| Personal Auto Policy Endorsements | |||
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Extended Non-owned Coverage Endorsement The Personal Auto Policy (PAP) of Insurance Services Office (ISO) typically provides adequate coverage for the use of non-owned autos. The liability section clearly states that the policy covers "You" or any "family member" for the ownership, maintenance or use of any auto or "trailer." That is a very broad promise and covers most non-ownership situations. The Extended Non-owned Coverage Endorsement expands the regular liability and medical payments coverages to insure additional exposure. It broadens part A- Liability Coverage, by eliminating the following liability exclusions, for any individual named in the schedule or in the declarations: 1. Ownership or operation of a vehicle that is available for hire to the public for hauling property or persons, 2. Maintaining or using a vehicle while engaged in any other business except the automobile business, and 3. Ownership, maintenance, or use of any vehicle other than a vehicle owned by the individual named in the schedule or declarations, or by a member of the same household, or a temporary substitute for such a vehicle. It also changes the following part B- Medical Payments, exclusions for the same individuals: 1. Eliminates the exclusion for bodily injury sustained while occupying or when struck by any vehicle other than a vehicle owned by the individual named in the schedule or declarations, or by a member of the same household, or a temporary substitute for such a vehicle. 2. Modifies the business exclusion to exempt occupancy of a non-owned pickup or van or trailer used with it from the exclusion. Sometimes, though, an insured may need coverage for non-owned auto exposures that are excluded under the PAP. A salesperson that has a company car provided to him or her has no PAP coverage for his personal use of that vehicle. The business auto policy does not exclude coverage for personal use of a company car, but many persons prefer to rely on their own insurance. That salesperson may cover the liability and medical payments exposure of personal use of a company car-under his or her PAP-by purchasing endorsement PP 03 06. This endorsement-extended non-owned coverage-vehicles furnished or available for regular use-expands the regular liability and medical payments coverages to insure this additional exposure. This coverage is always excess over other collectible insurance on a non-owned auto. Persons engaged in the auto business can obtain extended non-owned coverage for this exposure by attaching PP 03 96. This endorsement, however, provides extended non-owned coverage for that exposure only; if the insured is regularly furnished, an auto endorsement PP 03 06 must also be attached. Prior to the 2005 edition of the PAP, coverage for an insured who drove a limo or taxi could also be covered under PP 03 06, but now endorsement PP 13 05 extended non-owned coverage-vehicles furnished or available for use as public or livery conveyances can be used to provide coverage for this exposure under the insured's PAP. |
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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and LunchTimeCE and Sandi Kruise Training Inc, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.
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