410.3

COMPARING THE LATEST EDITIONS OF THE PERSONAL AUTO POLICY

(September, 2007)

Maintaining the Personal Automobile Policy’s readability remains important. The policy’s meaning is constantly challenged by the passage of time, increasing consumer sophistication, expanding coverage expectations and legal trends. Following is a look at a number of policy features between the '05, ‘98 and ‘94 editions of ISO’s Personal Auto Policy. For an explanation of current endorsements, please refer to PF&M Section 410.4-3, ISO Personal Auto Policy Endorsements.

Policy Feature	Personal Automobile Policy Edition
	2005 Edition	1998 Edition	1994 Edition
Definition -"Occupying"	Defines being in, on and entering/leaving an auto as occupying. However, it separates the wording in an effort to make its meaning clearer.	Defines being in, on and entering/leaving an auto as occupying. It does so in a single phrase.	Same as '98 Edition
Supplementary Payments	Similar to '98 edition, but it adds a separate sentence at end of section to state that the listed coverages do not affect (reduce) the policy's insurance limit.	Pays additional amounts of coverage for cost of bail bonds, appeal bond premiums, post-judgment interest, and other expenses.	Same as '98 Edition
Single Vs. Split Limits	Same as '98 Edition	Split limits of liability are provided. They may be converted to a combined single limit of liability by endorsement.	A combined single limit of liability is provided. It may be converted to split limits of liability by endorsement.
Out Of State Provision	Similar to '98 edition, but program has add'l wording to applicable State Amendatory Endorsements that refer to each state's actual minimum limits.	Provisions allow the policy’s liability coverage to respond at least with an applicable state’s minimum FR and benefit requirements.	Same as 06 98 PAP
Terminating Defense Obligation	Same as '98 PAP	Limits exhausted by paying judgment or settlement terminates defense.	Exhaustion of limit of liability terminates defense.
Other Insurance Provisions	Similar to '98 edition, but adds wording that responds on an excess basis; ALSO applies to substitute vehicles	Policy responds as excess for eligible non-owned autos	Same as '98 Edition
Medical Payments Exclusions	Expands the exception under item 8. so that it also extends to non-owned pickups and vans	Auto exclusion 8. contains exception that covers private passenger autos, trailers and owned pickups and vans that are used in an insured's business.	Same as 06 98 PAP
Policy Feature	Personal Automobile Policy Edition
	2005 Edition	1998 Edition	1994 Edition
Non-Owned Autos	Same as 06 98 PAP	The named insured and resident relatives are covered while occupying non-owned auto operated by named insured or non-owned private passenger auto operated by resident relative. There is no specific permission requirement for a resident relative.	The named insured and resident relatives are covered while occupying non-owned auto operated by named insured or non-owned private passenger auto operated by resident relative with the named insured’s permission.
Uninsured Motorists (type of limits)	Same as '98 PAP	Split limits are generally provided.	Single limit is generally written.
Uninsured Motorists (Exclusions)	Policy excludes payment if insured settles a BI loss without the insurer's written agreement AND if the action harms (prejudices) the insurers rights.	Policy excludes payment if insured settles a BI loss without the insurer's written agreement	Same as '98 Edition
Arbitration Provision	Similar to previous editions, but refers to "at least" two judges (rather than two of three judges) in order to make the provision clearer.	Arbitration is binding when two of three judges agree on an amount.	Same as '98 Edition
Appraisal Condition	Policy requires that both parties select appraisers who are BOTH competent and IMPARTIAL.	Policy requires that both parties select competent appraisers.	Same as '98 Edition
Coverage For Damage To Your Auto - Transportation Expenses	Similar to '98 ed., but added wording specifically subjects item B, to the conditions listed on item A.	Item B. under this provision explained how coverage applies to a loss due to theft or to loss of use and how coverage ends (due to recovery)	Same as '98 Edition
