Summary:
This article describes ISO's Personal Motorcycle Policy PP 00 01 12 13, released in 2013. The Personal Motorcycle Policy (PMP) includes sections for definitions, liability coverage, medical expense coverage, uninsured motorist coverage, damages to your motorcycle, and duties following loss or accident. The motorcycle policy was created by ISO in 2013 in order to help streamline the process of underwriting a motorcycle policy. Their motorcycle policy was the first standardized policy of its kind in the industry. Motorcycle policies carry different risks, and thus different costs, than personal auto policies, only one of these risks is the exposed nature of the driver.
Words and terms that have a contractually defined meaning that applies throughout the motorcycle policy are collected in one section captioned "definitions". Of the 13 definitions provided by the motorcycle policy, most reflect the same meaning that they do in the similar Personal Auto Policy (PAP). For reference to the Personal Auto Policy Definitions analysis, please refer to the following article, Personal Auto Definitions. Some of the terms that are not defined in the PAP include "motorcycle" "motorcycle cargo trailer" "motorcycle transport trailer", with some added provisions that apply to "newly acquired motorcycles." Those terms are listed after the specific policy language and described in detail in the analysis below. The terms that are discussed in the Personal Auto Policy Definitions analysis that mirror those in the Motorcycle policy include "we", "us" and "our", "bodily injury" "business" "family member" "occupying" "newly acquired motorcycle" and "property damage".
A.Throughout this Policy, "you" and "your" refer to:
1.The "named insured" shown in the Declarations; and
2.The spouse, if a resident of the same household.
If the spouse ceases to be a resident of the same household during the policy period or prior to the inception of this Policy, the spouse will be considered "you" and "your" under this Policy but only until the earlier of:
a.The end of 90 days following the spouse's change of residency;
b.The effective date of another policy listing the spouse as a named insured; or
c.The end of the policy period.
B."We", "us" and "our" refer to the Company providing this insurance.
C.For purposes of this Policy, a "motorcycle" shall be deemed to be owned by a person if leased:
1.Under a written agreement to that person; and
2.For a continuous period of at least six months.
Other words and phrases are defined. They are in quotation marks when used.
D."Bodily injury" means bodily harm, sickness or disease, including death that results.
E."Business" includes trade, profession or occupation.
F."Family member" means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child.
G."Motorcycle" means a motorized vehicle:
1.Having a saddle or seat for the use of the rider;
2.Designed to travel on not more than three wheels in contact with the ground; and
3.Designed and equipped to operate on public roads.
Sidecars that are original equipment installed by the manufacturer are considered to be part of a "motorcycle".
Analysis
This definition of Motorcycle is provided in order to determine what sort of vehicles specifically should be covered under the policy. The Personal Motorcycle Policy became necessary with the increased use of motorcycles, as the risks of driving a motorcycle are much different than those of driving a car. Specifically, the risk of bodily injury is increased for a motorcycle driver or passenger, because they are typically smaller and less sturdy than their four wheel counterparts. This definition of motorcycle is used throughout the policy to explain what is considered a motorcycle for insurance purposes under this policy. Note that the definition in this policy does not specify that a motorcycle has an unenclosed passenger compartment, which is what most people imagine when prompted to think about a motorcycle.
H."Motorcycle cargo trailer" means a vehicle that is designed to be pulled by a "motorcycle".
"Motorcycle cargo trailer" does not include a "motorcycle transport trailer".
Analysis
There are several types of small campers and cargo toting trailers that can be attached to the back of a motorcycle for hauling purposes. This definition "motorcycle cargo trailer" is meant to specifically describe vehicles that can be attached to the back of a motorcycle in order to transport cargo.
I."Motorcycle transport trailer" means a vehicle designed to:
1.Be pulled by a private passenger auto, pickup or van; and
2.Transport a "motorcycle".
"Motorcycle transport trailer" does not include a "motorcycle cargo trailer".
Analysis
A Motorcycle cargo trailer is different from a "motorcycle transport trailer" which is a vehicle that is specifically designed to transport a motorcycle from one location to another. By definition, these trailers are larger than their counterparts, the motorcycle cargo trailers, because the entire vehicle must fit inside the trailer. This definition could include a truck that pulls a motorcycle transport trailer, or a truck that has a motorcycle secured in its truck bed.
J."Newly acquired motorcycle":
1."Newly acquired motorcycle" means any "motorcycle", "motorcycle cargo trailer" or "motorcycle transport trailer" you become the owner of during the policy period.
Analysis
This definition differs slightly from the personal auto definition, by depicting specifically that only motorcycles, motorcycle cargo trailers, or motorcycle transport trailers are covered as newly acquired motorcycles under MT 00 01.
2.Coverage for a "newly acquired motorcycle" is provided as follows:
a.For any coverage provided in this Policy other than Coverage For Damage To Your Motorcycle, a "newly acquired motorcycle" will have the broadest coverage we now provide for any vehicle shown in the Declarations. However, for this coverage to apply, you must ask us to insure the "newly acquired motorcycle" within 14 days after you become the owner. If you ask us to insure it within such time, coverage begins on the date you become the owner and lasts for 14 days. After the 14-day period has elapsed, no coverage applies under this policy for that "newly acquired motorcycle" unless we agree to provide such coverage in writing.
