OLT-Breakroom: Question about Endorsments

Can anyone help me understand the correct answer to the below question?

John is allowed use of a company car; what endorsement should he add to the PAP?

Choose one answer.

	A. Towing and Labor
	B. Joint Ownership Coverage
	C. Extended Non-Owned Coverage
	D. Named Non-Owner Coverage

As you can see I failed my firts attempt and I believe that the reason why I failed is

because John has already a PAP, which means he owns a car, and Named Non-Owner is for people who do t have a

car, so neither PAP. In that case the employer would need to add this endorsement to their policy.

Is my conclusion correct?

Re: Question about Endorsments

by Jan Bradburn- - Tuesday, 16 July 2013, 7:51 AM

Allende,

You are correct. The Named Non-Owned endorsement is for individuals who do not own a vehicle. The Extended Nonowned Coverage is for individuals who have a PAP, but they are extending coverage to a nonowned vehicle.

Jan

Re: Question about Endorsments

by Deleted user - Saturday, 19 October 2013, 10:52 PM

Jan,

Going back to the PAP endorsments:

Named Nonowner Coverage: Provides Liability, Medical payments and UM coverage for a named individual who does not own an automobile, to cover operations of autos owned by others.

If I'm not mistaken, the three coverages(A, B and C) offer coverage for any person while occupying the covered auto(nonowner). Then, wouldn't this endorsment overlap with the standard PAP coverage? The only thing I can think the edorsement would provide extra is coverage "while a pedestrian".

Re: Question about Endorsments

by Jan Bradburn- - Sunday, 20 October 2013, 9:11 AM

Allende,

There could definitely be some "overlap" of the owner's PAP coverage with the Named Nonowner coverage, in which case the owner's coverage would apply first. But remember that Med Pay and UM are optional coverage, so the vehicle's PAP may not have this coverage. Also, if I did not own a vehicle and I had regular useof a vehicle with only 10/20/10 liability, I would want additional liability coverage. If the driver who does not own the vehicle is at-fault in an accident, they will be sued along with the vehicle owner if they do not carry enough liability coverage.

Jan