Under which of the following circumstances would Sue's PAP pay something for the loss?
A) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount LESS THAN her neighbor's limit of liability.
B) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount MORE THAN her neighbor's limit of liability.
C) Sue regularly uses her car in a business to drive college students to the airport for $50 one-way. She causes an accident and is sued by one of her paying passengers.
D) Sue is sued for causing a collision while operating a motorcycle.

Question

Quizplus · Accepted Answer

In scenario B, Sue's Personal Auto Policy (PAP) would pay for the loss if the amount she is sued for exceeds her neighbor's limit of liability. This is because PAP typically acts as excess insurance over any other valid and collectible insurance when the insured is driving someone else's car with permission.

Under Which of the Following Circumstances Would Sue's PAP Pay