Chapter 3 - The Insurance Contract and The Personal Auto Policy
"We know what happens to people who stay in the middle of the road, they get run over." |
Introduction
Through the study of the Personal Auto Policy it is important to review the basics of contract provisions and specifically general provisions in the Personal Auto Policy. Automobile Insurance cannot prevent automobile accidents from occurring but it can sure help take the "sting" out of potential financial loss. As we review the Automobile Policy, various coverages are designed to protect individuals from catastrophic accidents. Coverages that protect an insured's investment in a vehicle, to pay medical expenses due to injury and coverage for potential legal liability are all offered to the insured through the Personal Auto Policy. Keep in mind that such coverages are combined in a single policy, which, in reality, is a contract between the insured and the insurance company. Let's take a closer look at contracts and their use in providing protection through the Personal Auto Policy.
Contracts
Insurance transactions differ from purchases of goods. A car buyer, for example, can examine and even test drive a car before buying it. While warranties and promises of reliable service may influence the decision to buy, the primary consideration is the car itself. Insurance, on the other hand, is not something a person can try before buying. It exists only in the future. The essence of
insurance is promise. The evidence of the insurance company's promise is the Insurance Policy. The policy defines in detail the rights and duties of each party to the transaction. An Insurance Policy is a contract between the insurer and the insured.
A contract is a set of promises exchanged by two parties and enforceable in a court of law. Even though someone purchasing insurance receives only a promise, that promise has value because it is a legal obligation the insurance company cannot escape. Valid insurance contracts must meet the same requirements as contracts in general. However, insurance contracts have special characteristics that influence the application and interpretation.
Elements of A Contract
A court will enforce only those agreements that are valid contracts. The validity of a contract depends on certain essential elements. An agreement must involve mutual assent, competent parties, a legal purpose and some consideration to be a valid contract. If a court cannot find all of these elements, it simply will not enforce the agreement.
Mutual Assent - One essential element of a contract is that both parties agree to its terms. One party must make an offer and the other party must accept it in its exact terms. The process begins when someone completes an application, an offer to buy insurance. The details on the application describe the exposures to be insured and indicate the terms the applicant will accept.
In a perfect world, an underwriter accepts the application and agrees to provide the coverage requested. At this point, an agreement exists and a contract has been formed.
In some cases, the underwriter might not be willing to meet all the requests of the applicant. The underwriter could request a higher deductible. When the underwriter's alternatives are communicated to the applicant, these alternative terms constitute a counteroffer. To be enforceable, the agreement cannot be the result of duress, coercion, fraud or a mistake. If any of these can be proved, a court might declare the contract to be void!
Competent Party - For the contract to be enforceable, both parties must be legally competent. Each party must have the ability to understand the agreement and the power to make the agreement. Individuals are generally considered to be competent and able to enter into legally enforceable contracts, unless they are:
Even minors may be considered competent to purchase Auto Insurance when Auto Insurance qualifies as a necessity. State laws vary.
Legal Purpose - A contract is enforceable only if its purpose is within the law.
Consideration - Simply is the thing of value given by each party to a contract. Example: when an auto is purchased, the buyer gives money (consideration) to the seller who, in turn, provides the car (which is also consideration). In insurance contracts two types of considerations are involved.
to fulfill the obligations specified in the
contract, conditioned on the occurrence of insureds’ losses.
In order to form a legally enforceable contract, an offer must be accepted; the parties must have genuine assent, the parties must be competent, the contract must be for a legal purpose and the contract must involve consideration. If any of these elements are missing, the contract might be voided by one of the parties and thus would have no effect.
An Insurance Policy is a written document that contains words expressing the agreements of the parties to the Insurance Contract. The wording of the Insurance Policy also reflects certain fundamental characteristics of insurance.
Special Characteristics of Insurance Contracts
Insurance contracts have special characteristics that affect their enforcement. In settling disputed cases, courts recognize that insurance is:
Conditional Contract - An Insurance Policy is a conditional contract because the insurer has to perform only under conditions. Whether the insurer pays a claim depends on whether an insured loss occurs. An insured loss may never occur but that does not mean the insurance has been worthless. In buying an Insurance Policy, the insured acquires a valuable promise, the promise of the insurer to make payments "if needed". The promise is present, even if the insurer's performance is not needed.
