Part A Liability Coverage

Supplementary Payments

Exclusions

Part B: Medical Payments Coverage

Part C: Uninsured Motorists Coverage

Part D: Damages to Your Motorcycle

Part E: Duties Following Loss or Accident

Part F: General Provisions

Conclusion

Definitions

Words and terms that have a contractually defined meaning that applies throughout the motorcycle policy are collected in one section captioned "definitions". Of the 13 definitions provided by the motorcycle policy, most reflect the same meaning that they do in the similar Personal Auto Policy (PAP). For reference to the Personal Auto Policy Definitions analysis, please refer to the following article, Personal Auto Definitions. Some of the terms that are not defined in the PAP include "motorcycle" "motorcycle cargo trailer" "motorcycle transport trailer", with some added provisions that apply to "newly acquired motorcycles." Those terms are listed after the specific policy language and described in detail in the analysis below. The terms that are discussed in the Personal Auto Policy Definitions analysis that mirror those in the Motorcycle policy include "we", "us" and "our", "bodily injury" "business" "family member" "occupying" "newly acquired motorcycle" and "property damage".

A.Throughout this Policy, "you" and "your" refer to:

This definition of Motorcycle is provided in order to determine what sort of vehicles specifically should be covered under the policy. The Personal Motorcycle Policy became necessary with the increased use of motorcycles, as the risks of driving a motorcycle are much different than those of driving a car. Specifically, the risk of bodily injury is increased for a motorcycle driver or passenger, because they are typically smaller and less sturdy than their four wheel counterparts. This definition of motorcycle is used throughout the policy to explain what is considered a motorcycle for insurance purposes under this policy. Note that the definition in this policy does not specify that a motorcycle has an unenclosed passenger compartment, which is what most people imagine when prompted to think about a motorcycle.

H."Motorcycle cargo trailer" means a vehicle that is designed to be pulled by a "motorcycle".

There are several types of small campers and cargo toting trailers that can be attached to the back of a motorcycle for hauling purposes. This definition "motorcycle cargo trailer" is meant to specifically describe vehicles that can be attached to the back of a motorcycle in order to transport cargo.

I."Motorcycle transport trailer" means a vehicle designed to:

A Motorcycle cargo trailer is different from a "motorcycle transport trailer" which is a vehicle that is specifically designed to transport a motorcycle from one location to another. By definition, these trailers are larger than their counterparts, the motorcycle cargo trailers, because the entire vehicle must fit inside the trailer. This definition could include a truck that pulls a motorcycle transport trailer, or a truck that has a motorcycle secured in its truck bed.

J."Newly acquired motorcycle":

This definition differs slightly from the personal auto definition, by depicting specifically that only motorcycles, motorcycle cargo trailers, or motorcycle transport trailers are covered as newly acquired motorcycles under MT 00 01.

2.Coverage for a "newly acquired motorcycle" is provided as follows:

Analysis

This definition differs slightly from the personal auto definition, by stating that if the motorcycle owner asks the insurer to insure the newly acquired motorcycle within 14 days of the beginning of ownership, the broadest coverage that is provided by the insurer to any vehicle shown in the declarations is applied and begins on the date the insured began owning the motorcycle. That coverage will expire, though, after the 14th day, if the insurer does not agree to provide coverage for that motorcycle in writing.

b.For Collision Coverage to apply under this Policy for a "newly acquired motorcycle", you must ask us to insure it within:

Despite some formatting and phrasing differences between the Motorcycle policy and the Personal Auto Policy, the content of these sections are almost identical.

K."Occupying" means:

Analysis

Despite some formatting and phrasing differences between the Motorcycle policy and the Personal Auto Policy, the content of these sections are almost identical.

Part A – Liability Coverage

Insuring Agreement

The insuring agreement of Part A of the ISO motorcycle policy provides coverage to the insured should they become legally responsible for damages to another party because of an auto accident. The agreement also provides for defense costs coverage in case the insured is sued by the injured party. These coverages are subject to certain exclusions that are listed on the policy and to a limit of liability that is shown in the declarations.

