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Terms in this set (46)
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}
Purpose of liability coverage To protect the insured financially by paying
damages and legal defense costs when the insured
is legally responsible for injury or property damage
to others. :contentReference[oaicite:7]{index=7}
Split limits liability A liability structure where separate limits are
specified for bodily injury per person, bodily injury
per accident, and property damage per accident.
:contentReference[oaicite:8]{index=8}
Example of split limits (250/500/100) $250,000 maximum for bodily injury per person,
$500,000 maximum for total bodily injury per
accident, and $100,000 maximum for property
damage per accident. :contentReference[oaicite:9]
{index=9}
Single limit liability A liability structure where one combined limit
applies to both bodily injury and property damage
for a single accident. :contentReference[oaicite:10]
{index=10}
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (46)
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}
Purpose of liability coverage To protect the insured financially by paying
damages and legal defense costs when the insured
is legally responsible for injury or property damage
to others. :contentReference[oaicite:7]{index=7}
Split limits liability A liability structure where separate limits are
specified for bodily injury per person, bodily injury
per accident, and property damage per accident.
:contentReference[oaicite:8]{index=8}
Example of split limits (250/500/100) $250,000 maximum for bodily injury per person,
$500,000 maximum for total bodily injury per
accident, and $100,000 maximum for property
damage per accident. :contentReference[oaicite:9]
{index=9}
Single limit liability A liability structure where one combined limit
applies to both bodily injury and property damage
for a single accident. :contentReference[oaicite:10]
{index=10}
