BACK TO FORMS INDEX

 

 

 

 

 

ALABAMA

PERSONAL

AUTO POLICY


Automobile Club
Inter-Insurance Exchange
12901 North Forty Drive
St. Louis, Missouri 63141
(314) 523-7350

 

A Reciprocal Insurance Exchange

 

 

 

 

 

 


 
BACK TO FORMS INDEX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

READ YOUR POLICY CAREFULLY


This policy is the legal contract between you and us. It is written in easy to read and understand language.


 
BACK TO FORMS INDEX

YOUR PERSONAL AUTO POLICY QUICK-REFERENCE

DECLARATIONS CERTIFICATE

Your Name and Address
Your Auto or Trailer
Policy Period
Coverages and Amounts of Insurance

 
Beginning
On Page
TO OUR POLICYHOLDER
 
DECLARATIONS (continued)
 
AGREEMENT
 
DEFINITIONS
 
PART A - LIABILITY COVERAGE

Insuring Agreement

Supplementary Payments

Exclusions

Limit of Liability

Out of State Coverage

Financial Responsibility Required

Other Insurance

 
PART B - EXCESS MEDICAL PAYMENTS COVERAGE

Insuring Agreement

Exclusions

Limit of Liability

Other Insurance

 
PART C - UNINSURED MOTORIST
COVERAGE (INCLUDES UNDERINSURED MOTORIST COVERAGE)

Insuring Agreement

Exclusions

Limit of Liability

Other Insurance

Arbitration

Legal Action Against Us


 
BACK TO FORMS INDEX
PART D - COVERAGE FOR DAMAGE
TO YOUR AUTO

Insuring Agreement

Clothes and Luggage

Limited Insurance for Loss to
 Tapes or Discs

Limited Insurance for Loss to
 Camper Shells

Transportation Expenses

Exclusions

Limit of Liability

Payment of Loss

No Benefit to Bailee

Other Insurance

Appraisal

 
PART E - RENTAL REIMBURSEMENT

Insuring Agreement

 
PART F - ACCIDENTAL DEATH,
 DISMEMBERMENT

Insuring Agreement

Exclusions

Limit of Liability

Schedule of Benefits

Payment of Benefits

   
PART G - DUTIES AFTER AN
 ACCIDENT OR LOSS

General Duties

Additional Duties for Uninsured
Motorist Coverage (includes
Underinsured Motorist Coverage)

Additional Duties for Coverage
for Damage to Your Auto

 
PART H - GENERAL PROVISIONS

Bankruptcy

Changes

Fraud and Misrepresentation

Legal Action Against Us

Liberalization Clause

Notice

Our Right to Recover Payment

Policy Periods and Territory


   

Termination

Terms of Policy Conformed to Statute

Transfer of Your Interest in this Policy

Two or More Auto Policies

   

BACK TO FORMS INDEX

TO OUR POLICYHOLDER

This Automobile Club Inter-Insurance Exchange policy along with the Declarations, the Application for Insurance and other endorsements, if any, is your complete and valid car insurance contract.

If you have an accident or loss, no matter how slight, always report it to the Company as soon as possible. For additional information, see Part G - Duties After an Accident or Loss in this policy.

AUTOMOBILE CLUB INTER-INSURANCE EXCHANGE

DECLARATIONS
(Continued from Declarations Certificate)

1. The policy period is as shown under "Policy Period" and for such succeeding period of six months thereafter as the required renewal premium is paid by you. The policy period will begin and end at 12:01 A.M., at your address stated in the Declarations. The premium shown is for the policy period and coverages indicated in the Declarations.
2. Your covered autos are and will be garaged at the address stated in the Declarations.
3. Your covered autos are owned solely by you; each of your covered autos has been paid for and is not mortgaged, except where a lienholder is indicated in the Declarations.

If your covered auto is mortgaged, any loss under "Coverage for Damage to Your Auto" is payable as interests may appear on the Declarations Certificate to you and the lienholder named therein. This is in accordance with the terms of the Loss Payable Agreement which appears in the Declarations.

AGREEMENT

Subscribers at the Automobile Club Inter-Insurance
Exchange do severally agree to insure you, the subscriber named in the Declarations, based on the statements contained in your application, the payment of a premium deposit and subject to the limit of liability, conditions and other terms of this policy.

1


BACK TO FORMS INDEX

We will insure you for the coverages and the limits of liability for which a premium is shown in the Declarations.

By acceptance of this policy, you agree that the statements in your application are your statements and are true. We insure you on the basis that your statements are true and this policy contains all of the agreements between you and us or any of our agents relating to this insurance.

We agree with you as follows:

DEFINITIONS

When used in bold throughout this policy, the following words or phrases have the following meaning:

In this policy "you" or "your" refers to the "named insured" shown in the Declarations and the spouse, if domiciled in the same household. "We", "us" or "our" refers to the Automobile Club Inter-Insurance Exchange.

For purposes of this policy, a private passenger auto shall be deemed to be owned by a person if leased:

a. Under a written agreement to that person; and
b. For a continuous period of at least 6 months.

In addition, certain words and phrases are defined as follows:

1. "Auto" means a land motor vehicle with four or more wheels which is designed for and licensed for use on public roads. It does not include:

a. Any vehicle while located for use as a dwelling or other premises; or
b. A truck-tractor designed to pull a trailer or semi-trailer.

2. "Bodily injury" means bodily harm, sickness or disease, including death that results.
3. "Household member" means a person who is domiciled in your household.
4. "Non-owned auto" means an auto not:

a. owned by;
b. registered in the name of; or
c. furnished or available for the regular use of;
you or a household member.

2


BACK TO FORMS INDEX

The use has to be within the scope of consent of the owner. A temporary substitute auto is not considered a non-owned auto.
5. "Occupying" means in, upon, getting in, on, out or off.
6. "Person" means a living human being.
7. "Private passenger auto" means an auto:


a. with four wheels,
b. of the private passenger type, and
c. designed solely to carry persons and their luggage.

8. "Property damage" means physical injury to, destruction of or loss of use of tangible property.
9. "Temporary substitute auto" means an auto or trailer not owned by you, if it replaces your covered auto for a short time. Its use has to be with the consent of the owner. Your covered auto has to be out of use due to its breakdown, repair, servicing, damage or loss. A temporary substitute auto is not considered a non-owned auto.
10. "Trailer" means a vehicle designed to be pulled by a:

a. Private passenger auto; or
b. Pickup truck or van; or
c. A truck with a load capacity of 2 tons or less.

It also means a farm wagon or farm implement while towed by a vehicle listed in a., b. or c. above.
11. "Your Covered Auto" means:

a. Any auto described in the declarations page and any auto you permanently replace it with. You must notify us of a replacement vehicle within 30 days of its acquisition and pay the appropriate premium only if you wish to add or continue coverage for damage to your auto.
b. Any additional auto which you acquire ownership of during the policy period provided we insure all autos that you own. You must notify us within 30 days of its acquisition and pay the premium for coverage to apply.
c. Any trailer you own. (Auto Damage Coverage does not apply until you have notified us and a premium is paid for the coverage.)
d. Any temporary substitute auto.