Liability coverage under the PMP is very similar to that in the PAP. A full breakdown of the Personal Auto Policy is available through this link Personal Auto Policy – Part A. The PMP promises to pay compensatory damages and to defend any claim or suit asking for those damages for which the insured becomes legally responsible because of an accident, in the case of the a motorcycle accident. The insurer has a duty to defend and indemnify the insured. The policy notes that there is no duty to defend a claim for bodily injury or property damage for which the insured is not legally liable.

 Supplementary Payments

Supplementary Payments

We will pay on behalf of an "insured":

This supplementary payments section mirrors the supplementary payments section in the Personal Auto Policy.

Exclusions

A.We do not provide Liability Coverage for any "insured":

Analysis

This section of exclusions generally mirrors the exclusions section in the Personal Auto Policy.

5.For that "insured's" liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This exclusion (A.5) does not apply to the ownership or operation of "your covered motorcycle" when it is being used for volunteer or charitable purposes. 

Analysis

In the Personal Auto policy this provision prevented coverage for injuries sustained while "occupying" "your covered auto" when it is being used for public or livery conveyance with an exception to this exclusion for insureds participating in a "share-the-expense" car pool. This section was likely changed here in the Motorcycle policy due to the unlikelihood that a motorcycle driver would be able to set up an effective car pool with their exposed, small, generally only one to two passenger vehicles. This exception to the exclusion also tends to promote volunteer and charitable driving and delivery for motorcycle drivers.

6.Maintaining or using any vehicle while that "insured" is employed or otherwise engaged in any "business" (other than farming or ranching).

Analysis

Along with the exclusions pertaining to racing and off-roading that are also in the Personal Auto Policy, the PMP also excludes coverage for ownership, maintenance or use of a vehicle that is made to compete or participate in rider skill training and events that are not associated with the Motorcycle Safety Foundation or a similar course administered by a state agency to promote motorcycle safety and improve rider skills.

C.To the extent that the limits of liability for this coverage exceed the minimum limits of liability required by the financial responsibility law of the state in which "your covered motorcycle" is principally garaged, we do not provide Liability Coverage for any "insured":

Analysis

The Alcohol and Controlled Substances exclusion is an exclusion that seems to be unique to the Personal Motorcycle Policy. This section states that there is no Liability Coverage for any insured if the minimum limits of liability that are required by the financial responsibility law of the state where the covered motorcycle is principally garaged are exceeded if the insured is under the influence of alcohol or a controlled substance including LSD, marijuana, cocaine, and all narcotic drugs, if the insured causes bodily injury or property damage while committing a felony, if the insured causes bodily injury or property damage while trying to escape from the police, or if the motorcycle is being operated without a license or permit. The exclusion does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.

Limit of Liability

The Limits of Liability section of Part A mirrors the same section in the Personal Auto Policy.

Out of State Coverage

The Out of State Coverage section of Part A mirrors the same section in the Personal Auto Policy.

Financial Responsibility

The Financial Responsibility section of Part A mirrors the same section in the Personal Auto Policy.

Other Insurance

The Other Insurance section of Part A mirrors the same section in the Personal Auto Policy.

Part B – Medical Payments Coverage

Medical Payments Coverage under the PMP is very similar to that in the PAP. A full breakdown of Part B of the Personal Auto Policy is available through this link Personal Auto Policy – Part B.

The PMP Part B is generally the same as those listed in PMP Part A coverage. The differences are detailed in the sections below. 

Insuring Agreement

The Insuring Agreement of Part B- Medical Payments Coverage directly reflects the language in the Personal Auto Policy.

