Chapter 20 RSM Exam Questions and Answers with Verified Solutions | Latest Updated 2026

Chapter 20 RSM Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026



Personal Auto Policy (PAP) The standard auto insurance policy widely
used in
the United States that provides coverage
for
liability, medical payments, uninsured
motorists,
and physical damage to the insured's
vehicle.
:contentReference[oaicite:1]{index=1}


Major changes in PAP since 2005 The policy includes updated exclusions for
car
sharing and for using the auto as part of a
transportation network platform (such as
Uber or
Lyft), reflecting changes in how vehicles
are used.
:contentReference[oaicite:2]{index=2}


Eligible vehicles under PAP A four-wheeled motor vehicle owned or
leased for
at least six consecutive months, or a
pickup/van
with a gross vehicle weight of 10,000
pounds or
less.:contentReference[oaicite:3]{index=3}

, Autos covered by the PAP Includes autos listed in the declarations
page,
newly acquired autos, trailers owned by
the
insured, and temporary substitute vehicles
used
when the insured vehicle is unavailable
due to
breakdown or
repair.:contentReference[oaicite:4]
{index=4}


Temporary substitute vehicle A nonowned auto used temporarily by the
insured
because the covered auto is out of use
due to
breakdown, repair, servicing, loss, or
destruction.
:contentReference[oaicite:5]{index=5}


Part A: Liability Coverage The most important section of the PAP that
protects the insured against claims or
lawsuits
arising from bodily injury or property
damage
caused by ownership or operation of a
covered
vehicle.:contentReference[oaicite:6]{index
=6}