What It Means to Be a CIC - The Certified Insurance Counselor (CIC) designation is a distinction that represents a commitment to professional excellence and leadership within the insurance industry. The 28,000+ designated CICs across the country are recognized as among the best and most knowledgeable insurance practitioners in the nation. The formal training required to become a CIC includes 100 classroom hours and the successful completion of five comprehensive exams, with an annual update required to ensure that CICs maintain their edge as the most capable and current insurance practitioners in the industry.

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Online - Texas Personal Auto Insurance Quote Request

Please fill out as much information as possible.

If you have any questions regarding this form please contact us.

Tx Personal Auto Quote Request Form - (Texas Residents Only!)

(* Indicates a required field)

All information provided will be regarded as strictly confidential, and will be used only to secure an accurate quotation for insurance coverage.

First Named Insured:

Additional Named Insured ( Usually Spouse):

*Full Name (as shown on your drivers license):

Full Name (as shown on your drivers license):

*SSN #

*DOB:

SSN #

DOB:

(ie;999-99-9999)

(MM/DD/YYYY)

(ie;999-99-9999)

(MM/DD/YYYY)

*Business/Industry : *Occupation

If "Other" Occupation Please Describe

*Highest Level of Education

Business/Industry : Occupation

If "Other" Occupation Please Describe

Highest Level of Education

Email Address: (For Our Agency Staff Use Only)

*Email Address : (For Our Agency Staff Use Only )

Fax #

*Send Quick Quote By : Email Fax Both

*Contact Phone Numbers:

Day :

Evening :

Cell :

Do you currently have auto insurance?

If currently insured, how long have you had insurance without a gap in coverage?

If no, how long has it been since you had car insurance?

At what age did you become a licensed driver?

If yes, Name of Current Carrier:

Policy #

Expiration Date:

Location Your Automobiles Are Garaged At :

City: State:

Physical Address:

*Address:

*City:

*State: Zip:

*County :

Mailing Address: Same as Mailing Address
Address:

City:

State: Zip:

County :

Driver Information:

Please list all family members of your household who are licensed drivers;even if you do not wish to cover them for use of your vehicles..

Driver Number

Name / Employment

Gender / Marital Status

Driver License / State / Date Of Birth Relationship

History : Any reportable Accidents/Major Violations/Comp Claims within the past 5 years or minor violations within past 3 years?

Driver 1

Full Name

Driver's License #	State	DOB

Relationship to Primary Insured:

At Fault Accidents/Major Violations

Not At Fault Accidents/Comp Claim

Minor Moving Violations/Tickets

Driver 2

Full Name

Driver's License #	State	DOB

Relationship to Primary Insured:

At Fault Accidents/Major Violations

Not At Fault Accidents/Comp Claim

Minor Moving Violations/Tickets

Driver 3

Full Name

Driver's License #	State	DOB

Relationship to Primary Insured:

At Fault Accidents/Major Violations

Not At Fault Accidents/Comp Claim

Minor Moving Violations/Tickets

Driver 4

Full Name

Driver's License #	State	DOB

Relationship to Primary Insured:

At Fault Accidents/Major Violations

Not At Fault Accidents/Comp Claim

Minor Moving Violations/Tickets

Driver 5

Full Name

Driver's License #	State	DOB

Relationship to Primary Insured:

At Fault Accidents/Major Violations

Not At Fault Accidents/Comp Claim

Minor Moving Violations/Tickets

* Do You Want Us To Also Provide You With A Separate Quote For A Personal Umbrella Liability Policy ? Yes

Vehicle Information:

Car Number	Year	Make	Model / Date Purchased / Cost	Vehicle ID Number	Driver#	Usage / Miles / AV Daily Miles
Car 1			Model Date Purchased Cost New			Average Miles Per day
Car 2			Model Date Purchased Cost New			Average Miles Per day
Car 3			Model Date Purchased Cost New			Average Miles Per day
Car 4			Model Date Purchased Cost New			Average Miles Per day
Car 5			Model Date Purchased Cost New			Average Miles Per day

Coverage Limits:

	BI/PD	UMBI/PD	PIP/MED	COMP Ded	COLL Ded	Towing	Rental Car
Car 1
Car 2	same as car 1	same as car 1	same as car 1
Car 3	same as car 1	same as car 1	same as car 1
Car 4	same as car 1	same as car 1	same as car 1
Car 5	same as car 1	same as car 1	same as car 1
Click Here To View All Available Tx Personal Auto Optional Coverage Endorsement Forms Enter Additional Optional Coverage Endorsement Form Numbers You Wish Us To Provide A Quote For::

Additional Underwriting Information :

Rate Discounts (available only with written proof of course completion) : Driver Training Course Accident Prevention Course Alcohol/Drug Awareness Course	Has any driver living in your household (even if not a listed on driver information above) had their driver's license suspended or revoked in the last 5 years? Yes No Brief Details Has any insurance company cancelled, declined or refused renewal any driver in your household (even if not a listed on driver information above) during the past 5 years? Yes No Brief Details
Driver Training Date Competed Accident Prevention Date Competed AD Awareness Course Date Competed	If anyone to be insured received a ticket or fine for a major violation in past 5 years (as reported in history above ) please provide : Type Violation Date Brief Details
Reason you are shopping for new auto policy	Date Last Accident Reported ( if applicable)
Do you want this quoted for an annual term if available? (Please note: Choosing a 12 month term could result in a higher premium quoted.) Yes No	Do You Need To File A SR-22 Filing ? Yes No (This is usually a court ordered financial responsibility requirement for drivers who are required by a court at law to provide the court with ongoing poof of auto insurance )
Does Someone Else Own Any Vehicle Listed Above? Yes No If "Yes" Provide Brief Details:	Are all household members listed as drivers? Yes No If "No" Please list all household members not listed as drivers (e.g., Name, Date of Birth, Relationship to Insured & Briefly Explain Circumstances Involved):
Are all vehicles garaged at mailing address ? Yes No	Are all household members US Citizens? Yes No If "No" Name Drivers
Number of Fire/Theft/Comp Claims within last 3 years? If any claims please explain below	Corporate Owned Vehicle? Yes No If "Yes" please explain below

Submitting Agent / Producer - Name: Tx License Number:
Agent's : Address: City: State: Zip Code:	Agent's: Telephone: Area Code Number Fax : Area Code Number Email:

Comments/Remarks:

Submission of quote request form to Hemphill Insurance Agency does not constitute a binding confirmation of new or revised insurance coverage.

To confirm binding or current policy revisions you must receive a written confirmation for any new or change in coverage from our agency staff.

We Offer Non-Standard Auto Risk Coverage From Several Insurance Companies That Specialize In Insuring Drivers Who Do Not Meet Typical Standard Market Underwriting Guidelines - As Shown Below

2007 Automobile Underwriting Guidelines

What are underwriting guidelines?

An “underwriting guideline" is a rule, standard, guideline, practice, whether written, oral, or electronic, that is used by an insurance company to decide whether to accept or decline an application for a personal automobile insurance policy or to determine what rate will apply to an applicant once the application is accepted.

