Personal Auto InsuranceQuestion 8 of 158
An insured uses her personal vehicle on weekends to deliver pizza for a third-party app, with no endorsement on her Personal Auto Policy. While carrying a paid delivery she rear-ends another car. The PAP carrier most likely:
a.Pays the full claim under Part A because the insured was on a public road
b.Pays the claim subject only to a higher deductible
c.Splits the loss with the app's contingent insurer
d.Denies the claim under the 'carrying persons or property for a fee' exclusion
Explanation
The Personal Auto Policy Part A excludes liability arising from use of the vehicle while carrying persons or property for a fee, which includes app-based food and parcel delivery work. Without a delivery or rideshare endorsement, the PAP carrier will deny the claim, leaving the app's commercial coverage (if any) as the only potential source.
Law Reference: ISO PAP Part A exclusionsPractice all 158 questions free — no signup required.
Related questions on this topic
- Under Proposition 103, California personal auto insurers must give greatest weight, in order, to which three primary rating factors?
- Proposition 103 makes California a 'prior approval' state for auto insurance rates. What does this mean?
- California Vehicle Code §16028 requires a driver to do which of the following with proof of financial responsibility?
- Under California's Transportation Network Company (TNC) framework, which best describes 'Period 1'?
- Which statement about the California Low Cost Automobile Insurance Program (CLCA) is TRUE?
- An insured carrying $100,000/$300,000 UIM limits is injured by an at-fault driver carrying only $30,000/$60,000 in liability. The insured's own medical and wage loss exceeds $80,000. Under California UIM, what must occur before the insured can collect from her own UIM?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Personal Lines Insurance License Exam · How we review