Arizona Adjuster Practice Exam

In the personal auto policy (PAP), which vehicle is NOT covered under "your covered auto"?

1. Personal truck

2. Motorcycle

3. Borrowed autos

4. Company car

The correct answer is: Borrowed autos

In the context of a personal auto policy (PAP), “your covered auto” refers to the vehicles specifically listed in the policy and those that meet certain criteria for coverage. The reasoning for why a borrowed auto is not covered falls into the parameters of the policy's definitions. In a PAP, coverage typically applies to vehicles owned by the insured, newly acquired vehicles, and any vehicles that the insured has the permission to operate. However, when it comes to borrowed vehicles, the coverage is contingent on the insured having permission to use the vehicle, but these vehicles are often not included in the “your covered auto” definition unless specific terms are met. On the other hand, personal trucks and motorcycles can be covered under "your covered auto" if they are declared in the policy. Additionally, company cars can be covered if they meet the policy's conditions, particularly if they are included in the named insured's policy under specific clauses. Therefore, while borrowed autos do receive some level of incidental coverage under the policy for liability protection, they do not fall under the traditional definition of "your covered auto" as outlined in the policy, which is why they are marked as not covered.