Texas Automobile Insurance Underwriting Guideline Comparison For 1994-1996-1999

All Texas Carriers Results Who Operate In the Standard Insurance Rate Regulated Market

Percentage Of Carriers Who Applied These Underwriting Guidelines In The Standard Auto Insurance Market In The Following Years :	1994	1996	1999
Canceled by another company. Applicants are asked whether or not their insurance was canceled by another insurer. During the time period covered by the guidelines reviewed for 1996, a new rule made it illegal to base underwriting decisions on this information although it was still legal to ask an applicant. It is unknown how this information was used. The rule prohibiting use of this guideline has been overturned by the Texas Supreme Ct.	71%	65%	60%
No prior insurance. Insurer will not offer coverage to an applicant who is not currently insured or has not maintained continuous coverage for a specified period. Rules prohibit use of this guideline if applicant was uninsured for 30 days or less during the last year.	71%	46%	83%
Age. Applicants are denied based on their age, even though the rates set by the state allow for rating classification by age. Generally, these guidelines refuse coverage to young drivers, with some exceptions for those who are covered on their parents policy, and to older drivers.	91%	93%	84%
Occupation. Applicants are denied because of their occupation. Some guidelines allow certain occupations or professions to have more blemishes on their driving/claim record.	56%	65%	56%
Residential stability. Applicants are denied if they have not lived at the same address for a specified period of time, usually 2-3 years, or is a homeowner.	67%	85%	77%
Employment stability. Applicants are denied if they have not worked for the same employer for a specified period of time, usually 2-3 years.	51%	47%	64%
Not-at-fault accidents and claims. Applicants are denied because they have made a claim for, or been involved in, an accident or accidents in which the applicant was not at fault.	52%	21%	61%
Foreign Nationals. Applicants are denied because they do not meet the insurers residency requirements and/or requirements that the applicant have driving experience in the United States for a required period of time, usually several years.	58%	44%	64%
Marital Status. Insurer considers the applicants marital status. Many of the guidelines ask for specific information such as widowed, divorced, separated, although the rating manual only distinguishes between married or not married for certain young driver categories.	48%	45%	61%
Other coverage. Applicants are denied the minimum liability coverage required by law unless they agree to buy other coverage. While legal for the 1994 report, this guideline was illegal during the period covered by the 1996 guidelines. The department of insurance rules prohibiting its use is still in effect.	38%	22%	54%
Previous insurer non-standard. Insurer refuses to sell to those who have been insured in the nonstandard market (county mutual or assigned risk plan). While legal for the 1994 report, this guideline was illegal during the period covered by the 1996 guidelines. The rule prohibiting use of this guideline has been overturned by the Texas Supreme Court.	15%	44%	64%
Credit history. Applicants are denied coverage because of their credit history. Insurers often use "risk scores" which combine credit information with demographic data.	25%	58%	66%
Driving experience. Applicants are denied if they do not have at least 3 years of driving experience. The number of years of experience required varies by insurer up to a maximum of 14 years.	43%	25%	71%

We Offer Non-Standard Auto Risk Coverage From Several Insurance Companies That Specialize In Insuring Drivers Who Do Not Meet Typical Standard Market Underwriting Guidelines - As Shown Above.

We will normally provide Non-Standard Auto Risk Coverage quotes within 24 hours of a quote request.

Texas Personal Auto Policy

Introduction

The information presented herein is merely a brief summary of the most commonly selected auto coverages available; for full details see your policy:

Click Here To View All Available Tx Personal Auto Policy & Optional Coverage Endorsement Forms

Click Here To View Glossary of Auto Insurance Terms

Auto insurance pays for damages, injuries, and other losses that are detailed in your policy. Depending on the type of coverage, auto insurance can either pay for your damages or another driver’s damages, or a passengers damages.

LIABILITY pays for damage caused by you to another person or another person's vehicle or other property as a result of an automobile accident. Types of liability coverage include:

	*Bodily Injury (BI)* If you injure someone in an auto accident for which you are legally to blame, this coverage will pay claims for injury or death against you and the cost of legal defense.
	*Property damage (PD)* pays for damage that you cause to someone else's vehicle or property for which you are legally liable. This does not cover your car or property. Increased Personal Auto Liability Insurance Coverage Limits Are Always Recommended By Our Agency Please keep in mind that you are responsible for any amount of a covered personal liability loss that exceeds the amount of personal auto liability insurance coverage you purchase under your personal Texas Auto Policy; therefore we highly recommend you consider securing higher limits of personal liability insurance coverage under your auto policy to protect your assets in the event of a large liability settlement or court judgment against you. We would also recommend you request a quote for a Personal Umbrella Liability Policy for those unforeseen or catastrophic events where you might be found liable for an amount well exceeding your auto or homeowners policy limits . Recent court judgments have awarded substantial personal and physical damage judgments to claimants for wrongful death , pain & suffering due to injuries , medical expenses , loss of income, and property damage due to the negligence of another party ( at fault auto owners and/or operators ) involved in an personal auto liability cases.
	*Medical payments* pays for medical, hospital or funeral expenses for you and others injured or killed while riding in your car, regardless of fault. It also covers you and family members if struck by a car as a pedestrian or if riding in another car.

PHYSICAL DAMAGE pays for a loss resulting from damage to your vehicle or a vehicle operated by you. Physical damage also provides coverage if your vehicle is stolen. Types of physical damage coverage include:

	*Collision* pays for damage to your car from an accident regardless of fault. It usually includes a deductible and the insurance company pays the rest. Selecting a larger deductible can lower your collision premium.
	*Other Than Collision (Comprehensive)* pays for damage to your car caused by most anything other than a collision. Glass breakage, theft, fire, explosion, impact with an animal, vandalism and flood are some of these hazards. This coverage is also available with deductibles to lower your premium.

OTHER COVERAGE Other types of auto coverage include:

	*Uninsured Motorists (UM)* Unfortunately, not everyone purchases auto insurance. If you or your passengers are injured by someone who does not carry auto insurance, UM coverage will pay for injuries up to your policy limits. This includes medical expenses, loss of wages, and related expenses. UM coverage also applies if you are a victim of a hit-and-run driver.
	*Underinsured Motorists (UIM)* Just as some drivers don't carry any auto insurance, other's don't carry enough to pay for damages from their accidents. UIM coverage pays for death and injury expenses to you or occupants of your car when the other person's insurance is inadequate.

	*Personal Injury Protection (PIP))* Coverage pays for medical expenses and 80% of lost income, regardless of who is at fault in the accident. It also pays for assistance with personal services you are unable to perform because of an auto accident. You, your family members, and your injured passengers are covered under PIP. Insurance; insurance companies must offer to sell you PIP coverage (and Uninsured Motorist Coverage) along with your liability coverage. If you decide not to purchase PIP, you must reject it in writing. PIP coverage is available at limits of $2500 and up.
	*Rental Reimbursement* pays for the cost to rent an automobile up to the daily and total maximum amount of coverage you purchase ;up to your available policy limits; while your vehicle is being repaired or replaced should a total loss occur from damage or theft.
	Towing pays for the cost have your vehicle towed to a repair shop ; up to your per select policy limit; by a wrecker service should you automobile be damaged under your policy for a covered loss.