Contracts Involving the Exchange of Unequal Amounts - Because they are conditional, Insurance Contracts involve an exchange of unequal amounts. This often times is referred to as aleatory.
The premium paid by the insured for a particular policy does not equal the amounts paid by the insurer to, or on behalf of, the insured. It is the additional factor that the insurer's obligation may be much greater (but only if certain events occur) that makes the transaction a fair price. Example: an insurance company charges a $500 premium to Provide Property Coverage ("Collision" Coverage or "Physical Damage" Coverage) on a car worth $10,000.
insurance pays the cost of repairs, after
subtracting a deductible (unless the repairs cost more than what the car is worth).
If by chance the insurer's obligations in a "fender bender" come to exactly $500, unequal amounts are involved in all three cases. However, it does not follow that insurance buyers; with no losses or with only very minor losses, do not get their money's worth or that the insured who has a major accident profits from the insurance. The premium reflects the value of the insurer's promise. Many insureds have no losses, while some are very large.
The premium reflects the amounts the insurer expects to have to pay, on the whole, to honor its agreements with all insureds with similar policies.
Contracts of Utmost Good Faith - Because insurance involves an intangible promise, it requires complete honesty and disclosure of all relevant facts between the parties. This is the reason insurance contracts are considered contracts of utmost good faith. The insured has a right to rely on the insurance company to fulfill its promise, even if the insurance company is obligated to do nothing until some years in the future (claims may involve long delays, especially when Liability Exposures are involved). Likewise, the insurer has a right to expect that the insured deal be in good faith. An insurance buyer who intentionally misrepresents certain facts or intentionally conceals certain information does not deal in good faith. Similarly, as an insured who makes a promise or warranty as part of the Insurance Contract. An insurance company may be released from a contract on the grounds of Concealment, Misrepresentation or Breach of Warranty.
Concealment - is the failure to disclose information that could have been given. Courts have held that the insurer must prove two things in order to establish that Concealment has occurred. First, it must establish that the concealment occurred intentionally, which is often difficult to prove. Usually, the insurer must show that the insured knew the information should have been given and then withheld it. Second, the insurer must also establish that the information withheld was a material fact. A material fact is any information that would have affected the insurer's underwriting decision.
Example: for an Auto Insurance applicant, material facts may include who drives the autos, the ages and driving records of the drivers, where the autos are garaged and how the autos are used. Insurance companies care-fully design applications for Insurance Policies to include questions regarding all factors material to the underwriting process. By asking a question on a specific subject, the applicant must respond. In this way, the applicant has less chance to conceal any pertinent information.
Misrepresentation - A misrepresentation is a false statement of a material fact. Unlike concealment, the insurer does not have to prove that the Misrepresentation is intentional. Example: assume an Auto Insurance applicant has had two speeding tickets during the fifteen- (15) months prior to the application for insurance. When asked if any driving violations have occurred within the past two years (a question found on all auto application forms), either of the following is considered a Misrepresentation:
In the first answer, the information provided is incorrect. In the second instance, information is withheld. Because the application form poses the direct question, anything other than a full and honest response is a misrepresentation, whether intentional or not. As in the case of concealment, a misrepresentation of a material fact allows the insurer to cancel the policy and return the premium because of the violation of utmost good faith.
Breach of Warranty - A warranty is a statement that someone holds to be true.
Contracts of Adhesion - The wording in Insurance Contracts are drafted by the Insurance Company and reprinted forms are used for many different insureds. Since the insurance determines the exact wording of the policy, the insured has little choice but to "take it or leave it". That is, the insured must adhere to the contract drafted by the insurer. The fact that contracts are Contracts of Adhesion significantly influences their enforcement. Usually, when questions arise as to the language of the policy, the courts will rule in the favor of the insured since the wording was presented in ambiguous terms by the insurer.
Contracts of Indemnity - Most Property and Liability Insurance Policies Are Contracts of Indemnity. With a Contract of Indemnity, the amount paid by the insurer depends on the amount lost by the insured.
amount of money necessary to repair
covered property that has been damaged
or to replace it with similar property.
a third party claimant, on behalf of the
insured, any amounts the insured becomes legally obligated to pay as damages due to a Covered Liability Claim, and also to pay legal costs associated with the claim.
