A. Covered Property

1. Owned Property
We cover the property listed in the Schedule above and described in a., b.,c.and d. below only if an amount of insurance and premium is shown for that property.
The amounts of insurance shown are limited by Paragraph F.1. Loss Settlement in this form.

a. "Motorized Vehicle" Defined
The following definition is added specifically to this form and does not alter the definitions in Common Policy Provisions Form PM 00 01:
"Motorized vehicle" means a motorized land conveyance, described in the Schedule above, including permanently installed accessories, equipment or parts, that is:

(1) Designed to assist a handicapped person and used solely by an "insured"; and
(2) Owned by an "insured" or leased to an "insured" for at least 30 consecutive days; and

b. Trailer
A trailer is a two or four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a "motorized vehicle" over public or private roads. Such apparatus:

(1) Shall be owned by an "insured"; or leased to an "insured" for at least 30 consecutive days; and
(2) May be required to be registered for use on such roads.

c. Scheduled Equipment
Scheduled equipment includes detached and detachable accessories, equipment or parts, each with a cost new value of more than $250 that are:

(1) Used for or with a covered vehicle or trailer; and
(2) Owned by an "insured" or leased to an "insured" for at least 30 consecutive days.

d. Unscheduled Equipment – Blanket Insurance
Unscheduled Equipment includes detached and detachable accessories, equipment and parts owned by an "insuredthat are used for or with property scheduled under Item 1.a., b. or c.

Analysis

The form begins by stating that the property covered is listed in the schedule and described in the form only if an amount of coverage and premium amount is shown.

“Motorized vehicle” is then defined as a motorized land conveyance described in the schedule, including permanently installed accessories, parts and equipment, that is designed to assist a handicapped person and used solely by an “insured’, and that is owned by an “insured” for at least 30 consecutive days. If an insured rents a motorized vehicle for a brief period of time, that equipment is not eligible for coverage. The insured must both own the vehicle for at least 30 consecutive days and be the one using the vehicle.

Two or four wheeled trailers designed to be pulled by a motorized land vehicle to transport a scheduled “motorized vehicle” over public or private roads may be scheduled as well. The trailer must be owned by an “insured” for at least 30 consecutive days and may be required to be registered for use on such roads. Trailers can be expensive as well and may need coverage.

Other equipment, such as detached and detachable accessories, equipment or parts, with a cost new of $250 that are used with a covered vehicle or trailer, and are again owned or leased by an “insured” for at least 30 consecutive days can also be added to the schedule. Carriers and lifts that attach to the vehicle and other equipment would fall into this category. Again, such equipment needs to be described on the form with the manufacturer, year built, model and/or serial number.

Unscheduled equipment may be added on a blanket basis. This is for smaller equipment that can be used with the motorized vehicle, trailer, or scheduled equipment. The most that will be paid for any one item is $250, so this is for smaller gear and equipment.

1. Newly Acquired or Replacement Property

a. Newly Acquired Property

(1) We will cover a vehicle, trailer or equipment that you acquire, by ownership, during the policy period if it is:

(a) Similar to a "motorized vehicle" or scheduled trailer or equipment; and
(b) An acceptable risk to us.

(2) The limit for this coverage is the cost of the item to you up to:

(a) $3,500 for the vehicle;
(b) $1,000 for the trailer; and
(c) $500 per item for the equipment.

b. Replacement Property

If, during the policy period, you dispose of a "motorized vehicle" or scheduled trailer or equipment, we will cover similar replacement property that you acquire by ownership up to:

(1) The amount of insurance of the disposed property; or
(2) The invoice cost of the replacement property; whichever is less.

c. Reporting Requirement

You must report the transaction to us within 30 days of taking ownership and pay any additional premium from that date.

If you fail to do so, coverage will cease automatically 30 days after you take ownership or at the end of the policy period, whichever occurs first.

1. Borrowed Or Rented Vehicle

We also cover a vehicle that an "insured":

a. Borrows and operates with the permission of its owner; or
b. Rents for less than 30 consecutive days;
provided it is similar to a covered vehicle.