Analysis
This definition differs slightly from the personal auto definition, by stating that if the motorcycle owner asks the insurer to insure the newly acquired motorcycle within 14 days of the beginning of ownership, the broadest coverage that is provided by the insurer to any vehicle shown in the declarations is applied and begins on the date the insured began owning the motorcycle. That coverage will expire, though, after the 14th day, if the insurer does not agree to provide coverage for that motorcycle in writing.
b.For Collision Coverage to apply under this Policy for a "newly acquired motorcycle", you must ask us to insure it within:
(1)14 days after you become the owner if the Declarations indicates that Collision Coverage applies to at least one "motorcycle". In this case, the "newly acquired motorcycle" will have the broadest coverage we now provide for any "motorcycle" shown in the Declarations. If you ask us to insure it within 14 days after you become the owner, Collision Coverage begins on the date you become the owner and lasts for 14 days. After the 14-day period has elapsed, no Collision Coverage applies under this Policy for that "newly acquired motorcycle" unless we agree to provide such coverage in writing.
(2)Four days after you become the owner if the Declarations does not indicate that Collision Coverage applies to at least one "motorcycle". If you comply with the four-day requirement and a loss occurred before you asked us to insure the "newly acquired motorcycle", a Collision Coverage deductible of $500 will apply. If you ask us to insure it within four days after you become the owner, Collision Coverage begins on the date you become the owner and lasts for four days. After the four-day period has elapsed, no Collision Coverage applies under this Policy for that "newly acquired motorcycle" unless we agree to provide such coverage in writing.
c.For Other Than Collision Coverage to apply under this Policy for a "newly acquired motorcycle", you must ask us to insure it within:
(1)14 days after you become the owner if the Declarations indicates that Other Than Collision Coverage applies to at least one "motorcycle". In this case, the "newly acquired motorcycle" will have the broadest coverage we now provide for any "motorcycle" shown in the Declarations. If you ask us to insure it, within 14 days after you become the owner, Other Than Collision Coverage begins on the date you become the owner and lasts for 14 days. After the 14-day period has elapsed, no Other Than Collision Coverage applies under this Policy for that "newly acquired motorcycle" unless we agree to provide such coverage in writing.
(2)Four days after you become the owner if the Declarations does not indicate that Other Than Collision Coverage applies to at least one "motorcycle". If you comply with the four-day requirement and a loss occurred before you asked us to insure the "newly acquired motorcycle", an Other Than Collision Coverage deductible of $500 will apply. If you ask us to insure it within four days after you become the owner, Other Than Collision Coverage begins on the date you become the owner and lasts for four days. After the four day period has elapsed, no Other Than Collision Coverage applies under this Policy for that "newly acquired motorcycle" unless we agree to provide such coverage in writing.
d.For all Coverages addressed in Paragraph J.2. a., b. or c., if you first ask us to insure the "newly acquired motorcycle" after the applicable time period has elapsed, no coverage will apply unless we agree to provide such coverage in writing, and if we agree, such coverage will begin on the day you first ask us to insure the "newly acquired motorcycle".
Analysis
Despite some formatting and phrasing differences between the Motorcycle policy and the Personal Auto Policy, the content of these sections are almost identical.
K."Occupying" means:
1.In;
2.Upon; or
3.Getting in, on, out or off.
L."Property damage" means physical injury to, destruction of or loss of use of tangible property.
M."Your covered motorcycle" means:
1.Any vehicle shown in the Declarations.
2.A "newly acquired motorcycle".
3.Any:
a."Motorcycle cargo trailer" you own shown in the Declarations; or
b."Motorcycle transport trailer" you own shown in the Declarations.
4.Any "motorcycle", "motorcycle cargo trailer" or "motorcycle transport trailer" you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its:
a.Breakdown;
b.Repair;
c.Servicing;
d.Loss; or
e.Destruction.
Analysis
Despite some formatting and phrasing differences between the Motorcycle policy and the Personal Auto Policy, the content of these sections are almost identical.
Insuring Agreement
A.We will pay compensatory damages for "bodily injury" or "property damage" for which any "insured" becomes legally responsible because of a "motorcycle" accident. Damages include prejudgment interest awarded against the "insured". 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 by payment of judgments or settlements. We have no duty to defend any suit or settle any claim for "bodily injury" or "property damage" not covered under this Policy.
B."Insured" as used in this Part means:
1.You or any "family member" for the ownership, maintenance or use of "your covered motorcycle".
2.Any person using "your covered motorcycle".
3.For "your covered motorcycle", 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.
Analysis
The insuring agreement of Part A of the ISO motorcycle policy provides coverage to the insured should they become legally responsible for damages to another party because of an auto accident. The agreement also provides for defense costs coverage in case the insured is sued by the injured party. These coverages are subject to certain exclusions that are listed on the policy and to a limit of liability that is shown in the declarations.
Liability coverage under the PMP is very similar to that in the PAP. A full breakdown of the Personal Auto Policy is available through this link Personal Auto Policy – Part A. The PMP promises to pay compensatory damages and to defend any claim or suit asking for those damages for which the insured becomes legally responsible because of an accident, in the case of the a motorcycle accident. The insurer has a duty to defend and indemnify the insured. The policy notes that there is no duty to defend a claim for bodily injury or property damage for which the insured is not legally liable.
Supplementary Payments
We will pay on behalf of an "insured":
- Up to $250 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.
- Premiums on appeal bonds and bonds to release attachments in any suit we defend.
- Interest accruing after a judgment is entered 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.
- Up to $250 a day for loss of earnings, but not other income, because of attendance at hearings or trials at our request.
- Other reasonable expenses incurred at our request.
These payments will not reduce the limit of liability.
Analysis
This supplementary payments section mirrors the supplementary payments section in the Personal Auto Policy.
A.We do not provide Liability Coverage for any "insured":
1.Who intentionally causes "bodily injury" or "property damage".
2.For "property damage" to property owned or being transported by that "insured".
