Auto InsuranceQuestion 30 of 215
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 without restriction; the BACF is unnecessary for sole proprietors
b.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
c.The BACF eliminates the need for any commercial general liability insurance
d.The PAP can be issued only to corporations and partnerships
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 comparisonPractice all 215 questions free — no signup required.
Related questions on this topic
- Which of the following losses is specifically EXCLUDED under Part A Liability of the Personal Auto Policy?
- California Underinsured Motorist (UIM) coverage applies when:
- An insured drives her covered Honda to a dealer to test-drive a new SUV. While on the test drive she damages the SUV in a collision. Under the Personal Auto Policy, the SUV is best treated as:
- Following a covered collision repair, a California insured argues that her car is now worth less on resale than before the accident because of its accident history. With respect to first-party diminished value (the loss of resale value) claimed against the insured's own physical damage carrier, California generally:
- California considers a vehicle to be a 'total loss salvage vehicle' for title-branding purposes when:
- Under Part A of the Personal Auto Policy, the term 'bodily injury' includes which of the following damages a plaintiff may recover?
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