3


BACK TO FORMS INDEX

PART A - LIABILITY COVERAGE

Insuring Agreement
Subject to the Exclusions, we will pay damages for bodily injury or property damage for which any covered person becomes legally responsible because of an auto accident. We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted. We have no duty to defend any suit or settle any claim for bodily injury or property damage not covered under this policy.

"Covered person" as used in this Part means:

1. You or any household member for the ownership, maintenance or use of any auto or trailer.
2. Any person other than those identified in paragraph 1 using your covered auto with your permission. The limits of liability for this person shall be equal to minimum limits of liability specified by the financial responsibility law of the state in which the accident occurs.
3. For your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part. The limits of liability for this person shall be equal to minimum limits of liability specified by the financial responsibility law of the state in which the accident occurs.
4. For any auto or trailer, other than your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of you or any household member for whom coverage is afforded under this Part. This provision applies only if the person or organization does not own or hire the auto or trailer. The limits of liability for this person or organization shall be equal to minimum limits of liability specified by the financial responsibility law of the state in which the accident occurs.

Supplementary Payments
In addition to our limit of liability, we will pay on behalf of a covered person:

4


BACK TO FORMS INDEX

1. Up to $300 for the cost of bail bonds required because of an accident, including related traffic law violations. The accident must result in bodily injury or property damage covered under this policy.
2. Premiums on appeal bonds and bonds to release attachments in any suit we defend.
3. Prejudgment interest awarded against the covered person on that part of the judgment we pay. If we make an offer to pay our limit of liability, we will not pay any prejudgment interest based on that period of time after the offer.
4. Interest on all damages owed by a covered person as a result of a judgment in any suit we defend. Our duty to pay interest ends when we offer to pay that part of the judgment which does not exceed our limit of liability for this coverage.
5. Up to $200 a day for loss of net earnings, but not other income, because of attendance at hearings or trials at our request.
6. Other reasonable expenses incurred at our request.
7. NAMED INSURED’S SPECIAL BENEFIT - This coverage applies only to you, the named insured. If Liability Coverage is afforded by this policy, we will pay the principal sum of $5,000, if you, while driving your covered auto, are killed instantly or are injured and die within thirty days from the date of such injury, as a direct result of collision or upset of such auto, provided that such death is caused solely through external, violent and accidental means.

The special benefit of $5,000 will be increased to $15,000 if, at the time of the accident, you were using the vehicle’s complete restraint system.

If the deceased insured is survived by a spouse who was domiciled in the same household at the time of the accident, we will pay the death benefit to such spouse. If the deceased insured was an unmarried minor, we will pay the death benefit to either parent, who was domiciled in the same household at the time of the accident. Otherwise, we will pay the death benefit to the deceased insured’s estate.

We have the right to request an autopsy where it is not forbidden by law.

5


BACK TO FORMS INDEX

Exclusions
We do not provide Liability Coverage for any person:

1. Who intentionally causes bodily injury or property damage.
2. For damage to property owned or being transported by that person.
3. For damage to property:

a. rented to;
b. used by; or
c. in the charge of;
that person.

This exclusion does not apply to damage to:

a. a rented residence or rented private garage; or
b. any of the following type vehicles not owned by
or furnished or available for the regular use of you or
any household member:

(1) private passenger autos or
(2) trailers; or

c. any auto loaned to you by a person, firm or corporation engaged in the business of selling, repairing or servicing motor vehicles while such auto is being used by any covered person:
(1) for demonstration purposes; or
(2) as a temporary substitute auto.

4. For bodily injury to an employee of that person while engaged in employment or while engaged in the operation, maintenance or repair of any motor vehicle. This exclusion does not apply to bodily injury to a domestic employee unless workers’ compensation benefits are available for that domestic employee.

5. For that person’s liability arising out of the ownership or operation of a vehicle while it is being used to carry persons, property or food for a fee or compensation. This exclusion does not apply to a share-the-expense car pool or charitable delivery.
6. While employed or otherwise engaged in the business or occupation of:
a. selling;
b. repairing;
c. servicing;
d. storing; or
e. parking;

vehicles designed for use mainly on public highways. This includes road testing and delivery. This exclusion does not apply to ownership, maintenance or use of your covered auto by:


6


BACK TO FORMS INDEX

    a. you;

    b. any household member; or

    c. any partner, agent or employee of you or any household member.

     

7. Maintaining or using any vehicle while that person is employed or otherwise engaged in any business or occupation not described in Exclusion 6. This exclusion does not apply to the maintenance or use of a:

    a. private passenger auto;

    b. pickup truck or van that you own; or

    c. trailer used with a vehicle described in a. or b.
    above.

8. Using a vehicle without the express or implied consent of the owner.

     

9. For bodily injury or property damage for which that person:

a. is an insured under a nuclear energy liability policy; or

b. would be an insured under a nuclear energy liability policy but for its termination upon exhaustion of its limit of liability.

A nuclear energy liability policy is a policy issued by any of the following or their successors:

a. Nuclear Energy Liability Insurance Association;
b. Mutual Atomic Energy Liability Underwriters; or
c. Nuclear Insurance Association of Canada

10. For the liability imposed for punitive damages or exemplary damages, except in cases involving wrongful death. And wrongful death punitive damages will only be covered up to the statutorily prescribed minimum liability coverage. Punitive damages are amounts of money awarded or imposed to punish or to make an example of a wrongdoer.

  1. For bodily injury to you or any person domiciled in your household.
  2. Sustained while operating or occupying a vehicle in any prearranged or organized racing or speed contest or in practice or preparation for any such contest.
  3. While an auto is being driven by any person under the age limit fixed by law to legally operate an auto.
  4. For any damages for which the United States government might be liable for that person’s use of the vehicle.
  5. For liability assumed by any insured under any contract or agreement.

7


BACK TO FORMS INDEX
  1. For the ownership, maintenance or use of:

a. Any motorized vehicle having less than four wheels.

b. Any vehicle, other than your covered auto, which is:

(1) owned by you; or

(2) furnished or available for your regular use.


c. Any vehicle, other than your covered auto,
which is:

(1) owned by any household member; or

(2) furnished or available for the regular use of any household member.

However, this exclusion does not apply to your maintenance or use of any vehicle which is:

(1) owned by a household member; or

(2) furnished or available for the regular use of a household member.

  1. For bodily injury or property damage caused by the dumping, discharge or escape of irritants, pollutants or contaminants; however, this exclusion does not apply if the discharge is sudden and accidental.
  2. For bodily injury to any fellow employee of the
    insured arising out of and in the course of such employee's employment.
  1. For bodily injury or property damage resulting from the handling of property:
    a. before it is moved from the place where it is accepted by the insured for movement into or onto the covered auto; or
    b. after it is moved from your covered auto to the place where it is finally delivered by the insured.

