Regulations of Insurers and policies

Insurers are required to use only approved forms for their policies, which are determined by the Superintendent. While insurers may require additional information on these forms, this additional information is not considered part of the application for insurance purposes.

If a provision of this division is not appropriate for a contract or inapplicable due to the requirements of another act, the Superintendent can approve a form that is sufficient to insure the risks involved.

The policy or endorsement issued in this way is considered binding even if its terms contradict those outlined in this division. The Superintendent may also approve a form that extends insurance beyond what is required by this division if it is in the public interest, but an additional premium may be charged for this coverage. If approval is revoked by the Superintendent, insurers may no longer use the corresponding forms.

Note: Individuals or entities involved in financing, automobile sales, insurance, or related fields may not sign an application for automobile insurance on behalf of an applicant.

When a policy is issued, it must include either a copy of the written application signed by the insured or their agent, or a copy of the relevant portion of the application if there was no signed application.

If no signed application is received by the insurer, they must provide a form for the insured to complete and sign. The insurer must also deliver or mail the policy or a true copy of it, as well as any endorsements or amendments to the contract, to the insured or their agent. If a written application was submitted, the policy is considered to be in accordance with it unless the insurer notifies the insured otherwise.

Statutory requirements

These conditions are legal requirements that are included in every automobile insurance policy, regardless of the insurer or the policy terms.

The requirement for the insured party to notify the insurer of any material change in risk. This means that if the risk associated with the insured automobile changes in any way (such as if the vehicle is sold or a lien is placed on it), the insured party must notify the insurer in writing as soon as possible.

The prohibited use of the insured automobile. It outlines specific circumstances under which the insured party is not allowed to drive or permit someone else to drive the automobile. These circumstances include driving while under the influence of drugs or alcohol, allowing an unqualified or unauthorized person to drive the automobile, using the automobile for illicit or prohibited purposes, and participating in races or speed tests.

The requirements that the insured party must follow in the event of an accident involving the insured automobile. These requirements include providing written notice to the insurer, verifying the claim with a statutory declaration if requested, and forwarding any documents related to the claim to the insurer. The insured party is not allowed to assume any liability or interfere in any negotiations or legal proceedings related to the claim. Additionally, the insured party must cooperate with the insurer in securing information, evidence, and witness testimony as needed.

The fourth condition applies specifically to situations where the insured automobile is lost or damaged. The insured party must promptly notify the insurer in writing, protect the automobile from further loss or damage, and provide a statutory declaration to the insurer within 90 days of the loss or damage. The insured party is not allowed to undertake any repairs or remove any physical evidence of the loss or damage without the written consent of the insurer.

Policy

If the named insured dies, section 8-44 specifies who is deemed to be insured under the policy, including the deceased named insured's spouse if residing in the same dwelling place, any person having temporary custody of the described automobile until probate or administration is granted to the executor or administrator, and the personal representative of the deceased named insured.

non-owner's policies, which provide coverage for the person named in the contract and any other person specified in the policy. Coverage is provided for liability imposed by law on the insured named in the contract or that other person, for bodily injury or death of any person, and loss of or damage to property, arising from the use or operation of an automobile within the definition of automobile in the policy, other than an automobile owned by or registered in the name of the insured named in the contract or that other person.

a person with a lien on an automobile or legal title to the automobile as security is not deemed to be the owner of the automobile for the purposes of this division.

any person insured by but not named in the contract may recover indemnity in the same manner and to the same extent as if named in the contract as the insured. Such person is deemed to be a party to the contract and to have given consideration for the contract.

the liability of the insurer under a motor vehicle liability policy, including the duty to investigate, negotiate, and settle claims resulting from an accident involving the insured automobile, defend the insured against any action brought against them on account of loss or damage to persons or property, pay costs and interest on any judgment within the limits of the insurer's liability, and reimburse the insured for immediate medical aid if the injury is to a person.

Exceptions

The exceptions to the liability of the insurer under a motor vehicle liability policy, such as where the insured has breached a term or condition of the policy or where the insured has used the automobile to commit a criminal offence.

Excess coverage

Excess insurance is an optional coverage that provides additional protection beyond the minimum required coverage in a liability policy. It allows policyholders to purchase higher coverage limits for greater financial security in the event of an accident or lawsuit. The excess insurance policy kicks in after the primary policy's coverage has been exhausted. Additionally, a deductible is an amount a policyholder agrees to pay out-of-pocket before insurance kicks in.

It is possible to enter into an agreement with an insurer under a motor vehicle liability policy to reimburse the insurer in an agreed amount for the deductible amount with respect to any claim by or judgment in favour of a third party against the insured, and the agreement may be enforced against the insured.

Claims

When an individual has more than one policy, determining which insurer is liable is done through a court application where an order may be given directing the performance of the obligation to defend in the name of and on behalf of the insured.

Any person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, even if that person is not a party to the contract, may apply to have the insurance money payable under the contract applied towards satisfaction of the judgment and of any other judgments or claims against the insured covered by the contract.

SK Insurance Act s.8-41-8-95