3.For "property damage" to property:
a.Rented to;
b.Used by; or
c.In the care of; that "insured".
This exclusion (A.3.) does not apply to "property damage" to a residence or private garage.
4.For "bodily injury" to an employee of that "insured" during the course of employment. This exclusion (A.4) does not apply to "bodily injury" to a domestic employee unless workers' compensation benefits are required or available for that domestic employee.
This Exclusion (A.4.) does not apply to "bodily injury" to a domestic employee unless workers' compensation benefits are required or available for that domestic employee.
Analysis
This section of exclusions generally mirrors the exclusions section in the Personal Auto Policy.
5.For that "insured's" liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This exclusion (A.5) does not apply to the ownership or operation of "your covered motorcycle" when it is being used for volunteer or charitable purposes.
Analysis
In the Personal Auto policy this provision prevented coverage for injuries sustained while "occupying" "your covered auto" when it is being used for public or livery conveyance with an exception to this exclusion for insureds participating in a "share-the-expense" car pool. This section was likely changed here in the Motorcycle policy due to the unlikelihood that a motorcycle driver would be able to set up an effective car pool with their exposed, small, generally only one to two passenger vehicles. This exception to the exclusion also tends to promote volunteer and charitable driving and delivery for motorcycle drivers.
6.Maintaining or using any vehicle while that "insured" is employed or otherwise engaged in any "business" (other than farming or ranching).
7.Using a vehicle without a reasonable belief that "insured" is allowed to do so. This exclusion (A.7) does not apply to a "family member" using "your covered motorcycle" which is owned by you.
8.For "bodily injury" or "property damage" for which that "insured":
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:
(1)Nuclear Energy Liability
(2)Mutual Atomic Energy Liability Underwriters
(3)Nuclear Insurance Association of Canada.
9.For the "insured's" liability arising out of the ownership or operation of a vehicle while it is being used for the delivery of food or products, including but not limited to newspapers and magazines. This exclusion (A.9) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
B.We do not provide Liability Coverage for the ownership, maintenance or use of:
1.Any vehicle which is designed mainly for use off public roads. This exclusion (B.1) does not apply to any "motorcycle cargo trailer" or "motorcycle transport trailer".
2.Any vehicle with the purpose of:
a.Participating or competing in; or
b.Practicing or preparing for; any prearranged or organized:
(1)Racing or speed contest
(2)Rider skill training or rider skill event except "motorcycle" rider skill training in connection with a course designed by the Motorcycle Safety Foundation, or any similar course administered by any state agency, to improve "motorcycle" rider skills
Analysis
Along with the exclusions pertaining to racing and off-roading that are also in the Personal Auto Policy, the PMP also excludes coverage for ownership, maintenance or use of a vehicle that is made to compete or participate in rider skill training and events that are not associated with the Motorcycle Safety Foundation or a similar course administered by a state agency to promote motorcycle safety and improve rider skills.
C.To the extent that the limits of liability for this coverage exceed the minimum limits of liability required by the financial responsibility law of the state in which "your covered motorcycle" is principally garaged, we do not provide Liability Coverage for any "insured":
1.While operating a "motorcycle" while that "insured" is under the influence of:
a.Alcohol, as determined pursuant to state law; or
b.A controlled substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs.
This exclusion (C.1.) does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.
2.Who causes "bodily injury" or "property damage" while committing a felony.
3.Who causes "bodily injury" or "property damage" while seeking to avoid lawful apprehension or arrest by a law enforcement official.
4.While operating a "motorcycle" without a valid driver's license or permit.
Analysis
The Alcohol and Controlled Substances exclusion is an exclusion that seems to be unique to the Personal Motorcycle Policy. This section states that there is no Liability Coverage for any insured if the minimum limits of liability that are required by the financial responsibility law of the state where the covered motorcycle is principally garaged are exceeded if the insured is under the influence of alcohol or a controlled substance including LSD, marijuana, cocaine, and all narcotic drugs, if the insured causes bodily injury or property damage while committing a felony, if the insured causes bodily injury or property damage while trying to escape from the police, or if the motorcycle is being operated without a license or permit. The exclusion does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.
Limit of Liability
A. 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 services or death, arising out of "bodily injury" sustained by any one person in any one "motorcycle" accident. Subject to this limit for each person, the Limit Of Liability shown in the Declarations for each accident for Bodily Injury Liability is our maximum limit of liability for all damages for "bodily injury" resulting from any one "motorcycle" accident. The Limit of Liability shown in the Declarations for each accident for Property Damage Liability is our maximum limit of liability for all "property damage" resulting from any one "motorcycle" accident.
This is the most we will pay regardless of the number of:
1."Insureds";
2.Claims made;
3.Vehicles or premiums shown in the Declarations; or
4.Vehicles involved in the "motorcycle" accident.
B.No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and:
1.Part B or Part C of this Policy; or
2.Any Underinsured Motorists Coverage provided by this Policy.
Analysis
The Limits of Liability section of Part A mirrors the same section in the Personal Auto Policy.
Out of State Coverage
If a "motorcycle" accident to which this Policy applies occurs in any state or province other than the one in which "your covered motorcycle" is principally garaged, we will interpret your policy for that accident as follows:
A.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:
a.Limit shown in the Declarations; or
b.Minimum limit of the state in which "your covered motorcycle" is principally garaged; 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 policy will provide at least the required minimum amounts and types of coverage.
B.No one will be entitled to duplicate payments for the same elements of loss.
Analysis
The Out of State Coverage section of Part A mirrors the same section in the Personal Auto Policy.
Financial Responsibility
When this Policy is certified as future proof of financial responsibility, this Policy shall comply with the law to the extent required.
