Comprehensive Guide to
Personal Auto Policy (PAP) and
Auto Insurance Laws Exam
Questions and Answers 100%
PASS
What is the Personal Auto Policy (PAP)?—ANSWER--The PAP is a standardized auto insurance
policy widely used in the United States, updated notably in 2017 to include exclusions for car
sharing and transportation network platforms like Uber and Lyft.
What vehicles are eligible under the PAP?—ANSWER--Four-wheeled motor vehicles owned
or leased for at least six consecutive months, pickups, and vans with a gross vehicle weight
rating of 10,000 pounds or less, as well as trailers and temporary substitute vehicles.
What are the key coverage parts of the PAP?—ANSWER--Part A (Liability), Part B (Medical
Payments), Part C (Uninsured Motorists), and Part D (Coverage for Damage to the Insured's
Auto).
What does Part A of the PAP cover?—ANSWER--Part A provides liability coverage, protecting
against legal claims for bodily injury and property damage caused by the insured's vehicle.
What does Part B of the PAP cover?—ANSWER--Part B provides medical payments coverage,
paying reasonable medical and funeral expenses regardless of fault.
, What does Part C of the PAP cover?—ANSWER--Part C provides uninsured motorists
coverage, protecting insureds from losses caused by uninsured, hit-and-run, or insolvent
negligent drivers.
What does Part D of the PAP cover?—ANSWER--Part D covers damage to the insured's auto,
including collision and other-than-collision perils.
What are typical liability coverage limits in a PAP?—ANSWER--Split limits (e.g.,
250/500/100), defining maximum payouts per person, per accident, and for property
damage.
What additional payments are included in Part A liability coverage?—ANSWER--Defense
costs and supplementary payments such as court costs and attorney fees.
What exclusions apply to PAP liability coverage?—ANSWER--Intentional damage, use as a
public or livery conveyance, and use without reasonable belief of permission.
How does the PAP address ride-sharing or car-sharing?—ANSWER--It excludes coverage
when vehicles are used for transportation network platforms like Uber or Lyft.
What does medical payments coverage under Part B include?—ANSWER--Coverage for the
insured and family members as occupants or pedestrians, regardless of fault.
What are some exclusions from medical payments coverage?—ANSWER--Excludes vehicles
with fewer than four wheels, business or racing use, and non-covered vehicles.
When does uninsured motorists coverage apply?—ANSWER--When the uninsured party is
legally liable for bodily injury or property damage.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Personal Auto Policy (PAP) and
Auto Insurance Laws Exam
Questions and Answers 100%
PASS
What is the Personal Auto Policy (PAP)?—ANSWER--The PAP is a standardized auto insurance
policy widely used in the United States, updated notably in 2017 to include exclusions for car
sharing and transportation network platforms like Uber and Lyft.
What vehicles are eligible under the PAP?—ANSWER--Four-wheeled motor vehicles owned
or leased for at least six consecutive months, pickups, and vans with a gross vehicle weight
rating of 10,000 pounds or less, as well as trailers and temporary substitute vehicles.
What are the key coverage parts of the PAP?—ANSWER--Part A (Liability), Part B (Medical
Payments), Part C (Uninsured Motorists), and Part D (Coverage for Damage to the Insured's
Auto).
What does Part A of the PAP cover?—ANSWER--Part A provides liability coverage, protecting
against legal claims for bodily injury and property damage caused by the insured's vehicle.
What does Part B of the PAP cover?—ANSWER--Part B provides medical payments coverage,
paying reasonable medical and funeral expenses regardless of fault.
, What does Part C of the PAP cover?—ANSWER--Part C provides uninsured motorists
coverage, protecting insureds from losses caused by uninsured, hit-and-run, or insolvent
negligent drivers.
What does Part D of the PAP cover?—ANSWER--Part D covers damage to the insured's auto,
including collision and other-than-collision perils.
What are typical liability coverage limits in a PAP?—ANSWER--Split limits (e.g.,
250/500/100), defining maximum payouts per person, per accident, and for property
damage.
What additional payments are included in Part A liability coverage?—ANSWER--Defense
costs and supplementary payments such as court costs and attorney fees.
What exclusions apply to PAP liability coverage?—ANSWER--Intentional damage, use as a
public or livery conveyance, and use without reasonable belief of permission.
How does the PAP address ride-sharing or car-sharing?—ANSWER--It excludes coverage
when vehicles are used for transportation network platforms like Uber or Lyft.
What does medical payments coverage under Part B include?—ANSWER--Coverage for the
insured and family members as occupants or pedestrians, regardless of fault.
What are some exclusions from medical payments coverage?—ANSWER--Excludes vehicles
with fewer than four wheels, business or racing use, and non-covered vehicles.
When does uninsured motorists coverage apply?—ANSWER--When the uninsured party is
legally liable for bodily injury or property damage.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
