Guiding You In The Right Direction
© 2015 David Simmons Agency
Auto Insurance
Auto insurance provides financial protection against physical damage and/or bodily injury resulting from traffic
collisions and against liability that could also arise therefrom.
Auto insurance may also offers financial protection against theft of the vehicle and damage to the vehicle,
sustained from things other than traffic collisions.
Auto Insurance Coverages
There are basically six different types of coverages. Some may be required by law. Others are optional.
They are:
• Bodily injury liability - for injuries the policyholder causes to someone else.
• Medical payments or Personal Injury Protection (PIP) - for treatment of injuries to the driver and
passengers of the policyholder’s car.
• Property damage liability - for damage the policyholder causes to someone else’s property.
• Collision - for damage to the policyholder’s car from a collision.
• Comprehensive - for damage to the policyholder’s car not involving a collision with another car (including
damage from fire, explosions, earthquakes, floods, and riots), and theft.
• Uninsured motorists coverage - for costs resulting from an accident involving a hit-and-run driver or a
driver who does not have insurance.
ATV and Motorcycle Insurance
All Terrain Vehicle insurance provides financial protection against physical damage and/or bodily injury resulting
from collisions and against liability that could also arise from the use or storage of your ATV.
We provide insurance for a number of vehicles that fall under the category all terrain vehicles.
Additional ATV Insurance Information
Although most people think of 4-wheelers when it comes to ATV insurance, in some cases ATV insurance policies
can also cover:
• Snowmobiles
• Segways
• Golf Carts
• Tracked All Terrain Vehicles
• Amphibious Vehicles
• Go Carts
• Motorcycles
Property Insurance
Property insurance provides protection against most risks to property, such as fire, theft and some weather
damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake
insurance, home insurance, or boiler insurance.
Property is insured in two main ways—open perils and named perils.
Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril
policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war.
Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more
common named perils include such damage-causing events as fire, lightning, explosion, and theft.
Typical Events Covered by Property Insurance
• Fire
• Lightning
• Explosion, implosion
• Aircraft damage
• Riot, strike
• Terrorism
• Storm, including hailstorm, hurricane, tornado & flood.
• Impact damage
• Malicious damage
• Subsidence, landslide
• Bursting or overflowing of tanks
• Missile testing operations
• Bush fire
• Theft
• Falling objects
Life Insurance
Life insurance pays out a sum of money either on the death of the insured person or after a set period of time.
Common Types of Life Insurance
Term Life Insurance
Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments
for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of
premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further
coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be
paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a
coverage amount per premium dollar basis over a specific period of time.
Whole Life Insurance
Whole life insurance, or whole of life assurance, is a life insurance policy that remains in force for the
insured's whole life and requires (in most cases) premiums to be paid every year into the policy.
Universal Life Insurance
A type of permanent life insurance. Under the terms of the policy, the excess of premium payments above
the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month
with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy
charges and fees which are drawn from the cash value, even if no premium payment is made that month.
Interest credited to the account is determined by the insurer, but has a contractual minimum rate of 2%. When
an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is a
"Equity Indexed Universal Life" contract.
Variable Universal Life Insurance
Variable Universal Life Insurance is a type of life insurance that builds a cash value. In a VUL, the cash value
can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the
available separate accounts to use is entirely up to the contract owner. The 'variable' component in the name
refers to this ability to invest in separate accounts whose values vary—they vary because they are invested in
stock and/or bond markets. The 'universal' component in the name refers to the flexibility the owner has in
making premium payments. The premiums can vary from nothing in a given month up to maximums defined by
the Internal Revenue Code for life insurance.
Personal Lines