AUTO PHYSICAL DAMAGE COVERAGE
FOR
THE
PURMS JOINT SELF-INSURANCE AGREEMENT
Adopted as of February 27, 1997
Overview of Coverages for PURMS Risk Pools
The Coverages Sections of the SIA set forth the Insuring
Agreements, Exclusions, and other terms and conditions which comprise the
Coverages provided by the Fund for the Members of its Risk Pools and, as
applicable, their Employees under the SIA.
The current Liability Coverage provided by the Fund for
Members of the Liability Pool includes:
Commercial General Liability (SIA § III, “CGL”); Public Officials &
Entity Liability (SIA § IV, “PO&E”); Automobile Liability (SIA § V); and
Pollution Liability (§ VI). The CGL Coverage was originally adopted on December 20, 1976, has
been amended from time to time, and was unanimously re-adopted by the Members
on December 7, 2001.
The PO&E, Automobile and Pollution Liability Coverages were first adopted
effective March 30, 1995.
The PO&E Coverage was unanimously re-adopted by the Members on December 7, 2001.
The current Property Coverage provided by the Fund for
Members of the Property Pool includes:
General Property Coverage (SIA § X) and Auto Physical Damage Coverage
(SIA § XI). Both of these Property Coverages were originally adopted effective February 27, 1997.
Members of the Property Pool may participate in either or
both Property Coverages (SIA § X and/or § XI).
Members of the Liability Pool must participate in all Liability
Coverages provided by the Fund (SIA § III - VI).
The current Health & Welfare Coverage provided by the
Fund for the Members of the H&W Pool is set forth in § XIV. The H&W
Coverage was originally adopted on March 16, 2000, effective April 1, 2000, and was amended and restated
and unanimously re-adopted by the Members as of December 7, 2001.
These Coverages, as amended from time to time pursuant to §
I, ¶ 5.2, are specifically incorporated into the Interlocal Agreement and shall
be deemed a part of that Agreement as if fully set forth therein.
AUTOMOBILE PHYSICAL DAMAGE COVERAGE
1.
Definitions for Auto Physical Damage
Coverage. The Definitions set
forth in the "Definitions" Section of the SIA (see, § II)
apply to the interpretation of the Coverage provided by this Auto Physical
Damage Coverage Section, except as may be modified specifically or by necessary
implication by the Definitions set forth below which are specific to the Auto
Physical Damage Coverage contained in this § XI.
1.1
Accident -- shall mean an
unusual, unintended, unexpected and unforeseen happening, including continuous
or repeated exposure to the same conditions, that causes Direct Physical Loss
or Damage to a Covered Auto arising from the use thereof by a Member (as
defined specifically in § XI, ¶ 1.13) and which occurred at a time when the
Member requesting the Auto Physical Damage Coverage was a Member of the
Property Pool.
1.2
Actual Cash Value -- shall mean
the Replacement Cost less depreciation (see § XI, ¶ 10,
Valuation of Auto Loss).
1.3
Auto -- shall mean a land motor
vehicle, trailer or semi-trailer designed for travel on public roads, but does
not include Mobile Equipment, except for the types of
"self-propelled" Mobile Equipment identified in § XI, ¶ 1.14.
1.4
Auto Claim -- shall mean a
Property Claim for an Auto Loss.
1.5
Auto Loss - shall mean a Property
Loss to a Covered Auto arising from an Accident.
1.6
Auto Loss Amount - shall mean the
Property Loss Amount for an Auto Loss.
1.7
Auto Physical Damage Coverage Limit
- shall mean the Property Coverage Limit for the General Property Coverage Section
(§ X) which shall be applied in the manner set forth therein to all Covered
Auto Physical Damage Claims and/or to all Covered Property Claims involving
Property Loss (including Auto Loss) arising from a single Property Loss.
