Insuring Personal Auto Exposures
CISR With Correct Answers.
Eligibility Requirements for an ISO Personal Auto Policy - Answer 1. Ownership
2. Type of Vehicle
3. Usage
In addition to meeting the eligibility requirements, clients must also meet the
insurance company's underwriting requirements. Since underwriting requirements
differ among insurance companies, company‐specific underwriting requirements are
not part of this course. One more note regarding eligibility. It is important not to
confuse eligibility with coverage, as eligibility does not determine coverage. Eligibility
is based on the ownership, vehicle, and usage requirements at the time of
application, while coverage is determined by policy language at the time of loss.
Eligibility Requirements - Ownership - Answer Ownership is the first eligibility
requirement to consider. Vehicles must be owned (including a vehicle leased for a
period of at least six months) by any of the following:
1. Individual
2. Individual and spouse who reside in the same household
1. Two individuals who jointly own a vehicle Individuals who are related and live in
the same household
Mike lives with his mother Martha. Martha is helping her son buy his first car. The car
is titled to both Mike and Martha.
2. Individuals who are related and live in different households.
Kathy's son Adam lives in an apartment across town. The car is driven by Adam and
is titled in both Kathy and Adam's names.
3. Individuals who are not related and live in the same household
Daniel and Lindsay share an apartment. They own a vehicle titled to both of them.
The Joint Ownership Coverage endorsement is used when two individuals jointly
own a vehicle.
3. Trust Owned
The Trust Endorsement allows a vehicle whose title has been transferred to a trust to
be considered owned by a person for coverage purposes.
The grantor of the trust must be an individual, or individual and spouse.
All vehicles on the policy must be owned by the trust.
A vehicle owned by a corporation, LLC, partnership, or any other legal entity is not
eligible to be written on a Personal Auto Policy.
Eligibility Requirements - Type of Vehicle - Answer Private Passenger Autos
Private passenger autos are eligible to be written on an ISO Personal Auto Policy,
which include pickups or vans if certain conditions are met.
Private Passenger Autos:
4‐wheel motor vehicle (other than a truck type)
May not be used for public or livery conveyance (held out to the general public for
hire, such as taxi, Uber, Lyft, )
May not be rented to others
CISR With Correct Answers.
Eligibility Requirements for an ISO Personal Auto Policy - Answer 1. Ownership
2. Type of Vehicle
3. Usage
In addition to meeting the eligibility requirements, clients must also meet the
insurance company's underwriting requirements. Since underwriting requirements
differ among insurance companies, company‐specific underwriting requirements are
not part of this course. One more note regarding eligibility. It is important not to
confuse eligibility with coverage, as eligibility does not determine coverage. Eligibility
is based on the ownership, vehicle, and usage requirements at the time of
application, while coverage is determined by policy language at the time of loss.
Eligibility Requirements - Ownership - Answer Ownership is the first eligibility
requirement to consider. Vehicles must be owned (including a vehicle leased for a
period of at least six months) by any of the following:
1. Individual
2. Individual and spouse who reside in the same household
1. Two individuals who jointly own a vehicle Individuals who are related and live in
the same household
Mike lives with his mother Martha. Martha is helping her son buy his first car. The car
is titled to both Mike and Martha.
2. Individuals who are related and live in different households.
Kathy's son Adam lives in an apartment across town. The car is driven by Adam and
is titled in both Kathy and Adam's names.
3. Individuals who are not related and live in the same household
Daniel and Lindsay share an apartment. They own a vehicle titled to both of them.
The Joint Ownership Coverage endorsement is used when two individuals jointly
own a vehicle.
3. Trust Owned
The Trust Endorsement allows a vehicle whose title has been transferred to a trust to
be considered owned by a person for coverage purposes.
The grantor of the trust must be an individual, or individual and spouse.
All vehicles on the policy must be owned by the trust.
A vehicle owned by a corporation, LLC, partnership, or any other legal entity is not
eligible to be written on a Personal Auto Policy.
Eligibility Requirements - Type of Vehicle - Answer Private Passenger Autos
Private passenger autos are eligible to be written on an ISO Personal Auto Policy,
which include pickups or vans if certain conditions are met.
Private Passenger Autos:
4‐wheel motor vehicle (other than a truck type)
May not be used for public or livery conveyance (held out to the general public for
hire, such as taxi, Uber, Lyft, )
May not be rented to others
