THREE PERSONAL AUTO QUESTIONS EVERY AGENT MUST KNOW HOW TO ANSWER By Chris Boggs Agents field dozens of questions from unknowing clients every week; that's just part of the job. We don't and shouldn't expect our clients to know anything about insurance, and they don't disappoint us in this regard (which makes it all the weirder that so much coverage is purchased on line). This article, the first in a series of articles intended to help agents be ready for the coming questions, focuses on three personal auto coverage questions. 1. If a child owns a vehicle in his/her personal name, can or should their vehicle be listed on the parent's PAP? Technically - NO! To be eligible for a PAP, the vehicle must be owned by the named individual or jointly by spouses. And if the PP 03 34 is attached, one of the owners must still be a named insured.
Because the child is not a named insured on the policy, their auto cannot technically be included as an auto on the PAP. The child must have a separate PAP if the vehicle is owned solely by him or her. But if the vehicle is listed on the policy, there may still be coverage. Here is relevant policy language contained in the parent's policy that must be considered: B. We do not provide Liability Coverage for the ownership, maintenance or use of: 3. Any vehicle, other than "your covered auto", which is: a. Owned by any "family member" or b. Furnished or available for the regular use of any "family member". However, this exclusion (B.3.) does not apply to you while you are maintaining or "occupying" any vehicle which is: (1) Owned by a "family member" or (2) Furnished or available for the regular use of a "family member".
