Chapter 11: The Personal Auto Policy (PAP)

1. Chapter 11:The Personal Auto Policy(PAP) ISO FORM

2. Policy Layout Part A: Liability Pays if you are sued Part B: Medical Payments Pays you if injured Pays if you are hit by negligent driver Part C: Uninsured Motorists Part D: Physical Damage Pays for damage to your car Collision Other Than Collision

3. PAP Is Different From HO Contract • A policy owner may generally pick and choose the coverage wanted • Coverage applies only if declaration page indicates the coverage has been purchased • Each insuring agreement can generally stand by itself • Some definitions change depending on the insuring agreement

4. Definitions • “You” = named insured & spouse if resident • Family member must be a resident • “Your Covered Auto” • Shown in declarations • Private passenger auto, small pickup, or van • Newly acquired autos • Trailer

5. Part A -- Liability • Pays legal judgments on your behalf resulting from an auto accident • Includes owned and non-owned vehicles • Coverage on the car is primary • Single versus split-limits • Any person using your covered auto • Any organization whose liability arises from your negligence while using auto

6. Part A -- Exclusions • Intentional injury • Damage to own property • Damage caused while using your car as a taxi or delivery vehicle • Using vehicles without belief you had permission • Damage caused if driver is using the care while in the automobile business

7. Part A -- Exclusions • Damage caused while using a motorcycle (less than 4 wheels) • Other owned vehicles not listed in Declarations

8. Part B -- Medical Payments • Caused by an accident & sustained by an insured • Additionally you are covered if struck as a “pedestrian” • Includes occupants of car, but not people you hit • Exclusions are similar to Part A

9. Part C -- Uninsured Motorists • Pays damages insured is legally entitled to recover from a negligent driver • Uninsured motor vehicle means • No policy applies at the time of the accident • Hit-and-Run vehicle • Tort-feasor insured by insolvent insurer • Exclusions similar to Part A • Arbitration clause applies

10. Part D -- Physical Damage • Pays for direct and accidental loss to covered auto if premium shown on the declaration page showing coverage for: • Collision • Other than collision • Specified losses NOT collision • Some indirect loss coverage

11. Part D -- Physical Damage • Exclusions similar to Part A, plus • Wear and tear • Electronic equipment • Recovery is based on actual cash value

12. Loss Settlement • When cost of repair generally exceeds the market value of the auto before the loss, the vehicle is “totaled” and the insurer pays the ACV of the loss. • The limit of the amount payable is the amount not to exceed what it would repair or replace with “like kind and quality” allowing the repair facility to use after-market parts that meet or exceed OEM standards.