  1. For bodily injury or property damage resulting from the movement of property by a mechanical device, other than a hand truck, not attached to your covered auto.
  2. While committing a felony or while seeking to elude lawful apprehension or arrest for a felony by a law enforcement official.
  3. Sustained by any person while not in lawful possession or voluntarily occupying a motor vehicle knowing it is stolen.

Limit of Liability
The limit of liability shown in the Declarations for "each person" for Bodily Injury Liability is our maximum limit of liability for all damages, including damages for care, loss of consortium and loss of services, arising out of and due to bodily injury to any one person, in any one auto accident. The limit of liability shown in the Declarations

8


BACK TO FORMS INDEX

for "each accident" for Bodily Injury Liability is our maximum limit of liability for all damages, including damages for care, loss of consortium and loss of services, arising out of and due to bodily injury to any number of persons, resulting from any one auto accident. This is the most we will pay regardless of the number of:

1. Covered persons;
2. Claims made;
3. Vehicles or premiums shown in the Declarations;
4. Policies issued to you by us; or
5. Vehicles involved in the auto accident.

The limit of liability shown in the Declarations for "each accident" for Property Damage Liability is our maximum limit of liability for all damages to all property resulting from any one auto accident. This is the most we will pay regardless of the number of:

1. Covered persons;
2. Claims made;
3. Vehicles or premiums shown in the Declarations;
4. Policies issued to you by us, or
5. Vehicles involved in the auto accident.

No one will be entitled to duplicate payments for the same elements of damages.

An auto and attached trailer are considered 1 auto. Therefore, the limits of liability will not be increased for an accident involving an auto which has an attached trailer.

Out of State Coverage
If an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, your policy for that accident will provide as follows:

If the state or province has:

1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Declarations, your policy will provide the higher specified limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your

9


BACK TO FORMS INDEX

policy will provide at least the required minimum amounts and types of coverage.

 

Financial Responsibility Required

When this policy is certified as future proof of financial responsibility, this policy shall comply with the law to the extent required.

 

Other Insurance

If there is other applicable liability insurance, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide for a vehicle you do not own shall be excess over any other insurance unless such vehicle is loaned to you by a person, firm or corporation engaged in the business of selling, repairing or servicing motor vehicles and such vehicle is used by any covered person:

 

1. for demonstration purposes; or

2. as a temporary substitute for your covered auto which is out of normal use because of its breakdown, repair, servicing, or loss or destruction.

PART B - EXCESS MEDICAL PAYMENTS COVERAGE

 

Insuring Agreement

Subject to the Exclusions, if you pay a premium for this coverage, we will pay reasonable expenses incurred for necessary medical and funeral services because of bodily injury:

 

1. Caused by accident; and

2. Sustained by a covered person.

 

However, we will pay only those expenses that are not covered under any medical or health insurance. The expenses must be incurred within 1 year from the date of the accident. The bodily injury must be discovered and treatment must begin within 1 year of the date of the accident.

We reserve the right to review or have reviewed all medical expenses for reasonableness or necessity.

10


BACK TO FORMS INDEX

"Covered person" as used in this Part means:

1. You or any household member;

a. while occupying; or

b. as a pedestrian when struck by;

a motor vehicle designed for use mainly on public roads or a trailer of any type.

2. Any other person while occupying your covered auto.

"Pedestrian" as used in this Part means a person not an occupant of a motor vehicle or trailer.

Exclusions

We do not provide Excess Medical Payments Coverage for any person for bodily injury:

1. Sustained while occupying any motorized vehicle having less than four wheels.

2. Sustained while occupying your covered auto when it is being used to carry persons, property or food for a fee or compensation. This exclusion does not apply to a share-the-expense car pool or charitable delivery.

3. Sustained while occupying any vehicle located for use as a residence or premises.

4. Occurring during the course of employment if workers’ compensation benefits are available for the bodily injury.

5. Sustained while occupying or when struck by any vehicle other than your covered auto which is:

a. owned by you; or

b. furnished or available for your regular use.

6. Sustained while occupying or when struck by any vehicle other than your covered auto which is:

a. owned by any household member; or

b. furnished or available for the regular use of any household member.

However, this exclusion does not apply to you.

7. Sustained while occupying a vehicle without the express or implied consent of the owner.

8. Sustained while occupying a vehicle when it is being used in the business or occupation of a covered person. This exclusion does not apply to bodily injury sustained while occupying a:

a. private passenger auto;

b. pickup truck or van that you own; or

c. trailer used with a vehicle described in a. or b. above.

11


BACK TO FORMS INDEX

9. Caused by or as a consequence of:

a. discharge of a nuclear weapon (even if accidental);

b. war (declared or undeclared);

c. civil war;

d. insurrection; or

e. rebellion or revolution.

10. From or as a consequence of the following, whether controlled or uncontrolled or however caused:

a. nuclear reaction;

b. radiation; or

c. radioactive contamination.

11. Sustained while operating or occupying a vehicle in any prearranged or organized racing or speed contest or in practice or preparation for any such contest.

12. Caused by any person driving your covered auto who intentionally causes a collision, or intentionally attempts to cause injury to himself, herself or others.

13. While committing a felony or while seeking to elude lawful apprehension or arrest for a felony by a law enforcement official.

14. Sustained by any person while not in lawful possession or voluntarily occupying a motor vehicle knowing it is stolen.

15. Who receives experimental treatment (not commonly recognized), acupuncture or thermography.

Limit of Liability

There shall be no stacking of Excess Medical Payment Coverage. The limit of liability shown in the Declarations for this coverage is our maximum limit of liability for "each person" injured in any one accident. This is the most we will pay regardless of the number of:

1. Covered persons;

  1. Claims made;

3. Vehicles or premiums shown in the Declarations;

4. Policies issued to you by us; or

5. Vehicles involved in the accident.

Any amounts otherwise payable for expenses under this coverage shall reduce any amounts paid or payable for the same expenses under Part A or Part C.

No one will be entitled to duplicate payments for the same elements of loss under this coverage and Part A or Part C of this policy.

12


BACK TO FORMS INDEX

If the amount shown in the Declarations for this coverage is $5,000 or more, the most we will pay for funeral services is $5,000 per person.

Other Insurance

We will not be liable under this policy for any medical expense paid or payable, other than Medicare, under the provision of any:

1. Health Maintenance Organization or Preferred Provider Organization.

2. individual, blanket, or group accident, disability or hospitalization plans.

3. medical, surgical, hospital or funeral services, benefit or reimbursement plans.

4. workers’ compensation or disability benefits law or any similar law; or

5. any health insurance policy.

If there is any other applicable automobile medical payments insurance (except excess medical payments insurance or Medicare), we will pay only that which is in excess of the amount eligible for payment by any other insurance. If there is other applicable excess medical payments insurance, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectable auto insurance providing payments for medical or funeral expenses.

PART C – UNINSURED MOTORIST COVERAGE (INCLUDES UNDER- INSURED MOTORIST COVERAGE)

Insuring Agreement

Subject to the Exclusions, if you pay a premium for this coverage, we will pay damages which a covered person is legally entitled to recover from the owner or operator of an uninsured motor vehicle to the extent that the owner or operator is liable because of bodily injury sustained by a covered person and caused by an accident.