The most we will pay for loss to the borrowed or rented vehicle is the lowest amount of insurance shown under Item 1.a. in the Schedule.

Analysis

If an insured acquires a new or replacement motorized handicap vehicle, coverage is available under certain conditions. If a newly purchased vehicle, trailer, or equipment is similar to equipment that is already scheduled, and is an acceptable risk to the insurer, there is a limited amount of coverage. Up to $3,500 is available for the vehicle, $1,000 for the trailer, and $500 per item for equipment as long as it is similar to what is already on the schedule.

If the insured disposes of a scheduled vehicle, trailer or equipment and replaces it with similar items, coverage is available up to the scheduled amount of the disposed property or the cost of the new property, whichever is less. For example, an insured has a motorized wheelchair scheduled for $5,000. He gets rid of it and replaces it with a newer model with improved functionality that costs $6,000. If the new wheelchair is destroyed, the most that will be paid is the $5,000, the scheduled amount of the old chair, since that is the lesser amount.

Whenever an insured replaces an existing piece of equipment or purchases a similar piece of equipment to what is already scheduled, they must report the transaction to the insurer within 30 days of taking ownership of that new equipment and pay any additional premium. If the insured fails to report the new equipment, coverage will cease after 30 days of when the insured took ownership of that equipment or the end of the policy period, whichever occurs first. For example, the insured purchases a new motorized wheelchair on October 1, and the policy expires on October 15. The insured doesn’t report the newly acquired wheelchair to the insurer until November 5, after the policy expired. Therefore, coverage for that new wheelchair ceases on October 15, the expiration date of the policy.

Vehicles that an insured rents for less than 30 consecutive days or borrows with permission of its owner are covered as well, as long as the borrowed vehicle is similar to those scheduled on the form. The most that is paid is the lowest amount of insurance under item 1.a. of the form. If an insured has multiple motorized vehicles scheduled, for example one at $4,000 and another at $6,000, and the borrowed or rented vehicle is damaged, then the value used for a borrowed vehicle will be $4,000, the lowest amount on the schedule.

C. Perils Insured Against

1. We insure property described in the Schedule against risk of direct physical loss except loss by collision or loss precluded in 3.below.
2. If the Schedule shows that the Collision Peril applies, we also insure against the risk of collision meaning:

a. The physical contact of a covered vehicle or trailer with another object; or
b. The upset of such vehicle or trailer without contact with another object.

3. We do not insure:

a. Loss while covered property is:

(1) Rented to others;
(2) Being used to carry persons or cargo for a charge; or
(3) Being operated in or practicing for any prearranged or organized race, speed contest, or other competition;
We do insure against loss that results solely from the perils of fire or lightning;

b. Loss to tires or wheels caused by contact with the road or ground, or tires punctured by an object lying on the ground;
c. The infidelity of persons or entities to whom you entrust covered property. But we will pay for loss caused by or resulting from a carrier hired to move or transport such property;
d. Loss caused by or resulting from:

(1) Wear and tear, gradual deterioration,modificationor weathering;
(2) Fungus,mold or rot;
(3) Corrosion or rust;
(4) Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself;
(5) Electrical,mechanical or structural failure or breakdown;
(6) Freezing or overheating;
(7) Dampness of the atmosphere or extremesof temperature;
(8) Work done to or handling of covered property unless fire or explosion ensues and then we will pay only for the ensuing loss;
(9) Marring, scratching,chipping or denting, unless caused by or resulting fromsudden and accidental impact with another object not under the control of an "insured";
(10) Your failure to maintain the covered property in good condition and repair so it cannot be damaged by the rigors of normal use;
(11) Vandalism or Malicious Mischief if the premises where covered property is kept or stored has been unoccupied for more than 60 consecutive days immediately before the loss;
(12) Animals, birds, vermin,insects or rodents. If, however, Collision Peril C.2. applies, this preclusion of coverage does not apply to collision with an animal or bird; or
(13) Delay, loss of use or any other consequential act.

