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Part A-Insuring Agreement
The liability insuring agreement of the PAP provides the overall framework for liability coverage. The insurer agrees to pay damages for “bodily injury” or “property damage”—as defined in the definitions—that the insured is legally responsible for due to an auto accident.
Part A-Who Is An Insured?
- Automatically covers a spouse and
- the named insured or any resident family members when using any auto;
- any individual using the named insured’s covered auto;
- any person or organization that may be held liable for acts or omissions arising out of any insured’s use of the named insured’s covered auto; and
- other persons or organizations that may be held liable for acts or omissions arising out of the use of any auto by the named insured or a covered family member.
Part A-Supplementary Payments
Supplementary payments consist of additional payment the insurer agrees to make when applicable. These payments include up to $250 in bail bond coverage, premiums on bonds and appeal bonds, post-judgment interest, loss of earnings, and other reasonable expenses.
Part A-Limit of Liability
- per person bodily injury/ per accident bodily injury/ per accident property damage
- either split or combined limits
Part A-Out-of-State Coverage
The out-of-state coverage provision provides that, if the laws of a particular state require higher limits than the nonresident motorist has when he enters the state, his coverage automatically expands to match the minimum limits the host state requires.
Part A-Other Insurance
“insurance follows the car.” When an insured is driving a nonowned vehicle, any insurance policy listing the vehicle is primary, and any insurance on the driver is secondary or excess.
Part B-Insuring Agreement
- The medical payments insuring agreement sets the stage for broad-based medical payments coverage that is provided regardless of negligence. Coverage is granted for necessary medical and funeral services, as long as the expenses were incurred within three years from the accident date.
- Medical payments coverage provides protection for two distinct classes of insureds-the named insured and family members (the policy provides the broadest coverage for this group), and other persons who are occupying the named insured’s covered auto.
- vehicles with fewer than four wheels
- public or livery conveyance
- vehicle used as a residence (such as a motor home parked at a campground)
- workers compensation
- noncovered vehicles owned by the named insured or available for the named insured’s regular use
- noncovered autos owned by family members or available for the family member’s regular use
- lack of permission to use the vehicle
- business use
- nuclear and war exclusions
Uninsured/Underinsured Motorists Coverage