The owner’s or operator’s liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle.

13


BACK TO FORMS INDEX

No judgment for damages arising out of a suit brought against the owner or operator of an uninsured motor vehicle is binding on us unless we:

1. Received reasonable notice of the pendency of the
suit resulting in judgment; and

2. Had a reasonable opportunity to protect our
interests in the suit.

However, if reasonable notice has not been given to us, we have the option to accept the judgment in the suit as binding on us.

"Covered person" as used in this Part means:

1. You or any household member.

2. Any other person occupying your covered auto.

3. Any person for damages that person is entitled to recover, because of bodily injury to which this coverage applies, sustained by a person described in 1. or 2. above.

"Uninsured motor vehicle" means a land motor vehicle or trailer of any type:

 

  1. To which no bodily injury liability bond or policy applies at the time of the accident.
  2. To which a bodily injury liability bond or policy applies at the time of the accident. In this case its limit for bodily injury liability must be less than the minimum limit for bodily injury liability specified by the financial responsibility law of Alabama.
  3. For which the sum of the limits of liability under all bodily injury liability bonds or policies applicable at the time of the accident is not enough to pay the full amount the insured is legally entitled to recover as damages. In this case the applicable limits for bodily injury liability must be equal to or greater than the minimum limit for bodily injury liability specified by the financial responsibility law of Alabama.
  4. Which is a hit and run vehicle whose operator or owner cannot be identified and which hits or which causes an accident resulting in bodily injury without hitting:
  5. a. You or any household member.

    b. A vehicle which you or any household member
    are occupying; or

    c. Your covered auto.

  6. To which a bodily injury liability bond or

14


BACK TO FORMS INDEX

policy applies at the time of the accident but the bonding or insuring company becomes insolvent after the policy is issued.

However, uninsured motor vehicle does not include any vehicle or equipment:

  1. Owned by or furnished or available for the regular use of you or any household member unless there is no liability coverage available under any policy other than this policy to respond for damages sustained by you or any household member.
  2. Owned or operated by a self-insurer under any applicable motor vehicle law, except a self-insurer which is or becomes insolvent.

3. Operated on rails or crawler treads.

  1. Designed mainly for use off public roads while not on public roads.
  2. While located for use as a residence or premises.
  3. Which is a farm tractor or farm equipment while not on public roads.
  4. Which is a trailer, railroad engine, railroad car, motorized bicycle, golf cart, off-road recreational vehicle, snowmobile, fork lift, aircraft, construction equipment, or mobile home, or
  5. Which is a farm tractor or other vehicle designed and principally used for agricultural purposes.

Exclusions

We do not provide Uninsured Motorist Coverage for bodily injury sustained by any person:

  1. While occupying, or when struck by, any motor vehicle owned by you or any household member which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle.
  2. Who is a household member while occupying or when struck by, any motor vehicle you own which is insured for this coverage on a primary basis under any other policy.
  3. If that person or the legal representative settles the bodily injury claim without our written consent. However, this Exclusion (3) does not apply to Section 3. of the definition of uninsured motor vehicle.
  4. When your covered auto is being used to carry persons, property or food for a fee or compensation. This exclusion does not apply to a share-the-expense car pool or charitable delivery.

15


BACK TO FORMS INDEX

 

  1. Where the injury or death is caused by anything specially excluded from coverage under this policy.

  1. Using a vehicle without the express or implied consent
    of the owner.

  1. While operating a motor vehicle while his or her license is suspended, revoked, or never issued.
    8. Occupying or operating vehicles, including trailers, owned by you and not insured under this policy.
    9. Where any employee, officer, director, partner, trustee, member, executor, administrator, or beneficiary of the named insured, or any relative of any such person is operating or occupying a motor vehicle, other than the vehicle listed on the policy.

  1. Not insured under this policy.

This coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any of the following or similar law:

a. workers’ compensation law; or

b. disability benefits law.

Limit of Liability
  1. Except as provided in B. below:

    1. When there is only one insured vehicle:
      a. The limit of liability for Uninsured Motorist
      Coverage stated in the Declarations for each
      person is our maximum limit of liability for all
      damages, including damages for care, loss of
      consortium, loss of services or death, arising out
      of bodily injury sustained by any one person in
      any one accident; and
      b. Subject to this limit for each person, the limit
      of liability for Uninsured Motorist Coverage
      stated in the Declarations for each accident is our
      maximum limit of liability for all damages,
      including damages for care, loss of consortium,
      loss of services or death, arising out of bodily
      injury resulting from any one accident;
      and

     

    1. When there is more than one insured vehicle:
      a. And the insured was occupying your covered
      auto
      at the time of the accident:

      (1) The limit of liability for Uninsured
      Motorist Coverage stated in the Declarations
      for each person applicable to that your

16


BACK TO FORMS INDEX


covered auto
, plus the sum of the highest
limits of liability for Uninsured Motorist
Coverage stated in the Declarations for each
person applicable to any other of your
covered autos
up to a maximum
of two additional limits, is our maximum
limit of liability for all damages, including
damages for care, loss of consortium, loss of
services or death, arising out of bodily injury
sustained by any one person in any one
accident; and
(2) Subject to this limit for each person the
limit of liability for Uninsured Motorist
Coverage stated in the Declarations for each
accident applicable to that your covered
auto
, plus the sum of the highest limits of
liability for Uninsured Motorist Coverage
stated in the Declarations for each accident
applicable to any other of your covered
autos
up to a maximum of two additional
limits, is our maximum of liability for all
damages, including damages for care, loss of
consortium, loss of services or death, arising
out of bodily injury resulting from any one
accident.

 

b. And the insured was not occupying one of
your covered autos at the time of the accident:


(1) The sum of the highest limits of liability
for Uninsured Motorist Coverage stated in
the Declarations for each person applicable
to any of your covered autos up to a
maximum of three limits, is our maximum
limit of liability for all damages, including
damages for care, loss of consortium and loss
of services or death, arising out of bodily
injury
sustained by one person in any one
accident; and
(2) Subject to this limit for each person, the
sum of the highest limits of liability for
Uninsured Motorist Coverage stated in the
Declarations for each accident applicable to
any of your covered autos up to a maximum
of three limits, is our maximum limit of
liability for all damages, including damages

17


BACK TO FORMS INDEX

for care, loss of consortium, loss of services
or death, arising out of bodily injury
resulting from any one accident

This is the most we will pay regardless of the number
of:

1. Covered persons;

2. Claims made;

3. Vehicles or premiums shown in the Declarations;
or

4. Vehicles involved in the accident.

  1. If Uninsured Motorist Coverage is payable because liability coverage under any policy other than this policy is excluded for damages sustained by you or any household member:

