Personal auto policy (PAP)

The personal auto policy (PAP) is the standardized contract, based on Insurance Services Office (ISO) forms, used to insure private passenger automobiles owned or leased by individuals and families. Standardization means the coverage structure is essentially the same across insurers, which is exactly why licensing exams test its parts so specifically.

The PAP is organized into lettered parts. Part A — Liability pays bodily injury and property damage the insured causes to others, plus defense costs. Part B — Medical Payments covers medical expenses for the insured and passengers regardless of fault. Part C — Uninsured Motorists protects the insured when an at-fault driver has no insurance (or, with underinsured motorist coverage, too little). Part D — Coverage for Damage to Your Auto is the physical damage section, split into collision and other-than-collision (comprehensive), each typically subject to a deductible.

The remaining parts set the ground rules: Part E lists the insured's duties after an accident or loss — prompt notice, cooperation, and proof of loss — and Part F contains general provisions such as the policy territory and rules about changes and cancellation. Eligibility matters too: the PAP is designed for personal-use private passenger autos, not vehicles used primarily for business like taxis or delivery fleets.

Property and casualty licensing exams — including property, casualty, and personal lines exams — devote a significant share of questions to the PAP: matching each part to what it covers, applying liability split limits, and distinguishing collision from other-than-collision losses. Achievable's P&C courses cover the PAP part by part.