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NON-RESIDENT AUTO POLICY
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
Throughout this policy the word ?you? and ?your? refer to the Named Insured shown in the Declarations or in any certificate of insurance issued as part of this policy. The words ?we?, ?us? and ?our? refer to the Company providing this insurance.
Words and phrases that appear in bold have special meaning. Refer to SECTION IV ? DEFINITIONS.
SECTION I ? COVERED AUTOS
A. DESCRIPTION OF COVERED AUTO
ITEM THREE of the Declarations or certificate of insurance issued as part of this policy shows the autos that are covered autos for each of your coverages. Only those autos described in ITEM THREE of the Declarations or on any certificate of insurance issued as part of this policy for which a premium charge is shown and any trailers you don?t own while attached to any power unit described in ITEM THREE are covered autos.
B. CERTAIN TRAILERS, MOBILE EQUIPMENT AND TEMPORARY SUBSTITUTE AUTOS
If Liability Coverage is provided by this insurance, the following types of vehicles are also covered autos for Liability Coverage:
1. Trailers with a load capacity of 2,000 pounds or less designed primarily for travel on public roads.
2. Mobile equipment while being carried or towed by a covered auto.
3. Any auto you do not own while used with the permission of its owner as a temporary substitute for a covered auto you own that is out of service because of its:
a. Breakdown;
b. Repair;
c. Servicing;
d. Loss; or
e. Destruction.
SECTION II ? LIABILITY COVERAGE
A. COVERAGE
We will pay all sums an insured legally must pay as damages because of bodily injury or property damage to which this insurance applies, caused by an accident and resulting from the ownership, maintenance or use of a covered auto.
We have the right and duty to defend any suit asking for these damages. However, we have no duty to defend suits for bodily injury or property damage not covered by this insurance. We may investigate and settle any claim or suit, as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements.
1. WHO IS AN INSURED
The following are insureds:
a. You for any covered auto.
b. Anyone else while using with your permission a covered auto you own, hire or borrow except:
(1) The owner of a covered auto you hire or borrow from one of your employees or a member of his or her household.
(2) Anyone other than your employees, partners, a lessee or borrower or any of their employees, while moving property to or from a covered auto.
(3) A partner of yours for a covered auto owned by him or her or a member of his or her household.
c. Anyone liable for the conduct of an insured described above but only to the extent of that liability. However, the owner or anyone else from whom you hire or borrow a covered auto is an insured only if that auto is a trailer connected to a covered auto you own.
2. COVERAGE EXTENSIONS
a. Supplementary Payments. In addition to the Limit of Insurance, we will pay for the insured:
(1) All expenses we incur.
(2) Up to $100 for cost of bail bonds (including bonds for related traffic law violations) required because of an accident we cover. We do not have to furnish these bonds.
(3) The cost of bonds to release attachments in any suit we defend, but only for bond amounts within our Limit of Insurance.
(4) All reasonable expenses incurred by the insured at our request, other than loss of earnings.
(5) All costs taxed against the insured in any suit we defend.
(6) All interest on the full amount of any judgment that accrues after entry of the judgment in any suit we defend; but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance.
b. Other State Coverage Extensions.
While a covered auto is in use in any state of the United States or in any province of Canada we will:
(1) Increase the Limit of Insurance for Liability coverage to meet the limit or limits specified by a compulsory or financial responsibility law in the jurisdiction where the covered auto is being used.
(2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehicles by the jurisdiction where the covered auto is being used.
We will not pay anyone more than once for the same elements of loss because of these extensions.
B. EXCLUSIONS
This insurance does not apply to any of the following:
1. EXPECTED OR INTENDED INJURY
Bodily Injury or property damage expected or intended from the standpoint of the insured.
2. CONTRACTUAL
Liability assumed under any contract or agreement.
3. WORKERS COMPENSATION
Any obligation for which the insured or the insured?s insurer may be held liable under any workers compensation, disability benefits or unemployment compensation law or any similar law.