1. When there is only one insured vehicle:
a. That part of the limit of liability for Uninsured
Motorist Coverage stated in the Declarations for
each person that does not exceed the limits
specified in the Alabama Motor Vehicle Safety
Responsibility Act, is our maximum limit
liability for all damages, including damages for
care, loss of consortium and loss of services or
death, arising out of bodily injury sustained by
any one person in any one accident; and
b. Subject to this limit for each person, that part
of the limit of liability for Uninsured Motorist
Coverage stated in the Declarations for each
accident that does not exceed the limits specified
in Alabama Motor Vehicle Safety Responsibility
Act, is our maximum limit of liability for all
damages, including damages for care, loss of
consortium, loss of services or death, arising out
of bodily injury resulting from any one accident;
and

2. When there is more than one insured vehicle:
a. The sum of that part of the limit of liability
for Uninsured Motorist Coverage stated in the
Declarations for each person applicable to
of your covered autos that does not exceed
the limit specified in the Alabama Motor
Vehicle Safety Responsibility Act up to a
maximum of three limits, is our maximum limit
of liability for all damages, including damages

18


BACK TO FORMS INDEX


for care, loss of consortium and loss of services
or death, arising out of bodily injury sustained
by any one person in any one accident; and

b. Subject to this limit for each person, the sum
of that part of the limit of liability for Uninsured
Motorist Coverage stated in the Declarations for
each accident applicable to any of your
covered autos
that does not exceed the limits
specified in the Alabama Motor Vehicle Safety
Responsibility Act up to a maximum of three
limits, is our maximum of liability for all
damages including damages for care, loss of
consortium, loss of services or death, arising
out of bodily injury resulting from any one
accident.

This is the most we will pay regardless of the number of:

 

1. Covered persons;

2. Claims made;

3. Vehicles or premiums shown in the Declarations; or

4. Vehicles involved in the accident.

 

There shall be no stacking Uninsured Motorist Coverage, including Underinsured Motorist Coverage, within any one policy other than provided in paragraph A. and B. above.

No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and Part A or Part B of this policy.

We will not make a duplicate payment under this coverage for any element of loss for which payment has been made by or on behalf of persons or organizations who may be legally responsible.

With respect to Section 3. of the definition of uninsured
motor vehicle, we will reduce the insureds total damages by any amount available to that insured, under any bodily injury liability bonds or policies applicable to the uninsured motor vehicle, that such insured did not recover as a result of a settlement between that insured and the insurer of an uninsured motor vehicle. However, any reduction of the insured's total damages will not reduce the limit of liability for this coverage. This paragraph shall not apply if we advance payment to the insured in an amount

19


BACK TO FORMS INDEX

equal to the tentative settlement with the insurer of the uninsured motor vehicle.

We will not pay for any element of loss if a person is entitled to receive payment for the same element of loss under any of the following or similar law:

a. worker’s compensation law; or

b. disability benefits law.

Other Insurance

If there is other applicable similar insurance, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectable insurance.

ARBITRATION

A. THE ARBITRATION PROVISION WILL NOT APPLY IF LEGAL ACTION HAS BEEN COMMENCED BY THE INSURED AGAINST THE OWNER OR OPERATOR OF AN "UNINSURED MOTOR VEHICLE".

B. THE ARBITRATION PROVISION APPLIES AS FOLLOWS:

1. IF "WE" AND AN INSURED DO
NOT AGREE:

(a) WHETHER THAT INSURED
IS LEGALLY ENTITLED TO
RECOVER DAMAGES; OR

(b) AS TO THE AMOUNT OF
DAMAGES WHICH ARE
RECOVERABLE BY THAT
INSURED;

FROM THE OWNER OR OPERATOR
OF AN "UNINSURED MOTOR
VEHICLE", THEN THE MATTER MAY
BE ARBITRATED. HOWEVER,

20


BACK TO FORMS INDEX
 

DISPUTES CONCERNING COVERAGE
UNDER THIS PART MAY NOT BE
ARBITRATED.

BOTH PARTIES MUST AGREE TO
ARBITRATION. IF SO AGREED,
EACH PARTY WILL SELECT AN
ARBITRATOR. THE TWO
ARBITRATORS WILL SELECT A
THIRD. IF THEY CANNOT AGREE
WITHIN 30 DAYS, EITHER MAY
REQUEST THAT SELECTION BE
MADE BY A JUDGE OF A COURT
HAVING JURISDICTION.

THE ARBITRATION PROCEEDINGS
SHALL COMMENCE WITHIN ONE
YEAR AFTER THE DATE BOTH
PARTIES AGREE TO SETTLE A
DISPUTE BY ARBITRATION.

2. EACH PARTY WILL:

(a) PAY THE EXPENSES IT
INCURS; AND

(b) BEAR THE EXPENSES OF THE
THIRD ARBITRATOR EQUALLY.

3. UNLESS BOTH PARTIES AGREE
OTHERWISE, ARBITRATION WILL
TAKE PLACE IN THE COUNTY IN
WHICH THE INSURED LIVES.
LOCAL RULES OF LAW AS TO
PROCEDURE AND EVIDENCE WILL
APPLY. A DECISION AGREED TO BY
TWO OF THE ARBITRATORS WILL
BE BINDING AS TO:

(a) WHETHER THE INSURED IS
LEGALLY ENTITLED TO
RECOVER DAMAGES; AND

21


BACK TO FORMS INDEX

(b) THE AMOUNT OF DAMAGES.
THIS APPLIES ONLY IF THE
AMOUNT DOES NOT EXCEED THE
MINIMUM LIMIT FOR "BODILY
INJURY" SPECIFIED BY THE
FINANCIAL RESPONSIBILITY
LAW OF ALABAMA. IF THE
AMOUNT EXCEEDS THAT LIMIT,
EITHER PARTY MAY DEMAND
THE RIGHT TO A TRIAL. THIS
DEMAND MUST BE MADE WITHIN 60 DAYS OF THE ARBITRATORS'
DECISION. IF THIS DEMAND IS
NOT MADE, THE AMOUNT OF
DAMAGES AGREED TO BY THE
ARBITRATORS WILL BE BINDING.


Legal Action Against Us
Any suit or action against us for the damages which a covered person is legally entitled to recover from the owner or operator of an uninsured motor vehicle or underinsured motor vehicle will be barred unless commenced within two years after the date of the accident.

PART D - COVERAGE FOR DAMAGE TO YOUR AUTO

Insuring Agreement
Subject to the Exclusions, if you pay a premium for this coverage, we will pay for direct and accidental loss to your covered auto or a non-owned auto, including its equipment, minus any applicable deductible amount for coverages shown in the Declarations for Collision coverage and/or Comprehensive coverage. If the loss is caused by collision with another auto insured by us, you do not pay your deductible, if it is $250 or less.

"Collision" means the upset, or impact with another object of your covered auto or a non-owned auto.

"Comprehensive" means direct and accidental loss to your covered auto or a non-owned auto, except loss

22


BACK TO FORMS INDEX

caused by collision. Loss caused by the following are considered Comprehensive not Collision:

1. Missiles or falling objects;

2. Fire;

3. Theft or larceny;

4. Explosion or earthquake;

5. Windstorm;

6. Hail, water or flood;

7. Malicious mischief or vandalism;

8. Riot or civil commotion;

9. Contact with bird or animal; or

  1. Breakage of glass.

If breakage of glass is caused by a collision, you may elect to have it considered a loss caused by collision.