Texas Personal Auto Policy Casualty Coverage Comparison

Liability	Med Pay	PIP	UM/UIM
A. Persons Covered	A.	A.	A.
1. You and resident family member for any auto/trailer	1. Same, including injury when struck by auto	1. Same as Med Pay	1. Same as Med Pay
2. Any person for your covered auto	2. Any person occupying your covered auto	2. Same as Med Pay	2. Same as Med Pay
3. Any person or organization responsible for your use			3. Anyone entitled to recovery for injuries sustained by insureds
B. Covered Autos	B. Same	B. Same	B. Same, except for coverage for property damage to temporary substitute
1. Named in Declarations
2. Additionally acquired vehicles, if notified within 30 days.
3. Replacement vehicles, if notified within 30 days for physical damage.
4. Trailers you own
5. Temporary substitutes
C. Exclusions
1. Intentional damage	1. Insuring agreement-caused by "accident"	1. Same as Liability	1. Same as Liability
2. Damage to property owned or transported	2. No property damage coverage	2. No property damage coverage	2. No exclusion, but coverage for others' property only if occupying covered auto
3. Damage to property (other than autos, garages, residences) rented to, used by, or in care of insured.	3. No property damage coverage	3. No property damage coverage	3. By definition, coverage provided only for your covered auto, not including a temporary substitute.
4. Bodily injury to employees (except domestics or fellow employees) during employment.	4. Bodily injury to covered person during employment, if workers' comp applies	4. No Exclusion	4. No exclusion, but excess over workers' comp benefits
5. Vehicles while used to carry persons or property for fee.	5. Same as liability	5. No exclusion.	5. Same as liability.
6. While person engaged in auto-related business (except for you using your covered auto).	6. No exclusion.	6. No exclusion.	6. No exclusion.
7. Nonowned trucks used in any business.	7. Same as liability.	7. No exclusions.	7. No exclusions, but property damage applies only to your covered auto.
8. Using vehicle without reasonable belief you are entitled to do so.	8. Same as liability.	8. Other person claiming injuries must occupy your covered auto with permission.	8. Same as liability.
9. If insured under nuclear liability policy.	9. Same as liability,	9. No exclusion.	9. No exclusion.
10. Any vehicle less than four wheels.	10. Same as liability, except covered person struck by any vehicle designed for public roads.	10. No exclusion, except see 11. below.	10. No exclusion, except see 11. below.
11. Any vehicle furnished to or available for your regular use (except your liability for use of a family member's car).	11. Same as liability	11. No exclusion, but no coverage if other vehicle is owned by you or family member and is not a covered auto.	11. No exclusion, except while occupying owned auto or family member's auto not insured for UM on same policy.
	12. Sustained while occupying vehicle as residence.	12. No exclusion.	12. No exclusion.
		13. During commission of felony or while eluding arrest.	13. No exclusion.
			14. If claim is settled without company consent.
D. Limits of Liability	D.	D.	D.
1. Minimum: 20/40/15 or $55,000 CSL.	1. $500 per person	1. $2500 per person	1. Same as liability.
2. Maximum: Per Insurance company underwriting guidelines. 250/500/100 usually required for umbrella, or $325,000 CSL.	2. $100,000	2. $100,000	2. Liability limits.
E. Other Insurance Provisions	E.	E.	E.
1. Pro rata: owned vehicle	1. Same as liability	1. Same as Liability.	1. Same as liability.
2. Excess: non-owned vehicles	2. Same as liability.	2. Same as liability.	2. Same as liability.
3. Recovery reduced by collection under PIP or UM/UIM.	3. Recovery reduced by collections under liability or UM/UIM.	3. No offset	3. Recovery reduced by amount paid by other persons' liability, workers comp, med pay, or PIP
F. Statutory Requirements	F.	F.	F.
Insured must carry minimum of 20/40/15 to comply with Financial Responsibility laws.	No requirement.	Company must offer at least $2500. Insured may reject, must be in writing.	Insured may reject, must be in writing

Texas Personal Auto Policy - Coverage D - Damage to Your Auto

Coverages available:

A. Collision

(1) upset of "covered auto"

(2) collision of the "covered auto" with another object

B. Other than Collision

(1) any other direct and accidental loss to "covered auto," except as excluded.

Exclusions:

Perils

Property

Uses

1. wear and tear

1. non-permanent stereos, radios and sound reproducing equipment.

1. carrying persons or property for a fee, unless that is not the primary usage.

2. freezing

2. tapes and discs

3. mechanical breakdown

3. undeclared trailers and camper bodies

4. electrical breakdown

4. non-owned autos, including temporary substitutes

5. road damage to tires

5. trailer attachments

6. war, revolt and nuclear

6. non-permanent radios and telephones
7. fuzz busters (radar or laser detectors)
8. custom furnishings of pickups and vans if cost not included

Specimen Personal Auto Policy & Texas Auto Endorsement Forms

Personal Auto Policy Forms

PP 00 01 - Personal Auto Policy	PP 13 66 - Named Driver Exclusion -Texas
PP 01 50 - Amendment of Policy Provisions - Texas	PP N 004 - Named Driver Exclusion Acknowledgment - Texas
PP 13 91 - Named Nonowner Coverage -Texas	PP 05 98 - Personal Injury Protection Coverage - Texas
Texas Auto Endorsement Forms: (Note :These endorsements are used to increase , add, change, delete, or reduce coverage of homeowners policy forms )
500. Single Liability Limit	541. Cancellation Provision or Coverage Change Provides for advance notice of cancellation or material change in the policy to the person or organization named in the endorsement for the number of days specified in the endorsement.
501. Split Liability Limit	542. Suspension of Insurance Permits suspension of specified coverages on a specific auto(s), and a refund of premium if the suspension is for at least 30 consecutive days. Coverage is activated while the auto is undergoing maintenance or testing. Coverage is reinstated by using endorsement 543.
502. Uninsured/Underinsured etc.	543. Reinstatement of Insurance Reinstates coverage that has been suspended under endorsement 542.
503. UM etc.	544. Texas Automobile Insurance Plan Association - Amendment of Termination Provision Used on policies assigned through the Texas Automobile Insurance Plan. Deletes the PAP "Termination" provision and substitutes other provisions consistent with involuntary issuance. Permits cancellation by the insurer with 10 days' notice only for 5 specific reasons.