1.8
Covered Auto -- shall mean:
1.8.1
Owned Autos -- Those Autos owned by a
Member including owned private passenger Autos and Owned Autos other than
private passenger Autos, and including trailers not owned by the Member but
attached to power units the Member does own; provided such property (except for
trailers not owned by a Member) constitutes Insured Property (i.e., such
property is identified to the Member in the Schedule of Values maintained by
the Administrator or is subject to one of the exceptions thereto set forth in §
X, ¶¶ 3.2.1 and 12.1.1, as Newly Acquired Property, or ¶ 3.2.2, as property
inadvertently omitted from the Schedule of Values).
1.8.2
Hired Autos -- Those Autos that are
leased, hired, rented or borrowed by a Member, or by an Employee for the
Member's account or by the Employee personally, in connection with PUD
Business; provided such property constitutes Insured Property; and subject to
the Other Insurance provisions of § XI, ¶ 16.
1.8.3
Non-Owned Autos -- Autos that are not
owned, leased, hired, rented or borrowed by a Member, but that are used in
connection with the Member's Public Utility Operations; provided such property
constitutes Insured Property under § X, ¶ 3.2, as property listed in the
Schedule of Values, or ¶¶ 3.2.1 and 12.1.1, as Leased Property, or ¶.3.2.2, as
property inadvertently omitted from the Schedule of Values; and, subject to the
Other Insurance provisions of § XI, ¶ 16.
"Non-Owned Autos" includes Autos owned by the Member's
Employees or members of such Employee's households, but only while used in
connection with the Member's PUD Business.
1.8.4
Other Covered Autos -- shall mean:
1.8.4(a) Trailers -- which have a load capacity of 2,000 lbs. or
less designed primarily for travel on public roads, provided such property
constitutes Insured Property;
1.8.4(b) Mobile
Equipment -- while being carried or towed by a Covered
Auto, provided such property constitutes Insured Property;
1.8.4(c) Substitute Autos -- which means any Auto a Member does not
own, while used with the permission of its owner as a temporary substitute for
a Covered Auto a Member does own that is out of service because of breakdown,
repair, servicing, loss or destruction, provided such property constitutes
Insured Property.
1.9
Covered Auto Physical Damage Claim
-- shall mean a Property Claim filed with the Administrator by a Member, on
behalf of the Member or one or more of its Employees, arising out of an
Accident causing Direct Physical Loss or Damage to a Covered Auto, which
occurred at a time when the Member requesting Auto Physical Damage Coverage for
the Property Claim was a Member of the Property Pool, and for which Auto
Physical Damage Coverage is provided by the Fund pursuant to the terms of the
Auto Physical Damage Coverage Section (see § XI).
1.10
Direct Physical Loss or Damage --
shall mean destruction of or damage to a Covered Auto as a result of an
Accident (see definition of Property Loss, § X, ¶ 1.42, and terms of
General Property Coverage set forth in § X, ¶ 4).
1.11
Employee's Auto -- shall mean an
Auto owned by an Employee, or a Member of his or her family, which shall be
treated as a Non-Owned Auto for purposes of coverage under the Auto Physical
Damage Coverage Section.
1.12
Leased Autos -- shall mean Hired Autos and/or
Substitute Autos, which shall be subject to Property Coverage as "Leased
Property" pursuant to § X, ¶¶ 3.2.1 and 12.1.1 and shall be subject to
Property Assessments based on their Insured Values as determined for Leased
Property in § X, ¶ 3.3.
1.13
Member -- for purposes of ¶ 2 of
the Auto Physical Damage Coverage Section, shall mean any person or
organization qualifying as a "Member" as follows:
1.13.1
The Member or its Employees, for any Covered Auto
(except for an Employee with respect to a Non-Owned Auto);
1.13.2
Any Employee, and members of the Employee's household,
while using any Covered Auto, other than a Non-Owned Auto, with the Member's
express or tacit permission and in connection with PUD Business, except the owner or anyone else from whom the
Member hired or borrowed a Covered Auto (provided, this exception does not
apply if such "owner or anyone else" is an Employee or if the Covered
Auto is a "trailer" connected to a "Covered Auto" that
qualifies as an Owned Auto);
1.13.3
Any Employee, and members of the Employee's household,
if the Covered Auto is owned by that Employee or a member of his or her
household or by another Employee of the Member; provided the Employee is using
any Non-Owned Auto with the Member's express or tacit permission and such use
is in connection with PUD Business; and
1.13.4
Any Third Party, while using a Covered Auto with the
express permission of a Member or Employee, but only if such use is in
connection with the Member's Public Utility Operations.
