Prentice-Hall, Inc.1Chapter 10Property and Liability InsuranceAuto InsuranceThe Personal Automobile Policy (PAP)•________ million car crashes in the U.S. annually, or about 1 accident for every 5 licensed drivers. Terms•_________________ Insurance: protects against the financial consequences from the insured’s responsibility for property losses or injuries to others.•_________________ (Full coverage) This term applies when your vehicle is encumbered by a loan. You must insure against liability and for the value of the vehicle itself. Terms:• _____________: limit what a company must pay for small losses. • _____________: The monthly payment you pay for your insurance coverage• _____________: The terms, or conditions of your coverage.The Personal Automobile Policy (PAP)•PAP Part A: Liability Coverage•PAP Part B: Medical Expense Coverage•PAP Part C: Uninsured Motorist’s Protection Coverage•PAP Part D: Coverage for Damage to Your Car•Standard exclusions•No-fault insurancePAP Part A: ________ Coverage•Covers bodily injury losses•Covers property damage losses•Can be a combined single limit or a split-limit coverage•Most states require a minimum coverage•Covers losses due to a lawsuit
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