504. Increased Limits Other Than Designated Driver Provides higher limits of liability except when the auto is operated by a driver (male under 25 or female under 21) designated in the endorsement. The policy is issued at low limits, and premium is charged for the difference between the limits at the appropriate classification without the young driver.	545. Group Marketing of Auto Insurance - Termination Provisions Used on policies issued under a group marketing plan as described in Rule #2 of the Texas Automobile Rules and Rating Manual. Deletes the PAP "Termination" provision and substitutes other provisions consistent with group insurance. Permits cancellation by the insurer with 10 days' notice only for three specific reasons.
505. Mile-Based Rating Plan Endorsement	550. Mexico Coverage Broad For an additional premium, extends the policy territory into Mexico within 25 miles of the U.S. border, with no time limitation. The PAP with this endorsement is still not recognized as valid liability insurance by Mexican authorities. Travelers into Mexico should always consider purchasing protection from a Mexican insurance company before crossing the border. This endorsement is sufficient for the physical damage exposure for accidents within the mileage limitation of the endorsement.
510. Additional Insured Lessor Provides the following for the lessor of an auto leased to the named insured (including a replacement auto) under a written contract for a continuous period of at least six months: (1) additional insured status for liability, but only as respects damages arising out of acts or omissions of the named insured, a family member, or a permissive user; (2) physical damage loss payable to lessor and named insured, as interests may appear; (3) cancellation notice to the lessor. 5	551. Mexico Coverage Limited For no additional premium, extends the policy territory into Mexico within 25 miles of the U.S. border for trips that do not exceed 10 days at a time. The PAP with this endorsement is still not recognized as valid liability insurance by Mexican authorities. Travelers into Mexico should always consider purchasing protection from a Mexican insurance company before crossing the border. This endorsement is sufficient for the physical damage exposure for accidents within the mileage and other limitations of the endorsement.
511. Extended Nonowned Coverage for Named Individual Modifies or eliminates several exclusions in the liability and medical payments coverages related to the use of nonowned autos by the individual named in the endorsement, including his or her spouse. Used to provide coverage for the named insured, spouse or family member in the following situations: (1) operation of a nonowned auto which is furnished or available for regular use, such as a company auto [In this case, keep in mind that the endorsement applies only to the named individual and spouse. If other household operators also operate the furnished auto, they should be separately named.]; (2) operation of a nonowned auto which is used to carry persons or property for a fee, such as a taxi driver, bus driver or delivery person; (3) operation of a nonowned commercial auto, such as a truck driver. The endorsement should not be used by any person employed in an "auto related business" as the form specifically excludes such use of nonowned autos. The coverage provided is excess over any amount available to the named individual on a policy insuring the owner of the vehicle. Coverage could be primary in the following situations: (1) there is no policy in force for the owner of the vehicle; (2) an exclusion in the owner's policy applies to the named individual, such as the fellow employee exclusion, care-custody-control exclusion, or pollution exclusion.	552. Mexico Tourist Coverage Limited For no additional premium, extends the policy territory into Mexico and provides liability insurance in excess over Mexican auto liability insurance, which is a requirement of the coverage. There are no mileage or time limitations in the endorsement. Suit must be brought in the U.S.
512. Designation of Covered Person or Organization Provides a means to name an additional insured on the policy and provide for notice of cancellation, but only as respects legal responsibility for acts or omissions of a person for whom liability coverage is afforded by the policy. Such a person or organization is already a "covered person" under the terms of the policy.	560. Recreational Trailers, Mobile Homes or Motorhomes Required when providing physical damage coverage on recreational trailers, mobile homes or motorhomes. Eliminates the transportation expense coverage (see Endorsements section).
513. Federal Employees Government Business Excludes the U.S. government, any government agency, and a government employee from the definition of "covered person." When used on a policy providing coverage for an auto used on government business, this exclusion allows the auto to be rated for other than business use.	561. Recreational Trailer, Mobile Home or Motorhome Contents Coverage Adds named perils coverage for contents in and equipment on recreational vehicles. No deductible applies to this coverage.
514. Amphibious Automobile or Amphibious Mobile Home Trailer Excluded While Being Launched, Beached, or Used On Water Excludes coverage for any amphibious auto while being launched, beached or used on water.	562. Trip Collision Provides collision insurance on mobile homes and recreational trailers for specific trips up to 30 days' duration.
515A. Exclusion of Named Driver and Partial Rejection of Coverages Excludes all coverage under the policy when the driver named in the endorsement is operating any auto. Also serves as a rejection of PIP and UM/UIM while the named driver is operating an auto.	564. Modified Hail Deductible Mobile Home Provides a $250 deductible on hail losses when hail is covered on the policy with other perils.
515B. Exclusion of Named Driver and Partial Rejection of Coverages Limited Same as 515A, except the exclusion does not apply if a licensed driver age 18 or over accompanies the excluded driver.	565. Auto Death Indemnity and Total Disability Coverages Provides for payment of a principal sum (available options are $5,000 and $10,000) for death of a named person in an auto accident, and $60 weekly indemnity for the continuous total disability of a named person, up to a maximum of 200 weeks. The death indemnity amount is doubled by endorsement 573 if the person was wearing a seat belt or protected by an air bag at the time of the accident.
520. Coverage for Tapes, Records or Other Devices Provides up to $200 coverage, without deductible, for tapes, records, or other devices (such as compact discs) for use with equipment designed for the reproduction of sound. Requires designation of each auto where such devices are to be covered, and a separate premium charge for each. There is no provision for automatic coverage on newly acquired or substitute autos.	566. Waiver of Subrogation Eliminates the insurers right to subrogate (as provided in the "Our Right to Recover Payment" section of the policy) against a person or organization named in the endorsement.
521. Coverage for Sound Receiving and Transmitting Equipment Provides comprehensive and collision coverage on radio and telephone equipment without deductible, subject to specific description in the endorsement. Full coverage applies even if the auto carrying such equipment has no physical damage coverage. Loss would be adjusted on an actual cash value basis. The basic policy provides only $1,500 coverage on these items if they are attached to the auto, subject to the deductible for comprehensive or collision.	567. Christian Science Care Amends the phrase "necessary medical" in the Medical Payments and Personal Injury Protection sections of the policy to include services rendered by accredited Christian Science Practitioners and facilities.
522. Coverage for Damage to Your Auto - Specified Causes of Loss Provides coverage for specified causes of loss as an alternative to comprehensive coverage. Specified causes include fire, lightning, explosion, theft; sinking, burning collision or derailment of any vessel or vehicle in or upon which the auto is being transported; windstorm, hail, earthquake, flood, mischief, and vandalism (subject to a $25 deductible).	571. Financial Responsibility Certification (SR-22 Filing) Certifies that the policy complies with financial responsibility laws and obligates the insurer to send a notice of cancellation or termination to the Texas Department of Public Safety.
523. Rental Coverage Reimburses the expense of renting a substitute auto, up to a limit specified in the endorsement, if a covered loss puts the covered auto out of service for more than 24 hours. Unlike the Coverage D supplementary payment for reimbursement of other transportation expenses such as a bus or taxi, this endorsement pays for rental only. The endorsement can also be used to provide a higher limit than that provided for theft-related claims in the Coverage D Transportation Expenses Coverage.	573B. Supplementary Death Benefit Required to be attached if the policy provides coverage for Personal Injury Protection, Medical Payment or Automobile Death Indemnity (endorsement 565). Pays an amount equal to the limit for the applicable coverages (in combination if more than one coverage applies) up to a maximum benefit of $10,000, if the "covered person" is killed as the result of an auto accident while wearing a seat belt or while protected by an airbag. The "trigger" of coverage is that the PAP must respond under the applicable coverage for any amount. It would be possible for more than one policy to respond for the full limit of the supplementary death benefit if the covered person were a passenger in a nonowned auto and the medical and/or funeral expenses were sufficient to reach into the PIP or Medical Payments coverage of his or her own policy after exhausting available coverage under the vehicle owner's policy. (See technical report: "Supplementary Death Benefit")
524. Towing and Labor Costs Coverage Provides coverage for expenses incurred for towing and labor (performed at the place where the auto is disabled) when the auto is disabled for any reason. Options of $40, $80 and $120 per disablement are available. This endorsement must be attached if the insurance company does not already include it in Part D or overprint the endorsement as a part of its policy.	578. Named Nonowner Coverage Used when the named insured does not own an auto. Covers the named insured for liability arising out of the maintenance or use of nonowned autos and includes an auto newly acquired by the named insured during the policy period for up to 30 days after acquisition. Eliminates the exception to the care, custody and control exclusion so that the insured's legal liability for damage to a borrowed or rented auto is not covered. Eliminates the exclusions related to autos used in the insured's occupation and autos being used to carry persons or property for a fee.
525. Foreign Made and Discontinued Makes of Autos - Limiting Coverage for Damage to Your Auto Adds an exclusion to the physical damage section, excluding expenses or losses arising from the inability to obtain stock repair parts or repair service.	578. Named Nonowner Coverage Used when the named insured does not own an auto. Covers the named insured for liability arising out of the maintenance or use of nonowned autos and includes an auto newly acquired by the named insured during the policy period for up to 30 days after acquisition. Eliminates the exception to the care, custody and control exclusion so that the insured's legal liability for damage to a borrowed or rented auto is not covered. Eliminates the exclusions related to autos used in the insured's occupation and autos being used to carry persons or property for a fee.
526. Coverage for Damage to Your Auto - Optional and Limited Specified Causes of Loss Provides various specific physical damage options for specified causes of loss as an alternative to comprehensive coverage. See also endorsement 522A.	579. Named Operator Government Employees Used in lieu of endorsement 578 when the named insured does not own an auto and only wants coverage while operating autos owned by governmental subdivisions.
528. Loss Payable Clause - Modified Provides for payment of covered physical damage loss to the listed lienholder and the insured, as their interests may appear. Provides for continuous coverage, without regard to the expiration date until the company mails notice of cancellation at least 10 days prior to the cancellation. If the insured cancels the policy, the company must give at least 10 days' notice to the lienholder before the lienholder's coverage ends.	583. Miscellaneous Type Vehicle Endorsement Used to include owned miscellaneous type vehicles (defined as golfmobiles, pickup trucks used solely to transport camper bodies, motorhomes, motorcycles, motorscooters, motorbikes, all terrain vehicles and similar motor vehicles) on a PAP. Redefines certain terms in order to provide for these types of vehicles which would otherwise be excluded. The automatic coverage feature of the policy for newly acquired autos is amended to include private passenger autos, pickups and vans not used in business, and any miscellaneous vehicles of the same type already on the policy. Thus, a PAP with this endorsement covering a golfmobile would not pick up coverage on a newly acquired motorcycle, but it would automatically pick up coverage on a newly acquired private passenger auto.
529. Special Loss Payable and Cancellation Endorsement Provides for payment of covered physical damage loss to the listed lienholder and the insured, as their interests may appear. In the event of cancellation or changes that reduce or restrict coverage, the company must mail 10 days' advance written notice to the lienholder informing it of the change. The lienholder is obligated to pay the policy premium.	585. Motorhome Rental Coverage Eliminates the PAP exclusions related to rental of the auto to others.
530. Loss Payable Clause Provides for payment of covered physical damage loss to the listed lienholder and the insured, as their interests may appear. The lienholder is promised the same advance notice of cancellation as is given to the insured.	586. Antique, Collectible or Special Interest Auto Permits a lower rate for autos described in the endorsement which are used primarily for exhibitions, club activities, parades or other functions of public interest, and occasionally for other purposes. Since the endorsement does not require the insured's signature, and does not actually add an exclusion to the policy, it is doubtful that coverage could be denied if the vehicle were used other than as stated.
531. Deductible Liability Insurance Provides for a deductible on the liability portion of the policy, in consideration of a reduced premium. The company may pay the deductible amount and request reimbursement from the insured.	593. Amendatory Endorsement
540. Policy Change General change endorsement for additions, deletions or substitutions of autos, or coverage changes.