Analysis
The Financial Responsibility section of Part A mirrors the same section in the Personal Auto Policy.
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 described in Paragraph 4. of the definition of "your covered motorcycle" shall be excess over any other collectible insurance.
Analysis
The Other Insurance section of Part A mirrors the same section in the Personal Auto Policy.
Part B – Medical Payments Coverage
Medical Payments Coverage under the PMP is very similar to that in the PAP. A full breakdown of Part B of the Personal Auto Policy is available through this link Personal Auto Policy – Part B.
The PMP Part B is generally the same as those listed in PMP Part A coverage. The differences are detailed in the sections below.
Insuring Agreement
A. We will pay reasonable expenses incurred for necessary medical and funeral services because of "bodily injury":
1. Caused by accident; and
2. Sustained by an "insured"
We will pay only those expenses incurred for services rendered within three years from the date of the accident.
B. "Insured" as used in this part means:
1. You or any "family member"
a. While "occupying" "your covered motorcycle"; 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 motorcycle".
Analysis
The Insuring Agreement of Part B- Medical Payments Coverage directly reflects the language in the Personal Auto Policy.
Exclusions
We do not provide Medical Payments Coverage for any "insured" for "bodily injury":
- Sustained while "occupying" "your covered motorcycle" when it is being used as a public or livery conveyance. This exclusion (1.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
Analysis
Medical Payments Coverage Exclusions section includes the same exception to the public or livery conveyance exclusion as is discussed in the Part-A exclusions section of the Motorcycle Policy located above. This section was likely changed here in the Motorcycle policy due to the unlikelihood that a motorcycle driver would be able to set up an effective car pool with their exposed, small, generally only one to two passenger vehicles. This exception to the exclusion also tends to promote volunteer and charitable driving and delivery for motorcycle drivers.
2. Occurring during the course of employment if workers' compensation benefits are required or available for the "bodily injury".
3. Sustained when struck by any vehicle (other than "your covered motorcycle" which is:
a. Owned by you; or
b. Furnished or available for your regular use.
4. Sustained when struck by any vehicle (other than "your covered motorcycle") which is :
a. Owned by any "family member"; or
b. Furnished or available for the regular use of any "family member"
However, this exclusion (4.) does not apply to you.
5. Sustained while "occupying" a vehicle without a reasonable belief that that "insured" is entitled to do so. This exclusion (5.) does not apply to a "family member" using "your covered motorcycle" which is owned by you.
6. Sustained while "occupying" a vehicle when it is being used in the "business" (other than farming or ranching) of an "insured".
7. 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.
8. From or as a consequence of the following, whether controlled or uncontrolled or however caused:
a. Nuclear reaction;
b. Radiation; or
c. Radioactive contamination.
9. Sustained while "occupying" any vehicle for the purpose of:
a. Participating or competing in; or
b. Practicing or preparing for;
Any prearranged or organized:
(1) Racing or speed contest; or
(2) Rider skill training or rider skill event except "motorcycle" rider skill training in connection with a course designed by the Motorcycle Safety Foundation, or any similar course administered by any state agency, to improve "motorcycle" rider skills.
Analysis
Exclusion 9.a.(2) adds an exception to the exclusion for racing or speed contests. The exception allows for medical payments coverage when the injury occurs during training to develop "motorcycle" riding skills during courses designed by the Motorcycle Safety Foundation or any similar course. This exception was included so as to not discourage holders of the motorcycle policy from participating in riding skills courses.
10. Sustained while "occupying" "your covered motorcycle" when it is being used for the delivery of food or products, including but not limited to newspapers and magazines.
This exclusion (10.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
Analysis
Exclusion 10 allows for medical payments for injuries caused while the covered motorcycle is being used for volunteer or charitable purposes, while excluding coverage for other deliveries of food or other products. This exception to the exclusion tends to promote volunteer and charitable driving and delivery for motorcycle drivers.
11. Sustained while operating a "motorcycle" while that "insured" is under the influence of:
a. Alcohol, as determined pursuant to state law; or
b. A controlled substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs.
This exclusion (11.) does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.
12. Sustained while committing a felony.
13. Sustained while seeking to avoid lawful apprehension or arrest by a law enforcement official.
14. Sustained while operating a "motorcycle" without a valid driver's license or permit.
Analysis
As stated above, the Alcohol and Controlled Substances exclusion is an exclusion that seems to be unique to the Personal Motorcycle Policy is the alcohol liability limit. This section states that there is no Liability Coverage for any insured if the minimum limits of liability that are required by the financial responsibility law of the state where the covered motorcycle is principally garaged are exceeded if the insured is under the influence of alcohol or a controlled substance including LSD, marijuana, cocaine, and all narcotic drugs, if the insured causes bodily injury or property damage while committing a felony, if the insured causes bodily injury or property damage while trying to escape from the police, or if the motorcycle is being operated without a license or permit. The exclusion does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.
Limit of Liability
A.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."Insureds";
2.Claims made;
3.Vehicles or premiums shown in the Declarations; or
4.Vehicles involved in the accident.
B.No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and:
1.Part A or Part C of this Policy; or
2.Any Underinsured Motorists Coverage provided by this Policy.
Analysis
The Limits of Liability section of Part B – Medical Payments mirrors the same section in the Personal Auto Policy.
Other Insurance
If there is other applicable "motorcycle" 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 described in Paragraph 4. Of the definition of "your covered motorcycle" shall be excess over any other collectible "motorcycle" insurance providing payments for medical or funeral expenses.
Analysis
The Other Insurance section of Part B mirrors the same section in the Personal Auto Policy.
