Summary: The Special Personal Auto Policy (PP 90 01 07 06) is a new form developed by ISO. While similar to the Personal Auto Policy PP 00 01 01 05 in many ways, the liability coverage that is provided is much more restrictive. The intent of the policy is to provide coverage for the insured and his use of the vehicle, not to provide coverage for others or under certain circumstances.

Topics Covered:

Introduction

Definitions

Part A-Liability Coverage

Part B-Medical Payments Coverage

Part C-Uninsured Motorists Coverage

Part D-Coverage for Damage to Your Auto

Part E-Duties After an Accident or Loss

Part F-General Provisions

Introduction

This is a new auto policy, which restricts liability coverage to the state minimum financial responsibility limits under certain circumstances, even when the policy contains larger limits. The differences between this policy and the Personal Auto Policy, PP 00 01 01 05, are highlighted and reviewed in this discussion.

Definitions

A.Throughout this policy, “you” and “your” refer to:

1.The “named insured” shown in the Declarations; and

2.The spouse if a resident of the same household.

B.”We”, “us” and “our” refer to the Company providing this insurance.

C.For purposes of this policy, a private passenger type auto, pickup or van shall be deemed to be owned by a person if leased:

1.Under a written agreement to that person; and

2.For a continuous period of at least 6 months.

Other words and phrases are defined. They are in quotation marks when used.

D.”Bodily injury” means bodily harm, sickness or disease, including death that results.

E.”Business” includes trade, profession or occupation.

F.”Family member” means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child.

G.”Occupying” means:

1.In;

2.Upon; or

3.Getting in, on, out or off.

H.”Property damage” means physical injury to, destruction of or loss of use of tangible property.

I.”Trailer” means a vehicle designed to be pulled by a:

1.Private passenger auto; or

2.Pickup or van.

It also means a farm wagon or farm implement while towed by a vehicle listed in 1. or 2. above.

Analysis

There is one minor difference to the definitions from the standard language that appears in the PP 00 01 01 05. Language in the PP 00 01 01 05 policy provides that if the spouse ceases to be a resident of the household during the policy period or prior to inception, the spouse will be considered “you” and “your” but only until the earlier of ninety days following the change of residency, the effective date of another policy for the spouse, or the end of this policy. The special personal auto policy has removed all such language. Therefore, a spouse is covered under this policy as “you” and “your” only while a resident of the same household. There is no cushion of time for a spouse that leaves the residence to obtain other coverage; if they do not obtain other coverage immediately upon leaving the residence, they have no coverage. In the other policy, they are given coverage for a limited period of time.