Overview and Eligibility - Personal Auto Policy

The Texas Personal Auto Policy (PAP) was approved for use in Texas effective June 1, 1981. It replaced the Family Automobile Policy which had been in use for many years.

The PAP is written in an easy-to-read style, is a relatively short policy form, and is arranged in a logical fashion. It is characterized by the use of commonly understood words, such as "you" for the named insured and "us" for the company providing the insurance. These characteristics are common to many of our Texas policy forms today, but in 1981 they were novelties.

The Texas PAP is used to cover the following exposures:

(1) Private passenger type autos which are owned, or leased for six months or longer, by an individual (including husband and wife who are residents of the same household).

(2) Individually owned or leased "utility" vehicles which are not used for the delivery or transportation of goods, materials or supplies other than samples, unless such use is not the primary usage of the vehicle. Farm and ranch use is also permitted.

(3) Individually owned "miscellaneous" vehicles, including golf mobiles, motor homes, motorcycles and all-terrain vehicles, which are not used for business or commercial purposes other than farming or ranching.

(4) Coverage for non-owned vehicles operated by an individual who does not own a vehicle.

(5) (The following eligibility is optional with the company.) Vehicles owned jointly by resident or nonresident relatives, and vehicles owned by unrelated persons residing in the same household; also, unrelated individuals residing in the same household even when only one individual owns a vehicle.

The Business Auto Policy, with the appropriate Individual Named Insured endorsement attached, provides the same coverage to the named individual as does a Personal Auto Policy, when an individually owned private passenger or utility vehicle is scheduled on the Business Auto Policy.

The Personal Auto Policy consists of a declarations page, Agreement and Definitions sections, and six lettered parts. Certain endorsements are mandatory and others may be added as needed or required for special circumstances.

See: Texas Personal Auto Policy Coverage Comparison; also "Insuring Texas Autos" and "Personal Auto Policy" (in PDF format)

Texas Personal Auto Policy - Declarations

The numbers below correspond to the numbers shown on the Declarations Page.

1. This section provides general information about the insured, the insurance company and the policy, including names, addresses and policy period.

2. It is clear that there is no coverage unless there is a limit of liability indicated and a premium charged. Vehicles scheduled on the policy may have a different selection of coverages as determined by showing a premium charge for each vehicle in the premium column.

3. Limits are scheduled in this column. The liability coverage can be either on a split limits basis or combined single limits basis. Physical damage valuation can be either actual cash value or stated amount. Deductibles are also indicated in this column.

4. Towing and labor coverage is shown on the declarations even though many companies do not include in the basic policy form. In that case, endorsement 524 must be attached for actual coverage provisions. Some companies do include the coverage in Part D or print the endorsement as a basic part of their policy form.

5. All vehicles owned by the insured for which coverage is desired at policy inception should be listed in this section, together with the classification and rating information requested.

