8.6 Policy Period & Territory Copy

Policy Period & Territory

The auto policy applies only to accidents and losses that occur during the policy period as shown in the declarations. The personal auto policy is an occurrence type policy, not a claims-made policy.

The accidents and losses also have to occur within the policy territory.

THE POLICY TERRITORY IS THE U.S. ITS TERRITORIES OR POSSESSIONS, PUERTO RICO, AND CANADA.

Termination

This provision has four parts:

• Cancellation by the named insured or by the insurer:
  The named insured may cancel the policy by returning the policy to the insurer, or by sending advance written notice of the date of cancellation. The insurance company’s liability to cancel the policy depends on how long the policy has been in effect.

 If the policy has been in effect less than 60 days, the insurance company can cancel upon 10 days’ notice without a specific reason.

• Non-renewal
• Automatic termination
• Termination provisions

Transfer of Your Interest in This Policy

Transferring the rights and duties of the personal auto policy is called an assignment. This general provision holds that assignment cannot be done without the written consent of the insurer-unless the reason for the assignment is the death of the named insured.

Two or More Auto Policies

The final general provision in the personal auto policy deals with stacking. The insurer makes the point that if the auto policy and any other auto insurance policy issued to the named insured by the insurer applies to the same accident, the maximum limit of the insurer’s liability under all the policies will not exceed the highest applicable limit of liability under anyone policy.