Borrow coverage

If an insured is involved in an accident in a rented or borrowed vehicle, carriers need to borrow coverage to pay the owner of the rented or borrowed vehicle and to pay associated medical expenses.

In BriteClaims, you can follow a series of steps to borrow coverage. To borrow coverage, you must:

  1. Add an unlisted insured vehicle to the claim and tag it as Rented or Borrowed.
  2. Add a listed vehicle from the policy to the claim that can be used to borrow coverages from and tag that vehicle as Coverage Only.
  3. Place the occupants of the Rented/Borrowed vehicle in the Coverage Only vehicle.
  4. Add the owner of the Rented/Borrowed vehicle to Parties.
  5. Create an exposure for collision or comprehensive for the Rented/Borrowed vehicle by creating an exposure on Coverage Only vehicle.
  6. Make a payment to the Rented/Borrowed vehicle owner.

Add unlisted insured vehicle

In the FNOL, on the Vehicles screen (step 4):

  1. Select + Add Vehicle.
  2. Select Add Unlisted Insured Vehicle. The Add Unlisted Insured Vehicle dialog box will display.
  3. Complete the fields in the dialog box; see Step 4 – Vehicles for more information.
  4. From the Ownership Type dropdown list, you must select either Rented or Borrowed.
  5. When you’re finished, select Save.

Add listed vehicle

After you add the unlisted insured vehicle, you need to add the listed vehicle that you will borrow coverage from. To add the listed vehicle, on the Vehicles screen of the FNOL:

  1. Select + Add Vehicle.
  2. From the menu of options, select the listed vehicle that you will borrow coverage from. The Add Insured Vehicle dialog box will open.
  3. Select the Vehicle selected for coverage only checkbox.
  4. Select Save.

Add occupants to Coverage Only vehicle

Coverage for medical expenses must be borrowed from the listed insured vehicle. To borrow coverages for medical expenses, the occupants of the Rented/Borrowed vehicle must be added to the Coverage Only vehicle. To add occupants to the Coverage Only vehicle, on the Vehicles screen of the FNOL:

  1. Navigate to the insured’s listed vehicle, and then select the row of the vehicle to open the Vehicle tree.
  2. Navigate to the Vehicle Occupants section.
  3. Select + Add Driver. A menu of possible drivers will display.
  4. Select the driver of the Rented/Borrowed vehicle.
  5. If applicable, select + Add Passenger. A menu of possible passengers will display. If necessary, select Add New Party. See Add new contact as a party – Individual.
  6.  If applicable, repeat step 5 for each passenger.

For more information about adding occupants, see Step 4 – Vehicles or Add and remove parties from the Vehicles screen.

Add owner of the Rented/Borrowed vehicle

To pay the owner of the Rented/Borrowed vehicle, you must first add the owner to the Parties screen of the claim. To add the party:

  1. Navigate to the Parties screen of the open claim.
  2. Navigate to Vendors/Other.
  3. Select + Add Vendor/Other.
  4. Select Rented/Borrowed Vehicle Owner. A list of parties associated with the claim will appear.
  5. If the party isn’t already available, select Add New Party. The Add Rented/Borrowed Vehicle Owner dialog box will display.
  6. If the party you’re adding already exists as a contact in the system, you can search for the contact. If the party you are adding is a new contact, you can add the new contact. See Add new contact as a party – Individual or Add new contact as a party – Organization.

Add owner to Rented/Borrowed vehicle

After you add the Rented/Borrowed vehicle owner on the Parties screen, you can associate the party as the owner of the Rented/Borrowed vehicle.

To add the owner to the Rented/Borrowed vehicle:

  1. Navigate to the Vehicles screen of the claim.
  2. Navigate to the Rented/Borrowed vehicle.
  3. Select + Add Owner. A list of parties associated with the claim will display.
  4. Select the party from the list.

Create an exposure

To proceed with issuing payment from the borrowed coverage to the owner of the Rented/Borrowed vehicle, you must open the claim and add an exposure. To add an exposure:

  1. In the claim header, select the caret next to New. A dropdown list will display.
  2. Select Open claim.
  3. Navigate to Exposures.
  4. Select + Add Exposure. The Add Exposure dialog box will display.
  5. From the Select a Claimant or Involved Party dropdown list, select one of the parties associated with the Coverage Only vehicle.
  6. From the Select Coverages section, select the vehicle listed on the insurance policy.
  7. When adding a coverage to an exposure from which you can issue payment to the rented/borrowed vehicle owner, select the Collision or Comprehensive coverage. If you’re adding a coverage to an exposure for bodily injury, select Medical Expense if the first party is injured and select Bodily Injury if the third party is injured.
  8.   When you’re finished adding the coverages, select Add Exposure.

Make payment to Rented/Borrowed vehicle owner

After you add an exposure, you can issue payments to the Rented/Borrowed vehicle owner. To make a payment:

  1. On the Exposures screen, navigate to the exposure associated with the payment. Select the row of the exposure to open the exposure tree.
  2. Locate the coverage associated payment, and then select either the Reserve or Payment link.
  3. On the exposure’s Accounting screen, locate the Reserve Category you want to issue a payment from. Before you can issue a payment, you must set reserves. Navigate to the Actions column of the Reserve Category and select Edit Reserve. The Edit Reserve dialog box will open.
  4. Complete the fields in the Edit Reserve dialog box and select Submit Reserve.
  5. Navigate to the Actions column of the Reserve Category and select Make Payment. The Make Payment dialog box will display.
  6. From the Payee dropdown list, select the owner of the Rented/Borrowed vehicle.
  7. Complete the rest of the fields.
  8. When you’re finished entering information, select Submit Payment.

For more information, see Make a payment from an exposure file.