Topics covered: Snowmobile endorsement

Definitions

Covered persons

Exclusions, Other Insurance

Rating

Snowmobile Endorsement

PP 03 20 01 05

 The snowmobile endorsement to the personal auto policy is like the miscellaneous type vehicle endorsement discussed elsewhere in this section. See Miscellaneous Type Vehicle Endorsement for a discussion. It has a schedule of vehicles, premiums, and limits of liability, and consists of provisions that alter the personal auto policy to make it suitable for insuring snowmobiles. These pages describe the snowmobile endorsement's (PP 03 20) alterations of the personal auto policy (the 2005 edition of the PAP).

 Definitions

 "Snowmobile" is defined as a land motor vehicle designed for use mainly off public roads on snow or ice, and propelled solely by wheels, crawler-type treads, or belts. The endorsement specifies that a vehicle powered by airplane type propellers or fans (an ice boat, for example) is not a snowmobile. The definition does, however, include a trailer designed for being towed by a snowmobile. In contrast, a trailer used for transporting a snowmobile is not included in the definition. The term "snowmobile," as defined, replaces the terms "auto," "motor vehicle," and "vehicle" in all parts of the personal auto policy, except for uninsured motorists coverage. There, the term "uninsured motor vehicle" is expanded to include a snowmobile, even though other vehicles operated on rails or crawler-treads are specifically stated not to be uninsured motor vehicles.

 "Your covered snowmobile," the term that replaces "your covered auto" throughout the policy, includes a snowmobile described in the endorsement's schedule. It also includes a snowmobile the named insured acquires during the policy period, from the date ownership begins, provided the named insured asks the insurance company to insure it within fourteen days after becoming the owner. This differs from the usual personal auto coverage of newly acquired autos in that, here, fourteen days' notice is required for replacement and additional snowmobiles alike. Under the personal auto policy, a replacement auto is covered for liability, medical payments, and uninsured motorists coverage for the remainder of the policy period even if longer than fourteen days. "Your covered snowmobile" also includes a temporary substitute for a covered snowmobile that is out of normal use because of its breakdown, repair, servicing, loss, or destruction. The temporary substitute must be a snowmobile that the named insured does not own.

 Covered Persons

 For liability coverage, the endorsement gives insured status to the same persons and organizations as the personal auto policy (see Personal Auto Policy—Part A, except that coverage is only with respect to a "snowmobile" or "your covered snowmobile." The named insured and family members are covered for the ownership, maintenance, or use of any snowmobile (including a nonowned snowmobile); any other person is covered for the use of "your covered snowmobile." Any person or organization has coverage for vicarious liability for the acts or omissions of covered persons arising out of the insured's "covered snowmobile," but with respect to any other snowmobile, the person or organization has coverage only with respect to legal responsibility for acts or omissions of the named insured or a "family member." "Family member" takes the same meaning as in the personal auto policy; that is, a person related to the named insured by blood, marriage or adoption who is a resident of the named insured's household, including a ward or foster child.

 Covered persons for medical payments coverage include the named insured or any "family member" while occupying a snowmobile or as a pedestrian when struck by a snowmobile. Other persons are covered only while occupying "your covered snowmobile." The covered persons for uninsured motorists coverage are the named insured or any family member, any other person occupying "your covered snowmobile," and derivative insureds—those who are entitled to recover on behalf of another covered person.

 Exclusions, Other Insurance

 The snowmobile endorsement adds an exclusion to all coverages of the policy. There is no liability, medical payments coverage, physical damage coverage, or uninsured motorists coverage for any snowmobile while rented or leased to any person or organization other than the named insured. This rules out coverage, for example, for a family member who operates a rented snowmobile (unless the named insured rented the snowmobile), or for a person to whom the named insured has rented his or her snowmobile. Exclusions A.6. and A.7. for use of vehicles in business are replaced with an exclusion stating the insurer does not provide liability coverage for any insured maintaining or using a snowmobile in any business. This replacement exclusion considerably restricts coverage—a common practice in winter is use of a snowmobile on a ranch to haul hay or water to animals. The personal auto policy, in exclusion A.7., excepts farming or ranching, but the snowmobile endorsement does not. Likewise, there is no medical payments coverage for any insured sustained while occupying a snowmobile when it is being used in an insured's business.

 Liability exclusion B.4, which eliminates coverage for any vehicle located inside a facility designed for racing, is replaced with an exclusion eliminating coverage for the ownership, maintenance or use of any snowmobile operated in or while in practice or preparation for any racing or speed contest. Obviously, a snowmobile would not be inside a facility while racing; these contests take place out-of-doors. There is a similar exclusion precluding coverage under Part C – Uninsured Motorists, and in Part D – Coverage for Damage to Your Auto.

 An exclusion is added as exclusion B.5. that rules out liability coverage for any insured for bodily injury coverage to anyone while occupying or being towed by the described snowmobile, unless passenger hazard coverage has been selected. The previous endorsement eliminated coverage for any insured for bodily injury to any insured who was occupying or being towed by the described snowmobile; the current endorsement thus restricts coverage.

 The endorsement also deletes the exclusions on the personal auto policy that apply to the liability coverage for the ownership, maintenance, or use of, and to the medical payments coverage sustained while occupying, any motorized vehicle having fewer than four wheels; this makes sense since snowmobiles do not have the four wheels found on a normal private passenger auto.

 The snowmobile liability and uninsured motorists coverages are stated to be excess over any other collectible insurance; medical payments is excess over other collectible auto insurance providing payments for medical or funeral expenses; and damage to your auto coverage is governed by the usual other insurance clause of the policy—it prorates with other insurance.

 Rating

 Rules for rating snowmobiles are under the miscellaneous types rule of the personal auto manual, subject, of course, to any state exceptions. The premium for liability coverage is 50 percent of the private passenger base liability premium. Applicability of the passenger hazard exclusion calls for a premium reduction. Medical payments coverage—at a $1,000 limit only—entails a charge of 200 percent of the private passenger base medical payments premium. For uninsured motorists coverage, the private passenger rate is charged.