Insurance
Personal Auto Policy (PAP)
The Personal Auto Policy is a standardized auto insurance contract covering liability, medical payments, uninsured motorists, and physical damage for personal vehicles.
💡
Exam Tip
PAP has 6 parts (A-F). Part A = Liability. Part D = Physical Damage. Know split limits: 100/300/100.
What is the Personal Auto Policy?
The Personal Auto Policy (PAP) is the standard form used for personal (non-commercial) auto insurance. It provides six parts of coverage, each addressing different risks.
PAP Coverage Parts
| Part | Coverage | What It Pays |
|---|---|---|
| Part A | Liability | Damages you cause to others |
| Part B | Medical Payments | Medical costs for you/passengers |
| Part C | Uninsured Motorists | Hit by driver without insurance |
| Part D | Physical Damage | Damage to your own car |
| Part E | Duties After Loss | Your responsibilities |
| Part F | General Provisions | Policy conditions |
Part A - Liability Coverage
| Component | Description |
|---|---|
| Bodily Injury | Injuries you cause others |
| Property Damage | Damage to others' property |
| Split Limits | 100/300/100 = $100K per person, $300K per accident, $100K property |
| CSL | Combined Single Limit (one amount for all) |
Part D - Physical Damage
| Coverage | Protects Against |
|---|---|
| Collision | Hitting objects, overturning |
| Other Than Collision (Comprehensive) | Theft, vandalism, weather, animals |
Who Is Covered?
| Person | Coverage Extends To |
|---|---|
| Named Insured | Owner of policy |
| Spouse | If resident of household |
| Family Members | Residents using covered auto |
| Permissive Users | Anyone using car with permission |
Common PAP Exclusions
- Vehicles used for business (commercial auto needed)
- Intentional acts
- Vehicles with fewer than 4 wheels
- Racing or speed contests
- Rental to others
Exam Alert
Know all 6 parts of the PAP! Part A (Liability) is most important. Understand split limits format: BI per person/BI per accident/PD.