Exclusions

Medical Payments Coverage Exclusions section includes the same exception to the public or livery conveyance exclusion as is discussed in the Part-A exclusions section of the Motorcycle Policy located above. This section was likely changed here in the Motorcycle policy due to the unlikelihood that a motorcycle driver would be able to set up an effective car pool with their exposed, small, generally only one to two passenger vehicles. This exception to the exclusion also tends to promote volunteer and charitable driving and delivery for motorcycle drivers.

2. Occurring during the course of employment if workers' compensation benefits are required or available for the "bodily injury".

Analysis

Exclusion 9.a.(2) adds an exception to the exclusion for racing or speed contests. The exception allows for medical payments coverage when the injury occurs during training to develop "motorcycle" riding skills during courses designed by the Motorcycle Safety Foundation or any similar course. This exception was included so as to not discourage holders of the motorcycle policy from participating in riding skills courses.

10. Sustained while "occupying" "your covered motorcycle" when it is being used for the delivery of food or products, including but not limited to newspapers and magazines.

Analysis

Exclusion 10 allows for medical payments for injuries caused while the covered motorcycle is being used for volunteer or charitable purposes, while excluding coverage for other deliveries of food or other products. This exception to the exclusion tends to promote volunteer and charitable driving and delivery for motorcycle drivers.

11. Sustained while operating a "motorcycle" while that "insured" is under the influence of:

As stated above, the Alcohol and Controlled Substances exclusion is an exclusion that seems to be unique to the Personal Motorcycle Policy is the alcohol liability limit. This section states that there is no Liability Coverage for any insured if the minimum limits of liability that are required by the financial responsibility law of the state where the covered motorcycle is principally garaged are exceeded if the insured is under the influence of alcohol or a controlled substance including LSD, marijuana, cocaine, and all narcotic drugs, if the insured causes bodily injury or property damage while committing a felony, if the insured causes bodily injury or property damage while trying to escape from the police, or if the motorcycle is being operated without a license or permit. The exclusion does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.

Limit of Liability

The Limits of Liability section of Part B – Medical Payments mirrors the same section in the Personal Auto Policy.

Other Insurance

The Other Insurance section of Part B mirrors the same section in the Personal Auto Policy.

Part C – Uninsured Motorists Coverage

Insuring Agreement

A.We will pay compensatory damages which an "insured" is legally entitled to recover from the owner or operator of any "uninsured motor vehicle" because of "bodily injury":

This section mirrors Part C- Uninsured Motorists Coverage in the Personal Auto Policy. Part C of the Personal Auto Policy is analyzed in the article Personal Auto Policy – Part C.

Exclusions

The PMP Part C exclusions are generally the same as those listed in PMP Part A coverage, and detailed in the above section. One exclusion that should be noted that is included in the Uninsured Motorists Coverage section, but not located elsewhere is A(3) which states that Uninsured Motorists coverage will not be provided for bodily injury sustained by the insured or any family member while occupying any vehicle other than "your covered motorcycle".

A.We do not provide Uninsured Motorists Coverage for "bodily injury" sustained by any "insured"

Analysis

The PMP Part C exclusions are generally the same as those listed in Personal Auto coverage, and detailed in the Personal Auto – Part C article Personal Auto Policy – Part C.

Limit of Liability

The PMP Part C limit of liability section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.

Other Insurance

Other Insurance section 2. differs from provisions in the PAP, and clarifies that this motorcycle insurance is considered to be excess over any collectible insurance providing such coverage on a primary basis.

1.If the coverage under this policy is provided:

The PMP Part C Other Insurance section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.

Arbitration

The PMP Part C Arbitration section is generally the same as those listed in the Personal Auto Policy Part C coverage, and is detailed in the following article. Personal Auto Policy – Part C.

