Question 92

An antique auto owned by an individual is eligible for coverage under a Personal Auto Policy.

A Personal Auto Policy (PAP) provides coverage for personal vehicles owned by individuals, and an antique auto qualifies as such when owned by an individual.

A) An antique auto owned by an individual

This option is correct because a Personal Auto Policy typically covers private passenger vehicles, including antique vehicles, as long as they are owned by an individual. The policy is designed to provide personal liability and property damage coverage for vehicles used primarily for personal, not commercial, purposes.

B) A four-door sedan owned by a partnership

This option is incorrect because a Personal Auto Policy does not extend coverage to vehicles owned by partnerships or businesses. Since a partnership is a business entity, the sedan in question would need a commercial auto policy for appropriate coverage.

C) A motor home owned by several unrelated individuals

This option is incorrect because a Personal Auto Policy is intended for vehicles owned by individuals, not groups of unrelated individuals. Coverage for a motor home under a PAP would typically be limited to ownership by a single individual or a family unit, thus excluding multiple owners.

D) A cargo van owned by a sole proprietor

This option is incorrect as well since a cargo van, even if owned by a sole proprietor, is generally used for business purposes. Personal Auto Policies do not cover vehicles primarily used for commercial activities, necessitating a commercial auto policy for adequate coverage.

Conclusion

An antique auto owned by an individual is the only option that aligns with the coverage provisions of a Personal Auto Policy, as it is a private vehicle. The other options involve business ownership or usage, which are not covered under a PAP, thereby confirming that they do not meet the eligibility criteria set forth by personal auto insurance policies.