A Contract of Indemnity does not necessarily pay the full amount needed to restore an insured that has suffered a covered claim. The point is that the amount the insurer pays is directly related to the amount of the insured's loss. Most policies contain a policy limit, which specifies the maximum amount the insurer will pay for a single claim. Many policies also contain limitations and other provisions that may reduce the amount of recovery.
According to the Principle of Indemnity, the insured is not supposed to profit from the insured loss. That is, the insured should not be financially better off after the loss than before. Insurance Contracts usually include certain provisions that reinforce the principle of indemnity. Example: policies may be worded to prevent an insured from collecting under two different Insurance Policies for the same claim. Insurance Policies also may provide that the insured transfers rights of recovery against others if the insurance company pays the loss. In each of these cases, the insured could otherwise collect more than the loss. Another factor enforcing the Principle of Indemnity is that generally a person cannot buy insurance unless that person is in a position to suffer a financial loss. In other words, one must have an insurable interest. Example: one cannot buy life insurance on the life of a stranger, hoping to gain if the stranger dies. Property Insurance Contracts cover losses only to the extent of the insured's insurable interest in the property. This restriction prevents an insured from collecting more from the insurance than the amount of the loss. Insurable interest is not a problem in Liability Insurance because a Liability Claim against an insured automatically proves that the insured could suffer a Liability Loss.
Insurance Contracts
Before specifically introducing the Personal Auto Policy and how it is organized, we will take a look at the general provisions of the insurance contract.
General Provisions of Insurance Contract - Because they must provide for contingencies of all sorts, Insurance Contracts must be drafted carefully. The parties must agree about how to handle many situations that could arise even if they are not likely in a particular case. While Insurance Contracts can be complex documents, a little knowledge helps in understanding the contract. Certain matters must be addressed in every Insurance Policy in order to define the coverage provided. These are critical elements in the content of any Insurance Policy. The location within the policy, however, depends on its structure. Thus, some familiarity with both the content and the structure of Insurance Policies in general helps one to analyze the terms of a particular policy more readily.
Content of Insurance Policies
An Insurance Policy specifically defines the
coverage it provides. Since no Insurance Policy covers every single contingency, the policy must describe its limitations, restrictions and exclusions as clearly as possible. Example: most Insurance Policies do not cover losses due to acts of war or nuclear contamination. If the insurer does not intend to cover such losses, the policy must clearly state those exclusions.
Thus, the policy aims to specify the agreements between the parties to the contract. In consideration of the premium, the insurer promises to make payment according to the terms of the contract and conditions on the occurrence of an insured loss. Any Insurance Policy must contain certain information to make agreements clear. The best way to determine the coverage provided by a particular policy is to examine its provisions in regard to each of these items.
Name of Insurance Company and Insured - An Insurance Policy must identify the parties to the agreement. The name of the insurer and the name(s) of the insured(s) are usually shown in the first sheet of paper that forms a part of the policy. This sheet may be called a declaration's page or simply declarations. Some policies call it the information page. The name of the insurance company is preprinted on the form, while computer enters the name of the insured.
Policy Period - Insurance Policies usually provide coverage for a specified period of time. This time period must be stated. The beginning ("inception") date of the policy appears in the policy declarations. The expiration date may also appear there, or the policy term may be clarified elsewhere in the printed documents. In case either the insurer or the insured wants to cancel the policy before the end of the specified policy period, Insurance Policies need a section usually labeled "termination" or "cancellation" that addresses this possibility.
Consideration - The Insurance Policy must describe the "consideration" involved. The insured's consideration is the payment of premium, and the insurer's consideration is its promise to make payments of an insured loss occurs.
The policy declaration page normally shows the premium amount. Elsewhere, the Insurance Policy may contain a number of specified statements regarding when the premium should be paid, to whom it should be paid and what happens if it is not paid when due.
Definitions - Standard practice is to interpret Insurance Policies and other contracts by giving words their ordinary meaning or dictionary definitions, unless the contract specifically defines those words. Since Insurance Policies often contain technical terms or words that are used in a very specific way, many policies contain a separate section labeled "definitions". Sometimes definitions appear at the beginning of a policy and sometimes near the end. Sometimes one or more terms are defined where they appear in the policy. Insurance Policies may distinguish defined terms by placing quotation marks around defined words every time they appear in the policy or by printing the terms in boldface type.
