Definitions used in the ISO personal car insurance policy form


Accident

The ISO personal auto policy uses the terms auto accident, accident, and accidental, without specifically defining any of those terms. Many of the policy forms used by insurers that do not employ the ISO personal auto policy do define accident. Most such definitions incorporate some form of unexpected or unintended language. This is to make clear the fundamental concept that insurance applies only to fortuitous losses, not to expected or intended losses.

Bodily Injury

Bodily Injury means bodily harm, sickness, or disease, including death that results. This is essentially the same as the bodily injury definition of the ISO HO 3 homeowners policy's liability coverage. Occasional variations are seen in other policies, but this is a standard and workable definition.

Business

Business includes trade, profession or occupation. Not all personal auto policies contain a definition of business.

Family Member

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. Other insurers' definitions can add qualifications that eliminate coverage for wards or foster children or for children who have manifested an intent to reside elsewhere permanently. Where you need to be careful is if you have children who reside temporarily elsewhere because they are attending school or are in the military, but whose legal address is still your residence.

You need to assure that your policy's definition of family member extends to your children in such a situation in order to assure that they continue to qualify as insureds under your policy. If the definition of family member does not extend to such circumstances, then it may be necessary to obtain a separate policy to cover your child's use of vehicles while temporarily away at school or in the military.

Occupying

Occupying means in, upon, or getting in, on, out, or off. This definition relates to a very important concept applicable to auto liability insurance. Historically, the insuring agreements of many auto policies stated in substance and effect that coverage applied to liability arising out of the ownership, maintenance, or use of covered autos. Over the decades, there has been an enormous amount of litigation over what constitutes ownership, maintenance, or use of covered autos. Occupying will be discussed in greater detail in the discussion on liability coverages of auto policies. Suffice it to say for now that the concept of occupying a covered auto is one that relates to what constitutes ownership, maintenance, or use of covered autos.

Property Damage

Property damage means physical injury to tangible property, including its loss of use. This is essentially the same definition as appears in homeowner's liability coverage. The discussion of the property damage definitions of homeowners policies also applies to the concept of property damage under auto liability coverages.

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