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Overview The Personal Auto Policy (PAP) is becoming more complex. It challenges consumers to read and understand their coverage. ISO's 2005 edition of the Personal Auto Policy, which replaced their 1998 edition, continues the effort of offering a policy that responds to the demands of consumers, insurers, regulators, and legislators. This is accomplished by constantly updating their basic policy and providing both revised and new endorsements. Companies continue to meet their product needs through various methods. A given company may choose to make complete use of the ISO program, modify the program, or use a completely independent program. However, since all policies have to deal with providing insurance protection against various vehicle exposures, it is likely that a company's forms share a root in the PAP or its predecessors and/or relatives. Coverage The '05 edition of the Personal Auto Policy provides coverage for liability and physical damage for eligible persons and vehicles. Specifically, the Personal Auto Policy coverage sections consist of Part A - Liability Coverage, Part B - Medical Payments Coverage, Part C - Uninsured Motorists Coverage, and Part D - Coverage for Damage to Your Auto. Each coverage part has its own insuring agreement, exclusions, limit of liability, and other insurance provisions. This format evolved due to the ISO goal of constantly clarifying the coverage intent of its policy forms. Because of this, a longer policy is a necessary evil since the pre-Personal Auto Policy Form style of having key provisions apply to several coverage parts became increasingly vulnerable to misinterpretations. The latest edition of the PAP strives for more clarity by adding wording to several exclusions and definitions. In particular, this applies to the exclusions for coverage to sound reproducing equipment and the definition of newly acquired autos. |
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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 CEfreedom and Kruise, 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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