Personal Automobile Policy (pap)
Definition of "Personal automobile policy (pap)"
Replacement for the earlier Family Automobile Policy (FAP) with these nine basic coverages:
- Coverage A Liability, The company pays damages for which an insured becomes legally obligated because negligent acts or omissions resulted in bodily injury and/or property damage to a third party; the company defends the insured against liability suits for damages caused to the third party, paying various expenses in this connection; and (c) vehicles covered include the insured's own cars, a newly acquired car, and a temporary substitute car.
- Coverage B Medical Payments. The company pays medical expenses for bodily injury incurred by the insured (including spouse and relatives) and any other person while they occupy the insured car.
- Coverage C Uninsured Motorist Coverage. The company pays damages that the insured is legally entitled to collect from the owner or driver of an uninsured motor vehicle.
- Coverage D Comprehensive. The company pays for loss to the insured's car for all damages, in excess of a deductible amount,except due to collision.
- Coverage E Collision. The company pays for loss to the insured's car for all damages in excess of a deductible amount caused by collision.
- Coverage F Car Rental Expense (optional). The company pays for car rental up to a daily dollar limit, when the insured's car cannot run due to a loss incurred.
- Coverage G Death, Dismemberment, and Loss of Sight (optional). The company pays the insured or beneficiary for death or loss caused by an accident to the insured.
- Coverage H Total Disability (optional). The company pays the insured a monthly disability income benefit because of bodily injury in an accident while occupying or being struck by a motor vehicle.
- Coverage /Loss of Earnings (optional). The company pays the insured a percentage of his or her loss of monthly earnings because of bodily injury as the result of an accident while occupying or being struck by a motor vehicle.
Popular Insurance Terms
Statement issued by the insurance company denying a claim under the insurance policy on the grounds that a condition or policy provision has been breached. ...
Property or liability coverage that provides benefits (usually after a deductible has been paid by an insured) up to the limits of a policy, regardless of other insurance polices in effect. ...
Coverage provided for the fiduciaries of a retirement plan as well as for the plan itself in the event negligence of the fiduciaries results in losses to the plan and/or liability suits ...
Financial technique for providing term death coverage for an entity. With this procedure: (1) an individual purchases an ordinary life insurance policy and completes an agreement with the ...
Coverage in the event that papers of intrinsic value are damaged or destroyed. Coverage is on an all risks basis. Limits of coverage can be quite high; but the insurance company will not ...
Retrospective rating system with basic, minimum, and maximum premium rates listed in manual tables. Calculation of an individual premium involves adjusting the basic premium for appropriate ...
Coverage usually provided under the commercial general liability insurance (CGL); it can also be purchased separately. ...
Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Automatic protection for an insurer against losses that exceed a predetermined loss limit. This reinsurance may be subdivided into three primary types: excess of loss, catastrophe loss, and ...
Have a question or comment?
We're here to help.