Personal Auto PolicyQuestion 30 of 531

Which statement comparing the ISO Personal Auto Policy (PAP) and the Business Auto Coverage Form (BACF) is MOST accurate?

a.The PAP covers any business use of the auto without restriction, including delivery and livery work, so the BACF is unnecessary for a sole proprietor who drives a company pickup to job sites
b.The BACF eliminates the need for any commercial general liability insurance at the premises
c.The PAP can be issued only to corporations, partnerships and limited liability companies
d.The PAP is designed for individuals/families owning private passenger autos; the BACF is designed for businesses and uses a numerical symbol system to define which autos are covered

Explanation

The Personal Auto Policy is designed for individuals and families who own private passenger autos and excludes most regular business use beyond ordinary commuting and personal errands. The Business Auto Coverage Form is for commercial accounts and uses the symbol system (1-9) to describe which classes of autos are covered for which coverages — owned, hired, non-owned, specifically described, etc. A BACF does not replace a CGL; it covers only auto-related liability.

Law Reference: ISO Business Auto Coverage Form (CA 00 01); ISO PAP comparison

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