A.We will pay compensatory damages which an "insured" is legally entitled to recover from the owner or operator of any "uninsured motor vehicle" because of "bodily injury":
1. Sustained by an "insured"; and
2. 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".
Any judgment for damages arising out of a suit brought without our written consent is not binding on us.
B."Insured" as used in this Part means:
1.You or any "family member"
2.Any other person "occupying" "your covered motorcycle".
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.
C."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 the state in which "your covered motorcycle" is principally garaged.
3.Which is a hit-and-run vehicle whose operator or owner cannot be identified and which hits:
a.You or any "family member"; or
b."Your covered motorcycle".
4.To which a bodily injury liability bond or policy applies at the time of the accident but the bonding or insurance company:
a.Denies coverage; or
b.Is or becomes insolvent.
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 "family 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)Owned by any governmental unit or agency.
(4)Operated on rails or crawler treads.
(5)Designed mainly for use off public roads while not on public roads.
(6)While located for use as a residence or premises.
Analysis
This section mirrors Part C- Uninsured Motorists Coverage in the Personal Auto Policy. Part C of the Personal Auto Policy is analyzed in the article Personal Auto Policy – Part C.
Exclusions
A.We do not provide Uninsured Motorists Coverage for "bodily injury" sustained:
1.By an "insured" when struck by any motor vehicle owned by that "insured" which is not insured for this coverage under this Policy. This includes a trailer of any type used with that vehicle.
2.By any "family member" when struck by any motor vehicle you own which is insured for this coverage on a primary basis under any other policy.
3.By you or any "family member" while "occupying" any vehicle other than "your covered motorcycle"
Analysis
The PMP Part C exclusions are generally the same as those listed in PMP Part A coverage, and detailed in the above section. One exclusion that should be noted that is included in the Uninsured Motorists Coverage section, but not located elsewhere is A(3) which states that Uninsured Motorists coverage will not be provided for bodily injury sustained by the insured or any family member while occupying any vehicle other than "your covered motorcycle".
A.We do not provide Uninsured Motorists Coverage for "bodily injury" sustained by any "insured"
1.If that 'insured" or the legal representative settles the "bodily injury" claim and such settlement prejudices our right tor ecover payment.
2.While "occupying" "your covered motorcycle" when it is being used as a public or livery conveyance. This exclusion (B.2.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
3.Using a vehicle without a reasonable belief that "insured" is entitled to do so. This exclusion (B.3) does not apply to a "family member" using "your covered motorcycle" which is owned by you.
4.While "occupying" "your covered motorcycle" when it is being used for the delivery of food or products, including but not limited to newspapers and magazines.
This exclusion (B.4) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
B.This coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any of the following or similar law:
1.Workers' compensation law; or
2.Disability benefits law.
C.We do not provide Uninsured Motorists Coverage for punitive or exemplary damages.
Analysis
The PMP Part C exclusions are generally the same as those listed in Personal Auto coverage, and detailed in the Personal Auto – Part C article Personal Auto Policy – Part C.
Limit of Liability
A.The Limit of Liability shown in the Declarations for each person for Uninsured Motorists Coverage is our maximum limit of liability for all damages, including damages for care, loss of services, or death, arising out of "bodily injury" sustained by any one persona in any one accident. Subject to this limit for each person, the Limit of Liability shown in the Declarations for each accident for Uninsured Motorists Coverage is our maximum limit of liability for all damages for "bodily injury" resulting from any one accident.
This is the most we will pay regardless of the number of:
1."Insureds";
2.Claims made;
3.Vehicles or premiums shown in the Declarations; or
4.Vehicles involved in the accident.
B.No one will be entitled to receive duplicate payments for the same elements of loss under this coverage and:
1.Part A or Part B of this policy; or
2.Any Underinsured Motorists Coverage provided by this policy.
C.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.
D.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:
1.Workers' compensation law; or
2.Disability benefits law
Analysis
The PMP Part C limit of liability section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.
Other Insurance
If there is other applicable insurance available under one or more policies or provisions of coverage that is similar to the insurance provided under this Part of the policy.
1.Any recovery for damages under all such policies or provisions of coverage may equal but not exceed the highest applicable limit for any one vehicle under any insurance providing coverage on either a primary or excess basis.
2.Any insurance we provide with respect to any vehicle described in Paragraph 4. Of the definition of "your covered motorcycle" shall be excess over any collectible insurance providing such coverage on a primary basis.
Analysis
Other Insurance section 2. differs from provisions in the PAP, and clarifies that this motorcycle insurance is considered to be excess over any collectible insurance providing such coverage on a primary basis.
1.If the coverage under this policy is provided:
a,On a primary basis, we will pay only our share of the loss that must be paid under insurance providing coverage on a primary basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on a primary basis.
b.On an excess basis, we will pay only our share of the loss that must be paid under insurance providing coverage on an excess basis. Our share is the proportion that our limit of liability bears to the total of all applicable limits of liability for coverage provided on an excess basis.
Analysis
The PMP Part C Other Insurance section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.
Arbitration
A.If we and an "insured" do not agree.
1.Whether that "insured" is legally entitled to recover damages; or
2.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, 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.
B.Each party will:
1.Pay the expenses it incurs; and
2.Bear the expenses of the third arbitrator equally.
C.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 at least two of the arbitrators will be binding as to:
1.Whether the "insured" is legally entitled to recover damages; and
2.The amount of damages. This applies only if the amount does not exceed the minimum limit for bodily injury liability specified by the financial responsibility law of the state in which "your covered motorcycle" is principally garaged. 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.
Analysis
The PMP Part C Arbitration section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.