1.14
Mobile Equipment -- shall mean any
of the following types of land vehicles, including any attached machinery or
equipment:
1.14.1
Bulldozers, farm machinery, forklifts, and other
vehicles designed for use principally off the public road;
1.14.2
Autos maintained for use solely on or next to Insured Premises
owned or rented by a Member;
1.14.3
Autos that travel on crawler tread;
1.14.4
Autos, whether self-propelled or not, maintained
primarily to provide mobility to permanently mounted:
1.14.4(a) Power cranes,
shovels, loaders, diggers, or drills; or
1.14.4(b) Road construction or resurfacing equipment
such as graders, scrapers or rollers.
1.14.5
Autos not described in ¶ 1.14.1 through 1.14.4 above
that are not elf-propelled and are maintained primarily to provide mobility to
permanently attached equipment of the following types:
1.14.5(a) Air compressors, pumps, and generators,
including spraying, welding, building, cleaning, geophysical exploration,
lighting and well servicing equipment; or
1.14.5(b) Cherry pickers and
similar devices used to raise or lower workers.
1.14.6
Autos not described in ¶¶ 1.14.1 through 1.14.4 above
maintained primarily for purposes other than the transportation of persons or
cargo. However, self-propelled Autos
with the following types of permanently attached equipment are not "Mobile
Equipment" but will be considered "Autos":
1.14.6(a) Equipment designed primarily for snow removal, road
maintenance (but not construction or resurfacing), or street cleaning;
1.14.6(b) Cherry pickers and
similar devices mounted on Auto or truck chassis and used to raise or lower
workers; and
1.14.6(c) Air compressors,
pumps and generators, including spraying, welding, building, cleaning,
geophysical exploration, lighting or well servicing equipment.
1.15
Newly Acquired Autos -- shall
mean an Owned Auto acquired by a Member which is subject to Property Coverage
as "Newly Acquired Property" pursuant to § X, ¶¶ 3.2.1 and 12.1.1,
and shall be subject to Property Assessments based on their Insured Values as
determined for "Newly Acquired Property" in § X, ¶ 3.3.
1.16
Public Utility Operations --
shall mean the operations of the Member relating to, arising from or associated
with the production, transmission, delivery or furnishing of electricity, gas, water
or sewer Services to the public, including the ownership, operation, management
or control of any plant or equipment used in connection therewith.
1.17
PUD Business -- for the purposes
of this Auto Physical Damage Coverage Section, shall mean all activities
falling within the definition of Public Utility Operations which involve the
use of a Covered Auto, and all business activities related thereto (such as
attending seminars, conventions, trade association meetings, etc.) involving
the use of a Covered Auto, so long as the primary purpose for such use is
related to PUD Business activities and any use thereof for personal purposes is
incidental to such business use.
1.18
Replacement Cost -- shall mean
the amount it would take to replace the damaged or destroyed property with
property of like kind and quality, determined at the time and place of the Auto
Loss (see §X, ¶ 10, "Valuation of Property Loss"), including
sales tax and the reasonable cost of installation.
1.19
Salvage -- shall mean any payment
due or received by a Member for selling a damaged Covered Auto that is not
repairable or is determined by the Administrator to be uneconomical to
repair. All Salvages, recoveries and
payments owed or made to a Member from a Third Party purchaser of Salvage
(including an Employee), excluding proceeds from Subrogation, shall reduce the
Members' Auto Loss Amount accordingly (see § X, ¶ 18).