4. EMPLOYEE INDEMNIFICATION AND EMPLOYER?S LIABILITY
Bodily injury to:
a. An employee of the insured arising out of and in the course of employment by the insured; or
b. The spouse, child, parent, brother or sister of that employee as a consequence of paragraph a. above.
This exclusion applies:
(1) Whether the insured may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
But this exclusion does not apply to bodily injury to domestic employees not entitled to workers compensation benefits.
5. FELLOW EMPLOYEE
Bodily Injury to any fellow employee of the insured arising out of and in the course of the fellow employee?s employment.
6. CARE, CUSTODY OR CONTROL
Property damage to property owned or transported by the insured or in the insured?s care, custody or control.
7. HANDLING OF PROPERTY
Bodily injury or property damage resulting from the handling of property:
a. Before it is moved from the place where it is accepted by the insured for movement into or onto the covered auto; or
b. After it is moved from the covered auto to the place where it is finally delivered by the insured.
8. MOVEMENT OF PROPERTY BY MECHANICAL DEVICE.
Bodily injury or property damage resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered auto.
9. OPERATIONS
Bodily injury or property damage arising out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of mobile equipment.
10. COMPLETED OPERATIONS
Bodily injury or property damage arising out of your work after that work has been completed or abandoned.
In this exclusion, your work means:
a. Work or operations performed by you or on your behalf; and
b. Materials, parts or equipment furnished in connection with such work or operations.
Your work includes warranties or representations made at any time with respect to the fitness, quality, durability or performance of any of the items included in paragraphs a. or b. above.
Your work will be deemed completed at the earliest of the following times:
(1) When all of the work called for in your contract has been completed.
(2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site.
(3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project.
Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.
11. POLLUTION
a. Bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of pollutants:
(1) That are, or that are contained in any property that is:
(a) Being transported or towed by, or handled for movement into, onto or from, the covered auto;
(b) Otherwise in the course of transit; or
(c) Being stored, disposed of, treated or processed in or upon the covered auto;
(2) Before the pollutants or any property in which the pollutants are contained are moved from the place where they are accepted by the insured for movement into or onto the covered auto; or
(3) After the pollutants or any property in which the pollutants are contained are moved from the covered auto to the place where they are finally delivered, disposed of or abandoned by the insured.
Paragraph a. (1)(c) does not apply to fuels, lubricants, fluids, exhaust gases or other similar pollutants that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered auto or its parts, if:
(1) The pollutants escape or are discharged, dispersed or released directly from an auto part designed by its manufacturer to hold, store, receive or dispose of such pollutants; and
(2) The bodily injury or property damage does not arise out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of mobile equipment.
Paragraphs a.(2) and a.(3) of this exclusion do not apply if:
(1) The pollutants or any property in which the pollutants are contained are upset, overturned or damaged as a result of the maintenance or use of a covered auto; and
(2) The discharge, dispersal, release or escape of the pollutants is caused directly by such upset, overturn or damage.
b. Any loss, cost or expense rising out of any governmental direction or request that you test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants.
Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.
12. WAR
Bodily injury or property damage due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement.
13. FAMILY MEMBERS
Bodily injury to you or any family member.
C. LIMIT OF INSURANCE
Regardless of the number of covered autos, insureds, premiums paid, claims made or vehicles involved in the accident, the limit of insurance is as follows:
1. The most we will pay for all damages resulting from bodily injury to any one person caused by any one accident is the limit of Bodily Injury Liability shown in the Schedule or in the declarations for each person.
2. Subject to the limit for each person, the most we will pay for all damages resulting from bodily injury caused by any one accident is the limit of Bodily Injury Liability shown in the Schedule or in the Declarations for each accident.
3. The most we will pay for all damages resulting from property damage caused by any one accident is the limit of Property Damage Liability shown in the Schedule or in the declarations; or if
Combined Liability and premium is indicated on the Declarations page then the limit of insurance is as follows:
Regardless of the number of covered autos, insureds, premiums paid, claims made or vehicles involved in the accident, the most we will pay for all damages resulting from any one accident is the Limit of Insurance for Liability Coverage shown in the Declarations.