Analysis

Coverage is provided on an open perils basis, with specific coverage for collision if the insured opts for that coverage. If collision is listed in the schedule, then coverage is provided. Collision means the physical contact of a covered vehicle or trailer with another object, or the upset of a scheduled vehicle or trailer without contact with another object. If the scheduled vehicle or trailer collides with a vehicle, a tree, or some other object, there is coverage. Likewise, if the vehicle is on uneven ground and overturns without contacting anything else, that damage is covered as well.

As always, certain losses and damages are not covered. If the scheduled equipment is rented to others, being used to carry people or property for a charge, or is being used in or practicing for a prearranged race, speed contest or other competition, there is no coverage. There is coverage if damage is caused solely by fire or lightning. If the insured is out in a park and lightning strikes the vehicle, there is coverage for that damage.

Loss to tires or wheels caused by contact with the ground or road, or tires punctured by objects lying on the ground is not covered. Such losses can be expected to happen to any vehicle that travels across the ground or road.

Infidelity of a person to whom the insured entrusted the equipment is excluded. There is coverage for loss caused by or resulting from having to hire a carrier to transport the vehicle back to the owner.
The next series of exclusions are standard, and includenormal damage that can be expected to occur over timesuch as wear and tear, deterioration, or breakdown; defects in the equipment itself; neglect by the owner; faulty work; vandalism or malicious mischief if the property has been stored in a premises that has been unoccupied for more than60 days before the loss; animals, birds, insects or rodents, unless collision applies; and delay, loss of use or any other consequential act.

D. Deductible
We will pay only that part of the total of all loss payable under this policy that exceeds the deductible amount shown in the Declarations.
E.Option
The following option applies to this policy only if the box for that option is checked in the policy Declarations, or is otherwise indicated elsewhere in this policy.

1. Emergency Repairs

a. We will pay for the reasonable costs an "insured" incurs, in excess of $50, for emergency repairs to a covered vehicle or trailer that is away from an "insured's"residence shown in the Declarations.
The most we will pay is:

(1) $250 for any one event; and
(2) $500 during each separate 12 month period of this policy.

b. We limit reasonable expenses to:

(1) Transportation to the nearest place where necessary repairs can be made;
(2) Delivery of repair parts to the site of disablement, but excluding the cost of these items;
(3) Charging batteries; or
(4) Labor for emergency repairs at the site of disablement.

c. The policy deductible does not apply to loss under this coverage.

Analysis

Deductibles are optional– the form is based on full coverage. Deductibles of $100, $250, and $500 are available.
An option exists for coverage of emergency repairs if the vehicle or trailer is away from the “insured’s” residence shown in the declaration and repairs cost more than $50. The most that will be paid is $250 for any one event, and a maximum of $500 during each separate 12 month period.

Reasonable expenses include transportation to the nearest location where repairs can be made; delivery of repair parts to the location of disablement but not the cost of the parts themselves; charging batteries; or labor for emergency repairs at the site of the disablement. The deductible does not apply to this coverage.

F. Loss Conditions
With respect only to the coverage provided in this form PM 00 31, Paragraph D. Loss Conditions in Common Policy Provisions Form PM 00 01 does not apply and is replaced by the following:

1. Loss Settlement

a. Scheduled Or Replacement Motorized Vehicle, Trailer And Equipment
With regard toa scheduled or replacement "motorized vehicle", trailer or equipment, other than unscheduled equipment, we will pay for a:

(1) Total loss only if:

(a) Such property is completely destroyed or lost; or
(b) We determine that the cost to repair with like kind and quality or to recover is greater than the amount of insurance that applies to the property.

