Direct Car Insurance Policies

Policies issued under this rule shall cover only one Named Assured and the omnibus clause of the policy shall be eliminated. It is not permissible to add any other interest to the direct car insurance policy.

The “other insurance” clause in the policy shall be eliminated and provision shall be made for this coverage to be excess coverage over and above any valid and collectible insurance available to the Named Assured under policies taken out by others.

Automobiles) whether compensated on a salary or commission basis, a policy may be written, without specifying any automobiles or motorcycles, to cover the complete liability of the Named Assured for the operation in the Named Assured’s business of any automobile and/or motorcycle, of the private passenger type, except an automobile or motorcycle.

(1) Owned in whole or in part by the Named Assured or by the individual partners thereof, if the Named Assured is a co-partnership,
(2) Hired or leased by the Named Assured, or
(3) Registered in the name of the Named Assured.

For the purpose of premium the employees of the Assured are divided into two classes as follows:
Class 1. (a) All outside employees whether compensated on a salary and/or commission basis whose usual duties involve the use of automobiles or motorcycles, not herein excluded, in the business of the Named Assured, and (b) All other employees whether compensated on a salary and/or commission basis whose usual duties involve the use of automobiles or motorcycles, not herein excluded, in the business of the Named Assured who receive a specific operating allowance of any kind (operating allowance meaning rate per mile; gas, oil, tire or upkeep allowance; where the salary, commission or terms of employment contemplate the use of an automobile or motorcycle).

Class 2. All other employees whether compensated on a salary and/or commission basis, not included in Class 1, Every person included in Class 1 must be named in the schedule provided in the endorsement which must be attached to the policy. It is not necessary to name the persons included in Class 2 but the number of such persons must be stated in the schedule. The policy provides automatic coverage allowing the assured thirty days within which to report changes in persons in both classes.

If the Named Assured has employees located in or operating out of various cities or towns, the schedule must disclose each such location for each person in Class 1, and the number of Class 2 persons in each city or town at which the Named Assured operates.


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