Part D – Coverage for Damage to Your Motorcycle

Insuring Agreement

A. We will pay for direct and accidental loss to "your covered motorcycle", including its equipment, minus any applicable deductible shown in the Declarations. If loss to more than one "your covered motorcycle" results from the same "collision", only the highest applicable deductible will apply. We will pay for loss to "your covered motorcycle" caused by:

At this point, Part D- Coverage for Damage to Your Motorcycle is a replica of the Personal Auto Part D section. An analysis of PAP Part D is located in the following article. Personal Auto Policy – Part D

C."Custom equipment" means equipment, furnishings and parts in or upon "your covered motorcycle" including but not limited to:

Analysis

The Motorcycle policy adds a section for "custom equipment" as some motorcyclists invest more money into custom equipment for their motorcycles than they do in the vehicle itself. The definition of "custom equipment" includes, but is not limited to, saddle bags, fairings and windshields, body, engine and exhaust enhancers, luggage racks, safety guards, roll bars, custom plating, chrome, paintwork, and sidecars. "Custom equipment" does not include original manufacturer equipment or parts, parts and equipment included in the motorcycle when the insured purchased it, replacement parts, electronic equipment, media equipment, and radar detectors.

"Rider safety apparel" means apparel designed to minimize injury resulting from a "motorcycle" accident. This includes but is not limited to:

Analysis

The Additional Coverage section includes a section for Rider Safety Apparel, since wearing safety apparel can prevent bodily injury to the insured. Rider Safety Apparel is apparel designed to minimized injury resulting from a motorcycle accident and includes, but is not limited to, motorcycle helmets, riding clothing, riding boots, riding gloves, and protective eyewear and earwear. This definition also includes electronic headsets designed for communication for use by the driver or a passenger. The rider safety apparel of a passenger may also be covered. This section allows for coverage of up to $1000, and no deductible applies as it is additional coverage.

Exclusions

As analyzed above, Part D does not cover losses to a covered motorcycle while it is being used to deliver food or products, unless it is being used for charitable or volunteer purposes.

2.Damage due and confined to:

This exclusion specifically mentions that loss to a "motorcycle" helmet that is "rider safety apparel" would be covered.

5.Loss to tapes, disks or other media used with equipment described in Exclusion 4.

The racing section in Part D mirrors that in Part A of the Motorcycle policy, instead of mirroring that same section in the Personal Auto Policy.

11.Loss to "your covered motorcycle" which occurs while it is being used for the delivery of food or products, including but not limited to newspapers and magazines. This exclusion (11.) does not apply to the ownership or operation of "your covered motorcycle" while it is being used for volunteer or charitable purposes.

Analysis

As mentioned above, losses to your motorcycle are not covered if they occur while the motorcycle is being operated by a person under the influence of alcohol, or controlled substances that are not lawfully prescribed by a licensed healthcare professional.

Limit of Liability

This Limit of Liability section mirrors that in Part D of the Personal Auto Policy.

Payment of Loss

We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to:

Analysis

This Payment of Loss section mirrors that in Part D of the Personal Auto Policy.

No Benefit to Bailee

This No Benefit to Bailee section mirrors that in Part D of the Personal Auto Policy.

Other Sources of Recovery

If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to any vehicle described in Paragraph 4. of the definition of "your covered motorcycle" shall be excess over any other collectible source of recovery including, but not limited to:

This Other Sources of Recovery section mirrors that in Part D of the Personal Auto Policy.

Appraisal

A.If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:

This Appraisal section mirrors that in Part D of the Personal Auto Policy.

Part E – Duties After an Accident or Loss

We have no duty to provide coverage under this Policy if the failure to comply with the following duties is prejudicial to us:

Part E directly mirrors Part E of the Personal Auto Policy. An analysis of Parts E and F of the Personal Auto Policy can be found in the following article Personal Auto Policy – Parts E and F

Part F – General Provisions

For the most part, Part F directly mirrors Part F of the Personal Auto Policy, except for two provisions. An analysis of Parts E and F in the Personal Auto Policy can be found in the following article Personal Auto Policy – Parts E and F. The Personal Motorcycle Policy includes sections on Nonrenewal and Automatic Termination, topics that are not mentioned in the Personal Auto Policy.