Part D – Coverage for Damage to Your Motorcycle
Insuring Agreement
A. We will pay for direct and accidental loss to "your covered motorcycle", including its equipment, minus any applicable deductible shown in the Declarations. If loss to more than one "your covered motorcycle" results from the same "collision", only the highest applicable deductible will apply. We will pay for loss to "your covered motorcycle" caused by:
1. Other than "collision" only if the Declarations indicates that Other Than Collision Coverage is provided for that "your covered motorcycle".
2. "Collision" only if the Declarations indicates that Collision Coverage is provided for that "your covered motorcycle"
B. "Collision" means the upset of "your covered motorcycle" or its impact with another vehicle or object.
Loss caused by the following is considered other than "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
10. Breakage of glass.
If breakage of glass is caused by a "collision", you may elect to have it considered a loss caused by "collision".
Analysis
At this point, Part D- Coverage for Damage to Your Motorcycle is a replica of the Personal Auto Part D section. An analysis of PAP Part D is located in the following article. Personal Auto Policy – Part D
C."Custom equipment" means equipment, furnishings and parts in or upon "your covered motorcycle" including but not limited to:
1.Saddlebags;
2.Fairings and windshields;
3.Body, engine and exhaust enhancers;
4.Luggage racks, light bars and sissy bars;
5.Safety guards and crash roll bars;
6.Custom plating, exhaust, seats, wheels or tires;
7.Custom chrome, murals, paintwork, decals or other graphics; or
8.Sidecars.
However, "custom equipment" does not include:
a.Original manufacturer equipment, furnishings or parts;
b.Equipment, furnishings and parts in or upon "your covered motorcycle", other than that described in Paragraph a., at the time "your covered motorcycle" was purchased by you;
c.Any replacement of original manufacturer equipment, furnishings or parts with other equipment, furnishings or parts of like kind and quality;
d.Any electronic equipment that reproduces, receives or transmits audio, visual or data signals, regardless of whether or not such equipment would be subject to Paragraph a., b. or c.;
e.Tapes, disks or other media used with equipment described in Paragraph d.; or
f.Equipment designed or used for the detection or location of radar or laser.
Analysis
The Motorcycle policy adds a section for "custom equipment" as some motorcyclists invest more money into custom equipment for their motorcycles than they do in the vehicle itself. The definition of "custom equipment" includes, but is not limited to, saddle bags, fairings and windshields, body, engine and exhaust enhancers, luggage racks, safety guards, roll bars, custom plating, chrome, paintwork, and sidecars. "Custom equipment" does not include original manufacturer equipment or parts, parts and equipment included in the motorcycle when the insured purchased it, replacement parts, electronic equipment, media equipment, and radar detectors.
"Rider safety apparel" means apparel designed to minimize injury resulting from a "motorcycle" accident. This includes but is not limited to:
A."Motorcycle" helmets;
B.Riding clothing;
C.Riding boots;
D.Riding gloves; and
E.Protective eyewear and earwear; designed to minimize injury.
"Motorcycle" helmets described above include wireless headsets that contain communication devices for use by you or a passenger. We will pay for direct and accidental loss to any "rider safety apparel":
1.That is worn by you; or
2.After a loss and at your request, that is worn by a passenger; while "occupying" "your covered motorcycle".
We will pay for the loss only if the loss is caused by "collision" and only if the Declarations indicates that Collision Coverage is provided for that "motorcycle". The most we will pay under this Additional Coverage is $1,000 regardless of the types or number of items damaged in any one loss. This coverage is additional insurance. No deductible applies to this Additional Coverage.
Analysis
The Additional Coverage section includes a section for Rider Safety Apparel, since wearing safety apparel can prevent bodily injury to the insured. Rider Safety Apparel is apparel designed to minimized injury resulting from a motorcycle accident and includes, but is not limited to, motorcycle helmets, riding clothing, riding boots, riding gloves, and protective eyewear and earwear. This definition also includes electronic headsets designed for communication for use by the driver or a passenger. The rider safety apparel of a passenger may also be covered. This section allows for coverage of up to $1000, and no deductible applies as it is additional coverage.
Exclusions
1.Loss to "your covered motorcycle" which occurs while it is being used as a public or livery conveyance. This exclusion (1.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
Analysis
As analyzed above, Part D does not cover losses to a covered motorcycle while it is being used to deliver food or products, unless it is being used for charitable or volunteer purposes.
2.Damage due and confined to:
a.Wear and tear;
b.Freezing;
c.Mechanical or electrical breakdown or failure; or
d.Road damage to tires. This exclusion (2.) does not apply if the damage results from the total theft of "your covered motorcycle".
3.Loss due to or as a consequence of:
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 any electronic equipment that reproduces, receives or transmits audio, visual or data signals. This includes but is not limited to:
a.Radios and stereos;
b.Tape decks;
c.Compact disk systems;
d.Navigation systems;
e.Internet access systems;
f.Telephones;
g.Two-way mobile radios; or
h.Citizens band radios.
This exclusion (4.) does not apply to
(1)Electronic equipment that is permanently installed in "your covered motorcycle" by the manufacturer; or
(2)Loss to any "motorcycle" helmet that is "rider safety apparel".
Analysis
This exclusion specifically mentions that loss to a "motorcycle" helmet that is "rider safety apparel" would be covered.
5.Loss to tapes, disks or other media used with equipment described in Exclusion 4.
6.A total loss to "your covered motorcycle" due to destruction or confiscation by governmental or civil authorities. This exclusion (6.) does not apply to the interests of Loss Payees in "your covered motorcycle".