All bodily injury and property damage resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one accident.
SECTION III ? CONDITIONS
The following conditions apply to this insurance:
A. LOSS CONDITIONS
1. DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS
a. In the event of accident, claim, suit or loss, you must give us or our authorized representative prompt notice of the accident or loss. Such notice must include:
(1) How, when and where the accident or loss occurred;
(2) The insured?s name and address; and
(3) To the extent possible, the names and addresses of any injured persons and witnesses.
b. Additionally, you and any other involved insured must:
(1) Assume no obligation, make no payment or incur no expense without our consent, except at the insured?s own cost.
(2) Immediately send us copies of any demand, notice, summons or legal paper received concerning the claim or suit.
(3) Cooperate with us in the investigation, settlement or defense of the claim or suit.
(4) Authorize us to obtain medical records or other pertinent information.
(5) Submit to examination, at our expense, by physicians of our choice, as often as we reasonably require.
c. Within 15 days after we receive your written notice of claim, we must:
(1) Acknowledge receipt of the claim.
If our acknowledgement of the claim is not in writing, we will keep a record of the date, method and content of our acknowledgment.
(2) begin any investigation of the claim.
(3) Specify the information you provide in accordance with paragraph b. above.
We may request more information, if during the investigation of the claim such additional information is necessary.
d. After we receive the information we request, we must notify you in writing whether the claim will be paid or has been denied or whether more information is needed:
(1) within 15 business days; or
(2) within 30 days if we have reason to believe the loss resulted from arson.
e. If we do not approve payment of your claim or require more time for processing you claim, we must:
(1) give the reasons for denying your claim, or
(2) give the reasons we require more time to process your claim. But, we must either approve or deny your claim within 45 days after our requesting more time.
f. In the event of a weather-related catastrophe or major natural disaster, as defined by the Texas Department of Insurance, the claim-handling deadlines as stated above are extended for an additional 15 days.
g. Loss Payment
(1) If we notify you that we will pay your claim, or part of your claim, we must pay within 5 business days after we notify you.
(2) If payment of your claim or part of your claim requires the performance of an act by you, we must pay within 5 business days after the date you perform the act.
h. Notice of Settlement of Liability Claim
(1) We will notify you in writing of any initial offer to compromise or settle a claim against you under the liability section of this policy. We will give you notice within 10 days after the date the offer is made.
(2) We will notify you in writing of any settlement of a claim against you under the liability section of this policy. We will give you notice within 30 days after the date of the settlement.
2. LEGAL ACTION AGAINST US
No one may bring a legal action against us under this insurance until:
a. There has been full compliance with all the terms of this insurance; and
b. Under Liability Coverage, we agree in writing that the insured has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an action to determine the insured?s liability.
3. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US
If any person or organization to or for whom we make payment under this insurance has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after accident or loss to impair them.
B. GENERAL CONDITIONS
1. BANKRUPTCY
Bankruptcy or insolvency of the insured or the insured?s estate will not relieve us of any obligations under this insurance.
2. CONCEALMENT, MISREPRESENTATION OR FRAUD
This insurance is void in any case of fraud by you relating to it. It is also void if you intentionally conceal or misrepresent a material fact concerning:
a. This insurance;
b. The covered auto; or
c. Your interest in the covered auto.
3. OTHER INSURANCE
a. For any covered auto you own, this insurance is primary insurance. For any covered auto you don?t own, this insurance is excess over any other collectible insurance. However, while a covered auto which is a trailer is connected to another vehicle, the Liability Coverage this insurance provides for the trailer is:
(1) Excess while it is connected to a motor vehicle you do not own.
(2) Primary while it is connected to a covered auto you own.
b. When this insurance and any other insurance or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our insurance bears to the total of the limits of all the Coverage Forms and policies covering on the same basis.
