Personal Auto PolicyQuestion 17 of 474
A 'newly acquired auto' under the Personal Auto Policy:
a.Is covered for the life of the policy regardless of when the insurer is notified, because the PAP's newly acquired auto provision carries no reporting deadline
b.Is never covered until it has been added to the declarations by endorsement and the additional premium has been paid, so a vehicle bought on a Saturday has no coverage until Monday
c.Is automatically covered only if it replaces a vehicle already shown on the policy that was declared a total loss; a vehicle added to the household gets no automatic coverage
d.Receives automatic coverage if the insured notifies the insurer within the policy's stated window (typically 14 or 30 days)
Explanation
The PAP extends automatic coverage to a newly acquired auto, but the insured must report the acquisition to the insurer within the policy's stated time period — typically 14 days for some coverages and up to 30 days for others, depending on the form. Failing to notify the insurer in time can leave physical damage coverage in particular unenforceable on the new vehicle.
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Related questions on this topic
- An insured's parked vehicle is broken into overnight; a window is smashed and a laptop is stolen from the back seat. Under the Personal Auto Policy, the broken glass is paid under which coverage?
- Stacking of Uninsured Motorist limits in California is best described as:
- An insured backs out of her driveway and strikes her neighbor's parked car. Under the Personal Auto Policy, the damage to the INSURED'S OWN vehicle is paid under:
- Which Part of the Personal Auto Policy contains the general provisions such as territory, transfer of interest, cancellation, and termination?
- Which of the following is a duty owed by the insured to the insurer AFTER an accident or loss, as required by Part E of the Personal Auto Policy?
- Which of the following losses would be EXCLUDED under the Personal Auto Policy Part A (Liability)?
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