"Non-owned auto" means a private passenger auto operated by you or a household member not:

1. owned by;

2. registered in the name of; or

3. furnished or available for the regular use of;

you or a household member.

A temporary substitute auto is not considered a non-owned auto.

Clothes and Luggage

We will pay for loss to clothes and luggage owned by you or a household member. These items have to be in or on your covered auto or non-owned auto. The loss has to be caused by fire, lightning, flood, falling objects, explosion or earthquake; or theft of the entire auto; or by collision.

We will pay up to $200 for loss to clothes and luggage after the applicable deductible shown in the Declarations. $200 is the most we will pay in any one occurrence even though more than one person has a loss. This coverage is excess over any other coverage.

Limited Insurance for Loss to Tapes or Discs

We agree to pay for the direct and accidental loss for up to 10 tapes or discs used with sound reproduction equipment. This coverage applies only if the tapes or discs are:

1. owned by you or a household member; and

  1. in your covered auto at the time of loss.

23


BACK TO FORMS INDEX

Policy deductibles do not apply to the loss of tapes or discs. All other terms of the policy relating to the limit of liability and to payment of loss under Coverage for Damage to Your Auto apply. Our limit of liability for all loss covered by this policy as the result of any one occurrence shall not exceed 10 tapes or discs, to a maximum of $200.

Limited Insurance for Loss to Camper Shells
We agree to pay for the direct and accidental loss to a camper shell to a maximum of $500. This limitation does not apply if the camper shell has been disclosed and any necessary premium has been paid. The camper shell must be on your covered auto at the time of loss.

Transportation Expenses
We will reimburse you up to $30 per day, to a maximum of $750, for transportation expenses incurred by you when you rent an auto of equivalent type from a car rental agency or garage. This applies only in the event of the total theft of your covered auto. We will pay only transportation expenses incurred during the period:

1. Beginning immediately after the theft has been reported to us and to the police; and
2. Ending when your covered auto is returned to use, replaced or five days after our offer to pay for its loss, whichever comes first.

Exclusions
We will not pay for:

1. Loss to your covered auto or a non-owned auto which occurs while it is used to carry persons, property or food for a fee or compensation. This exclusion does not apply to a share-the-expense car pool or charitable delivery.

2. Damage due and confined to:

a. wear, tear and deterioration;

b. freezing;

c. mechanical or electrical breakdown or failure, other than burning of wiring; or

d. road damage to tires.

This exclusion does not apply if the damage results from the total theft of your covered auto or a non-owned auto.

3. Loss due to or as a consequence of:

24


BACK TO FORMS INDEX

a. radioactive contamination;

b. discharge of any nuclear weapon (even if accidental);

c. war (declared or undeclared);

d. civil war;

e. insurrection; or

f. rebellion or revolution.

4. Loss to equipment designed for the reproduction of sound. This exclusion does not apply if the equipment is permanently installed in your covered auto in the opening of the dash or console designed for the installation of such equipment and was offered as original manufacturers equipment. This exclusion does not apply if the equipment has been declared and any necessary premium has been paid.

"Permanently installed" means installed in such a way as to require the use of hand tools to remove.

5. Loss to records or other devices for use with equipment designed for the reproduction of sound.

6. Loss to a trailer not shown in the Declarations. This exclusion does not apply to a trailer you:

a. acquire during the policy period; and

b. ask us to insure within 30 days after you become the owner.

7. Loss to equipment, accessories or property which are not built into and forms a permanent part of your covered auto, a motor home, camper body or trailer, including but not limited to:

a. Cameras, guns, golf clubs, furs, sleeping bags, chairs, fishing equipment, jewelry, watches, silverware, portable stoves, portable televisions, robes, clothes, mattresses, lanterns, pillows or blankets;

b. Property kept for samples, sale, storage, repair, delivery or exhibition;

c. Business, store or office furniture, equipment or appliances; or

d. Records or accounts, currency, coins, banknotes, bullion, deeds, contracts, or evidence of debt, securities, tokens, tickets or stamps.

We will not pay for any loss or damage if your covered auto, the motor home, camper body or trailer is used as a permanent living quarters.

8. Loss to any of the following or their accessories:

a. citizens band radio;

b. two-way mobile radio;

c. telephone;

d. scanning monitor receiver; or

25


BACK TO FORMS INDEX

e. radar detector.

This exclusion does not apply if the equipment is permanently installed in the opening of the dash or console designed for the installation of such equipment.

"Permanently installed" means installed in such a way as to require the use of hand tools to remove.

9. Loss to any custom furnishings or equipment in or upon any pickup truck, van or covered auto. Custom furnishings or equipment include but are not limited to:


a. special carpeting and insulation, furniture, bars or television receivers;

b. facilities for cooking and sleeping;

c. height-extending roofs;

d. custom paint jobs, custom murals, paintings, decals, wheels, tires or graphics; or

e. camper bodies, deck spoilers or other body modifications.

This exclusion does not apply if the equipment or furnishings have been declared and any necessary premium has been paid.

10. Loss to your covered auto or a non-owned auto while being operated in any prearranged or organized racing or speed contest or in practice or preparation for any such contest.

11. Any loss to your covered auto or a non-owned auto arising out of or during its use for the transportation of any:

a. explosive substance;

b. flammable liquid; or

c. similar hazardous materials;

except transportation incidental to your ordinary household or farm activities.

12. Loss caused by rain, sleet, or snow whether or not wind driven, except by collision.

13. Loss to any non-owned auto when used by you or any household member without the consent of the owner.

Limit of Liability

Our limit of liability for loss will be the lesser of the:

1. Actual cash value of the stolen or damaged property; or

2. Amount necessary to repair or replace the property. We may require or specify the use of motor vehicle parts not made by the original manufacturer.

If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment.

26


BACK TO FORMS INDEX

Our liability will not include diminution of value. There shall be no duplication of benefits or recoveries under Part A and this Part.

In addition, with respect to a non-owned auto:

1. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums paid because of the damages to the non-owned auto by or on behalf of the persons or organizations who may be legally responsible. This includes all sums paid under Part A.

2. Any payment under this coverage will reduce any amount that person is entitled to recover for the same damages under Part A.

Payment of Loss

We may make payment for a loss to you or to the owner of the property. Payment for a loss is required only if you have fully complied with this contract.

No Benefit To Bailee

This insurance shall not directly or indirectly benefit any carrier or other bailee for hire.

Other Insurance

1. With respect to your covered auto:

If other insurance also covers the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits.

2. With respect to a non-owned auto or a temporary substitute auto:

Any insurance we provide for a vehicle you do not own shall be excess over any other collectable insurance.

Appraisal

If we and you do not agree on the amount of loss, either may request an appraisal of the loss. In this event, each party will select a competent appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the expenses of the appraisal and umpire equally.

27


BACK TO FORMS INDEX

We do not waive any of our rights under this policy by agreeing to an appraisal.