(2) Partial loss to such property but not more than the least of the following:

(a) The amount of insurance that applies to the property; or
(b) The cost to repair or replace it with like kind and quality.

b. Newly Acquired Motorized Vehicle, Trailer And Equipment
With regard to a newly acquired motorized vehicle, trailer or equipment, other than unscheduled equipment, we will not pay more than the least of the following amounts:

(1) The cost to repair or replace with like kind and quality; or
(2) The limit of coverage.

c. Specifications Or Repair Practices
To determine the cost to repair with like kind and quality, we may use the manufacturer's specifications or accepted repair practices to repair the "motorized vehicle's" molded body or parts made of fiberglass,plastic or composite materials.
d. Unscheduled Equipment – Blanket Insurance
We will pay only that proportion of any loss on unscheduled equipment that the amount of blanket insurance bears to the actual cash value of such property at the time of loss but not more than $250 for any one item.

Analysis

The Loss Conditions section contains 5 separate provisions: loss settlement, reinstatement of amount of insurance after loss, loss payment, duties after a loss, and loss payable clause. The loss conditions section replaces the loss conditions that appear in the Common Policy Provisions Form.

The loss settlement section states that when scheduled or replacement motorized vehicles, trailers, or equipment are damaged, payment for a total loss applies only if the property was completely destroyed or the insurer determined the cost to repair or replace exceeds the amount of insurance on the property.

For partial losses, payment is for no more than the least of the amount of insurance that applies or the cost to repair or replace the property with like kind and quality.

Newly acquired vehicles, trailers and equipment are handled similarly, and the least of the cost to repair or replace or the limit of coverage is what is provided. Note that this applies only to scheduled equipment, and not anything listed under the blanket coverage.

When property needs to be repaired, the company may use the manufacturer’s specifications or accepted repair practices to repair the “motorized vehicle’s” molded body or parts made of fiberglass, plastic, or composite materials.

When it comes to unscheduled equipment, payment is for the proportion of any loss that the amount of blanket insurance bears to the actual cash value of the damaged property at the time of loss, but no more than $250 per item. For example, the insured has $2,000 worth of unscheduled equipment. An item worth $300 is destroyed. The most that will be paid is $250, the maximum amount.

1. Reinstatement Of Amount Of Insurance After Loss

a. Under Items 1.a.,b. and c., we will reduce the amount of insurance by the payment of any claim. However:

(1) We will automatically reinstate the amount reduced; and
(2) Upon determination of the amount of loss, you will pay an additional pro rata premium from the date of loss to policy expiration; or

b. Under Item 1.d., we will not reduce the amount of insurance by the payment of any claim.

1. Loss Payment

(1) A claim has been paid by others; or
(2) Some other person is named in the policy or is legally entitled to receive payment.

b. Loss will be payable 60 days after we receive your proof of loss and:

(1) Reach an agreement with you;
(2) There is an entry of a final judgment; or
(3) There is a filing of an appraisal award with us.

Analysis

Once scheduled property has been damaged, the amount of insurance is reduced by the amount paid for the claim. However, for scheduled vehicles, trailers, and equipment, the limits are automatically reinstated, and upon determination of the amount of the loss, an additional pro rata premium from the date of loss to the expiration of the policy is required. The limit for unscheduled equipment found under the blanket coverage is not reduced when such property is damaged or destroyed.

All losses are adjusted with the insured, and the insured is paid unless a claim was paid by others, or some other person is named in the policy or is legally entitled to receive payment for the property.
Losses are payable 60 days after receipt of proof of loss from the insured and the insured reaches an agreement with the insurer, or there is entry of a final judgment or there is a filing of an appraisal award with the insurer.

1. Duties After Loss

a. Give prompt notice to us or our authorized representative;
b. Notify the police in case of loss by theft;
c. Protect the property from further damage. If repairs to the property are required, you must:

(1) Make reasonable and necessary repairs to protect the property; and
(2) Keep an accurate record of repair expenses. Such expenses will be paid by you and us in proportion to our respective interests;

d. Cooperate with us in the investigation of a claim;
e. Prepare an inventory of damaged property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory;
f. As often as we reasonably require:

(1) Show the damaged property;
(2) Provide us with records and documents we request andpermitus to make copies;
(3) Submit to examination under oath, while not in the presence of another "insured", and sign the same;
(4) Produce, to the extent that it is within your power, your employees, members of your household or others so that they may be examined under oath; and
(5) Send to us, within90 days after discovery of the loss, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief:

(a) The time and cause of loss;
(b) The interests of all "insureds" and all others in the property involved and all liens on the property;
(c) Other insurance or service agreements which may cover the loss; and
(d) The inventory of damaged property described in e. above.

