Rental Car while on business

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Posted: Tue Jun 02, 2009 5:40 am Post subject:

Interesting discussion by one LeRoy Utschig, CPCU, on the effect of Symbol 8 in a note titled "Individual Named Insured" and "Drive Other Car" Coverage. LeRoy outlines a situation where Joe, in the sporting goods business, is the named insured on a Business Auto Policy. His son, Mike, rents a SUV for a vacation trip. Mike gets into an accident, and demands coverage under Symbol 8. The upshot: "The "you" in this case is Joe. Had Joe rented the vehicle, there would have been coverage. However, it was Joe's son who leased the vehicle, so Joe's policy did not provide any coverage." _________________ Register Now to have your Insurance queries solved.

flint

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Posted: Tue Jun 02, 2009 5:40 am Post subject:

What I'm saying is that it does not matter who "you" is on the BAP (it is the named insured and it does not matter if it's the employee) as an employee is considered an insured under the BAP as mentioned in my prior post. Yes, the PAP provides coverage to their insured but if the employe is in a rental and he/she is acting in the course of their employment and the BAP has symbol 8 for liability, then the BAP is primary on the rental car.

tcope

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Posted: Tue Jun 02, 2009 5:48 am Post subject:

Quote:

His son, Mike, rents a SUV for a vacation trip. Mike gets into an accident, and demands coverage under Symbol 8.

I'm guessing Mike was not acting as an employee at the time of the rental so he's not an insured. Yes, liability is always afford to the named insured as "you" as long as it's a "covered auto". I do stand corrected, there is a definition of "you" but it's simply the named insured. On a BAP this is not a big point as the named insured is going to be a company, usually not a person.

I tend not to get into hypothetical discussions as they never have an ending.

tcope

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Posted: Tue Jun 02, 2009 6:14 am Post subject:

Didn't mean to be tiresome, tcope. All this is just academic to me, and I've nothing better to do with my time. _________________ Register Now to have your Insurance queries solved.