Texas Personal Auto Policy
Actual Policy Language	Explanation

Information Page of PAP

Information Page of PAP

Agreement In return for payment of the premium and subject to all the terms of this policy we agree with you as follows:
Definitions A. Throughout this policy, "you" and "your" refer to: 1. The "named insured" shown in the Declarations, and 2. The spouse if a resident of the same household.	Definitions A. "You" - the Named Insured Note that the spouse must be a resident of the same household as the person whose name appears in the Declarations, in order to be considered a "you" and have the same protection. It is advisable to name both the husband and wife in the declarations since by doing so you avoid potential coverage problems should a separation or divorce occur during the policy period. The policy would continue to provide the broadest possible coverage to both persons even if they are maintaining separate households.
B. "We," "us" and "our" refer to the Company providing this insurance.
C. For purposes of this policy, a private passenger type auto, pickup, or van shall be deemed to be owned by a person if leased: 1. Under a written agreement to that person; and 2. For a continuous period of at least 6 months. Other words and phrases are defined. They are boldfaced when used.	C. Private Passenger Autos This wording is necessary to provide "automatic" coverage on newly acquired leased vehicles. It has the effect of substituting the word "leased" wherever the word "owned" appears in the policy.
D."Family member" means a person who is a resident of your household and related to you by blood, marriage or adoption. This definition includes a ward or foster child who is resident of your household, and also includes your spouse even when not a resident of your household during a period of separation in contemplation of divorce.	D. Family Members Note the requirement for residency in the household. This has been interpreted to include a dependent child living elsewhere to attend school. Under previous wording, a nonresident spouse during a period of separation was covered only as a permissive user. Now, inclusion of a nonresident spouse "in contemplation of divorce" provides some extension of coverage. The spouse would not have automatic coverage for newly acquired or substitute vehicles. (See technical report "Insuring Nonowned Autos")
E."Occupying" means in, upon, getting in, on, out or off.	E. Occupying This is an important broadening of the dictionary definition and is used only in Part B (Medical Payments and Personal Injury Protection) and Part C (Uninsured/Underinsured Motorist). A 2001 Austin Court of Appeals decision ruled that a person lying underneath an auto performing maintenance is not "occupying" the auto.
F. "Trailer" means a vehicle designed to be pulled by a: 1. Private passenger auto; or 2. Pickup or van. It also means a farm wagon or farm implement while towed by a vehicle listed in 1. or 2. above.	F. Trailers The definition is broad enough to clearly include a "gooseneck" or "fifth wheel" trailer. Note that whatever coverage is provided for a trailer is in effect even if it is not connected to or being pulled by a vehicle, as contrasted to coverage for a farm wagon or implement which only applies while being towed by a private passenger auto, pickup or van.
G. "Your covered auto" means:	G. Your Covered Auto(s) Vehicles that fall within the four categories in this definition receive the broadest coverage available under the terms of the policy.
1. Any vehicle shown in the Declarations;	1. Any Vehicle in Declarations The eligibility of a vehicle for coverage under a PAP has been previously described. However, there is no qualifying language in this first category. If the company attaches coverage by description and premium charge, any type of vehicle will have coverage even if it does not meet the manual eligibility requirement. The most likely possibility of this occurrence is a "utility" vehicle which is used in business when such use has not been disclosed. G V W = gross vehicle weight
2. [ed. note: see I and II below] I. Any of the following types of vehicles on the date you became the owner: a. a private passenger auto; or b. a pickup or van with a G.V.W. of 25,000 lbs. or less not used for the delivery or transportation of goods, materials or supplies other than samples; unless, (1) the delivery of goods, materials or supplies is not the primary usage of the vehicle, or (2)used for farming or ranching.	2. Newly Acquired Autos This section outlines the automatic coverage feature for newly acquired vehicles. Note the restrictions in types of vehicles which are eligible for automatic coverage, as it tracks the eligibility requirement previously discussed. This restriction would apply even for a replacement vehicle. There would be no automatic coverage for a "utility" vehicle primarily used in the business of delivery. (see technical article "Sport Utility Vehicles")
II. This provision (G.2) applies only if you: a. acquire the vehicle during the policy period; and b. notify us within 30 days after you become the owner.	If the acquired vehicle is an additional auto (not a replacement) it will have the broadest coverage which applies to any vehicle currently on the policy. The vehicle must be reported within 30 days in order for any coverage to continue after 30 days.
If the vehicle you acquire replaces one shown in the Declarations, it will have the same coverage as the vehicle it replaced. You must notify us of a replacement vehicle within 30 days only if you wish to add or continue Coverage for Damage to Your Auto. If the vehicle you acquire is in addition to any shown in the Declarations, it will have the broadest coverage we now provide for any vehicle shown in the Declarations.	If the acquired vehicle is a replacement, it will have the same coverage as the vehicle it replaced, even if that might give it less coverage than other vehicles on the policy. All coverages except Coverage for Damage to Your Auto extend until policy expiration with no requirement for notification. Coverage for Damage to Your Auto, if such coverage existed on the replaced vehicle, continues after 30 days only if the replacement auto is reported to the insurance company within 30 days of the acquisition. The option to continue physical damage on a replacement vehicle or any coverage on a newly acquired vehicle rests solely with the insured. The company must add coverage to the policy when the insured requests the addition within 30 days. (See technical report "Replacing, Adding, Newly Acquired Autos")
3. Any trailer you own.	3. Trailers Includes any trailer owned at inception or acquired during the policy period. They do not have to be described in the policy. Refer to Exclusion #6 in Part D - Coverage for Damage to Your Auto, for special information regarding damage coverage for trailers.
4. Any auto or trailer you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its: a. breakdown; b. repair; c. servicing; d. loss; or e. destruction	4. Temporary Substitute Autos The effect of this wording is to remove a "temporary substitute" auto from the broad class of "nonowned" autos, which have limited coverage, and to place them in the same category as owned and described vehicles, except as respects the "Other Insurance" section. Three important examples of broader coverage for temporary substitutes are: · For liability coverage, any person using the "temporary substitute" and the owner of the temporary substitute would be "covered persons." For Medical Payments and Personal Injury Protection, any person occupying a "temporary substitute" is a "covered person." · It can include an auto owned by a "family member" or one which is furnished to or available for regular use of the named insured or spouse or a "family member." · For liability coverage, a pickup or van rented as a temporary substitute for a vehicle used in business would be covered and not subject to liability exclusions A.6. or A.7. In 2003, the Texas Supreme Court ruled in Progressive vs. Sink that the definition of a temporary substitute auto is limited by the permissive use exclusion — the user of a non-owned auto must have a reasonable belief that he or she is entitled to do so. (See technical article "Covering Rental Vehicles" and Coverage D "temporary substitute" language).
H."Business day" means a day other than a Saturday, Sunday or holiday recognized by the state of Texas.

Texas Personal Auto Policy - Part A: Liability Coverage
Actual Policy Language	Explanation

Part A - Liability Coverage

Part A - Liability Coverage

Insuring Agreement

A. We will pay damages for bodily injury or property damage for which any covered person becomes legally responsible because of an auto accident. Property damage includes loss of use of the damaged property. Damages include prejudgment interest awarded against the covered person. We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted.

A. Insuring Agreement

Note that the terms "bodily injury," "property damage" and "auto accident" are not defined, but left to legal interpretation.

In its 2004 decision in the case Texas Farm Bureau v. Sturrock, the Texas Supreme Court ruled that an “auto accident” or a “motor vehicle accident” occurs when (1) one or more vehicles are involved with another vehicle, an object, or a person, (2) the vehicle is being used, including exit or entry, as a motor vehicle, and (3) a causal connection exists between the vehicle’s use and the injury-producing event. This case involved a PIP claim resulting when the vehicle’s driver entangled his foot in the door facing and fell out of the vehicle. The court’s decision allowed the driver to collect PIP benefits previously denied by the company.

Other types of liability claims affected by the Supreme Court’s interpretation, based on previous decisions, include:

	No coverage for a case involving a dog bite to a passenger riding in the auto.
	No coverage for a case involving a drive-by shooting.
	Coverage for a case involving accidental discharge of a weapon while resting in a gun rack in the back window of a pickup.

The insurance company makes two promises here:

(i) to pay legal damages to which the policy applies, and

(ii) to settle or defend any claim for such damages. The option to settle rests solely with the insurer.

It is clear that defense costs are paid in addition to the limit of liability which is totally reserved for the payment of damages. The company has no obligation to continue defending any insured after the limit of liability has been paid out.

(See "Liability Components")

B. "Covered person" as used in this Part means:

B. Covered Persons

1. You or any family member for the ownership, maintenance, or use of any auto or trailer.

1. Named Insured and Family Members

The named insured and family members are provided the broadest possible coverage for "covered autos" and nonowned autos. If there is no exclusion that applies, these persons will be covered for anything that would meet the legal interpretation of the undefined word "auto." This could include a vehicle of any size or description, as long as it has at least 4 wheels (see Exclusion B.1.).

Texas courts have generally held that "use" is broader than "operation" and includes putting or bringing a thing into action or service and employing a thing for or applying a thing to a given purpose. For example, sending a maid or other household employee to the store could be considered "use" by the named insured. For a sole proprietor of a business that covers a business vehicle on a PAP, this amounts to non-owned auto liability just like one would have under a BAP.

2. Any person using your covered auto.

2. Permissive Users

Includes "temporary substitutes." Note the "permission" aspect found in Exclusion A.8.

3. For your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

4. For any auto or trailer, other than your covered auto, any person or organization but only with respect to legal responsibility for acts or omissions of you or any family member for whom coverage is afforded under this Part. This provision (B.4.) applies only if the person or organization does not own or hire the auto or trailer.

3. Others

Both #3 and #4 provide coverage for the "vicarious liability" of others arising out of the use of those autos to which liability coverage applies. The distinction between the two items is that #4 excludes coverage for the owner of a nonowned vehicle used by the named insured or a family member.

Thus, if the named insured borrows a fellow employee's car to use on their employer's business, the employer would have coverage but the employee owning the car would not. This provision also excludes direct protection for the owner of a rent car, unless the rent car is being used as a "temporary substitute."

Supplementary Payments

In addition to our limit of liability, we will pay on behalf of a covered person:

Supplementary Payments

These supplementary payments are not charged against the limit of liability.

1. Up to $250 for the cost of bail bonds required because of an accident including related traffic law violations. The accident must result in bodily injury or property damage covered under this policy.

1. Bail Bonds

A bail bond for a ticket with no accident involvement is not subject to this provision. A single-car accident with no covered BI or PD would not trigger this provision.

2. Premiums on appeal bonds and bonds to release attachments in any suit we defend.

3. Interest accruing after a judgment is entered in any suit we defend. Our duty to pay interest ends when we offer to pay that part of the judgment which does not exceed our limit of liability for this coverage.