Insuring Agreement(s) and Exclusions - An Insurance Policy contains specific statements regarding the nature of the insurer's promises. Example: it states what Loss Exposures the insurer has agreed to cover, and what exposures the insurer does not intend to cover.
These statements may be called insuring Agreements and Exclusions. An Insuring Agreement is the statement in which the insurer agrees to provide coverage. The insurer's promise is then limited by Exclusions, which eliminate some of the things that would otherwise be covered by the broad insuring agreement. Insurance Policies contain Exclusions for several reasons:
some things cannot reasonably be insured by insurance.
prevented. Some things are within the
control of the insured, i.e., many policies exclude coverage for damage intentionally caused by the insured.
do not need.
Limits and Valuation Provisions - An insurance policy must specify exactly how to determine the amounts the insurer must pay if a loss does occur. Insurance Policies usually state a maximum amount, or policy limit, which is the most an insurer will pay for a given loss.
Duties of Insurer and Insured - Both insurer and insured must fulfill certain duties for the insurance to function as intended. Example: the insurer cannot pay claims unless it is informed when a loss occurs. Therefore, Insurance Policies delineate the insured's duty to report claims promptly. Often policies also prescribe other things the insured should do after the loss to protect the insurer's rights.
Dispute Resolution - Last in the question of what to do if there is a disagreement between the insurer and the insured. Disagreements can take two forms:
Property Insurance Policies generally contain an appraisal provision that clarifies how the first type of dispute should be resolved. Normally, both insurer and insured appoint an appraiser and the two appraisers appoint an umpire. When any two of the three parties reach an agreement, the claim is settled.
Some Liability Policies prescribe a similar approach to both coverage and amount disputes with an arbitration provision. Either party may demand arbitration, each party appoints an arbitrator and both arbitrators select a third arbitrator. A decision of two of the arbitrators is binding.
Both appraisal and arbitration represent ways of resolving disputes without going to court. However, a lawsuit is always available as a final option. Insurance Policies contain a suit provision, often titled "Legal Action Against Us", which states that a legal action may not be brought against the insurance company, unless all other terms of the policy have been complied with. A lawsuit is intended to serve only as a last resort.
Personal Auto Policy and Its Organizational Format
Before we enter into the specific details of the Personal Automobile Policy, we will discuss the provisions and format of the policy. Since the Personal Auto Policy is a bundle of protection, we will first deal with the property aspects of this coverage, then deal with the liability provisions in a general nature. We will conclude the chapter with a look at the policy format.
Property Insurance Characteristics
Property Insurance is any type of insurance that indemnifies an insured party who suffers a Financial Loss because property has been damaged or destroyed. Pertaining to the Auto Policy, this section is known as the "Auto Physical Damage" part of the policy.
In the Auto Physical Damage section, three degrees of coverage may be available:
Like other property, cars and trucks is subject to fire, theft, vandalism and other perils. However, the most serious peril threatening autos is collision. Insurance against collision also costs much more than insurance against all other periods combined. Therefore, collision coverage may be either included or excluded with either "All Risks" or "Named-Perils-Coverage". The specific causes of loss in a typical Auto Insurance Policy include:
1. fire, lightning, or explosion
2. theft
3. windstorm, hail, or earthquake
4. flood
5. mischief or vandalism
6. the sinking, burning, collision or derailment of any conveyance transporting the coverage.
One of the most significant perils, missing from this list, is the peril of glass breakage. Insureds who desire coverage against glass breakage should purchase the "All-risk" Coverage.
Liability Insurance Characteristics - Because of differences in the nature of the exposures, Liability Insurance differs from Property Insurance in many ways. As mentioned before, Property Insurance claims usually involve two parties: the insurer and the insured (the insured is also the claimant). Liability Insurance claims involve three parties, the insurer, the insured and a "third party". The "third party" who brings a legal complaint against the insured is the claimant.
Liability Insurance may be enforced by an insured, against whom a claim has been made, provided the claim is within the scope of the policy. Insurable interest is not an issue in Liability Insurance although disputes can still arise over the questions of who is insured. Property Insurance Policies cover claims when covered property, at a covered location, is damaged by covered perils, during the policy period, resulting in covered consequences. Most of the wording in Property Insurance Policies, therefore, concentrates on clarifying precisely which property, perils and consequences the insurance intends to address. In contrast, Liability Insurance covers claims against an insured arising out of the insured's legal liability for a covered activity or situation involving covered expenses or damages, provided the event that "triggers" coverage occurs during a covered time period. Most liability insuring agreements make essentially the same broad promise: to pay damages (usually for Bodily Injury or Property Damage) for which an insured becomes legally responsible and to which the coverage applies. The insurer also promises to pay related defense costs.