7.Loss to equipment designed or used for the detection or location of radar or laser.
8.Loss to any "custom equipment" in or upon "your covered motorcycle". This exclusion (8.) does not apply to the first $1,500 of loss to "custom equipment" in or upon "your covered motorcycle".
9.Loss to "your covered motorcycle" being maintained or used in any "business" (other than farming or ranching).
10.Loss to "your covered motorcycle" while it is being used for the purpose of: a. Participating or competing in; or b. Practicing or preparing for; any prearranged or organized:
(1)Racing or speed contest; or
(2)Rider skill training or rider skill event except "motorcycle" rider skill training in connection with a course designed by the Motorcycle Safety Foundation, or any similar course administered by any state agency, to improve "motorcycle" rider skills.
Analysis
The racing section in Part D mirrors that in Part A of the Motorcycle policy, instead of mirroring that same section in the Personal Auto Policy.
11.Loss to "your covered motorcycle" which occurs while it is being used for the delivery of food or products, including but not limited to newspapers and magazines. This exclusion (11.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.
12.Loss to "your covered motorcycle" while being operated by any person while under the influence of:
a.Alcohol, as determined pursuant to state law; or
b.A controlled substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs. This exclusion (12.) does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.
13. Loss to "your covered motorcycle" while rented or leased to any organization or person other than you or any "family member".
Analysis
As mentioned above, losses to your motorcycle are not covered if they occur while the motorcycle is being operated by a person under the influence of alcohol, or controlled substances that are not lawfully prescribed by a licensed healthcare professional.
Limit of Liability
A.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 with other property of like kind and quality.
However, the most we will pay for loss to "custom equipment" in or upon "your covered motorcycle" is $1,500.
B.An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total loss.
C.If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment.
Analysis
This Limit of Liability section mirrors that in Part D of the Personal Auto Policy.
Payment of Loss
We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to:
1.You; or
2.The address shown in this Policy.
If we return stolen property we will pay for any damage resulting from the theft. We may keep all or part of the property at an agreed or appraised value. If we pay for loss in money, our payment will include the applicable sales tax for the damaged or stolen property.
Analysis
This Payment of Loss section mirrors that in Part D of the Personal Auto Policy.
No Benefit to Bailee
This insurance shall not directly or indirectly benefit any carrier or other bailee for hire.
Analysis
This No Benefit to Bailee section mirrors that in Part D of the Personal Auto Policy.
Other Sources of Recovery
If other sources of recovery also cover 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. However, any insurance we provide with respect to any vehicle described in Paragraph 4. of the definition of "your covered motorcycle" shall be excess over any other collectible source of recovery including, but not limited to:
1.Any coverage provided by the owner of the vehicle while used as a temporary substitute for "your covered motorcycle".
2.Any other applicable physical damage insurance.
3.Any other source of recovery applicable to the loss.
Analysis
This Other Sources of Recovery section mirrors that in Part D of the Personal Auto Policy.
Appraisal
A.If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial 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.
B.We do not waive any of our rights under this Policy by agreeing to an appraisal.
Analysis
This Appraisal section mirrors that in Part D of the Personal Auto Policy.
We have no duty to provide coverage under this Policy if the failure to comply with the following duties is prejudicial to us:
A.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.
B.A person seeking any coverage 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:
a.To physical exams by physicians we select. We will pay for these exams.
b.To examination under oath and subscribe the same.
4.Authorize us to obtain:
a.Medical reports; and
b.Other pertinent records.
5.Submit a proof of loss when required by us.
C.A person seeking Uninsured Motorists Coverage must also:
1.Promptly notify the police if a hit-and-run driver is involved.
2.Promptly send us copies of the legal papers if a suit is brought.
D.A person seeking Coverage For Damage To Your Motorcycle must also:
1.Take reasonable steps after loss to protect "your covered motorcycle" and its equipment from further loss. We will pay reasonable expenses incurred to do this.
2.Promptly notify the police if "your covered motorcycle" is stolen.
3.Permit us to inspect and appraise the damaged property before its repair or disposal.
Analysis
Part E directly mirrors Part E of the Personal Auto Policy. An analysis of Parts E and F of the Personal Auto Policy can be found in the following article Personal Auto Policy – Parts E and F
For the most part, Part F directly mirrors Part F of the Personal Auto Policy, except for two provisions. An analysis of Parts E and F in the Personal Auto Policy can be found in the following article Personal Auto Policy – Parts E and F. The Personal Motorcycle Policy includes sections on Nonrenewal and Automatic Termination, topics that are not mentioned in the Personal Auto Policy.
Bankruptcy
Bankruptcy or insolvency of the "insured" shall not relieve us of any obligations under this Policy.
Analysis
The Bankruptcy section of Part F directly mirrors the same section of the Personal Auto Policy.
Changes
A.This Policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us.
B.If there is a change to the information used to develop the policy premium, we may adjust your premium. Changes during the policy term that may result in a premium increase or decrease include, but are not limited to, changes in:
1.The number, type or use classification of insured vehicles;
2.Operators using insured vehicles;
3.The place of principal garaging of insured vehicles; or
4.Coverage, deductible or limits.
If a change resulting from Paragraph A. or B. requires a premium adjustment, we will make the premium adjustment in accordance with our manual rules.
C.If we make a change which broadens coverage under this edition of your policy without additional premium charge, that change will automatically apply to your policy as of the date we implement the change in your state. This paragraph (C.) does not apply to changes implemented with a general program revision that includes both broadenings and restrictions in coverage, whether that general program revision is implemented through introduction of:
1.A subsequent edition of your policy; or
2.An Amendatory Endorsement
Analysis
The Changes section of Part F directly mirrors the same section of the Personal Auto Policy.
