a hit-and-run vehicle whose operator or owner is unknown and causes an accident resulting in bodily injury involving: a. you, a relative, or any other person listed on the declarations page as an additional driver; b. a vehicle which you, a relative or any other person listed on the declarations page as an additional driver are occupying; or c. your covered vehicle; 23

27 if the hit-and-run vehicle caused the injury without physical contact with the insured person or the vehicle the insured person was occupying, the facts of the accident must be supported by an independent and disinterested witness to the accident. We have a right to inspect the vehicle the insured person was occupying at the time of the accident. 4. to which a liability bond or policy applies at the time of the accident, but the total automobile liability insurance coverage on such vehicle is less than the damages which an insured person is entitled to recover from the owner or operator of such vehicle. An uninsured motor vehicle does not include any vehicle, trailer or equipment: 1. owned by you, a relative or any other person listed on the declarations page as an additional driver; 2. owned or operated by a self-insurer under any applicable vehicle law, except a self-insurer that is or becomes insolvent; 3. operated on rails or crawler treads; 4. designed mainly for use off public roads; 5. classified as an all-terrain vehicle, even if the vehicle has four (4) wheels; 6. while used as a residence or premises; 7. classified as farm equipment or commercial machinery, including, but not limited to, tractors, bulldozers, forklifts and self-propelled cranes; 8. shown on the declarations page of this policy; or 9. not required to be registered as a motor vehicle. EXCLUSIONS - READ THE FOLLOWING EXCLU- SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART III UNINSURED/UNDERINSURED MO- TORIST COVERAGE Coverage under this PART III UNINSURED/ UNDERINSURED MOTORIST COVERAGE is not provided for: 24

28 1. punitive or exemplary damages which are assessed against the owner or operator of an uninsured motor vehicle; 2. bodily injury or property damage arising from an accident, which occurs while your covered vehicle is being operated, manipulated, serviced or used in any manner without your express or implied permission; 3. bodily injury to an employee of an insured person arising out of an accident while the employee is in the course of his or her employment. This does not apply to a household employee who is neither covered nor required to be covered under workers compensation insurance, disability benefits or similar laws; 4. bodily injury or property damage caused intentionally by the insured person or at the insured person s direction, even if the actual injury or damage is different than that which was intended or expected; 5. bodily injury or property damage resulting from the ownership, maintenance or use of any vehicle, other than your covered vehicle, which is owned or hired by, furnished to or available for the regular use of any insured person; 6. bodily injury or property damage arising while the covered vehicle is being operated by a resident of your household or by a regular user of the covered vehicle, unless that person is listed as an additional driver on the declarations page; 7. bodily injury or property damage arising while the covered vehicle is being operated by a person who is listed as an excluded driver on the declarations page; 8. bodily injury or property damage resulting from any pre-arranged, organized or spontaneous racing, speed or demolition contest, stunting activity or in practice or preparation for any such contest or activity; 9. bodily injury or property damage sustained while your covered vehicle is being used to flee or elude law enforcement official(s); 10. bodily injury or property damage sustained while 25

29 your covered vehicle is used in any illicit trade or transportation; 11. bodily injury or property damage which occurs while your covered vehicle is used in the commission of any felony, including theft of your covered vehicle; 12. bodily injury or property damage arising out of the ownership, maintenance or use of your covered vehicle while it is being rented, leased or subleased to others; or 13. bodily injury or property damage arising out of, or due to the ownership, maintenance or use of a vehicle by an insured person for transporting any explosive substance, toxic material, flammable liquid or similarly hazardous material; 14. bodily injury or property damage occurring while a covered vehicle is being used as a residence or premises; 15. bodily injury or property damage which occurs while your covered vehicle is being used for snow removal; 16. bodily injury or property damage which occurs while your covered vehicle is used to pull a mobile home or trailer which is used as an office, store, display or recreational vehicle; 17. bodily injury or property damage which occurs while your covered vehicle is being towed, or is towing another vehicle; 18. property damage to any property owned by, rented to, being transported by, used by, or in the charge of an insured person. However, this exclusion does not apply to a rented residence or a rented garage damaged by a covered vehicle; 19. bodily injury or property damage arising out of an auto business operation, including but not limited to the selling, repairing, servicing, testing, storing or parking of vehicles; 20. bodily injury or property damage for which the United States Government is liable under the Federal Claims Tort Act; 21. bodily injury or property damage for anyone protected under an atomic or nuclear energy liability 26

30 insurance policy. This exclusion applies even if the limits of that insurance policy are exhausted; 22. bodily injury or property damage caused by war (declared or undeclared), civil war, terrorism, riot, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination or any consequence of these; or 23. property damage if coverage is available under any other property insurance, including, but not limited to, PART IV DAMAGE TO YOUR VEHI- CLE of this policy; 24. loss or damage to a covered vehicle that is due and confined to: a. wear and tear; b. freezing or over heating; c. mechanical or electrical breakdown or failure; or d. road damage to tires; 25. loss or damage to wearing apparel or personal effects; 26. to custom parts or equipment, nonstandard parts or accessories unless such items were declared on the application and additional premium has been charged and paid by you; or 27. bodily injury to you, a relative or any other person listed on the declarations page as an additional driver while occupying a vehicle (other than a vehicle listed on the declarations page) owned by you or a relative or any other person listed on the declarations page as an additional driver, or through being struck by such a vehicle. Coverage under this PART III UNINSURED/ UNDERINSURED MOTORIST COVERAGE will not apply directly or indirectly to benefit any property insurer, or any other insurer or self-insurer under any of the following or similar laws: 1. workers compensation law; or 2. disability benefits law. LIMITS OF LIABILITY The Limit of Liability shown on the declarations page 27

31 for the coverages shown under this PART III UNIN- SURED/UNDERINSURED MOTORIST COVERAGE is the most we will pay regardless of the number of: 1. claims made; 2. covered vehicles; 3. insured persons; 4. lawsuits brought; 5. vehicles involved in an accident; 6. premiums paid; 7. claimants; or 8. policies. Your declarations page shows a split limit. This means: 1. the amount shown for "each person" is the most we will pay for all damages due to a bodily injury to one (1) person. Bodily injury to one (1) person includes all injury, including bodily injury, and damages to others resulting from this bodily injury; 2. subject to the "each person" limit, the amount shown for "each accident" is the most we will pay for all damages due to bodily injury sustained by two (2) or more persons in any one (1) accident; and 3. the amount shown for "property damage" is the most we will pay for the aggregate of all property damage caused by any one (1) accident. The amount of damages payable under this PART III UNINSURED/UNDERINSURED MOTORIST COVER- AGE shall be reduced by: 1. all sums paid by or on behalf of any persons or organizations who may be legally responsible, including, but not limited to, all sums paid under PART I LIABILITY TO OTHERS; 2. all sums paid or payable under PART II - EXCESS MEDICAL PAYMENTS COVERAGE; 3. the amount of any insured person s liability or percentage of fault in causing or contributing to the accident or loss that gives rise to the bodily in- 28