PART E - RENTAL REIMBURSEMENT

Insuring Agreement

If you pay a premium for Rental Reimbursement, we will reimburse you up to the limit shown in the Declarations, when you rent a car of equivalent type from a car rental agency or garage due to a loss to your covered auto covered by this policy, starting:

1. when it cannot run due to the loss; or

2. if it can run, when you leave it at the shop for agreed repairs;

and ending when:

1. it has been repaired or replaced; or

2. we offer to pay for the loss;

whichever comes first.

Any car rental payable under this coverage is reduced to the extent it is payable under Part D - Coverage for Damage to Your Auto.

PART F - ACCIDENTAL DEATH, DISMEMBERMENT

Insuring Agreement

Subject to the Exclusions, if you pay a premium for this coverage, we will pay the amount shown in the Schedule of Benefits that applies for death or loss caused by accident to an insured. The death or loss must be the direct result of the accident and not due to any other cause. The death or loss must occur within 90 days of the accident. The insured has to be occupying your covered auto or be struck by a land motor vehicle or trailer.

Insured - Under this coverage, means you or a household member.

28


BACK TO FORMS INDEX

Loss - Under this coverage, means the loss of:

1. the foot or hand;

2. the whole thumb or finger; or

3. all sight.

Exclusions

This coverage does not apply to:

1. An insured while on the job or operating, occupying, loading or unloading:

a. an emergency vehicle; or

b. a vehicle used in the insured’s business or job.

But, 1.b. does not apply if the vehicle is:

a. a private passenger auto or

b. of the pick-up or van type, while not used in business.

2. An insured while occupying any vehicle while being used in a race or speed contest, or in practice or preparation for such contest.

3. The death of or loss to an insured due to:

a. disease, except pus-forming infection due to bodily injury received in the accident; or

b. suicide or to any attempt thereat, or any intentionally inflicted injury; or

c. war of any kind, be it declared or undeclared, or insurrection or rebellion.

Limit of Liability

The most we will pay because of the death of, or loss to, the insured is shown in the Declarations. If the insured dies as a result of the accident, any amount we pay for dismemberment or loss of sight shall apply to reduce any amount which is payable as a Death Benefit. Payment of the Death Benefit shall end all our obligation under this coverage. The application of this policy to more than one auto shall not increase our liability as described in this coverage.

Schedule of Benefits

  The amount shown in
Declarations Certificate is:
 
$5,000
$10,000
 
Death (You)
$5,000
$10,000
Death (Household Member)
$5,000
$5,000

 

 

 

 

 

29


BACK TO FORMS INDEX

 

Loss of:    
hands; feet; sight of eyes;
one hand and one foot;
or one hand or one foot
and sight of one eye
$5,000 $10,000

one hand or one foot; or
sight of one eye

$2,500 $5,000

thumb and finger on one hand;
or three fingers

$1,500 $3,000
any two fingers $1,000 $2,000

 

 

 

 

 

 

 

Payment of Benefits

We will pay any amount due:

1. to the insured;

2. to a parent or guardian, if the insured is a minor or an incompetent person;

3. to the surviving spouse; or

4. at our option, to any person or organization authorized by law to receive such payment.

We are not responsible for the way the money is used.

We have the right to have an autopsy made where it is not forbidden by law.

PART G - DUTIES AFTER AN ACCIDENT OR LOSS

General Duties

We must be notified promptly of how, when and where the accident or loss happened. Notice should also include the names and addresses of any injured persons and of any witnesses.

A person seeking any coverage under this policy must:

1. Cooperate with us in the investigation, settlement or defense of any claim or suit.

2. Promptly send us copies of any notices or legal papers received in connection with the accident or loss.

3. Submit, as often as we reasonably require, to physical and/or mental exams by physicians we select. We will pay for these exams.

30


BACK TO FORMS INDEX

4. Authorize us to obtain:

a. medical reports; and

b. other pertinent records, including employment and tax records.

5. Submit a proof of loss when required by us.

6. Submit to examination(s) under oath, as reasonably required by us, as often as we may reasonably require.

7. Attend hearings and trials and testifying as required.

Additional Duties for Uninsured Motorist Coverage
(includes Underinsured Motorist Coverage)

A person seeking Uninsured Motorist Coverage (includes Underinsured Motorist Coverage) must also:

1. Within 24 hours, notify the police if a hit and run driver is involved.

2. Immediately send us copies of the legal papers if a suit is brought.

3. Take such action as may be necessary or appropriate to preserve the right to recover damages from any person or organization alleged to be legally responsible for the bodily injury.

4. Join the person or organization alleged to be legally responsible for the bodily injury as a party defendant in any legal action against us, when requested by us.

5. Under Section 3. of the definition of uninsured motor vehicle, must also promptly notify us in writing of a tentative settlement between the insured and the insurer of the uninsured motor vehicle and allow us 30 days to advance payment to that insured in an amount equal to the tentative settlement to preserve our rights against the insurer, owner or operator of such uninsured motor vehicle. Such written notice shall include:

1. Written documentation of pecuniary loss, including copies of all medical bills;

2. Written authorization for us to obtain medical and employment records from all medical providers and employers; and

3. Written confirmation from the other driver’s liability insurer as to the amount of the other driver’s liability limits and the terms of the tentative agreement, which shall not include any component sum representing punitive or exemplary damages.

31


BACK TO FORMS INDEX

Additional Duties for Coverage for Damage to Your Auto

A person seeking Coverage for Damage to Your Auto must also:

1. Take reasonable steps after loss to protect your covered auto or a non-owned auto and its equipment from further loss. We will pay reasonable expenses incurred to do this.

2. Within 24 hours, notify the police if your covered auto or a non-owned auto is stolen or vandalized.

3. Permit us to inspect and appraise the damaged property before its repair or disposal.

PART H - GENERAL PROVISIONS

Bankruptcy

Bankruptcy or insolvency of the covered person shall not relieve us of any obligations under this policy.

Changes

This policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us. If a change requires a premium adjustment, we will adjust the premium as of the effective date of change.

We may revise this policy form to provide more coverage without additional premium charge. If we do this your policy will automatically provide the additional coverage as of the date the revision is effective in your state.

Fraud and Misrepresentation

This policy shall be void if you or any insured person or anyone acting on your behalf has concealed or misrepresented any material fact, or in any case of any fraud or attempted fraud touching any matter regarding this policy, whether before or after a loss, or at the time of the application for the policy.

Legal Action Against Us

No legal action may be brought against us until there has been full compliance with all the terms of this policy.

No person or organization has any right under this policy to bring us into any action to determine the liability of a covered person.

32


BACK TO FORMS INDEX

Liberalization Clause

If we change this policy with respect to policy revisions, endorsements or rules so the insurance could be extended or broadened without additional premium, this policy will be extended or broadened as of the date we make the change effective.

Notice

Your notice to our authorized agent shall be deemed to be notice to us.

Notice to any agent or knowledge possessed by any agent or other person shall not change or effect a waiver on any portion of the policy nor stop us from exerting any of our rights under this policy. This policy can only be changed by an endorsement we issue which is signed by our authorized representative.

