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
Life insurance: Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds. Stocks(a) preferred stock investment ...
Method of valuing a reserve under which a life insurance policy, from an actual point of view, combines one-year term insurance and a one-year deferred plan. Here the net premium is ...
Inability of the insured to perform one or more of the important daily duties of that insured's occupation. The income payment to the insured is reduced from that of total disability. ...
Life insurance policy provision under which the policyholder may apply the accumulated cash value, in the form of a single premium payment, to pay up the policy or to mature the policy as ...
coverage issued to a creditor on the life of a debtor so that if the debtor becomes disabled, the insurance policy pays the balance of the debt to the creditor. ...
pool that contains various reinsurance companies with each sharing reinsurance contracts on a pro rata basis as they are submitted to the pool. market that operates much like the New York ...
Right that has a limited time in duration for an individual to receive the income generated by assets owned by another individual. ...
Condition for inland marine liability insurance coverage that states a loss or claim must occur in the policy territory. Policy territory for a liability policy includes the U.S., its ...
Adjustment in property insurance to reflect increased construction costs. ...
Have a question or comment?
We're here to help.