Question 11

Property insurance policies cover lots of damages loss caused directly or indirectly. But not all. There are still some loss excluded regardless of any other cause or event contributing concurrently. Why do property insurance policies contain exclusions? Will an exclusion result in partial recovery? Illustrate your answer to the previous two questions with examples from the HO.

Question 12 

Bob, the named insured, is an auto mechanic. Bob and his wife, Belle, own and drive a Ford. They have 2 children, Ben and Bill. Ben, age 26, is in the U.S. Army, and comes home to visit about twice a year. Bill is 16, lives at home and has a learner’s permit but no permanent drivers license. Ben often rents cars on weekends and drives battle tanks as his assignments. Bob drives the church van to pick-up older members each Sunday. He also test drives vehicles after he has repaired them at his place of employment, Barney’s Garage. Bill has been known to lend the family car to his teenage pal, Bubba. Once, Bubba actually lent the auto to his girlfriend, Brenda. Explain why or why not each of the following characters has coverage under Part A of the PAP. Does the PAP provide coverage if a named insured drives a non-owned auto? What is the definition of a “non-owned auto?