Our Right to Recover Payment

1. If we make a payment under this policy and the person to or for whom payment was made has a right to recover damages from another, we shall be subrogated to that right. That person shall do:

a. whatever is necessary to enable us to exercise our rights; and

b. nothing after loss to prejudice our rights.

However, our rights do not apply under Paragraph 1 above with respect to coverage under Section 3. of the definition of uninsured motor vehicle for Uninsured Motorist Coverage if we:

a. have been given prompt written notice of both a tentative settlement, between an insured and the insurer of an uninsured motor vehicle and certification of the liability coverage limits of the owner or operator of an uninsured motor vehicle; and

b. fail to advance payment to the insured in an
amount equal to the tentative settlement within 30 days
after receipt of notification.

If we advance payment to the insured in an amount equal to the tentative settlement within 30 days after receipt of notification:

33


BACK TO FORMS INDEX

a. that payment will be separate from any amount the insured is entitled to recover under the provisions of Uninsured Motorist Coverage.

b. we also have a right to recover the advanced payment.

2. If we make a payment under this policy and the person to or for whom payment is made recovers damages from another, that person shall:

a. hold in trust for us the proceeds of the recovery; and

b. reimburse us to the extent of our payment.

Policy Period and Territory

This policy applies only to accidents and losses which occur:

1. During the policy period as shown in the Declarations; and

2. Within the policy territory.

The policy territory is:

1. The United States of America, its territories or possessions;

2. Puerto Rico; and

3. Canada.

This policy also applies to loss to, or accidents involving, your covered auto while being transported between their ports.

Termination

Cancellation. This policy may be cancelled during the policy period as follows:

1. You may cancel by:

a. returning this policy to us; or

b. giving us advance written notice of the date cancellation is to take effect.

2. We may cancel by mailing to you at the last address known by us:

a. at least 10 days notice:

(1) if cancellation is for nonpayment of premium; or

34


BACK TO FORMS INDEX

 

(2) if notice is mailed during the first 60 days this policy is in effect and this is not a renewal or continuation policy; or

b. at least 30 days notice in all other cases.

3. After this policy is in effect for 60 days, or if this is a renewal or continuation policy, we will cancel only:

a. For nonpayment of premium.

b. If the policy was obtained through a material
misrepresentation.

c. If you or any household member violate any of
the terms and conditions of the policy.

d. If you fail to disclose fully your motor vehicle
accidents and moving traffic violations for the
preceding 36 months if called for in the
application.

e. If you fail to disclose in your written application
or in response to inquiry by your broker, or by the
insurer or its agent information necessary for the
acceptance or proper rating of the risk.

f. If you or any household member made a false or fraudulent claim or knowingly aided or abetted
another in the presentation of such a claim.

g. For failure to maintain membership in any group
or organization when such membership is a
prerequisite to the purchase of such insurance.

h. If you or any household member or any operator who customarily operates an auto insured under such policy:

(1) Has within the 36 months prior to the notice
of cancellation had your or their driver's license
under suspension or revocation.

(2) Is, or becomes, subject to epilepsy or heart attacks, and such individual does not produce a certificate from a physician testifying to your or their unqualified ability to operate a motor vehicle safely.

(3) Has an accident record, conviction record
(criminal or traffic), physical, mental or other
condition which is such that your or their
operation of an auto might endanger the public
safety.

(4) Has within the 36 months prior to the notice
of cancellation been addicted to the use of
narcotics or other drugs.

(5) Uses alcoholic beverage to excess.

35


BACK TO FORMS INDEX

(6) Has been convicted or forfeited bail during
the 36 months immediately preceding the notice
of cancellations for:

(a) any felony,

(b) criminal negligence resulting in death,
homicide or assault arising out of the
operation of a motor vehicle,

(c) operating a motor vehicle while in an
intoxicated condition or while under the
influence of drugs,

(d) being intoxicated while in, or about, an
auto or while having custody of an
auto,

(e) leaving the scene of an accident without
stopping to report,

(f) theft or unlawful taking of a motor
vehicle, or

(g) making false statements in an application
for a driver's license

(7) Has been convicted of or forfeited bail for
three or more violations, within the 36 months
immediately preceding the notice of cancellation,
of any law, ordinance or regulation limiting the
speed of motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or
not the violations were repetitions of the same
offense or different offenses.

i. If the insured auto is:

(1) So mechanically defective that its operation
might endanger public safety.

(2) Used in carrying passengers for hire or
compensation; provided, however, that the use of
an auto for a car pool shall not be considered use
of an auto for hire or compensation.

(3) Used in business of transportation of
flammables or explosives.

(4) An authorized emergency vehicle.

(5) Changed in shape or condition during the
policy period so as to increase the risk
substantially.

(6) Subject to an inspection law and has not
been inspected or, if inspected, has failed to
qualify.

Nonrenewal. If we decide not to renew or continue this policy, we will mail notice by United States post office certificate of mailing, to you at the latest address filed with

36


BACK TO FORMS INDEX

us by you or on your behalf. Notice will be mailed at least 30 days before the end of the policy period.

Automatic Termination. If we offer to renew or continue and you or your representative do not accept, this policy will automatically terminate at the end of the current policy period. Failure to pay the required renewal or continuation premium when due shall mean that you have not accepted our offer.

If you obtain other insurance on your covered auto, any similar insurance provided by this policy will terminate as to that auto on the effective date of the other insurance.

Other Termination Provisions

1. Proof of mailing of any notice shall be sufficient proof of notice.

2. If this policy is cancelled, you may be entitled to a premium refund. If so, we will send you the refund. The premium refund, if any, will be computed according to our manuals. However, making or offering to make the refund is not a condition of cancellation.

3. The effective date of cancellation stated in the notice shall become the end of the policy period.

Terms of Policy Conformed to Statute

Terms of this policy which are in conflict with the statutes of the State of Alabama are hereby amended to conform to such statutes.


Transfer of Your Interest in this Policy

Your rights and duties under this policy may not be assigned without our written consent. However, if a named insured shown in the Declarations dies, coverage will be provided for:

1. The surviving spouse if domiciled in the same household at the time of death. Coverage applies to the spouse as if a named insured shown in the Declarations; or

2. The legal representative of the deceased person as if a named insured shown in the Declarations. This applies only with respect to the representative’s legal responsibility to maintain or use your covered auto.

Coverage will only be provided until the end of the policy period.

37


BACK TO FORMS INDEX

Two or More Auto Policies

If this policy and any other auto insurance policy issued to you by us apply to the same accident, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy.

However:

1. This provision does not apply to Uninsured
Motorist Coverage.

2. No one will be entitled to receive duplicate
payments for the same elements of loss under
Uninsured Motorist Coverage.

 

 

 

_____________________________________Secretary

 

 

 

 

_____________________________________President

38


BACK TO FORMS INDEX

 

 

 

 

 

 

 

 

 

 

 

 

Please keep your Declarations Certificates and Endorsements with your policy.

39