4. POLICY PERIOD, COVERAGE TERRITORY
Under this insurance, we cover accidents and losses occurring:
a. During the policy period shown in the Declarations; and
b. Within the coverage territory.
The coverage territory is:
(1) The United States of America; and
(2) Canada.
5. TWO OR MORE POLICIES ISSUED BY US
If this insurance and any other insurance or policy issued to you by us or any company affiliated with us apply to the same accident, the aggregate maximum Limit of Insurance under all the policies shall not exceed the highest applicable Limit of Insurance under any one policy. This condition does not apply to any policy issued by us or an affiliated company specifically to apply as excess insurance over this.
6. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER THIS POLICY
Your rights and duties under this policy may not be assigned without our written consent. However, if an insured shown in the Declarations dies, coverage will be provided for:
a. The surviving spouse if resident in the same household at the time of death. Coverage applies to the spouse as if an insured shown in the Declarations; or
b. The legal representative of the deceased person as if an insured shown in the Declarations. This applies only with respect to the representative?s legal responsibility to maintain or use your covered auto.
Coverage will be provided until the end of the policy period.
7. CANCELLATION
a. This policy may not be cancelled when written for a period of less than 30 days.
b. This policy may be cancelled when written for a period of 30 days or more as follows:
(1) The insured shown in the Declarations or any certificate of insurance 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 at least 10 days notice to the insured shown in the Declarations or any certificate of insurance at the address shown in this policy.
c. We may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of notice.
d. If this policy is cancelled, you may be entitled to a premium refund. If so, we will send you the refund promptly. The premium refund, if any, will be computed pro rata. However, making or offering to make the refund is not a condition of cancellation.
e. The effective date of cancellation stated in the notice shall become the end of the policy period.
f. Any cancellation or restriction of coverage made without your consent will be of no effect, except as:
(1) provided for in this Cancellation provision; or
(2) required by the Texas Department of Insurance.
g. We may not cancel a policy based solely on the fact that you are an elected official.
8. CHANGES
This policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us. If a change requires a premium adjustment, we will adjust the premium as of the effective date of change.
SECTION IV ? DEFINITIONS
A. Accident includes continuous or repeated exposure to the same conditions resulting in bodily injury or property damage.
B. Auto means a land motor vehicle, trailer or semitrailer designed for travel on public roads but does not include mobile equipment.
C. Bodily injury means bodily injury, sickness or disease sustained by a person including death resulting from any of these.
D. 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.
E. Insured means any person or organization qualifying as an insured in the Who is An Insured provision of the applicable coverage. Except with respect to the Limit of Insurance, the coverage afforded applies separately to each insured who is seeking coverage or against whom a claim or suit brought.
F. Loss means direct and accidental loss or damage.
G. Mobile equipment means any of the following types of land vehicles, including any attached machinery or equipment:
1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads;
2. Vehicles maintained for use solely on or next to premises you own or rent;
3. Vehicles that travel on crawler treads;
4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted;
a. Power cranes, shovels, loaders, diggers or drills; or
b. Road construction or resurfacing equipment such as graders, scrapers or rollers.
5. Vehicles not described in paragraphs 1., 2., 3., or 4. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types:
a. Air compressors, pumps and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting and well servicing equipment; or
b. Cherry pickers and similar devices used to raise or lower workers.
6. Vehicles not described in paragraphs 1., 2., 3., or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not mobile equipment but will be considered autos:
a. Equipment designed primarily for:
(1) Snow removal
(2) Road maintenance, but not construction or resurfacing; or
(3) Street cleaning;
b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and
c. Air compressors, pumps and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting or well servicing equipment.
H. Property damage means damage to or loss of use of tangible property.
I. Suit means a civil proceeding in which damages because of bodily injury or property damages to which this insurance applies are alleged. Suit includes an arbitration proceeding alleging such damages to which you must submit or submit with our consent.
J. Trailer includes semitrailer.
K. Business Day means a day other than a Saturday, Sunday or holiday recognized by the state of Texas.
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