Bankruptcy

Bankruptcy or insolvency of the "insured" shall not relieve us of any obligations under this Policy.

The Bankruptcy section of Part F directly mirrors the same section of the Personal Auto Policy.

Changes

A.This Policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us.

The Changes section of Part F directly mirrors the same section of the Personal Auto Policy.

Fraud

We do not provide coverage for any "insured" who has made fraudulent statements or engaged in fraudulent conduct in connection with any accident or loss for which coverage is sought under this Policy.

The Fraud section of Part F directly mirrors the same section of the Personal Auto Policy.

Legal Action Against Us

A.No legal action may be brought against us until there has been full compliance with all the terms of this Policy. In addition, under Part A, no legal action may be brought against us until:

Analysis

The Legal Action Against Us section of Part F directly mirrors the same section of the Personal Auto Policy.

Our Right to Recover Payment

A.If we make a payment under this Policy and the person to or for whom payment was made has a right to recover damages from another we shall be subrogated to that right. That person shall do:

Analysis

The Our Right to Recover Payment section of Part F directly mirrors the same section of the Personal Auto Policy.

Policy Period and Territory

The Policy Period and Territory section of Part F directly mirrors the same section of the Personal Auto Policy.

Termination

1.The named insured shown in the Declarations may cancel by:

Analysis

The Termination section of Part F directly mirrors the same section of the Personal Auto Policy.

B.Nonrenewal

The Nonrenewal section is not included in the Personal Auto Policy, and states the notice and mailing requirements of the insurer if they decide not to renew the policy of the insured. Generally, either the insured or the insurer can decide not to renew the policy in the few weeks or months prior to the policy's expiration. The three notice requirements mentioned above help insureds to understand when a non-renewal notice is required based on the length of time of policy period they have in place. If the policy period is less than 6 months, (for example, a month by month or a 90 day policy) the insurer has the right to non-renew at each 6 month interval beginning six months after the effective date of the policy. And if the policy period is between 6 months and 1 year in duration, the insurer has the right to non-renew at the end of the policy period.

C. Automatic Termination

The Automatic Termination section states that if the insurer offers to renew or continue and the insured does not accept, the policy will automatically terminate at the end of the current policy period. This section also specifies that if a policy is procured that provides coverage similar to the Motorcycle Policy which is in place, the new policy will replace the old policy on the date the new insurance becomes effective.

 D. Other Termination Provisions

1.We may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of notice.

The Other Termination Provisions directly mirror the same provisions in the Personal Auto Policy.

 Transfer of Your Interest in this Policy

A.Your rights and duties under this Policy may not be assigned without our written consent. However, if a named insured shown in the Declarations dies, coverage will be provided for:

Analysis

The Transfer of Your Interest in this Policy directly mirrors the same provisions in the Personal Auto Policy.

Two or More Policies

The Two or More Policies section directly mirrors the same section in the Personal Auto Policy.

Conclusion

While there are several differences between the PAP and the MT, both policies follow generally the same outline and allow for generally the same sorts of coverage. While the motorcycle policy was created by ISO in 2013 in order to help streamline the process of underwriting a motorcycle policy, it was formed very similarly to the Personal Auto Policy. Since motorcycles carry different risks than normal cars, such as the exposed nature of the occupant(s), some provisions of the motorcycle policy were changed to provide more adequate coverage for insureds with motorcycles. The motorcycle policy seems to be stricter than the personal auto policy, as the driver of a motorcycle is taking on more risk of damage to their person than someone in a fully enclosed vehicle. Also, more motorcycle owners invest large amounts of money into their vehicles, increasing the replacement cost in the case of a total loss. This form analysis should allow for increased comprehension of the motorcycle policy and the reasoning for the exclusions and provisions that were included in the form.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.