chapter 11 the personal auto policy pap l.
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Chapter 11: The Personal Auto Policy (PAP). ISO FORM. 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.

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Chapter 11: The Personal Auto Policy (PAP)

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policy layout
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


Other Than Collision

pap is different from ho contract
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
  • “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
part a liability
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
part a exclusions
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
part a exclusions7
Part A -- Exclusions
  • Damage caused while using a motorcycle (less than 4 wheels)
  • Other owned vehicles not listed in Declarations
part b medical payments
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
part c uninsured motorists
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
part d physical damage
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
part d physical damage11
Part D -- Physical Damage
  • Exclusions similar to Part A, plus
    • Wear and tear
    • Electronic equipment
  • Recovery is based on actual cash value
loss settlement
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.