Business Automobile Policy (bap)
Definition of "Business automobile policy (bap)"
Coverage for automobiles used by a business when a liability judgment arises out of the use of the automobile, or the automobile is subject to damage or destruction. The business can select coverage for any auto in use,. whether business, personal, or hired. The policy is organized as follows:
- Parts I, II, and III define terms used in the policy, such as auto, accident, insured bodily injury, property damage, territorial limits of coverage.
- Part IV LIABILITY INSURANCE in a liability judgment against the insured business and/or individual, the insurance company will pay the monetary damages up to the limit of the policy. Negligent acts and/or omissions of the insured business and/or individual must arise out of the ownership and operation of a covered auto, subject to specific exclusions.
- Part V physical damage insurance in the event of damage to an auto, the insurance company will pay under one of two categories: COMPREHENSIVE INSURANCE-damage resulting from fire, explosion, theft, vandalism, malicious mischief, windstorm, hail, earthquake, or flood; or collision insurance damage resulting from colliding with another object or the overturning of the insured auto.
- Part VI CONDITION stipulate what the policyholder must do in the event of a loss, such as give notice to the insurance company; submit proof of the loss; submit to inspection of damaged property by the company; cooperate with the company in the event of a liability suit.
Popular Insurance Terms
Entitlement of an employee to benefits immediately upon entering a retirement plan. As benefits are earned, they are credited to the employee's account. These "portable" future benefits can ...
Amount of uncertainty in a given situation. Probability that actual experience will be different from what is expected. ...
Period of time of insurance coverage. If a loss occurs during this time, insurance benefits are paid. If a loss occurs after this time period has expired, no insurance benefits are paid. ...
Qualified retirement plan under the internal revenue code Section 457 for employees of the states and political subdivisions within the states. ...
Risk management technique that evaluates property exposures preparatory to managing the risk. Although risk managers consider the original cost, depreciation, market value, and ...
Procedure in employee benefit plans to calculate life insurance and retirement benefits to which an employee is entitled. ...
Life insurance on the life of a child that provides a death benefit to a beneficiary should the child die during a stipulated time period and the maturity value of the policy at the end of ...
Aggregate sums, in certain states, to pay claims of insolvent insurance companies. These funds are maintained by contributions of companies operating in a particular state in proportion to ...
Same as term Funded Pension Plan: plan in which funds are currently allocated to purchase retirement benefits. An employee is thus assured of receiving retirement payments, even if the ...
Have a question or comment?
We're here to help.