3. Interest

Postjudgment interest is covered here as a supplementary payment. Prejudgment interest is included as a part of "legal damages" and therefore included within the limit of liability.

4. Up to $50 a day for loss of earnings, but not other income, because of attendance at hearings or trials at our request.

5. Other reasonable expenses incurred at our request.

Exclusions

A. We do not provide Liability Coverage for any person:

Exclusions

A. The application of an exclusion to one "covered person" will not exclude protection for another "covered person" who might be legally liable for the accident.

1. Who intentionally causes bodily injury or property damage;

1. Intentional Injury or Damage

There is no exception for intentional acts arising out of attempts to protect persons or property.

2. For damage to property owned or being transported by that person;

2. Owned or Transported Property

No coverage for running into one's own garage on this policy - it's covered on the homeowners policy, subject to the deductible. However, see exclusion #3 below for coverage if one runs into the garage of a rental home.

3. [Ed. Note - see I and II below]

3. Care, Custody, or Control (with exceptions)

I. For damage to property:

a. rented to;

b. used by; or

c. in the care of;

that person.

II. This exclusion (A. 3.1) does not apply to damage to:

a. a residence or private garage; or

The exceptions to the exclusion provide some very important protection.

First, part "a" provides coverage for an insured who damages his rented house or garage, as a result of his own negligence.

b. any of the following type vehicles not owned by or furnished or available for the regular use of you or any family member:

(1) private passenger autos;

(2) trailers; or

(3) pickups or vans.

Part "b" of the exception protects "covered persons" for their legal liability for damage to a rented or borrowed vehicle or trailer, other than trucks larger than a "utility" vehicle. An insured can be legally liable for damage to a rent car either through negligence or by virtue of his "contractual" responsibility to return an undamaged vehicle to the rental company. (See Technical Report: Furnished or Available)

Damage to a borrowed vehicle is covered only if the damage is caused as a result of the insured's negligence.

(See the "Coverage for Rental Cars Under the PAP" for further information on the rent car exposure.)

However, the exclusion 3.I. does apply to a loss due to or as a consequence of a seizure of an auto listed in 3 II. b by federal or state law enforcement officers as evidence in a case against you under the Texas Controlled Substances Act or the federal Controlled Substances Act if you are convicted in such case.

4. For bodily injury to an employee of that person during the course of employment. This exclusion (A.4.) does not apply to bodily injury to a domestic employee unless workers' compensation benefits are required or available for that domestic employee.

4. Employee Injury

This exclusion would apply to the actual employer of a person, including the named insured or an organization such as a partnership or corporation which would otherwise qualify as a "covered person" under Items #3 and #4 of the definition of "covered person." Especially important is the absence of an exclusion for injury to a "fellow employee." This exposure is covered by the PAP so long as some other exclusion does not apply. Injury to a domestic employee is covered by exception.

5. For that person's liability arising out of the ownership or operation of a vehicle while it is:

a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool.

b. being used to carry property for a fee; this does not apply to you or any family member unless the primary usage of the vehicle is to carry property for a fee; or

c. rented or leased to another; this does not apply if you or any family member lends your covered auto to another for reimbursement of operating expenses only.

5. Use for a Fee

The intention of this exclusion is to exclude the hazards associated with the operation of an automobile for hire to the general public. The wording attempts to overcome company interpretations of previous wording that excluded coverage for delivering property when there was an exchange of money for such a service, such as delivery of pizzas or newspapers. Such activity is excluded only if that is the primary usage.

6. While employed or otherwise engaged in the business or occupation of:

a. selling;

b. repairing;

c. servicing;

d. storing, or

e. parking;

vehicles designed for use mainly on public highways. This includes road testing and delivery. This exclusion (A.6.) does not apply to the ownership, maintenance or use of your covered auto by:

1. you,

2. any family member; or

3. any partner, agent or employee of you or any family member.

6. Garage Business Use

The PAP will not apply to individuals for whom coverage should be found in a garage liability policy. Excluded are all vehicles except "covered autos" operated by the insured, family members or employees of either. Application of this exclusion would deny coverage (i) to the named insured if he works at a garage and drives a customer's auto, and (ii) to a garage employee driving a "covered auto."

7. Maintaining or using any vehicle while that person is employed or otherwise engaged in any business or occupation not described in Exclusion A.6. This exclusion (A.7.) does not apply to the maintenance or use of a:

a. private passenger auto;

b. pickup or van that is your covered auto; or

c. trailer used with a vehicle described in 7.a. or 7.b. above

7. Other Business Use

The primary purpose of this exclusion is to exclude coverage for the use of a nonowned pickup, van or any larger vehicle in a business or occupation. (Note: Coverage is available with Endorsement 511 - see discussion in endorsement section.) An owned trailer is not covered when used with a nonowned truck for business purposes.

(see technical article "Sport Utility Vehicles")

8. Using a vehicle without a reasonable belief that that person is entitled to do so. This exclusion (8) does not apply to you or any family member while using your covered auto.

8. Non-Permissive Users

This exclusion would apply (i) to the named insured or a family member operating a nonowned auto, or (ii) someone else operating a "covered auto."

9. I. For bodily injury or property damage for which that person:

a. is an insured under a nuclear energy liability policy; or

b. would be an insured under a nuclear energy liability policy but for its termination upon exhaustion of its limit of liability.

II. A nuclear energy liability policy is a policy issued by any of the following or their successors:

a. American Nuclear Insurers;

b. Mutual Atomic energy Liability Underwriters; or

c. Nuclear Insurance Association of Canada.

B. We do not provide Liability Coverage for the ownership, maintenance or use of:

1. Any motorized vehicle having fewer than four wheels;

B. 1. Two- or Three-Wheeled Autos

Motorcycles and 3-wheelers could not be covered on this policy as additionally acquired, replacement, nonowned or temporary substitute vehicles. (Note: Endorsement 583 modifies this and other provisions to allow coverage for specific "miscellaneous type vehicles"see discussion in the endorsement section.)

2. Any vehicle, other than your covered auto, which is:

a. owned by you; or

b. furnished or available for your regular use.

2. Owned or Furnished Autos Named Insured

Section "a" reinforces the fact that a vehicle which is owned at inception, and which is not described in the declarations, does not have any coverage. Section "b" excludes coverage when the named insured operates a furnished auto, such as a company car. The terms used in this exclusion are not defined and are therefore subject to interpretation. "Furnished" suggests possession of the auto, while "available for regular use" could mean access to the auto without specific permission. (Note: Coverage is available with Endorsement 511 - see discussion in endorsement section.)

3. I. Any vehicle, other than your covered auto, which is:

a. owned by any family member; or

b. furnished or available for the regular use of any family member.

II. However, this exclusion (B.3.) does not apply to your maintenance or use of any vehicle which is:

a. owned by a family member; or

b. furnished or available for the regular use of a family member.

3. Owned or Furnished Autos Family Members

This exclusion applies to the named insured and family members. These persons are not covered for a vehicle owned by the family member, or a vehicle furnished for their regular use, except for "covered autos."

The exception to the exclusion gives coverage back to the named insured while operating a vehicle owned by a family member. However, exclusion B.2.b. above may still apply if the family member's vehicle is furnished or available for the regular use of the named insured.

C. We do not provide liability coverage for you or any family member for bodily injury to you or any family member, except to the extent of the minimum limits of liability coverage required by Texas Civil Statutes, Article 6701h, entitled "Texas Motor Vehicle Safety-Responsibility Act."

C. Family Member Exclusion Limited

This exclusion was intended to prevent recovery for intra-family suits.

However, the Texas Supreme Court in 1993 invalidated this exclusion to the extent of the Financial Responsibility Law requirements. Based on this decision and the policy language added following that decision, a family member can collect damages under this policy, up to the minimum limits, when the injury is caused by another family member.