Fraud
We do not provide coverage for any "insured" who has made fraudulent statements or engaged in fraudulent conduct in connection with any accident or loss for which coverage is sought under this Policy.
Analysis
The Fraud section of Part F directly mirrors the same section of the Personal Auto Policy.
Legal Action Against Us
A.No legal action may be brought against us until there has been full compliance with all the terms of this Policy. In addition, under Part A, no legal action may be brought against us until:
1.We agree in writing that the "insured" has an obligation to pay; or
2.The amount of that obligation has been finally determined by judgment after trial.
B.No person or organization has any right under this Policy to bring us into any action to determine the liability of an "insured".
Analysis
The Legal Action Against Us section of Part F directly mirrors the same section of the Personal Auto Policy.
Our Right to Recover Payment
A.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:
1.Whatever is necessary to enable us to exercise our rights; and
2.Nothing after loss to prejudice them.
However, our rights in this paragraph (A.) do not apply under Part D, against any person using "your covered motorcycle" with a reasonable belief that that person is entitled to do so.
B.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:
1.Hold in trust for us the proceeds of the recovery; and
2.Reimburse us to the extent of our payment.
Analysis
The Our Right to Recover Payment section of Part F directly mirrors the same section of the Personal Auto Policy.
Policy Period and Territory
A.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.
B.The policy territory is:
1.The United States of America, its territories or possessions;
2.Puerto Rico; or
3.Canada.
This Policy also applies to loss to, or accidents involving, "your covered motorcycle" while being transported between their ports.
Analysis
The Policy Period and Territory section of Part F directly mirrors the same section of the Personal Auto Policy.
Termination
A.Cancellation
This Policy may be cancelled during the policy period as follows:
1.The named insured shown in the Declarations 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 the named insured shown in the Declarations at the address shown in this Policy:
a.At least 10 days' notice:
(1)If cancellation is for nonpayment of premium; or
(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 20 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; or
b.If your driver's license or that of:
(1)Any driver who lives with you; or
(2)Any driver who customarily uses "your covered motorcycle"; has been suspended or revoked. This must have occurred:
(a)During the policy period; or
(b)Since the last anniversary of the original effective date if the policy period is other than one year; or
c.If the Policy was obtained through material misrepresentation.
Analysis
The Termination section of Part F directly mirrors the same section of the Personal Auto Policy.
B.Nonrenewal
If we decide not to renew or continue this Policy, we will mail notice to the named insured shown in the Declarations at the address shown in this Policy. Notice will be mailed at least 20 days before the end of the policy period. Subject to this notice requirement, if the policy period is:
1.Less than six months, we will have the right not to renew or continue this Policy every six months, beginning six months after its original effective date.
2.Six months or longer, but less than one year, we will have the right not to renew or continue this Policy at the end of the policy period.
3.One year or longer, we will have the right not to renew or continue this Policy at each anniversary of its original effective date.
Analysis
The Nonrenewal section is not included in the Personal Auto Policy, and states the notice and mailing requirements of the insurer if they decide not to renew the policy of the insured. Generally, either the insured or the insurer can decide not to renew the policy in the few weeks or months prior to the policy's expiration. The three notice requirements mentioned above help insureds to understand when a non-renewal notice is required based on the length of time of policy period they have in place. If the policy period is less than 6 months, (for example, a month by month or a 90 day policy) the insurer has the right to non-renew at each 6 month interval beginning six months after the effective date of the policy. And if the policy period is between 6 months and 1 year in duration, the insurer has the right to non-renew at the end of the policy period.
C. Automatic Termination
If we offer to renew or continue and you or your representative does 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 motorcycle", any similar insurance provided by this Policy will terminate as to that "your covered motorcycle" on the effective date of the other insurance.
Analysis
The Automatic Termination section states that if the insurer offers to renew or continue and the insured does not accept, the policy will automatically terminate at the end of the current policy period. This section also specifies that if a policy is procured that provides coverage similar to the Motorcycle Policy which is in place, the new policy will replace the old policy on the date the new insurance becomes effective.
D. Other Termination Provisions
1.We may deliver any notice instead of mailing it. 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.
Analysis
The Other Termination Provisions directly mirror the same provisions in the Personal Auto Policy.
Transfer of Your Interest in this Policy
A.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 resident in the same household at the time of death. Coverage applies to the spouse as if a named insured shown in the Declarations; and
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 motorcycle".
B.Coverage will only be provided until the end of the policy period.
Analysis
The Transfer of Your Interest in this Policy directly mirrors the same provisions in the Personal Auto Policy.
Two or More Policies
If this Policy and any other motorcycle or 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.
Analysis
The Two or More Policies section directly mirrors the same section in the Personal Auto Policy.
While there are several differences between the PAP and the MT, both policies follow generally the same outline and allow for generally the same sorts of coverage. While the motorcycle policy was created by ISO in 2013 in order to help streamline the process of underwriting a motorcycle policy, it was formed very similarly to the Personal Auto Policy. Since motorcycles carry different risks than normal cars, such as the exposed nature of the occupant(s), some provisions of the motorcycle policy were changed to provide more adequate coverage for insureds with motorcycles. The motorcycle policy seems to be stricter than the personal auto policy, as the driver of a motorcycle is taking on more risk of damage to their person than someone in a fully enclosed vehicle. Also, more motorcycle owners invest large amounts of money into their vehicles, increasing the replacement cost in the case of a total loss. This form analysis should allow for increased comprehension of the motorcycle policy and the reasoning for the exclusions and provisions that were included in the form.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.