Analysis

The Duties After Loss section is standard and self-explanatory. If the insured fails to comply with the duties as laid out, the insurer has no duty to provide coverage. The duties are to be performed by the insured, an insured or a representative of an insured seeking coverage.

As always, prompt notice of the loss must be given, the police must be notified in event of theft, the property must be protected from further damage, and records of expenses for temporary repairs must be kept.

The insured is required to cooperate with the insurer in the investigation of the claim and provide an inventory of damaged property as required. The inventory should be detailed and include quantity of items, description, cash value, amount of loss, receipts and documents to justify the inventory.

Records and receipts may be requested, and the insured may need to show the damaged property to the insurer as well as submit to an examination under oath if requested. Within 90 days of the discovery of the loss a signed, sworn proof of loss is required that lists the time and cause of loss, interests of the insured and others in the property, as well as any liens, any other insurance on the property, and the inventory as already discussed.

1. Loss Payable Clause

5. Other Insurance and Service Agreement, Plan Or Warranty

a. Other Insurance
If a loss covered by this policy is also covered by other insurance, this insurance is excess over any amounts payable under any such insurance.
b. Service Agreement, Plan Or Warranty
This insurance is excess over any amounts payable under the following:

(1) Mechanical breakdown insurance or warranty;
(2) Manufacturer's or extended warranty;
(3) Service plan;
(4) Property restoration plan; or
(5) Other similar service agreement, plan or warranty.

Analysis

If there is a loss payee on the policy, any losses are adjusted with the insured and the loss payee if the loss payee has an interest in the damaged property. Loss payees are notified in writing if the policy is cancelled or nonrenewed.

The Other Insurance and Service Agreement clause in the Common Policy Conditions form is removed and replaced with the Other Conditions listed in this form that addresses other insurance, service agreements, and warranties.

If a loss is also covered by other insurance, this policy is excess over that coverage. This policy is also excess over any amounts payable under the following types of service agreements, plans or warranties. Mechanical breakdown insurance or warranty; manufacturer’s or extended warranty; service plans; property restoration plans, or other similar service agreements, plans or warranties.

PART II – PROPERTY DAMAGE LIABILITY COVERAGE

A. Limited Coverage

1. We will pay up to:

a. $1,000 for damage to property of others caused by the collision of a covered "motorized vehicle" or trailer while being used by an "insured" and for which an "insured" is legally liable to pay; and
b. $1,000 for costs incurred by an "insured" in any suit we defend.
Bankruptcy or insolvency of an "insured" or an "insured's" estate shall not relieve us of our obligations under this coverage.

2. This coverage does not apply to liability assumed by an "insured" under any contract or agreement.
3. The policy deductible does not apply to loss under this coverage.

B. Exclusion
We will not pay for damage to property owned by an "insured".
C. Optional Increased Limits
If this option applies, the limits of liability noted in A.1.above are each increased to the limit selected in the policy Declarations or shown elsewhere in this policy for this option.

Analysis

Part II provides liability coverage for damage to property of others caused by a collision of the scheduled “motorized vehicle” or trailer while either is being used by an “insured” and for which an “insured” is legally liable. Up to $1,000 is available for any costs incurred by an “insured” in any suit the insurer defends. Bankruptcy of an “insured” does not affect the insurers' obligation to defend or make payments under this coverage.

However, this coverage does not apply to liability an “insured” has assumed under any contract or agreement. Likewise, the deductible does not apply to losses under this section. Damage to property owned by an “insured” is not covered under this section; this is for liability only.

Optional increased limits are available and must be listed in the declarations or elsewhere. The limits of $1,000 may be increased to $3,000, $5,000, or $10,000. Increased rates will apply.

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