1.20
Schedule of Values -- shall mean
the information maintained by the Administrator regarding Members' Covered
Autos which shall be used by the Fund, among other things, in establishing
whether a Member's Auto is Insured Property, and in determining Members'
Assessment Shares under the Property Assessment Formulas (see § X, ¶ 3).
2. Interest and Property Insured. The Fund, through the Property Pool, agrees
to provide Auto Physical Damage Coverage and under such Coverage to pay to or
on behalf of any Member (or one or more Employees at the request of a Member)
all Auto Loss Amounts incurred arising out of an Accident involving a Covered
Auto used by a Member (as defined in § XI, ¶ 1.13) (and subject to the terms,
conditions, limitations, exceptions, exclusions, provisions and stipulations of
this Auto Physical Damage Coverage Section and the applicable terms and
conditions of the General Property Coverage Section); provided, however, that
the Auto Physical Damage Coverage for Hired Autos (¶ 1.8.2), Non-Owned Autos (¶
1.8.3) and Substitute Autos (¶ 1.8.4(c)) shall be deemed "excess
insurance" if and to the extent there is Other Insurance available (see
§ XI, ¶ 16).
3. Schedule of Values. The terms and conditions of § X, ¶ 3 of the
General Property Coverage Section shall govern the determination of whether an
Auto constitutes "Insured Property" in the event of an Auto Loss, and
what Insured Value shall be identified to the Member for the Covered Auto in
the Schedule of Values for purposes of Property Assessments.
4. Auto Physical Damage Coverage Limit. The
Fund shall not be obligated to pay an amount in excess of the Property Coverage
Limit established by the Board for one or more Covered Property Claims (and/or
Covered Auto Physical Damage Claims) arising out of any one Property Loss
(and/or Auto Loss), irrespective of the number of Members or Employees whose
property may be involved in the Property Loss (and/or Auto Loss) or the total
value of their Property Loss Amounts (and/or Auto Loss Amounts), and subject to
all other terms and conditions of § X, ¶ 4 regarding the Property Coverage
Limit.
5. Coverage Territory. This Auto Physical Damage Coverage shall
apply to all Covered Autos worldwide.
6. Perils Insured Against. This Auto Physical Damage Coverage Section
provides Property Coverage for a Member's Covered Autos while being used by a
Member against all risks of Direct Physical Loss or Damage arising out of or
resulting from an Accident that occurs while the Member is a Member of the
Property Pool, except for the Perils excluded in ¶ 9 hereinafter, and subject
to the conditions, limitations, exceptions, provisions and stipulations of this
Auto Physical Damage Coverage Section.
7. Assigned Deductibles. The terms and conditions of § X,
¶ 7 of the General Property Coverage Section regarding "Assigned
Deductibles" shall govern the determination of the amounts of Members' Assigned
Deductibles for Covered Autos and the amount of Deductible applicable to an
Auto Loss.
8. Property Excluded. This Auto Physical Damage Coverage Section
excludes Coverage for Direct Physical Loss or Damage to any property that does
not constitute a Covered Auto and/or its equipment.
9. Perils Excluded.
This Auto Physical Damage Coverage Section excludes Coverage for:
9.1
Wear and tear, freezing, mechanical or electrical
breakdown, unless caused by other Auto Loss covered by this Auto Physical
Damage Coverage;
9.2
Blow-outs, punctures or other road damage to tires,
unless caused by other Auto Loss covered by this Auto Physical Damage Coverage:
9.3
Auto Loss caused by declared or undeclared war or
insurrection or any of their consequences;
9.4
Auto Loss caused by explosion of a nuclear weapon or
its consequences;
9.5
Auto Loss caused by radioactive contamination;
9.6
Loss or damage to tape decks or other sound recording
equipment not permanently installed in a Covered Auto, except for radio communications
equipment which is not Excluded hereunder;
9.7
Loss or damage to tapes, records or other sound
reproducing devices designed for use with sound reproducing equipment.