Limit of Liability

A. If separate limits of liability for bodily injury and property damage liability are shown in the Declarations for this coverage the limit of liability for "each person" for bodily injury liability is our maximum limit of liability for all damages for bodily injury sustained by any one person in any one auto accident. Subject to this limit for "each person," the limit of liability shown in the Declarations for "each accident" for bodily injury liability is our maximum limit of liability for all damages for bodily injury resulting from any one auto accident. The limit of liability shown in the Declarations for "each accident" for property damage liability is our maximum limit of liability for all damages to all property resulting from any one auto accident.

If the limit of liability shown in the Declarations for this coverage is for combined bodily injury and property damage liability, it is our maximum limit of liability for all damages resulting from any one auto accident.

This is the most we will pay regardless of the number of:

1. Covered persons;

2. Claims made;

3. Vehicles or premiums shown in the Declarations; or

4. Vehicles involved in the auto accident.

We will apply the limit of liability to provide any separate limits required by law for bodily injury and property damage liability. However, this provision will not change our total limit of liability.

Limit of Liability

A. A company has the option of printing a policy that includes language for split limits, combined single limits, or both. The language for both limits is displayed here.

This wording and the insuring agreement provision of coverage for any insured for any claim provide what is commonly called the "severability of interests" or separation of insureds feature of the PAP. No provision of the PAP prevents claims or suits by one insured against another, except for Exclusion C, which prevents recovery in intra-family suits for amounts in excess of minimum financial responsibility requirements.

B. Any payment under the Uninsured/Underinsured Motorists Coverage or the Personal Injury Protection Coverage of this policy to or for a covered person will reduce any amount that person is entitled to recover under this coverage.

B. This coordination of benefits provision prevents a duplication of payments among various parts of the PAP. Similar wording in the Medical Payments Coverage part takes care of its omission here.

Out of State Coverage

If an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, we will interpret your policy for that accident as follows:

A. If the state or province has:

1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Declarations, your policy will provide the higher specified limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage.

B. No one will be entitled to duplicate payments for the same elements of loss.

Out of State Coverage

The PAP limits and coverage will modify themselves to comply with financial responsibility or other laws in any state or province in which a covered accident may occur, unless the vehicle is principally garaged in that state at the time of the accident. When an insured moves to another state to establish permanent residency, this provision will not apply, providing incentive to cancel the Texas PAP and purchase a new policy in the new state.

(See also: "Mexico Coverage" technical report)

Financial Responsibility Required

When this policy is certified as proof of financial responsibility, this policy shall comply with the law to the extent required.

Other Insurance

If there is other applicable liability insurance we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any liability insurance we provide to a covered person for the maintenance or use of a vehicle you do not own shall be excess over any other applicable liability insurance.

Other Insurance

This provision for excess coverage over any applicable liability coverage on a nonowned vehicle can produce a strange phenomenon when a covered person damages the nonowned vehicle and causes BI and/or PD to others. Assuming no specific exclusions apply, the named insured's PAP will pay for damage to the nonowned vehicle but the liability policy carried by the vehicle owner will take care of the third-party claims, with the named insured's PAP available for excess coverage for those with "insured" status on the PAP, but not the vehicle owner

Texas Personal Auto Policy - Part D: Coverage For Damage To Your Auto

Actual Policy Language	Explanation

Part D - Coverage For Damage To Your Auto

Part D - Coverage For Damage To Your Auto

Insuring Agreement A. We will pay for direct and accidental loss to your covered auto, including its equipment less any applicable deductible shown in the Declarations. However, we will pay for loss caused by collision only if the Declarations indicate that Collision coverage is provided.	A. Insuring Agreement Part D provides "all risk" coverage on "covered autos." There are two coverage categories: Collision and Other Than Collision. Selection of one or both of these is determined on a per-vehicle basis, by showing a premium entry on the declarations page. Each of these two coverage categories has its own separate deductible, as shown on the declarations. The inclusion of "equipment" in the insuring agreement is generally taken to encompass any item designed for use with an automobile and attached to it or normally contained in it. This broad interpretation necessitates several restrictions in the exclusions section, to prevent coverage on certain items. (See Technical Reports: "Your Covered Auto" and Coverage D - Damage to Your Auto and Intentional Damage By An Insured)
B. "Collision" means the upset, or collision with another object of your covered auto. However, loss caused by the following are not considered "collision": 1. Missiles or falling objects; 2. Fire; 3. Theft or larceny; 4. Explosion or earthquake; 5. Windstorm; 6. Hail, water or flood; 7. Malicious mischief or vandalism; 8. Riot or civil commotion; 9. Contact with bird or animal; or 10. Breakage of glass. If breakage of glass is caused by a collision or if loss is caused by contact with a bird or animal, you may elect to have it considered a loss caused by collision.	B. Definition of Collision The distinction between "collision" losses and other covered losses is important only if the deductibles are different, or if the insured elects not to have collision coverage. The definition of collision and the listing of types of losses not to be considered collision are attempts to minimize any disputes when the distinction does make a difference. (See Technical Report: "Blowouts") The provision at the bottom of this section: (i) prevents the application of two deductibles when a collision causes glass breakage, and (ii) allows the insured to have an animal collision claim paid with whichever coverage has the lower deductible.
Transportation Expenses In addition, we will pay up to $20 per day, to a maximum of $600 for transportation expenses incurred by you. This applies only in the event of the total theft of your covered auto. We will pay only transportation expenses incurred during the period: 1. Beginning 48 hours after the theft; and 2. Ending when your covered auto is returned to use or we pay for its loss.	Transportation Expenses These payments may be used for any type of substitute transportation, including a rental car, bus or taxi. Note the very limited application of this extension to the total theft of the covered auto. Endorsement 523 is available for an additional premium to provide this coverage for other types of covered losses and to provide a higher limit on theft-related claims.
Exclusions We will not pay for: 1. Loss to your covered auto while it is: a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool; or b. being used to carry property for a fee; this does not apply to you or any family member unless the primary usage of the vehicle is to carry property for a fee; or c. rented or leased to another; this does not apply if you or any family member lends your covered auto to another for reimbursement of operating expenses only.	Exclusions 1. Use for a Fee Same as the liability exclusion.
2. Damage due and confined to: a. wear and tear; b. freezing; c. mechanical or electrical breakdown or failure; or d. road damage to tires. This exclusion (2.) does not apply if the damage results from the total theft of your covered auto.	2. Expected Losses The most common legal interpretation of this exclusion allows coverage for ensuing loss caused by an intervening factor which leads to a covered loss. Examples include a tire blowout which results in a collision, and a deteriorated wire which shorts and causes a fire. The exception to the exclusion allows coverage for any of these otherwise excluded perils if the damage occurs after the vehicle has been stolen. (See technical article "Blowouts" in the BAP section)
3. Loss due to or as a consequence of: a. radioactive contamination; b. discharge of any nuclear weapon (even if accidental); c. war; d. civil war; e. insurrection; or f. rebellion or revolution.
4. Loss to stereos, radios and other sound reproducing equipment. This exclusion (4.) does not apply if the equipment is permanently installed in your covered auto.	4. Sound Reproducing Equipment Sound reproducing equipment would include tape and disc players. The phrase "permanently installed" is not defined and is generally interpreted to include equipment that is bolted to the vehicle in some way to prevent easy removal. Contrast this wording with the more solid qualifications of installation indicated in Exclusion #9. There is a $1,500 limit on this property (see Limit of Liability section). Use Endorsement 521 to insure these items on a specific basis for full value with no deductible.
5. Loss to tapes, records or other devices for use with equipment designed for the reproduction of sound.	5. Sound Reproduction Devices "Other devices" would include compact discs. Endorsement 520 provides a limited buyback for these items.