Auto Insurance provides an example of Specific Liability Insurance. The insuring agreement of an Auto Insurance Policy states that it applies to claims because of auto accidents. Exclusions narrow the scope of coverage and further clarify the intention of the insurer. Example: a typical exclusion eliminates coverage for accidents intentionally caused by the insured. This Specific Liability Coverage applies only to certain sources of loss, such as auto accidents. Even so, it is necessary for policy provisions to narrow the broad coverage of the insuring agreement to avoid covering:
the driver of a stolen car)
intentionally Caused Property Damage)
Personal Auto Policy).
Overview of the Personal Auto Policy - The Personal Auto Policy (PAP) was first introduced in several states by the Insurance Services Office in 1977. The PAP is designed to be easy to read and understand. Highly technical terms have been eliminated and simple definitions and short sentences are used throughout the policy. The result is that the insured should be able to understand the basic provisions of this important contract without too much difficulty.
Eligible Vehicles - The PAP is designed to insure only certain types of motor vehicles. The vehicle must be owned, or leased for a minimum of six months, by an individual or by a husband and wife residing in the same house. An eligible vehicle is a four-wheel vehicle. Thus, a private passenger automobile, station wagon, or jeep owned by the insured is eligible for coverage. A pick-up or van also can be insured if the vehicle has a gross weight of less than 10,000 pounds and is not used to deliver or transport goods or dangerous materials. However, coverage is provided if such use of a pick-up or van is (1) incidental to the insured's business of installing, maintaining or preparing furnishings or equipment, or (2) for farming or ranching.
A private passenger automobile owned by two or more resident relatives (such as father and son) or by two or more non-related individuals residing together can also be insured under the PAP by adding a Miscellaneous Type Vehicle Endorsement (PP 02 23) to the policy. Finally, the PAP can be used to insure motorcycles, golf carts, snowmobiles and similar vehicles by adding the appropriate endorsement (discussed in a later chapter).
Summary of Coverages
The PAP consists of a declaration page, an agreement and definitions page and six separate parts. The six parts are:
Part A - provides Liability Coverage to protect an insured against a suit or claim arising out of the negligent operation of an automobile.
Part B - provides Medical Expenses Coverage that pays Reasonable-and-Necessary Medical Expenses incurred by an insured because of bodily injury caused by an automobile accident.
Part C - provides protection if an insured is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer is insolvent.
Part D - provides Physical Damage Insurance on a covered auto.
Part E - outlines the duties imposed on an insured after an accident or loss.
Part F - contains certain general provisions such as cancellation and termination of the policy.
There are other optional coverages which can be added to the policy, such as Towing and Labor Costs Coverage. We will discuss these optional coverages in a later chapter.
Declarations
The declarations page provides information about the insured, a description of the insured automobile(s), a schedule of coverages and other important details. The following information is usually provided:
Name Insured - The declaration page states the named insured and the named insurer's mailing address. The named insured can be a single individual, husband and wife or other parties.
Policy Period - The period of protection starts at 12:01 a.m. Standard Time on the date the policy becomes effective and ends at 12:01 a.m. Standard Time on the date the policy expires. The period of protection is usually six months or one year.
Description of Insured Automobiles - The declaration page describes the automobiles or trailers that are insured. This description includes the age of the automobiles, model and body type, trade name, vehicle identification number, annual mileage, use of the automobile, date of purchase, and other information. Two or more automobiles may be described on the declaration page. A multiple-car discount is generally available if all vehicles are insured in the same company.
Premium Amount - The premium for each coverage and the total premium amount are shown.
Limits of Liability - Liability limits for Bodily Injury and Property Damage is shown. The amount of insurance can be shown as a single limit per accident or as separate limits that apply to Bodily Injury and Property Damage.
Schedule of Coverages - The various coverages and the amount of insurance for each coverage is shown. Part A indicates the Limits of Liability and premiums for Liability Insurance. Part B indicates the amount of Medical Payments Coverage for each person. Part C shows the amount of Uninsured Motorists Coverage, and Part D indicates whether there is coverage for damage of the insured's auto. If Physical Damage Coverage applies, the deductible amounts for Collision Loss and Other-Than-Collision Loss are indicated.
