Personal Auto PolicyQuestion 22 of 474
A friend borrows the named insured's covered auto with permission and causes an at-fault accident, injuring a third party. Under the Personal Auto Policy:
a.The PAP denies coverage because the friend is not the named insured
b.The PAP responds only after the friend pays the first $25,000
c.The friend is an insured under the PAP because he was a permissive user of a covered auto
d.Only the friend's own auto policy can respond, never the named insured's
Explanation
Under Part A of the PAP, an 'insured' includes any person using the covered auto with the named insured's permission. A friend who borrows the vehicle with permission is therefore an insured for liability, and the policy will respond to the third party's claim subject to policy limits. The friend's own auto policy may also respond as excess.
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Related questions on this topic
- 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)?
- An insured chooses California's minimum liability limits of 30/60/15 and does not sign a written waiver of Uninsured Motorist coverage. At what UM limits does the policy take effect by operation of law?
- California law generally treats 'diminished value' (the loss in a vehicle's market value after a high-quality repair) under a first-party physical damage claim as:
- An insured's vehicle is damaged in a covered collision. The cost to repair plus the salvage value of the wreck exceeds the vehicle's actual cash value. Under the Personal Auto Policy, the loss is most appropriately handled as:
- An insured's vehicle is in the shop for two weeks after a covered collision. Which optional Personal Auto Policy coverage would pay for a rental car during the repair period?
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