Business Automobile Policy (bap)
Definition of "Business automobile policy (bap)"
Coverage for automobiles used by a business when a liability judgment arises out of the use of the automobile, or the automobile is subject to damage or destruction. The business can select coverage for any auto in use,. whether business, personal, or hired. The policy is organized as follows:
- Parts I, II, and III define terms used in the policy, such as auto, accident, insured bodily injury, property damage, territorial limits of coverage.
- Part IV LIABILITY INSURANCE in a liability judgment against the insured business and/or individual, the insurance company will pay the monetary damages up to the limit of the policy. Negligent acts and/or omissions of the insured business and/or individual must arise out of the ownership and operation of a covered auto, subject to specific exclusions.
- Part V physical damage insurance in the event of damage to an auto, the insurance company will pay under one of two categories: COMPREHENSIVE INSURANCE-damage resulting from fire, explosion, theft, vandalism, malicious mischief, windstorm, hail, earthquake, or flood; or collision insurance damage resulting from colliding with another object or the overturning of the insured auto.
- Part VI CONDITION stipulate what the policyholder must do in the event of a loss, such as give notice to the insurance company; submit proof of the loss; submit to inspection of damaged property by the company; cooperate with the company in the event of a liability suit.
Popular Insurance Terms
Same as term Underwriting Gain Loss): profit ( deficit) that remains after paying claims and expenses. Insurers generate profits from underwriting and from investment income. Their chief ...
Income paid for a specified number of years from an annuity. ...
Intent to defraud. An insured is required to answer truthfully all questions on the application. The insurance company can void a contract if it would not have issued a policy had it known ...
Additional coverage to a property policy. Windstorms are not one of the standard covered perils. If an insured desires coverage for windstorms and hail, an endorsement is required. ...
Financial instrument established irrevocably for a minimum of 10 years, after which the principal reverts to the grantor upon termination of the trust. A key feature is that earnings from ...
Net cost of insurance with no markup to cover an intermediary's profit or expenses. An intermediary, such as a broker, sells an insurance product net; that is, there is no loading for his ...
Automatic right of an insured to renew a policy until a given date or age except under stated conditions. It is extremely important for the purchaser to review the conditions for renewal in ...
Method of terminating a split dollar life insurance policy in which the company transfers its interest in the life insurance policy to the insured employee. Through such a transfer, the ...
Oral or written statement that results in injuring the good name or reputation of another, causing that individual to be held in disrepute. ...
Have a question or comment?
We're here to help.