LectureElevenAutomobileInsurance.ppt

Lecture Eleven： Automobile Insurance Learning Objective Know the brief history and status of auto insurance in the world Describe the liability coverage under the Personal Auto Policy (PAP) Explain the medical payments coverage Describe the uninsured motorists coverage Explain the coverage for damage to your auto Explain the duties imposed on the insured after an accident or loss The status of auto insurance in Chinese market Main Contents Brief introduction to the history of auto insurance from global perspective Liability Coverage of Personal Auto Policy (PAP) in USA Medical Payments Coverage Uninsured Motorists Coverage Coverage for Damage to Your Auto Duties after an Accident or Loss General Provisions History and Status of Auto Insurance in the World  The Automobile Insurance ( shorted as auto insurance) came into being in late 19th century on the basis of ocean marine insurance, fire insurance, theft insurance. UK was the first country established auto in 1896. USA is the No.1 in auto insurance in the world. Japan is the No.2. UK is the No.3. Auto Insurance in U.S. In 1898, the first auto liability insurance policy was established in U.S. In 1899, auto property loss insurance policy (physical damage coverage on atuo) came into being. In 1902, vehicle insurance came into being. Auto Insurance in U.S. In 2000, the total premium of auto insurance was $136 billion, covering 45.12% of the property insurance. Highlights: Auto insurance in 2000 in U.S. (billion) Brief introduction to PAP in U.S. The Personal Auto Policy (PAP) PAP was introduced in 1997 and has been revised several times. The following discussion is based on the latest 1998 edition of the PAP. Brief introduction to PAP Eligible Vehicles four-wheel motor vehicle owned by the insured or leased by the insured for at least six continuous months. Not apply to incidental use of vehicle Ranching or farming Brief introduction to PAP The PAP consists of a dec