The Personal Auto Policy (PAP)
A policy that combines liability insurance with other optional coverages
PAP Policies can cover
-Individuals and residing family members
-People driving car with owner's permission
-Four-wheeled vehicles under 10,000 lbs
*Insurable interest is required
...
Adjuster Pro Section-3
questions and answers
The Personal Auto Policy (PAP) - answer A policy that combines liability
insurance with other optional coverages
PAP Policies can cover - answer -Individuals and residing family members
-People driving car with owner's permission
-Four-wheeled vehicles under 10,000 lbs
*Insurable interest is required
PAP Policies will indemnify for: - answer -Property Damage
-Personal Injury
-Legal Defense
What will PAPs not pay for - answer Punitive Damages
8 Sections of Typical PAP - answer 1. Declarations
2. Part A Liability
3. Part B Medical Payments
4. Part C Uninsured Motorist
5. Part D Coverage for Damages to Your Auto
6. Part E Duties After an Accident or Loss
7. Part F General Provisions
8. Endorsements
Auto Insurance Deductibles - answer Fixed amount on a Per Claim Basis
,Deductibles typically only apply to what type of Auto Insurance coverages
- answer Collision and Comprehensive
Your Covered Auto Definition - answer 1. The car specified on declarations
page
2. Any car the named insured borrows with permission
3. A newly acquired auto
4. A trailer that the insured owns
5. A temporary substitute for a car or trailer listed on the dec page due to
an incident
Newly Acquired Auto definition - answer Any new or used vehicle that the
insured gets during the current policy period
Rules for Adding Newly Acquired Atuo - answer -If new auto is replacing
auto listed on dec page, no reporting is needed.
-If new auto is not replacing auto listed on dec page, insured has 14 days
to report to insurer
-Comprehensive and Collision Coverage can be added within 4 days of
getting new car and are automatically applied for first 4 days with $500
deductible
Covered Person - answer 1. The named insured and family members living
in the same household
2. Someone using covered auto with permission
Minimum amount of auto required for some states - answer $25,000 for
person's injuries
$50,000 max for all injuries in any one accident
$10,000 max for all property damage
Primary Coverage in PAP - answer Coverage is primary if it involves a car
the insured owns
, Secondary Coverage in PAP - answer Coverage is secondary if it involves a
car the insured does not own
Out of State Coverage Provision in PAP - answer If you meet your home
state's requirements, it is assumed you meet the requirements of any
other state.
PAP Part A - Supplementary Payments - answer -Assist policyholder with a
variety of accident-related expenses
-Not subject to liability limits
May include:
-Lost wages up to $200 per day
-Expenses due to insurer's request such as retrieving accidents reports or
records
-Bails bonds up to $250
-Accrued interest after a judgement
-Premiums on appeal bonds and attachment bonds
PAP Part A - Exclusions - answer -Intentional Damage
-Property owned or transported by the insured
-Damages incurred under the scope of employment, except domestic
employees ineligible for workers' comp
-Properties rented or used by insured
-Hired vehicles transporting people or goods
-Company-owned business vehicles
-Damages or injuries caused whole repairing servicing storing etc.
-Vehicles taken without permission
No-Fault Insurance - answer -Designed to indemnify the insured for his
own injuries regardless of fault
-Covers bodily injury only
-Mandatory in some states
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