Lien Holder - The vehicle may be financed through a bank, savings and loan association, credit union, or other financial institution which holds a lien on the vehicle until the loan is paid off. In such a case, the name of the lien holder is usually stated on the declaration page.
Garage Location - Unless otherwise stated, the described automobile is assumed to be principally garaged at the mailing address stated on the declaration page.
Rating Information - The rating class in which the vehicle is placed and any applicable credits and discounts are shown. Premiums can be reduced by a multiple-car discount, driver training, good student discount, bumper discount, accident prevention course, passive restraint discount, anti-theft device discount and other discounts and credits.
Cancellation by Another Insurer - If the insured has been previously canceled by another insurer, this information may also be shown on the declaration page.
Applicable Endorsements - The declarations page also indicates any endorsements that are attached to the policy, for example: a high-risk teenage driver may be excluded from coverage under his or her parent's policy by a Driver Exclusion Endorsement.
Signatures - The signatures of authorized legal representatives of the insurer are shown at the bottom of the declarations page.
Agreements and Definitions
The first page of the Personal Auto Policy contains the insuring agreement and definitions of several terms used throughout the policy.
Agreements - The policy begins with a brief general agreement that serves as an introduction to the policy and states that the insurer's obligations under the policy are dependent upon the payment of premiums by the insured.
Definitions - A series of important definitions apply to the entire contract. The definitions are written in simple, easily understood language. The following words are phrases that are defined in this section:
A covered auto is any vehicle listed in the declarations. As noted, covered vehicles include a private passenger automobile, station wagon, jeep, pickup truck or van owned by the named insured. A private passenger automobile leased for at least six months is also considered a covered auto.
A newly acquired vehicle is also considered to be a covered auto. Coverage is automatically provided from the date the insured becomes the owner. Therefore, if the insured purchases a new car, the car is automatically covered when the insured drives it away from the car dealer's lot. However, the coverage continues only if the insured asks
the insurer to insure the vehicle within 30 days after it is acquired. An additional premium must be paid for the newly acquired vehicle. If the newly acquired vehicle is a pickup or van, the Automatic Coverage Provision applies only if no other Insurance Policy provides coverage for that vehicle.
If the new vehicle the insured acquires replaces one shown in the declarations, it automatically has the same coverage as the vehicle it replaced. However, the insurer must be notified within 30 days if the insured wishes to add or continue Physical Damage Insurance (Part D - Coverage for Damage to Your Auto) on the replacement vehicle. Example: assume that the insured Has Collision Insurance on a 1987 car that is traded in for a 1994 car. The insured has 30 days to notify the insurance company to continue the Collision Insurance of the new car. If the insured forgets to notify the company and six weeks later is involved in an accident, the Physical Damage Loss to the new car is not covered.
If the newly acquired vehicle is an additional vehicle, it has the broadest coverage provided for any vehicle listed in the declarations. One with Collision Coverage and the other without, an addition vehicle purchased by the insured would be insured for a Collision Loss.
A temporary substitute vehicle is also covered under the PAP. A temporary substitute vehicle is a Non-Owned Auto or Trailer that the insured is using because of the breakdown, repair, servicing, loss or destruction of a covered vehicle. However, temporary substitution vehicles are not within the definition of covered auto as that definition applies to Part D. Coverage for damage to your auto with respect to Physical Damage Coverage, temporary substitute vehicles are considered non-owned vehicles and will be discussed in a later chapter.
Chapter 3 - Review Questions
1. The essence of an Insurance Policy is:
A. monetary gain
B. monetary loss
C. a promise
D. all of the above
2. In order for a contract to be valid and enforceable, it must have
A. mutual assent
B. consideration
C. legal purpose
D. all of the above
3. A contract involving an exchange of unequal amounts is known as:
A. adhesion
B. aleatory
C. indemnity
D. none of the above
4. The names of the insurance company and the insured are usually found in:
A. declaration page
B. table of contents
C. definition page
D. all of the above
5. The property section of the PAP is commonly known as:
A. Liability Coverage
B. Endorsement Section
C. Medical Payments
D. Auto Physical Damage
ANSWERS
1. C
2. D
3. B
4. A
5. D