Virtual University | Endorsements

Auto "Gap" Coverage

Getting a new car is usually fun and exciting. But having a total loss on a new car causes a double-whammy: the extreme disappointment of the loss of a new car, plus the shocking realization that the loan or lease balance can be greater than the amount of the claim payment.

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PAP Annotated Endorsements

The purpose of most endorsements is to amend policy forms by either broadening or restricting coverage. Other endorsements simply clarify the intent or scope of coverage. Finally, some endorsements are provided as supplementary information pertaining to rating or coverage procedures. In this section, we list the major countrywide endorsements numerically.

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The PAP and Additional Insureds

Some employers of people who use their personal autos for business want to be named as additional insureds on their personal auto policies (PAPs). However, many companies refuse to do this on the basis that they don't want the broader exposure or that the business owner has no insurable interest. Actually, there's no need to name the business as an AI on the PAP, although there could be a need for a PAP endorsement similar to a 'do nothing' endorsement in the business auto program.

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