SEF 8 A

Definition
SEF 8a is when the property damage (PLPD) reimbursement for operation by named person endorsement is naming a specific person who is not the policyholder, who might be involved in an accident while operating the vehicle insured.

If this occurs, the policyholder (you) agrees to reimburse the insurance company in the sum of the actual amount of the loss or damage, whichever is the lesser, in respect of loss or damage to property arising out of each and every accident while, a stated named individual (the other person who was driving), who is not the named insured, is personally driving or operating the automobile, with respect to which indemnity is provided under Section A of this policy.

This can be an individual that the underwriter regards as high risk, due to convictions or accidents. There is no charge, but the policyholder (owner of the vehicle) has to sign this endorsement declaring an understanding that certain claims will have to be repaid.

A common example is when the husband or wife has a high rating due to accidents or tickets. The "good" driver wants to continue insurance without paying the "bad" driver's rates. The agreed-upon driver who owns the vehicle signs this document. If the high risk driver is driving the vehicle and has an accident then the insurance company can sue for all the money paid out under the PLPD portion. This can be millions of dollars.

Discuss this with your agent or broker. You need to fully understand this form when you sign it. If you feel it is necessary seek legal counsel.

Sample

SEF Number 8A PROPERTY DAMAGE REIMBURSEMENT FOR OPERATION BY NAMED PERSON ENDORSEMENT
(Section A only)

In consideration of the premium charged, and in consideration of my undertaking that will not drive or operate the automobile, I agree to reimburse the insurer in the sum of or the actual amount of the loss or damage, whichever is the lesser, in respect of loss or damage to property arising out of each and every accident while , who is not the named insured, is personally driving or operating the automobile with respect to which indemnity is provided under Section A of this policy. I understand and agree that upon the occurrence of an accident involving loss of or damage to property of others:

(a) notice shall be given to the insurer in accordance with Statutory Condition 3 of this policy;

(b) the insurer shall investigate such accidents and negotiate and pay resulting claims or judgments arising therefrom and I shall reimburse the insurer the amount agreed to in this endorsement;

(c) the limit of my liability for repayment shall be the amount stated in this endorsement for each accident regardless of the number of claims arising therefrom.

If more than one automobile is insured under this policy, this endorsement shall apply only to the automobile(s) described under item(s) number of the schedule of automobiles attached to and forming part of this policy.

Please read before signing because this endorsement requires you to repay to the insurance company certain claims paid under this policy

Signature of Insured
Except as otherwise provided in this endorsement, all limits, terms, conditions, provisions, definitions and exclusions of the policy shall have full force and effect.

Attached to and forming part of Policy (number) (insurance company name).
This endorsement shall be effective from (date)