Coverage For Damage To Your Auto - Transportation Expenses	Same as 06 98 PAP	Transportation expense is paid for theft of trailer (as well as a car) for a maximum of $20 per day or $600.	Transportation expense is paid for theft of trailer (as well as a car) for a maximum of $15 per day or $450.
Damage To Non-Owned Autos	Current edition has clarification that PAP also responds to temporary substitute autos on an excess basis.	Non-owned auto damage is covered on an excess basis under Coverage D. A rental car qualifying as a "non-owned auto" has the broadest coverage applicable to any of "covered auto." Similarly, a temporary substitute for a "covered auto" has the broadest coverage applicable to any of the insured's "covered autos."	Same as 06 98 PAP.
Policy Feature	Personal Automobile Policy Edition
	2005 Edition	1998 Edition	1994 Edition
Damage To Non-Owned Trailers	Policy provides up to $1,500 coverage for certain non-owned trailers.	Policy provides up to $500 coverage for certain non-owned trailers.	Same as 06 98 PAP
Camper Bodies	Same as '98 PAP	Camper bodies are excluded unless specifically declared in policy Declarations. This exclusion makes the common exception for newly acquired camper bodies, but the policy does cover non-owned trailers (including facilities).	Camper bodies are excluded unless specifically declared in policy Declarations. This exclusion makes the common exception for newly acquired camper bodies.
Electronic Equipment	Similar to '98 edition. It also will provide a maximum of $1,000 for loss to equipment for producing sound which is permanently installed, even when in a location that is DIFFERENT than the spot designated by the car manufacturer. The wording was also clarified so that coverage is totally excluded for media and accessories used with such equipment.	Loss to radios, stereos, tape or CD players, CB radios, mobile radios, phones, TVs, video or audio cassette recorders, PCs or scanners is excluded. An exception applies to radios, stereos, tape or CD players that are permanently installed in a console. Removable radios that can only be powered by the auto's electrical system - anti-theft removable radios - are now covered while in or on the car. Radar and laser detectors are not covered. NOTE: The policy will provide up to $1,000 for loss to equipment for producing sound which is permanently installed in a location that is DIFFERENT than the spot designated by the car manufacturer.	Loss to radios/stereos, tape decks or compact disc players, citizens band (CB) radios, two-way mobile radios, telephones, televisions, video or audio cassette recorders, personal computers or scanners is excluded. The exclusion doesn’t apply to radios/stereos, tape decks or compact disc players that are permanently installed in dash or console opening (but radios removable from the dash that can only be powered by the auto's electrical system - anti-theft removable radios - are now covered while in or on the car). Radar and laser detectors are not covered.
Permission To Use Covered Vehicle	Policy clarified so that issue of "permission" does not affect members of insured's household.	Excludes drivers who use covered vehicles without a reasonable belief of having permission. When it appears that permission existed, an insurer is unable to subrogate under Physical Damage insurance.	Same as 06 98 PAP
Part E - Duties After A Loss	An insured who does not fully comply with the policy's post-loss obligations risks losing coverage for that given loss, but ONLY IF the non-compliance harms (prejudices) the insurer's rights.	An insured who does not fully comply with the policy's post-loss obligations risks losing coverage for that given loss.	Same as "98 Edition
Policy Feature	Personal Automobile Policy Edition
	2005 Edition	1998 Edition	1994 Edition
Additional Vehicles - Newly Acquired	Same as 06 98 PAP	Additionally acquired vehicles must be reported within 14 days of acquisition if only liability coverage is involved. With regard to an additional vehicle that includes collision or other than collision, such vehicles must be reported within 14 days if at least one existing car has the same physical damage coverage, or 4 days if no existing car has matching physical damage coverage.	Additionally acquired vehicles must be reported within 30 days of acquisition. With regard to replacement vehicles, however, notification within 30 days is necessary only if Physical Damage coverage is to apply to the replacing vehicle.