10. Valuation of Auto Loss. In the event an Auto Loss gives rise to a
Covered Auto Physical Damage Claim under this Auto Physical Damage Coverage,
the Auto Loss Amount for the Covered Auto shall be determined as follows:
10.1
Replacement Cost. For a Covered Auto that is repaired or
replaced, payment will be made at Replacement Cost.
10.2
Actual Cash Value. For a Covered Auto which the Member chooses
not to repair or replace, the Member will be paid Actual Cash Value.
11. Coverage Conditions. The "Coverage Conditions/Notice"
provisions of § X, ¶ 12.1.1 and the "Follow-Up Assessment for Insured
Property Not Listed in the Schedule of Values at the Time of a Property
Assessment" provisions of § X, ¶ 12.1.2 of the Property Coverage
Section shall apply to Covered Autos as follows: (a) "Newly Acquired Property"
shall include "Owned Autos", which shall be treated as "Newly
Acquired Property" thereunder; (b) "Leased Autos" shall
include "Hired Autos" and "Substitute Autos", which shall
be treated as "Leased Property" thereunder; and (c) "Employees'
Autos" shall include "Non-Owned Autos" and "Substitute
Autos", which shall be treated as "Employees' Property" under
¶ 2.1.5 of the General Property Coverage Section.
12. Duties of the Member in the Event of an Auto Loss.
12.1
Notice of Accident to Administrator. The Member must promptly notify the Administrator
of any Accident causing an Auto Loss.
The Member must inform the Administrator how, when and where the
Accident occurred. The Member must also
assist the Administrator in obtaining the names and addresses of any injured
persons and/or witnesses.
12.2
Duty to Cooperate. The Member must cooperate with the
Administrator and the Fund in the investigation and settlement of any Property
Claim or the prosecution or defense of any claim or suit relating thereto.
12.3
Legal Papers. The Member must promptly send the
Administrator copies of any notices or legal papers received in connection with
the Accident.
12.4
Inspection, Protection of Damaged Property, and
Notice to Police. To
recover for a loss to a Covered Auto, the Member also must do the following in
a timely manner:
12.4.1
Permit the Fund to inspect and appraise the damaged
Covered Auto before its repair or disposition;
12.4.2
Do what is reasonably necessary after an Auto Loss, at
the Fund's expense, to protect the Covered Auto from further loss or damage;
and
12.4.3
Promptly notify the police regarding any Accident
involving the Covered Auto, or if any equipment of the Covered Auto is stolen.
13. Order of Coverage Payments. The terms and conditions of § X,
¶ 13 of the General Property Coverage Section shall apply to Covered Auto
Physical Damage Claims filed under this Auto Physical Damage Coverage Section,
and for purposes of determining the "Order of Coverage Payments" for
any Property Loss involving a Covered Auto, a Covered Auto Physical Damage
Claim shall be paid under Coverage A of the General Property Coverage
Section.
14. Appraisals to Establish Insured Values. The Insured Values of all Members' Covered
Autos shall be established pursuant to the Appraisal process set forth in
§ X, ¶ 14 of the General Property Coverage Section, or pursuant to
§ X, ¶ 3.3 thereof.
15. Multiple Perils.
Multiple Auto Claims arising out of a single Accident, even if filed by
several different Members on their own behalf or on behalf of their Employees,
shall be deemed to be a single Auto Claim.
The Fund shall not be liable for any Auto Loss occurring before the date
a Member becomes a Member of the Property Pool, or any Auto Loss occurring
after the effective date of a Member's Withdrawal from the Property Pool.
16. Other Insurance and Third-Party Indemnifications.
16.1
Auto Physical Damage Coverage is Excess to Specific
Other Insurance. In
the event of an Auto Loss, if there is Other Insurance (including Third-Party
Indemnifications) in force covering any Covered Auto against any or all the damage
or losses also covered under this Auto Physical Damage Coverage, or if there is
any Other Insurance covering more specifically any peril which occasioned such
damage or loss, or which would cover the same in the case of any of the
foregoing but for the existence of this Auto Physical Damage Coverage, this
Auto Physical Damage Coverage shall be further limited to the excess, if any,
beyond the amount which is or would have been payable under such Other
Insurance had this Coverage not been in effect, but in no event exceeding the
Auto Physical Damage Coverage Limit. It
is the intention of this Auto Physical Damage Coverage Section to be construed
as the initial surplus or excess insurance where any specific Other Insurance
exists on any or all of the Covered Autos, and this Auto Physical Damage
Coverage Section shall not apply or contribute until the amount collectible
from such specific Other Insurance shall be exhausted.
16.2
Reimbursement of Member for Other Insurance
Collected/Additional Excess Property Insurance Permitted. The Member shall be reimbursed to the extent
of the difference between the amount collected from such specific Other
Insurance and the amount of the Auto Loss sustained and paid by the Member, not
exceeding, however, the Auto Physical Damage Coverage Limit. Further surplus or excess insurance beyond
the Auto Physical Damage Coverage Limit and the coverage limit of the Primary
Excess Property Insurance Coverage is permitted, it being understood that any
such excess or surplus insurance shall not be considered or held as
contributing "Other Insurance" under this paragraph. This Auto Physical Damage Coverage Section
does not in any way alter the Fund's Right of Subrogation set forth in ¶ 17
herein.
17. Fund's Right of Subrogation. In the event the
Fund makes any Property Coverage Payment for an Auto Loss under this Auto
Physical Damage Coverage Section, the Fund shall be subrogated to the extent of
such Payment to all Members' rights of recovery against any Third Party or
Employee; provided, however, that the Fund shall not exercise its Subrogation
Rights against any Employee whose acts or omissions caused or contributed to
the Property Loss so long as such Employee was acting in good faith and within
the scope of his/her employment with the Member. The Member shall execute timely all papers
required and do anything that may be necessary at the expense of the Fund to
secure such right. The Fund will act in
concert with all interested parties in the exercise of such rights of
recovery. If any amount is recovered as
a result of such proceedings, the net amount recovered, after deducting the
costs of recovery, shall be divided among the interested parties in proportion
to their respective interests. If there
should be no recovery, the expense of the proceeding shall be borne by the
Property Pool.
18. Salvage and Third-Party Recoveries. In the event
of any Salvage or recovery against a Third Party arising out of an Auto Loss,
such Salvage or Third-Party Recovery shall accrue entirely to the benefit of
the Fund until the Fund has been reimbursed in full for all sums it has paid in
connection with the Auto Loss, including Property Claim Costs incurred in
connection with resolving the Covered Auto Physical Damage Claim and any
litigation costs the Fund incurred to obtain any Third-Party Recovery. The Member shall permit the Administrator to
inspect the damaged Auto and any records proving the Auto Loss. The Member shall also permit the
Administrator to take samples of the damaged Auto for inspection, testing and
analysis. The Member must notify the
Administrator of the nature and extent of the interest of the Member and all
others in the damaged Auto. The right to inspect or the inspection itself
does not in any way generate a representation by the Fund that the Member's
Auto is safe, not harmful to health or complies with law, rule or regulations
regarding Auto usage.
19. No Benefit to Bailee. This Auto Physical Damage
Coverage Section shall in no way inure directly or indirectly to the benefit of
any carrier or other bailee.
20. Privilege to Adjust With Owner. In the event of
an Auto loss to a Covered Auto owned by a Third Party for which the Member
makes an Auto Claim upon the Fund, the right to adjust such loss or damage with
the owner or owners of the Covered Auto is reserved to the Fund, and the
receipt of such owner or owners in satisfaction thereof shall be in full
satisfaction of any Auto Claim of the Member for which such payment has been
made. If legal proceedings are
instituted to enforce a claim against the Member with respect to such Auto
Loss, the Fund reserves the right at its option, without expense to the Member,
to conduct or control the defense on behalf of and in the name of the
Member. No acts of the Fund in such
regard shall increase the obligation of the Fund under this Auto Physical
Damage Coverage Section, nor increase the Auto Physical Damage Coverage Limit
applying to such Auto Loss.